NUTS AND BOLTS OF GREAT BUSINESS PLANS-2016.pdf

Provide a diagram of the intended depth and breadth

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any significant secondary applications (who will use it and why). Provide a diagram of the intended depth and breadth of your product/service mix and which products will likely generate the lion’s share of the revenue Emphasize any unique features of the product or service and how these will create or add significant value; also, highlight any differences between what is currently on the market and what you will offer that will account for your market penetration. Be sure to describe how value will be added and the payback period to the customer. More specifically, discuss how many months it will take for the customer to cover the initial purchase price of the product or service as a result of its time, cost or productivity improvements. Describe the competitive strengths and how it differentiates you from competitors. Include a description of any possible drawbacks (including obsolescence or ease of someone else copying the product or service. Discuss any head start you might have that would enable you to achieve a favored or entrenched position in the industry e.g. proprietary rights (patents, copyrights, trade secrets or non-compete agreements. Describe the key factors that dictate the success of your product/service. Describe any features of the product or service that give it a n “unfair” advantage over the competition e.g. proprietary knowledge or skills. Discuss any opportunities for the expansion of the product line or the development of related products or services. Emphasize opportunities and explain how you will take advantage of them. C. Entry and Growth Strategy How and where will you initially enter the market? Share your vision for where the firm will be in five years (geographic scope, markets entered, number of locations, expansion of product mix). Summarize how quickly you intend to grow during the first five years and your plans for growth beyond your initial product or service. Discuss how you will create barriers to entry in terms of others copying your success. SECTION III: MARKET ANALYSIS (aka ‘THE MARKET’) This section of the business plan is one of the most difficult to prepare, yet it is arguably the most important. Other sections of the business plan depend on the market research and analysis presented here. Because of the importance of market analysis and the critical dependence of other parts of the plan on the information, you are advised to prepare this section of the business plan with great attention to detail. Take enough time to do this section thoroughly and to check alternative sources of market data. This section should convince the reader or investor that you truly know your customers . It should convince the reader that your product or service a) will have a substantial market in a growing industry; and b) can achieve sales in the face of competition. For example, the predicted sales levels directly influence such factors as the size of the manufacturing operation, the marketing plan, and the amount of debt and equity capital you will require. Yet most
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