Unformatted text preview: t to the slopes and caters to rental needs. • Your jewelry store might be mid-range in price but well known for proﬁciency in appraisals,
remounts, and renovation. • Your hobby shop has by far the largest selection of model trains and airplanes. In other words, you want to discuss how you are positioned in the market. Why do people buy from
your business instead of from others in the same market? What do you offer, at what price, to whom,
and how does your mix compare to others?
Think about speciﬁc kinds of beneﬁts, features, and market groups, comparing where you think you
can show the difference. Do you sell better features, better price, better quality, better service, or some
other factor? Sourcing and Fulﬁllment
In this section, you want to explain your product sourcing and the cost of fulﬁlling your service.
Manufacturers and assemblers should present spreadsheet output showing standard costs and
overhead. Distributors should present discount and margin structures. Service companies should
present costs of fulﬁlling service obligations.
For example, sourcing is extremely important to a manufacturing company. Your vendors determine
your standard costs and hold the key to continued operation. Analyze your standard costs and the
materials or services you purchase as part of your manufacturing operation. Look for strengths and
Manufacturing companies want to have ample information about resource planning and sourcing
of vital materials, especially if you are preparing a plan for outsiders, such as bankers or investors, or
for business valuation. In this case, you may have additional documentation you can copy and attach
as appendices, perhaps even contracts with important suppliers, standard cost breakdowns, bills of
materials, and other information.
Where materials are particularly vital to your manufacturing, you might discuss whether second
sources or alternative sources are available, and whether or not you use them or maintain
relationships with them. This is also a good time to look at your sourcing strategy, and whether or not
you can improve your business by improving your pr...
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