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SCORE
Know Who Your Customers Are And Your Position in the Market.
A business plan is an essential management and operating tool for using your time, capital and energy the most effective way. This plan of action for building a successful small business examines the environment in which you expect your business to operate including potential problems, cyclical trends and growth opportunities.
Do you know who your customers are and what they need and want? Do you notice trends in what people are buying, or how and where they are buying those goods?
Determining the marketability of your new business is done when writing a marketing plan. This can be part of your business plan or can be a separate document. The purpose is to explain the products and services that you are selling, who your customers are, what the overall market looks like, who the competition is, and your strengths and weaknesses. You will also have to explain how you are planning to promote your products and services.
This requires research. Here are some areas that you should be aware of to help you explore who your target market is and why they will buy from you and not the competition,
Table of contents
Executive summary: this is page number 1 and explains the overview of the business objectives and goals.
Consider whether the business offers a new solution to an old problem or complements an emerging trend.
Have a clear picture of who your customers are. These are people and other companies that are likely to want or need what your business has to offer. "All restaurants" is a broader market than "fast food joints." "All restaurant patrons" is a broader market than "young adults who eat out."
Understand the benefits that your product or service offers. How much money will a customer save by buying from your company? What do you offer that is different from the competition? Knowing the benefits will help you generate ideas for all promotions. If gives your customers a reason to buy from your company.
Understand the industry and determine if there is a growing demand for your products or services. Are their economic factors that may impact your market? The data you find should give you an idea of the annual sales in the particular Industry. This information comes from the trade associations and government agencies.
Identify the percentage of market share that is realistic for you to capture. Know where the business will be located, the demographics of potential customers and know that the more competition you have, the lower the margins will be. Can you compete?
Consider how realistic your pricing is. How can you position your products or services to potential customers so that it appears to be a good value, while still allowing a healthy profit margin? You need to know your competition.
Contact your competition and know what their strengths and weaknesses are. Know where they are located, how long they have been in business and what they are charging for their products or services and how much they charge. You may find that this exercise is unethical asking the competition for information but understand that if you are committed to creating a viable business that can provide you with a good income the sooner your know the answers to these questions, the faster you can create your position in the marketplace.
How are you going to promote your business? Products and Service? Know there are many ways to market a business with a low to no budget. The quickest and easiest way is with face to face promotions, business cards and word of mouth. Referrals from happy customers can be your most profitable business. If you pay for promotions always track the results to make sure that you covered your costs.
Identify your goals and objectives and write them down.
Are you ready to learn what millions of successful business owners already know? If so there is no better place to start than SCORE-Counselors to America's Small Business our business counselors donate their time and talent to assist entrepreneurs start, grow and operate their businesses.
Gateway Community College, Small Business Center.
For an appointment call 203-865-7645 or www.newhavenscore.com for more information about our programs.
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