A successful business plan combines and conveys substantiated and factual data, passion and enthusiasm for the business idea and accurate industrial knowledge in the chosen market industry. After completion of the first two stages of a business plan; the executive summary and the management or organisational plan, the next segments to compile will be the marketing plan and a description of the product the business will be offering.
The Brain of the Business: The Product
As the brain of the business and the dream of the entrepreneur, the product that is being sold has to be able to be clearly communicated and described to the investor. In constructing the business plan, the entrepreneur should already have a clear mental definition and description of the product ensuring that the idea communicated is viable. Important details for the product and services sections can be:
- Product description and the target market or niche it will occupy
- Product innovations, suppliers of raw materials and sales forecast
- Competitive advantage over other products in the industry
- Possible future product modifications and innovations
The Marketing Plan
This section of the business plan will conceivably be segmented into two sections, the market analysis summary and the products strategic implementation. The market analysis will be an in depth analysis of the:
- The businesses main target market
- Data on the trends in the chosen market such as its needs and growth
- The main competitors in the market
- Information on buying and distribution patterns in the industry
- The 4 P’s of Marketing:
- Pricing
- Promotion
- Product
- Place Strategy
- The sales and competitive marketing positioning strategy
- Product distribution strategies
- Strategic alliances that will benefit the business enterprise
As the data collected and research conducted transforms itself into a more cohesive and solid document, the business plan should not be considered a once off document to impress investors, but should be a continuously updated, living document that should be used all throughout the organizations development and growth as a guide to keep the business on track.
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