In your business plan you will need to evaluate the typical consumers within the market segments you are targeting. There are countless variables to consider when analyzing consumer behavior. Try to focus on those behavioral possibilities that best determine how viable your product will be in your target markets. Look at:
1.Which features will most appeal to consumers?
2.How are choices made between competing products?
.Which marketing promotions or media avenues seem to offer the best vehicles for reaching the consumer base?
And ask the following questions:
.How much disposable income do target consumers have to spend on this product?
2.How do your target consumers reach purchasing decisions?
.Are consumers resold on a particular brand before they visit a store or do they buy on impulse?
.What characteristics influence the purchase of one product or service over a competing one?
3.2 Marketing program
Outline the details and steps necessary to reach potential customers and convert them from prospects to paying customers. It is important to demonstrate to investors that you have identified specific marketing avenues and procedures to effectively sell your product or service. Answer questions such as the following in your marketing program section:
.What specific marketing mediums will you use to reach your customer?
2.How often will each be used?
.What will each cost?
.Why did you choose these marketing avenues over others?
.What marketing materials will you need? (business cards, brochures, website, etc)
.Who will design your marketing materials?
.Who will write the text for your marketing materials?
.Why did you decide to employ these materials and not others?
.What is the cost of marketing materials per prospect or client? (You may choose to include marketing pieces in the appendix of your business plan)
.Will your company be able to attract free PR?
.Who will write your press releases, manage the process, and maintain relationships with editors?
.What dollar value will you invest to obtain and maintain PR results?
.How will your marketing and PR efforts change as your business grows?
Advertising and promotion.
Use this section to provide an overview of your general promotional plan. Give a breakout of what methods and media you intend to use and why. If you have developed an advertising slogan or unique selling proposition you may mention it, but it isnt strictly necessary.should outline the proposed mix of your advertising media, use of publicity, and other promotional programs:
.Explain how your choice of marketing vehicles will allow you to reach your target market;
2.Explain how they will enable you to best convey your product features and benefits.
Be sure that your advertising, publicity, and promotional programs sound realistic, based upon your proposed marketing budget. Effective advertising, generally, relies on message repetition in order to motivate consumers to make a purchase. If you are on a limited budget, it is better to reach fewer, more likely prospects, more often, than too many people occasionally.
Sales strategy needs to be in harmony with your business strategy, marketing strategy, and your companys strengths and weaknesses. For example, if your start-up company is planning on selling products to other businesses in a highly competitive marketplace, your market entry will be easier if you rely on wholesalers or commissioned sales representatives who already have an established presence and reputation in the marketplace. If your business will be selling high-tech products with a range of customized options, your sales force needs to be extremely knowledgeable and personablemarketing plan is typically designed to establish a framework for management to use as they pursue the marketing and sales objectives. It should be built on the results of your market research and the specific value proposition of your product or service. In general, a marketing plan is a limited form of a business plan that has a limited scope and the marketing emphasis.to any other business document, it is not only important for the marketing plan to have the right content, but it must also be presented in a way that is informative and maintains the reader's interest.
3.3 Competitive factors
In this section you need to do an in-depth analysis of the competitive advantages and weaknesses of your firm. When exploring weaknesses you should include information that will help allay any concerns that may arise as to their ability to significantly hinder your success.section is important, especially if your company is a start-up, because you will, typically, be competing with established companies that have inherent advantages such as financial strength, name recognition, and established distribution channels.your competitors: list competitors by name, location, and their strengths and weaknesses; your competitive strategy - how you will succeed against them; how they will react to your entry into the market.
4. Company organization
4.1 Operations Plan
The operation plan deals specifically with the internal operations and equipment necessary to produce your product or service. The following are selected areas that need to be addressed in this section: Location: Where will your business be located? What square footage is needed, in how many locations? What type of space is it - office, warehouse, manufacturing, or a combination? What is the advantage, if any, of your location? At what point will the goals of the business exceed the above-mentioned facilities? Provide a layout of your facility in the appendices of your business plan. Equipment: outline and describe the significant equipment needed, including cost. What does the equipment do, how do the pieces function together, and how much can be produced? Will you purchase or lease your equipment? Why and from whom? Be sure to include manufacturing equipment, vehicles, computers, and office equipment. Labor: How many employees will you need? Full-time? Part-time? Break them out by function, number of hours worked, and hourly pay. Describe the skill sets needed. What are the salaries of those in management, production, distribution, sales and administration? Will you run multiple shifts? What are your hours of operation? What criteria are used to locate and hire quality employees? Manufacturing and Service Process: Walk the reader through your manufacturing and service process from raw material through finished product. Where will you obtain and store raw materials? Outline your key suppliers, the purchasing process, and unique purchasing requirements. Where will finished goods be stored, and what is the associated space and cost? How will finished goods (or services) be distributed? What is the lead-time for the entire process? How will quality be measured, controlled, and improved? Explain the technology requirements for your manufacturing process.including a start-up schedule, or if you are currently in business provide a schedule as to how your future plans will progress over the next 12 to 18 months. You may wish to include a chart in your business plan that outlines the time frame associated with specific operational steps and goals.
Investors' in people rather than products, so sell the management team. Describe the management team at the initial stage and plans for the near future, including coverage for the owners unforeseen absence (sick time, etc.) during critical periods.good management team can take even a mediocre idea and make it work. In fact, strong entrepreneurial teams have been known to move from business idea to business, repeatedly creating and running thriving companies. These same teams can even turn around a struggling company. When looking for capital to turn around a company, special attention should be paid to this area. Often the people make the difference.Descriptionthis section to describe company management including the responsibilities and expertise of each person. Many lenders and venture capitalists base their investment decisions on the strength of the company's principals. Include special skills and abilities, as well as complementary aspects of the team's relationship.positions that have yet to be filled, detailed job descriptions, and who needs to be hired to achieve success must be described. Describe the talents these persons need to possess and how the addition of that person will help the company meet its objectives. Methods of recruitment and hiring should also be detailed.
5. Financial Plan
5.1 Financial Forecasts