Page 4

from other similar businesses. Just saying "It is better" is not enough. You must tell how it is better. Every business claims to be "high quality, better service." While a business must have quality and good service, it is no real selling point, since the consumer is bombarded with that claim at every turn. One can not bore a reader into buying their proposal! One must convince them about their product or service. If it can not be done here, it wont be done in the market place when the business starts. Positioning Position is your place in the marketplace. How the customers and your competitors perceive your company's product or service refers to its position. This is based on your customers and competition, not your product or enterprise alone. It is the relationship to customers and competition that is emphasized. A business does not have to be the leader or potential leader to be profitable, it does however need to know where it stands or will stand in the industry. This understanding of positioning will aid in the promoting of the company. Avis car rental did quit well with "We're number two, We try harder." Pricing Describe what the charge for the product or service is, and how one calculated the price. Once the pricing and rationale are explained, discuss where this pricing strategy places the company in the spectrum of the other providers of this product or service. Also, explain how the price will affect getting the product or service accepted. Tell also how price will affect the companies market share. It is not necessary to assume that lower pricing increases market share. Sometimes higher prices, as with prestige items, may have the effect of increasing the product's market share. Remember that lower prices require higher volume to achieve the same sales totals. A slightly higher price may not effect the total number of sales but may greatly influence gross profits. III. THE MARKET This section is designed to provide enough facts to convince an investor, or potential partner that the business has enough customers to garner sales despite the competition. It is one of the most important parts of the plan, taking into account current market size and trends, and may require extensive professional level research. Having accurate and factual information about the market and presenting it in a cohesive and understandable way shows that the entrepreneur understands her business endeavor. 1) 2) 3) 4)

Customers Market Size and Trends Competition Estimated Sales

Customers It is important to be specific when describing the customers who will call for the product or service. This description defines the characteristics of the people the endeavor wants to sell to. An existing business should list their current key customers and any sales trends or patterns. A new business should look at the demographics of the potential customers.

4

Business Plan  

How to write a business plan.

Read more
Read more
Similar to
Popular now
Just for you