Base all of your observations on reliable data and be sure to footnote sources of information as appropriate. The most effective distribution channel is to sell directly to the end-user.
If available, mockups of any labels, trademarks or service marks should be included.
If the statement of purpose is eight pages, nobody's going to read it because it'll be very clear that the business, no matter what its merits, won't be a good investment because the principals are indecisive and don't really know what they want. Show how you will expand your business or be able to create something by using that money. A good way to make your decision is to analyze your competitors to determine the channels they are using, then decide whether to use the same type of channel or an alternative that may provide you with a strategic advantage.
The total aggregate sales of your competitors will provide you with a fairly accurate estimate of the total potential market. Competitive strategies usually fall into these five areas: Product. Competitive pricing. The type of distribution network you choose will depend upon the industry and the size of the market.
It should detail how the capital will be used, and the equity, if any, that will be provided for funding. It's based on not only an analysis of the market but on highly targeted and competitive distribution, pricing and promotional strategies. Market Strategies Define Your Market Market strategies are the result of a meticulous market analysis.
The sales or revenue model charts the potential for the product, as well as the business, over a set period of time. Further, you will need to include information about the financials and the underlying assumptions.
If the statement of purpose is eight pages, nobody's going to read it because it'll be very clear that the business, no matter what its merits, won't be a good investment because the principals are indecisive and don't really know what they want. The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.
A positioning statement for a business plan doesn't have to be long or elaborate. By structure we mean the type of operation, i. What customer needs does your product fulfill? Executive Summary Within the overall outline of the business plan, the executive summary will follow the title page.
In the case of a microbrewery that plans to brew a premium lager beer, the total feasible market could be defined by determining how many drinkers of premium pilsner beers there are in the target market. It should merely point out exactly how you want your product perceived by both customers and the competition. Also state whether the business is new or already established. In order to accomplish this, the promotion strategy encompasses every marketing tool utilized in the communication effort. The first step in a competitor analysis is to identify the current and potential competition. If available, mockups of any labels, trademarks or service marks should be included.
Retail distributors. In addition to structure, legal form should be reiterated once again. The first financial projection within the business plan must be formed utilizing the information drawn from defining the market, positioning the product, pricing, distribution, and strategies for sales. Using this channel, a manufacturer sells to a wholesaler, who in turn sells it to a retailer or other agent for further distribution through the channel until it reaches the end user. Competitor C has the reputation for selling the best French fries in town; you're going to sell the best Thousand Island dressing. Clearly states the capital needed to start the business and to expand.