Sections in a business venture plan
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Sections in a Business Venture Plan. Executive summary Market analysis Resource analysis Operating strategy Financial strategy. Section 1: Executive Summary. One or two page summary of the most important points in your plan

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Sections in a Business Venture Plan

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Sections in a business venture plan

Sections in a Business Venture Plan

  • Executive summary

  • Market analysis

  • Resource analysis

  • Operating strategy

  • Financial strategy


Section 1 executive summary

Section 1: Executive Summary

  • One or two page summary of the most important points in your plan

  • Intended to introduce the venture and to capture the attention of the reader

  • Your chance to make a first impression!

  • Opens with mission statement and then a description of the business


Executive summary cont d

Executive Summary cont’d…

  • it appears at the beginning of the plan but cannot be written until all other sections are complete


Section 2 market analysis

Section 2: Market Analysis

  • Will your product satisfy the needs of the market?

  • Needs assessment/market analysis can help you identify potential customers, analyze your competition, set prices, and plan ways to advertise your venture


Register the business name

Register the Business Name

  • Make sure that no one else is already using the same name for a similar business

    • Only you can use it for legal/advertising purposes

  • Determine what kind of ownership you will adopt for your company


Knowing your market

Knowing Your Market

  • WHO will be buying your products or services?


Knowing your product or service

Knowing your Product or Service

  • Know it inside out!

  • Why is your product or service better than what the competition offers?

  • How easy is it for me to get the product or service? Exactly how much will it cost?

  • How does your company handle problems with the product or service?


Knowing your customers

Knowing Your Customers

  • Who are my customers and how do they fit into various demographic categories?

  • How did they find out about my business?

  • Where else have they purchased, or could they purchase products/services like mine?


Forms of marketing research

Forms of Marketing Research

  • Surveys/questionnaires

    • Questions to ask

  • Observation:

    • sit and watch

  • Experimentation/product sampling

    • Try it out with a small group and see how it works


Marketing research

Marketing Research

  • Provides data about customers, products, services, prices, advertising, and consumer behaviour

  • Project future sales

  • Tell entrepreneurs what products or services are in demand, what the main features or characteristics should be, and how the product or service should differ from the competition’s

  • Help entrepreneurs refine and adapt their products or services to appeal to more customers


Primary research

Primary Research

  • Interviewing people directly

  • Surveys, interviews, questionnaires


Secondary research

Secondary Research

  • Uses data that has already been collected by someone else.

  • Books, articles, web sites, etc.


Primary research1

Primary Research

  • Your questions need to

    • Motivate people to respond

    • Be easy to understand but not so simple that the questions lose their significance

    • Be brief enough to hold the attention of the respondent

    • Provide complete & accurate data

    • Give enough room to record answers

    • Be objective


Designing a questionnaire for primary research

Designing a Questionnaire for Primary Research

  • Statement of Purpose

    • Explain why you are doing the research and establish a positive relationship with the respondent

  • Questions

    • Get the perception of the customer on ideas such as price, quality, availability, etc.

    • Usually answers are given for them to choose from, but a few can be open-ended to get more information from them


Sections in a business venture plan

  • Demographic Information

    • Demographics – M/F, age, income, job, education level, etc.

  • Thank You


Let s review

Let’s Review

  • Explain the difference between primary and secondary research. Give an example of each.


Marketing strategy

Marketing Strategy

  • See handout


The marketing mix

The Marketing Mix

  • Every marketing plan needs a target market and a good mixture of marketing elements.

  • The right combination of these elements helps differentiate your idea from the competition!


The 4 ps of marketing

The 4 Ps of Marketing

  • Product

  • Place

  • Price

  • Promotion


Product or service

Product (or service)

  • Is the product/service something customers will want to buy?

  • Will it be of benefit to them?

  • Will it meet their needs?


Place

Place

  • How will the product get to the customer?

  • What channels of distribution are needed?

  • When should the product be in stock or ready?

  • Where will the product be made available?


