Executive Summary Of Your Business Plan Part 2

SWOT Analysis Worksheet Strengths Weaknesses Opportunities Product/ Service Offering Brand/ Marketing Staff/HR Finance Operations/ Management Market Can any of your strengths help with improving your weaknesses or combating your threats? If so, please describe how below. Based on the information above, what are your immediate goals/next steps? Based on the information above, what are your long-term goals/next steps? Threats 4. Product/service features and benefits Describe all of your products or services, being sure to focus on the customer’s point of view. For each product or service: Describe the most important features. What is special about it? Describe the most important benefits. What does it do for the customer? In this section, explain any after-sale services you plan to provide, such as: Product delivery Warranty/guarantee Service contracts Ongoing support Training Refund policy 5. Target customer Describe your target customer. (This is also known as the ideal customer or buyer persona.) You may have more than one target customer group. For instance, if you sell a product to consumers through distributors, such as retailers, you have at least two kinds of target customers: the distributors (businesses) and the end users (consumers). Identify your target customer groups, and create a demographic profile for each group that includes: For consumers: Age Gender Location For businesses: Industry Location Size Income Occupation Education level Stage in business (startup, growing, mature) Annual sales 6. Key competitors One of the biggest mistakes you can make in a business plan is to claim you have “no competition.” Every business has competitors. Your plan must show that you’ve identified yours and understand how to differentiate your business. This section should: List key companies that compete with you (including names and locations), products that compete with yours and/or services that compete with yours. Do they compete across the board, or just for specific products, for certain customers or in certain geographic areas? Also include indirect competitors. For instance, if you’re opening a restaurant that relies on consumers’ discretionary spending, then bars and nightclubs are indirect competitors. Use the Competitor Data Collection Plan on the next page to brainstorm ways you can collect information about competitors in each category. Competitor Data Collection Plan Price Benefits/Featur es Size/profitabilit y Market strategy Once you’ve identified your major competitors, use the Competitive Analysis Worksheet on the next page to compare your business to theirs. Competitive Analysis Worksheet For each factor listed in the first column, assess whether you think it’s a strength or a weakness (S or W) for your business and for your competitors. Then rank how important each factor is to your target customer on a scale of 1 to 5 (1 = very important; 5 = not very important). Use this information to explain your competitive advantages and disadvantages. FACTOR Me Competitor A Competitor B Competitor C Products Price Quality Selection Service Reliability Stability Expertise Company Reputation Location Appearance Sales Method Credit Policies Advertising Image 7. Positioning/Niche Now that you’ve assessed your industry, product/service, customers and competition, you should have a clear understanding of your business’s niche (your unique segment of the Importance to Customer market) as well as your positioning (how you want to present your company to customers). Explain these in a short paragraph. 8. How you will market your product/service In this section, explain the marketing and advertising tactics you plan to use. Advertising may include: Online Print Radio Cable television Out-of-home Which media will you advertise in, why and how often? Marketing may include: Business website Social media marketing Email marketing Mobile marketing Search engine optimization Content marketing Print marketing materials (brochures, flyers, business cards) Public relations Trade shows Networking Word-of-mouth Referrals What image do you want to project for your business brand? What design elements will you use to market your business? (This includes your logo, signage and interior design.) Explain how they’ll support your brand. 9. Promotional budget How much do you plan to spend on the marketing and advertising outreach above: Before startup (These numbers will go into your startup budget) On an ongoing basis (These numbers will go into your operating plan budget) Use the Marketing Expenses Strategy Chart on the next page to help figure out the cost of reaching different target markets. Marketing Expenses Strategy Chart Target Market 1 Target Market 2 Target Market 3 One-Time Expenses Monthly or Annual Expenses Labor Costs Download the Annual Marketing Budget Template. Using the information you’ve gathered, create your annual marketing budget. 10. Pricing You explained pricing briefly in the “Products & Services” section; now it’s time to go into more detail. How do you plan to set prices? Keep in mind that few small businesses can compete on price without hurting their profit margins. Instead of offering the lowest price, it’s better to go with an average price and compete on quality and service. Does your pricing strategy reflect your positioning? Compare your prices with your competitors’. Are they higher, lower or the same? Why? How important is price to your customers? It may not be a deciding factor. What will your customer service and credit policies be? Use the Pricing Strategy Worksheet on the next page to help with your pricing. Pricing Strategy Worksheet Business Name Which of the following pricing strategies will you employ? Circle one. Cost Plus The costs of making/obtaining your product or providing your service, plus enough to make a profit Value Based Other: Based on your competitive advantage and brand (perceived value) Provide an explanation of your pricing model selection. Include strategy info on your major product lines/service offerings. List industry/market practices and any considerations to be discussed with your mentor. 11. Location or proposed location If you have a location picked out, explain why you believe this is a good location for your startup. If you haven’t chosen a location yet, explain what you’ll be looking for in a location and why, including: Convenient location for customers Adequate parking for employees and customers Proximity to public transportation or major roads Type of space (industrial, retail, etc.) Types of businesses nearby Focus on the location of your building, not the physical building itself. You’ll discuss that later, in the Operations section. 12. Distribution channels What methods of distribution will you use to sell your products and/or services? These may include: Retail Direct sales Ecommerce Wholesale Inside sales force Outside sales representatives OEMs If you have any strategic partnerships or key distributor relationships that will be a factor in your success, explain them here. If you haven’t yet finalized your distribution channels, use the Distribution Channel Assessment Worksheet on the next page to assess the pros and cons of each distribution channel you are considering. Distribution Channel Assessment Worksheet Distribution Channel 1 Ease of Entry Geographi c Proximity Costs Competito rs’ Positions Manageme nt Experience Staffing Capabilitie s Marketing Needs Distribution Channel 2 Distribution Channel 3 13. 12-month sales forecast Download the Sales Forecast spreadsheet and use it to create a month-by-month sales projection. If you’ve already made some sales, you can use those as a basis for your projections. If, like most startups, you haven’t sold anything yet, you’ll need to create estimates based on your market research, your proposed marketing strategies and your industry data. Create two forecasts: a “best guess” scenario (what you really expect) and a “worst case” scenario (one you’re confident you can reach no matter what). Keep notes on the research and assumptions that go into developing these sales forecasts. Financing sources will want to know what you based the numbers on. After reading the Marketing Plan section, the reader should understand who your target customers are, how you plan to market to them, what sales and distribution channels you will use, and how you will position your product/service relative to the competition. A SCORE mentor can help you complete your Marketing Plan tailored for your business. Find a SCORE mentor.