COMPETITORS Lastly, what competitors are out there and how do they tackle this problem?A lost of people think, they don’t have competitors. Either you have competitors that offer a similar product or at least you will competitors who try to solve the customer problem in another way.
COMPETITORS Lastly, what competitors are out there and how do they tackle this problem?A lost of people think, they don’t have competitors. Either you have competitors that offer a similar product or at least you will competitors who try to solve the customer problem in another way.INTERNAL REASONS Most people start working on a rough business plan too late.
We recommend, you ask your friends and family for input on how to improve your business plan.
After each investor meeting, use their feedback for sharpending your pitch and business plan.
start with rough marketing assumptions and later distinguish between marketing channels, customer segments, products and regions).
Now, you might need some funding because you are not profitable yet or because you want to finance a larger expansion (more products, more countries).
The external purpose of the business plan is mainly to receive funding (equity or debt), thus the potential addressees of the business plan can be: It is important to frame the information in the business plan to the needs and investment profile of the investors.
For pitching equity investors you should focus on the disruptive factors and upside potential of your business while for debt investors you should clearly state the risks and position yourself as a risk minimizer (I mean, your business has no risk it cannot handle, hasn’t it 🙂 ).Why make the effort and writing 30-40 pages when you could focus on product development or sales?There are several reasons why with some business models you should only write an abbreviated version of a business plan (we will cover this in another post).In the business plan you want to explain what customers you want to target via which marketing channels, what makes you different from competitors, who the management team is, how you are going to make a profit, and what the milestones are for achieving your business plan.So, in a nutshell a good business plan follows the following story.Make sure you describe why your product or service solves the problem in a more effective or efficient way, so you will have a value proposition over competitors.Your business plan should also specify the customer benefits of your product (making something faster, cheaper, more reliable, more effective, more beautiful).If you have any sourcing or production related partnerships, then state them here. You have your product defined and why customers should buy your product.Now, you need to show which advertising and sales channels you want to use for approaching potential customers.One key skill, I find most people overlook, is that management should master the skill of allocating capital in the most efficient way.Furthermore, you should show that your team is complementary meaning that the management team should have different backgrounds; this helps in making hard decisions as the whole team sees the problem from different perspectives.