Price

Price

  • How much are customers willing and able to pay?

  • What is the best price to charge to earn a maximum profit?


Promotion

Promotion

  • How will customers be made aware that the product or service is available?

  • Which of the following promotional activities will be best for this venture: advertising, personal selling, publicity, sales promotion, or e-marketing?


Confirming your target market

Confirming your Target Market

  • WHO will be the best people to sell to?

  • Target market: those individuals or organizations that are likely to want to use what you can provide


Market segmentation

Market Segmentation

  • The group of people who share common characteristics that your market is targeted toward

  • Canada:

    • Different jobs, different access to internet, different lifestyles, needs, wants, behaviours

    • Range in age, income,culture (beliefs, understandings, morals, values, customs, habits)


Sections in a business venture plan

  • People may be grouped in a segment because they:

    • Belong to the same culture

    • Have similar tastes and preferences

    • Share the same values or goals

    • Have the same socioeconomic background

    • Respect their group’s norms or rules of conduct


Think about for segmentation

Think about for segmentation:

  • Demographics:

    • Sex, age, marital status, family size, family life cycle stage (single, married, divorced, no kids yet, kids, etc.)


Sections in a business venture plan

  • Socioeconomic:

    • People of similar occupation, education, income, social class, or culture


Sections in a business venture plan

  • Geographic:

    • People who live in regions of the country that could be defined by a specific climate, or by provincial/regional boundaries


Sections in a business venture plan

  • Psychographic

    • Lifestyles or personality attributes

  • Behaviour patterns:

    • where/how often, when they shop, as well as media habits


Sections in a business venture plan

  • Consumption patterns

    • People who can be identified by their knowledge about, and loyalty to, particular products or brands


What about

What about…..

  • People who share the same birthday?

  • People with the same name?

  • People going to university right now?

  • People who are single parents and work full-time?


What about this

What about this?

  • Commercial


Where in the product life cycle is yours

Where in the product life cycle is yours?

  • Introduction

  • Growth

  • Maturity

  • decline


Price how much profit do you want to make

PRICE - how much profit do you want to make?

Total profit = total revenue – total cost

Total revenue=price of each unit x qty sold


Price1

PRICE

  • Sometimes selling a large quantity will be more profitable, but not always

  • The best price to charge is the one that allows you to earn the maximum profit, not sell the most

  • Knowing what the customer is willing and able to pay is ESSENTIAL in determining the price


Price things to consider

Price – Things to Consider

  • What does the customer perceive the value of the good or service to be?

  • Are there any similar products on the market?

  • What price is the competition asking?


Important to choose your pricing strategy well

Important to choose your pricing strategy well

  • See handout


With a small group

With a small group:

  • Choose 2 products and 1 service. Determine what might happen if you use penetration pricing for these.


Promotion1

Promotion

  • Brings the attention of the target market

    • Market research helps determine the best method to use

  • Methods include:

    • Advertising, personal selling, publicity, sales promotion


A dvertising

Advertising

  • Message paid for by the venture and directed toward the target market

  • Purpose: to move customers through the AIDA formula


Sections in a business venture plan

AIDA

  • Attention

  • Interest

  • Desire

  • Action


Different forms of media

Different forms of media:

  • Newspapers, magazines, radio, TV, internet, direct mail, signs in/on transit vehicles, directories, outdoor billboards, text messages, digital messages, video games, apps and more!


How to choose

How to choose?

  • The audience you want to reach

  • The number of people who will see the ad

  • The area to be covered

  • The budget

  • The suitability of the medium to the product or service and to the target market


Personal selling

Personal Selling

  • Having salespeople show the features of a product or service to meet the customer’s needs


Publicity

Publicity

  • Unpaid message delivered by the media to the target market when the media decide that a product is newsworthy


Sales promotion

Sales Promotion

  • Any activity undertaken to increase sales and support advertising

    • Coupons, giveaways, rebates, sweepstakes, coordinating with charities, bundled sales


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