Business plan Guide Pt 2

We covered the first part of our 3 part series of writing a detailed yet practical business plan. In this article, you will learn more about your market, how to position your business, pricing your services or products.

Define the Market:
  • Present the findings from your market analysis.
  • What is the size of the market?
  • What does the market look like in terms of structure?
  • Identify growth potential within the market.
  • What trends exist in the current market?
  • Estimate your opportunity for sales.
  • What is your target market?
  • How is your target market segmented?
  • From this total target market, how many individuals are likely clients?
Projecting Market Share:
  • How much change do you project in the total number of users?
  • What is your expected conversion rate of customers throughout various stages of the business life cycle (early pioneer users, early users, early majority users, late majority users, and late users)?
Business Positioning:
  • How are your current competitors positioned in the market? (Module 2)
  • What differentiates your product from your competitors positioning? (Module 1)
  • How does your problem statement impact your positioning? (Module 1)
  • How will you set your prices?  Why?
Distribution of products or services
  • How will you move your product or service from your business (production or service providers) to the customer?
  • How does your decision correspond or vary with the strategies utilised by your competitors? Please explain the reasoning behind your decision to follow a similar course of action or vary this structure.
  • How will you promote your product?
  • What are the varying elements that make up your marketing and promotion plan (advertising, packaging, branding, public relations, sales promotions, personal advertising)?
Sales Potential
  • Given your definitions regarding market, positioning, pricing, distribution, sales, and marketing, what is the quantitative outlook for your company? What is your revenue model?  Consider multiplying the total number of people by the average revenue per customer in order to calculate your sales projection.
  • Consider how different segments of the market will impact your sales potential in different and related ways.

Check out the last segment of the Business plan guide series