Business Plan Parts (4-10) Flashcards
fourth part of a business plan
The Target Customers and the Main Value Proposition to the Customer
The target customer must be:
1.Sufficient size
2.Sufficient paying capacity
3.Sufficient interest to purchase the product
unique selling proposition of the enterprise.
Main Value Proposition
The business plan should pinpoint these after knowing where the target customers are exactly concentrated:
What the customer but
How they buy
When they buy
Where they buy
What convinces them to buy
Knowing these will help ______.
What the customer buy
How they buy
When they buy
Where they buy
What convinces them to buy
to justify the exact locations and marketing channels to be employed by the enterprise.
Four Levels of Segmentation
Geographic
Demographic
Psychographic
Behavioral
Can help define the business’ primary target audience.
Four Level of Segmentation
Four Levels of Primary Target Audience
- Where are they (Geographic)
- Why do they buy (Psychographic)
- Who are they (Demographic)
- How do they buy (Behavioral)
Fifth part of a Business Plan
Market Justification Based on the:
a. Supply and Demand Situation
b. Customer Needs and Wants
c. Industry Dynamics
d. Macro-Environmental Factors
The business plan should estimate the total market supply and determine the major critical factors that influence this market demand and supply.
Supply and Demand Situation
The future forecast will follow past trends if __.
If critical factors are expected to remain the same
Future estimate of demand and supply should be revised according to the new variables influencing the demand and supply if ___.
If critical factors are expected to change.
Forecasting the future demand and supply is assessing the:
Supply and Demand Situation
The market analysis and forecasting exercise should lead to a quantification of the current and prospective size of the market. Both the current and potential consumption should then be dissected.
Customer Needs and Wants
The ___ discusses these questions:
1. Who are the competing enterprises in the industry and what are their comparative advantages and disadvantages? What business models and strategies are they employing?
2. Who are the suppliers in the industry and what are their capabilities and bargaining power?
3. What are the channels of distribution being used by the industry? How effective are these channels?
Industry Dynamics
Macro-environmental Factors
SPEET
Socio-Cultural
Political
Environmental
Economic
Technological
Should highlight the business opportunities and threats in the market.
Macro-environmental Factors
Sixth section of the business plan
The Product and Service Offering: Description, Evolution and Justification.
Portfolio
Features and Benefits
Problem and Solution
Innovation
Proprietary advantages
Development stage
Product life-cycle
Limitations
Visual aids
Description
a cycle where the products evolve in terms of features, functionalities, quality, offerings, technology etc. over time to better serve its purpose and customer needs.
Evolution
- reasons for undertaking a project.
- answers the question “Why is this project needed?”
- drives all decision-making related to a project.
Justification
Seventh Part of a Business Plan
The Enterprise Strategy and Enterprise Delivery Systems: Business Competitiveness
Process of the EDS
- Input (Resource Mobilized)
- Throughput (The transformation process where input are converted to output)
- Output (Products/Services)
- Marketing
- Desired Outcomes
Business outcome should reasonably include:
- high customer satisfaction level;
- high sales volume, market share, and market reach;
- high financial returns; and
- high people performance, productivity, and moral level
