Market analysis is useful when it helps a lender understand demand and competition. It should not be a generic industry summary copied from a search result. The most useful version explains the customers, the problem they have, the alternatives they use, and why the business can win enough work to support repayment.
Start with target customers. Identify who buys from the business, where they are located, how often they buy, and what triggers the purchase. A contractor, restaurant, clinic, manufacturer, and online retailer all have different demand signals, so the plan should be specific to the business.
Then describe competitors and substitutes. Competitors are not always identical businesses. A customer may choose a cheaper option, a larger provider, an internal workaround, or no purchase at all. Explain how the business is positioned against those choices.
Use local facts when possible. Territory, population, employer base, foot traffic, contract pipeline, referral sources, customer concentration, and online demand can all matter more than national industry statistics. The goal is to show market fit, not to prove that an entire industry is large.
End with the sales approach. Explain how customers will find the business, how leads become sales, and what supports repeat business. This ties the market section back to revenue projections and helps the lender see whether the plan is grounded in a realistic path to customers.