Business Plan - Market Analysis

A Venture capitalist is always looking for ways to validate the claims in Business Plans. They are expecting solid market research for the demand of your products or services in near and long term future. Once the potential of the product / service is established, venture capitalist feels much at ease to invest in your venture. So a thousand dollars spent on a market research report from a reputable source is money well spent. After all, this single report can get you millions of dollars in funding. So let us build a strong case for RFID based Solutions that BusinessWorks plans to sell. I would like to thank Steve Rucinski of Small Business CEO for pointing me to Research available on Eye For Transport .

Market Research: A reputed market research company, recently concluded a survey about RFID in transportation sector. A blend of Third-Party Logistics ProviderS (3PL), Trucking services, Warehousing, Air, Ocean and Rail Freighters were selected for this survey. Results were surprising and very favorable towards the business model, BusinessWorks plans to implement. Survey indicated 75% of the market is still untapped. Larger percentage of rest of the market was piloting a solution and a very small percentage had actually rolled out a solution. Over 90% of the untapped market is either researching the feasibility of the RFID solutions or "waiting" to see the results of other companies. Customer compliance, improved efficiency and information accuracy are the most important reasons why companies are interested in RFID solutions. This is no surprise as Wal-Mart is one customer, many companies would like to please. Second most important reasons are the prospects of winning new customers and security improvements satisfying government regulations.

Obstacles in implementing RFID solutions were also considered in this survey. Biggest impediment is high cost of RFID hardware, software and integration to achieve a fast ROI. Other barrier is lack of industry standards. Survey also indicated that respondents felt, the business case to implement RFID solutions was not strong enough. As the technology matures, these obstacles will come in focus and will be resolved in next 12 to 18 months.

Survey clearly concludes, demand for RFID solutions is clearly on the rise and is Customer driven. Indecisiveness due to lack of RFID industry standards, will soon decline, once the usage increases.

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