What is a business plan? why do a business plan? Know the 6 step business plan.
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| Business Plan |
What is a business plan?
Ans: A statement of your business objectives and
your plan for achieving them.
Why do a business plan?
- Create a blueprint for growth • Align the organization • Increase the odds of success • Raise money • Track your progress, adjust
Business Plan by 6 steps
- Analyze your Market and your Business
- Define your Marketing Positioning
- Define 3-year Sales & Earnings goals • Flex the Profit & Loss goals by month
- Create a current year Action Plan (top 5 priorities)
- Create a current year Profit & Loss Statement (P&L)
- Crete a current year Cash Flow projection (monthly)
Market Analysis
Know Your Market/Customer
- Market size, growth, segments • Key purchase drivers – Quality, cost, service • Demographics • Competitors • Distribution channels • Average Profit Margins • Seasonality, regionality • Key marketing drivers.
Data Sources
- Internet - Industry - Competitive • Public company reports • Government websites • Trade associations/shows • Trade publications • Be a customer!
Business Analysis
- Strengths, Weaknesses • What’s working, not working – Customer – Marketing – Financials – Operations – Management
What is your “Marketing Positioning”?
Why should your ideal prospects buy from you
rather than any of your competitors?
- Value Proposition
- Marketing Positioning
- Point of Difference
- Competitive Advantage
- Unique Selling Proposition (USP)
How do you define your “positioning”?
Target Customers
• Competitive frame of reference
• Competitive Advantage
Target Markets
(Market Segmentation)
Who do you serve?
• Demographics
• Geography
• Benefits
• Lifestyle
• Industry/Distribution channels
– Retail, Wholesale, Consumer Direct
– Size: Small, Medium, Large companies
– Industry: healthcare, financial, technology
Niche/Competitive Advantage
What makes your business different?
- Quality
- Price
- Innovation
- Service
- Speed
- Location
Think Benefits!
Key Business Drivers of any Action Plan
• Marketing
• Operations
• Management
• Financials
Marketing
The "5 P's"
• Positioning – target, competitors, advantage
• Product/Service
• Pricing
• Place – distribution channels/geography
• Promotion
Operations
• Sales and intermediaries
• Production, Logistics, Inventory & Supplier Mgt.
• Quality Control & Customer Service
• Billing & Accounts Receivable
• Office Space; Retail Location
• Technology Management.
Management
Organization – Key skill gaps?
• Outsourced (“virtual”) talent
– Accounting
– Legal
– Insurance
– Banker
– Mentor.
Financials
• Cost/Margin management
– Product, Administrative, Marketing/Selling, Benchmarking
• Cash management
– Inventory, Accounts Receivable, Capital, Seasonality
• Tax planning
• Monthly reporting
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