What Is a Viable Business Plan?
Small Business AdminstrationNo matter what type of business you run, you need a business plan. A business plan is a description of your business and objectives and the strategies of how you expect to achieve your goals with a management team and financial resources.
You also need a plan to help you guide your company. Define Your Business Defining your business is the most vital thing that can help your company become successful. By defining your business, you are better able to achieve your goals and sustain superior performance. Two things that you need to consider when you define your business are your marketing position statement and your unique selling proposition.
A marketing position statement is a one- to two-sentence statement that says what you do and for whom you do it to uniquely solve an urgent need or fulfill a desire.
A unique selling proposition is a statement that shows the reader how your product or service stands out and is different than other substitutes on the market. Your USP must be strong enough to attract customers and compel them to buy your product or service.
Philip Wilson Surprisingly, not all business owners and managers know the answer to how they define their business. As a result, their businesses can ultimately fail. Small Business Administration highlights a store owner who repairs and sells watches.
After analyzing his business operations, the owner came to realize most of its earnings were from repair, even though the company spent most of its resources on selling products. As a result of his analysis, the owner concluded that his business was a repair shop.
He shut down the product sales operation and focused on the repair service.
This move resulted in dramatic increases in sales and profits. Determine Your Target Audience Knowing your target audience is an integral part of business plan success.
Although your product or service can appeal to many different types of buyers, a one-size-fits-all marketing and sales approach is not focused enough.
The more you know about the audience you target, the better able you are to reach and communicate with them and sell your products and services.
You can get a better idea of your target audience by looking at the demographic and psychographic segments of prospective customers that can benefit from your products and services.
Do they fit a specific gender or age range? What income bracket do they mostly share?
What problems do they need solved? What common attitudes, opinions, values and behaviors do they share? The more narrow your target market, the more focused you can be in your marketing.
On the other hand, if you are tempted to serve more than one target market it can be costly, and you may not succeed. Take a look at the dilemma Aviva Weis faced after she hired a new marketing executive.
Weiss is the co-founder and lead designer of Fun and Function, a company that makes items for special needs children, such as therapy balls that help children develop fine motor skills.Dropbox is a fast growing company with funding in excess of $ million, ~80 employees, 50 million users, and $ million in revenue.
Drew Houston, the founder and CEO, has turned down an offer from Steve Jobs to buy their company.. But how did they begin? A lot of research into the business environment, competition, financing and your strengths and weaknesses etc., needs to be done before developing this plan.
After all the necessary research has been done and you think your idea is viable, then the business plan would be a stroll in the park. Replay Plastics plastics recycling business plan executive summary. Replay Plastics will open the first PET recycling plant on the west coast, turning plastic bottles into extruded sheet and strapping.
A business is able to survive when it's viable because it continues to make a profit year after year. The longer a company can stay profitable, the better it's viability.
A business demonstrates its viability by making a profit every year of its existence. Aug 28, · The importance of the family business to the United States economy continues to grow, and in a striking development, family businesses are beginning to .
Create a robust business plan. Our on-line business plan software enables you to create a professional business plan, with a relevant structure and nice formatting, so that you can present your project to banks and investors in confidence.