Michigan SBDC Business Plan Outline Chapter 2

A business plan communicates information about your business, your goals, the market, and more.

This section should include information about the company's formation, location, legal entity, capabilities, product or service description, mission, vision, values, and intellectual property status.

A SWOT analysis helps to identify the company's strengths, weaknesses, opportunities, and threats, providing a comprehensive view of its current state and future potential.

<p>This section should provide an overview of the industry, including its growth rate, segmentation, key trends, and competitive landscape.</p> Signup and view all the answers

<p>Realistic sales projections are crucial for attracting investors and securing funding. They should be based on thorough market research and industry analysis.</p> Signup and view all the answers

<p>Understanding industry growth provides insights into the potential for future success or challenges. It can also help identify segments within the industry that offer the most growth potential.</p> Signup and view all the answers

<p>The financials section of a business plan should include startup costs, monthly costs, sales estimates, a break-even analysis, monthly cash flow projections for 3-5 years, financial assumptions, profit and loss (P&amp;L) statements, if applicable, prior financing, if applicable, and financial need.</p> Signup and view all the answers

<p>BEQ = FC / (AP – VC)</p> Signup and view all the answers

<p>The 'Financial Assumptions' section explains the methods used to estimate revenue and expenses in cash flow projections, ensuring their logical and realistic nature.</p> Signup and view all the answers

<p>The 'Exit Strategy' section outlines how money will be extracted from the business, addressing questions about the use of profits, potential sale of the business, or inheritance plans.</p> Signup and view all the answers

<p>Appendices allow for the inclusion of supporting documentation that doesn't fit neatly into the main sections of the plan, such as resumes, market research, contracts, and floor plans.</p> Signup and view all the answers

<p>The 'Final Touches' section generally reiterates the financial goals and projections of the business, outlining the funds needed and how they will be obtained.</p> Signup and view all the answers

<p>A business can differentiate itself in the awareness stage through price, quality, customer experience, and social proof.</p> Signup and view all the answers

<p>Businesses can reach customers in the consideration stage by providing valuable content and promoting their unique value proposition.</p> Signup and view all the answers

<p>Businesses can improve the customer experience in the decision stage by offering clear and concise information, providing excellent customer service, and making the ordering process smooth and convenient.</p> Signup and view all the answers

<p>A detailed marketing and advertising plan outlines the strategies and tactics used to reach target customers, including budget allocation and specific activities.</p> Signup and view all the answers

<p>Clearly defined roles and responsibilities ensure that everyone in the business understands their tasks and how they contribute to the overall success.</p> Signup and view all the answers

<p>When describing your market, you should include a clear definition, grouping customers into primary and secondary markets based on their likelihood of purchase frequency and volume. Describe their attributes, demographics, and buying behavior. Explain the problems your product solves for them and why your approach appeals to them. Estimate market size in terms of potential customers and their projected annual spending.</p> Signup and view all the answers

<p>Businesses may seek specialized assistance in areas such as financial management, legal advice, and technology support.</p> Signup and view all the answers

<p>Consistent quality can be achieved through clear documentation of organizational structures, job descriptions, processes, and expectations.</p> Signup and view all the answers

<p>When analyzing competition, consider factors like their market share, annual sales volume, strengths, and weaknesses. Identify how you can differentiate your offering from theirs. Analyze their customer base, including their buying behavior, decision-making processes, and lead times. Also, understand the problems your company solves for each customer segment compared to your competitors.</p> Signup and view all the answers

<p>The operations section should include details on how the business will manage new orders and how it will implement quality control measures.</p> Signup and view all the answers

<p>The primary goal of a marketing and sales plan is to effectively reach customers, based on their characteristics and purchasing behavior, to generate sales and achieve company goals. It should explain how you will differentiate your product or service to attract customers and persuade them to choose your business over competitors.</p> Signup and view all the answers

<p>A growth plan outlines the future direction of the business, including potential expansion, new products, or target customer segments.</p> Signup and view all the answers

<p>The buyer's journey consists of three phases: Awareness, Consideration, and Decision. The awareness phase introduces your company and its offerings to potential customers. The consideration phase highlights your unique selling points and emphasizes your value proposition. The decision phase seals the deal by providing compelling reasons for customers to choose you over competitors.</p> Signup and view all the answers

<p>A business can provide effective training through well-defined onboarding processes and consistent follow-up, ensuring that new employees understand their roles and responsibilities and have the knowledge and skills to perform effectively.</p> Signup and view all the answers

<p>Marketing channels for the awareness phase include search engine optimization, website content, online advertisements, billboards, social media, direct mail, events, radio, podcasts, print ads, and email campaigns. You should choose channels based on your target audience's preferences and habits.</p> Signup and view all the answers

<p>During the consideration phase, your brand image plays a crucial role in influencing customers' decisions. You need to highlight your unique value proposition, clearly communicate your brand identity, and create a compelling brand narrative that resonates with your target audience. This ensures your brand stands out from competition and attracts customers who align with your values.</p> Signup and view all the answers

<p>Key considerations include highlighting your competitive advantages, emphasizing the benefits of your product or service, showcasing customer testimonials and case studies, providing compelling content that educates and engages potential customers, and tailoring your messaging to address specific needs and pain points of your target market.</p> Signup and view all the answers

<p>The decision phase presents a crucial opportunity to close the deal by providing potential customers with the final push they need to make a purchase. You should offer incentives, address any lingering concerns, provide clear calls to action, and make it easy for them to buy. This phase involves building a strong relationship with potential customers and convincing them that your product or service is the best choice for their needs.</p> Signup and view all the answers

A document that outlines a business's objectives and strategies.

A section that describes the formation, operation, and legal entity of the business.

An assessment of the industry and market opportunities relevant to a business.

A method to evaluate strengths, weaknesses, opportunities, and threats of a business.

A detailed explanation of what the company offers to customers.

An overview of what the company can do and its operational aspects.

Specific objectives related to the financial performance of a business.

A calculation to determine when a business will become profitable based on costs and sales.

Estimates of your business's incoming and outgoing cash for a period, typically 3-5 years.

Detailed expenses incurred to launch a business before it starts operations.

A financial report detailing revenues, costs, and expenses to assess profitability over time.

A plan for how and when to exit a business and extract financial returns.

The group of customers most likely to buy frequently or in high volume.

Customers likely to buy but not as often or in as high volume.

Overview of direct and indirect competitors in the market.

The portion of the market controlled by a competitor.

Patterns showing how often customers buy and how much they spend.

Three steps: Awareness, Consideration, Purchasing Decision.

Platforms used to communicate with potential customers.

Realistic targets based on market size and competition.

Aspects that distinguish a business from competitors, like price or quality.

The overall journey a customer has with a business, influencing purchasing decisions.

The steps a customer goes through before making a purchase: awareness, consideration, decision.

A strategy outlining how to attract and retain customers, including messaging and scheduling.

The department responsible for managing personnel, hiring, training, and staff well-being.

The plan detailing how a business runs, ensuring efficiency and customer satisfaction.

A detailed strategy covering methods, procedures, customer service policies, and expectations.

A strategy that defines future expansion goals for products, locations, and customer reach.

Processes put in place to ensure products/services meet expected standards.

The process of handling customer information securely and effectively.