NUTS AND BOLTS OF GREAT BUSINESS PLANS-2016.pdf

9 what is the set of forces creating the opportunity

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9. What is the set of forces creating the opportunity? What is the likely window of opportunity? 10. How is the market defined? What is the size of the market opportunity in dollars, units or both? Distinguish current market size from market potential and estimate the size of the primary and selective demand gaps. What is the growth rate of the market? 11. How are you segmenting the market? Are the key segments homogenous, sizeable, reachable, and responsive? Provide descriptors of the customers who make up the key segments. Which segments will you be targeting (provide a prioritization)? Who will be your early adopters? Are their segments with different price elasticities? 12. Develop a simple model of customer buying behavior for this product or service. How long is the buying process? Who is the decision-maker? Why do they buy? It is a high or low involvement purchase? How loyal are customers to existing vendors/products? 13. What are the key factors affecting sales in the market? Will there be patterns to the company’s sales. Is seasonality an issue? Is the business cyclical? Do interest rates have an impact? 14. Who are the direct competitors? Identify the strengths and weaknesses of each. How is each differentiating itself? Who are the indirect competitors? As a group, how much of a threat are they and why? 15. Be sure that you have developed a price list. Do prices adequately reflect: a) overall marketing strategy, b) costs, c) competition, d) customer demand, and e) legal issues? 16. Explain whether the company will be set up as a sole proprietorship, a partnership, an S corporation, a C corporation, or a limited liability company. 17. Describe the economics of the business. What is your average price, average cost per unit and average margin? How much of your cost structure is fixed versus variable? How much operating leverage do you have, and what are the implications of this? Calculate your contribution margin and breakeven levels in dollars and units. Make it clear where you will be making your money (for instance, in a bar, how much of profit will come from drinks versus food, in a copier business how much will come from selling machines versus selling service?) 18. Have you formulated measurable objectives? Are you certain you’ve established objectives in all the appropriate performance areas? 19. How will you ensure that the company has a strong market-orientation? 20. What will be the principal or core competencies of the company? Is strategy built around these competencies.
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IMAGINE > BELIEVE > CREATE 27 21. Separately from the business concept, define the company’s product mix. Assess the company’s principal offering to customers in terms of the core, tangible and augmented product. Be sure to include such product-related issues as hours, facility layout, parking, etc.
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