Essentials of business plan – Part II

Products and/or Services

Clearly describe the products and services the business will provide. (Without products or services you have no company.) Highly detailed or technical descriptions are unnecessary – use simple terms and avoid industry buzzwords. Describing how the company’s products and services will differ from the competition is critical; so too is describing how your products and services are needed if no market currently exists.

Patents, copyrights and trademarks owned or applied for should be listed.

Key questions to answer:

• Are products or services already on the market or still in development?
• What is the timeline for bringing new products and services to market?
• What makes the products or services different? Are there competitive advantages compared to other offerings from other companies? Are there competitive disadvantages that must be overcome in some other way?
• Is price an issue? Will operating costs be low enough to allow a reasonable profit margin?

Think of it this way; Products and/or Services answers the “What?” question for a business.

Market Opportunities

Market research is critical to business success. A good business plan analyzes and evaluates customer demographics, purchasing habits, buying cycles, and willingness to adopt new products and services.

Key questions to answer:

• What is your market? Include geographic descriptions, target demographics, company profiles (if business to business)… in other words, who are your customers?
• What part of your market will you focus on? (In other words, what niche will you attempt to carve out?) What percentage of that market do you hope to penetrate?
• What is the size of your intended market? (Population, spending, etc.)
• Why do customers need – and will be willing to purchase – your products and services?
• How will you price your goods or services? Will you focus on being the low cost provider, or on providing value-added services at a higher price?
• Will your market potentially grow? Why?
• How can you increase your market share over time?

Market Opportunities answers the “Who?” question.

Sales & Marketing

Offering great products and services is wonderful, but customers must know those products and services exist. Marketing plans and strategies are critical to business success.

Key questions to answer:

• What is your budget for sales and marketing?
• How will you determine whether marketing efforts are successful? How will you adapt if initial marketing efforts are unsuccessful?
• Will you need sales representatives to promote your products?
• What public relations activities do you plan (if any?)

Some business plans include examples of marketing materials: Website descriptions, print advertisement samples, etc. While including samples is not necessary, the exercise of creating actual marketing materials can help focus and shape overall marketing plans and objectives.

Sales & Marketing answers the “How will I reach them?” question.

***Note to readers: This is a four part series, wherein we will highlight every aspect of business plan ***