Which section of a business plan determines if there is a large enough customer pool for a product or service?

• A. Executive summary
• B. Operations plan
• C. Market analysis
• D. Financial projections

Answer: (C)

Verified step by step guidance

1. Understand the purpose of each section of a business plan: The Executive Summary provides an overview, the Operations Plan details how the business will operate, the Market Analysis examines the target market, and Financial Projections forecast future financial performance.
2. Focus on the Market Analysis section, which is designed to evaluate the size and characteristics of the customer base for the product or service.
3. Recognize that determining if there is a large enough customer pool involves researching market demand, customer demographics, and potential market share, all of which are covered in the Market Analysis.
4. Conclude that the Market Analysis section is the part of the business plan that assesses whether the market is sufficient to support the business.
5. Therefore, the correct answer is Market Analysis, as it directly addresses the question of customer pool size.