The statistics are grim. An even more microscopic group, just 0. In other words, most businesses start small and stay there. So I studied the companies who had done it to learn their lessons.
A business plan is the result of thoroughly investigating your industry, your market, your product, your financial situation and your proposed organization.
A business plan outline provides an organized system for researching the feasibility of your business. Who should do a business plan? A business plan should be done by anyone starting a business or making major changes within their existing business.
This could include adding product lines, increasing sales, purchasing another business, or a multitude of other changes within the existing business. Business planning is a process that leads to a product.
Your internal business plan should be in a format that is easy for you to understand, access, store and retrieve, edit and update. There are a number of business plan formats, but here are two examples that we think work well: Why is a market analysis for my product or service important?
A common mistake is thinking that everyone will want your product. Those who succeed identify target markets, learn about their needs and provide the appropriate bundle of goods and services to meet those needs.
Find out as much as possible about the industry you want to enter. Is it emerging, growing, stable or declining?
What are the trends? Who buys and what do they buy? When do they buy? What percentage of the population buys? What is the demographic profile of each target market? Where do I find information on my industry? Virtually any industry you can imagine has a professional association that gathers data and processes it into useable information for their membership.
Many will publish trade magazines, newsletters or e-letters. They may also provide membership or vendor lists, although this information is usually only available to members.
It may be a good idea to become a member. Apply the national statistics to your local demographics.
If 3 percent of the national population uses the product and your local population is , then you can expect 3, potential customers. Then consider identifying your target markets. Are there under-served markets with pent-up demand in your area?
Are there opportunities to sell to government agencies, clubs and user groups or business to business? Select those markets that have the greatest potential for success, as you define it. Therefore, you are in competition with anybody who wants to sell anything.
You need to identify all competitors and analyze their strengths and weaknesses to determine how you can best compete.
Realistically estimate what percent of the consumer population market share will become your customers, and why. There are only two ways to get customers in a competitive market: Also, study the competition for ways to become co-operators rather than rivals by buying or selling from each other.
How do I make a sales projection? Now that you have found what people are willing to buy, you need to make a sales forecast. After studying the industry, consumer profile and the competition, you have enough information to do some simple projections.
For each of your chosen target markets, estimate your market share in number of customers.As you go about developing your growth strategy, you should first consider the lower rungs of what are known as Intensive Growth Strategies.
Each new rung brings more opportunities for fast growth, but also more risk. They are: 1. Market Penetration. The least risky growth strategy for any business is to simply sell more of its current product to its current customers—a strategy perfected by large consumer .
Aug 20, · What is a business plan? Depending on the specifics of your business, include plans related to locations and facilities, technology, and regulatory issues. This chapter should also detail the key metrics that you plan to use to track the growth of your business.
This could include the number of sales leads generated, the number of page /5(). Your business plan should include a summary of what your business does, how it has developed and where you want it to go. In particular, it should cover your strategy for improving your existing sales and processes to achieve the growth you desire.
Using the Web is not mandatory for selling your product, but your growth strategy should include an online element. Creative Marketing Growth Strategies Look back at the marketing section of . Business Owner’s Toolkit Samples of business plans and other tools.
Edward Lowe Resource Center Articles with solutions gleaned from CEOs and business owners. Includes perspectives on managing growth in key areas such as communication, finance, marketing and sales, HR management, legal issues/taxes and technology.
The growth strategy section of your business plan is about proving to others that you have a plan for bringing your product to new customers and new markets, and perhaps even introducing new products.