Business Plan Part One

A business plan can seem overwhelming and daunting. I should know. Even the very mention of it used to make me cringe. So I learned and applied myself to understanding it better. Here is a breakdown for you

Executive Statement

Is a combination of your Mission statement and your company information.

Mission Statement 

A short statement of the business overview. It is about one sentence long. It should include your core values. Entrepreneur states this  A sentence describing a company’s function, markets and competitive advantages; a short written statement of your business goals and philosophies .

Here are a few examples

Vogue Magazine “A commitment to visual genius, investment in storytelling that puts women at the center of the culture, and a selective, optimistic editorial eye.”

NPR :”To work in partnership with member stations to create a more informed public – one challenged and invigorated by a deeper understanding and appreciation of events, ideas and cultures.” (28)

IKEA “So together, we save money for a better everyday life,”

Company Information 

According to the US Small Business Administration Company information contains the following “ Include a short statement that covers when your business was formed, the names of the founders and their roles, your number of employees, and your business location(s).”

Company Overview

Bplans writes “Think of [the company overview] as the “who, what, when, where, and why” of your business.” This could be your elevator pitch.

Products and Services 

 Describe the companies planned product and or services. Differentiate your offering from current products/services attempting to solve the same problem. Patents, copyrights, and trademarks you own or have applied for should also be listed in this section.

Market Analysis 

Clearly define your company’s value proposition researching.

• Target Audience ( A.K.A your ideal client)

• Market Segmentation  ( Dividing potential customers into groups. This could be more than one type of ideal client.)

• Market Needs ( Is there a need/want for your product?)

• Market Trends

• Market Growth

• Distribution Patterns

• Competition

Strategy and Implementation 

SWOT Analysis:

• Strengths (What do you do better than anyone else?)

• Weaknesses (What could you improve?)

• Opportunties

• Threats

Unique Selling Proposition (USP)

How is your business different from your competition? How will you implement on a day-to-day basis your marketing strategy.

Pricing Strategy

• Competition based pricing- Competitors prices

• Premium Pricing-Setting price high. Margins over volume

• Loss Leader: Setting prices lower to edge out competition. Volume over margin

• High Low Pricing: Setting prices high but giving discounts and sales

 Promotion and Advertising Strategy

Blogging is a cost effective way for build an audience for content marketing strategies. According to Content Marketing institute, content marketing can be defined as “Content marketing is about attracting an audience to an experience (or ‘destination’) that you own, build, and optimize to achieve your marketing objectives.”

Blogging builds an audiences and develops trust from that audience. Is shows expertise in a specific area educating potential clients.

Other types of advertising are:

• Word of Mouth-Still one of the most effective way to gain clientele.

• Affiliate Marketing: Commision Based service

• Direct Mail : Physical mail, postcards, flyers ect

• Online Social Media: Platforms to engage and inform your audience.

• Print Media: Newspapers, Magazines, and media kits.

Commercialization Plan

Intellectual Property

Refers to creations of mind: literary and artistic works,symbols, names, and designs use commerce.

Types 

• Patents – New ideas / Inventions

• Copyrights-Works of authorship ex book,art,and movie ect

• Trademarks-Logo or Name

• Trade Secrets -Formation (aka coca cola)

Financial Plan

Cash Flow: How much Cash is invested to start your business? Can be amalgamation of your cash and investor cash flow.

Expenses : A list of all your current and future expenses. An example

• Health Insurance

• Rent/Mortgage

• Advertising

• Office supplies

• Website Design

• Branding

Forecasted Sales  : Set up a spreadsheet projecting your sales over the course of three years. Inc.com  explains : “Gross margin is sales less cost of sales, and it’s a useful number for comparing with different standard industry ratios.” If it’s a new product or a new line of business, you have to make an educated guess.”