Business plan all the answers

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Business plan all the answers

What does it involve? Who is it intended for? How often should it be updated, if at all? And according to which parameters?
All the Answers:
 
What is a Business Plan?
 A business plan is a “meta” document, which is designed to set-out a clear plan of action before executives, entrepreneurs and investors of an existing or future concern, for the long- and short-term.
More importantly, a business plan “forces” the owners of a company and/or its management to simply sit down and think! To consider whether the company’s direction is the right one; what options does the company have, and how might these be pursued, and, most importantly, anticipate the results that any actions may have on both a professional and financial plane.
What does a Business Plan include?
Essentially, a business plan is a document that summarizes all the variables related to the operation of a business, and their ramifications on financial results.
A business plan includes, among other things: a description of business operations, products and/or services, an analysis of the market in which the business operates, a description of the business’ relative advantages in the relevant market, a consideration of the ongoing advantages of the product and/or service, a detailed list of the milestones in the business’ development, an analysis of operating variables, a consolidation of business and marketing strategy guidelines, a description of the company’s organizational structure and human resources, a consolidated investment plan ,and in conclusion, a evaluation of how all these variables will impact the business’s forecast profit/ loss and cash flow over the next few years.
 
Who is a Business Plan intended for?
Generally business plans can be adjusted to the circumstances of their creation and their intended audience.
The main situations that give rise to the need for a business plan include:
1. Raising capital – directed at parties outside of the company
2. Modifying business strategy / improving results- directed at elements within the company
3. Operational business plan – usually intended for elements within the company
Business plans intended to help secure funding are generally directed at banks, “incubators”, private investors (“Angels”), venture capital funds, and other funding bodies.
Business plans that are intended to navigate changes in existing business strategy and operations and/or lead to improvements in financial results related to operations, are generally intended for share holders, and are motivated by a desire to understand/plan/build a more efficient business mechanism.
Is it necessary to update an existing business plan? And according to which factors?
In today’s rapidly evolving world of business and technology, products and marketing channels, it would be dangerous to rely on an out-of-date business plan. As in many other business situations, this is a matter of “innovate or die”. A good business plan must be dynamic. The variables considered when updating a business plan include a variety of factors related to the relevant business sector including: the entry of new competitors into the market, the development of new technologies, an analysis of the consumers’ changing preferences , or a shifting target audience for the product itself, features of the product , price , substitutions and/or complimentary products, updates, advertising, marketing and PR budgets and their influence on forecast revenues, expenses, and ,of course, macro-economic factors such as exchange and interest rates, and more.
When updating a plan it is necessary to examine whether the existing plan has stood up to the test of your expectations. If it has not, where did you go wrong? Have you maintained your market focus and continued to operate in the business sector you intended to? Or has your business activity, for whatever reason, “shifted” .
How often should I update my business plan, and who should do it?
It is best to update your business plan annually, and as part of your yearly or multiyear planning and/or budgeting. It is possible to update your plan independently, without outside assistance, as long as your original plan was designed to be flexible and allows for adjustments. However, it is recommended to seek outside consultation and have an objective pair of eyes look over your plan to neutralize any exaggerated forecasts, and provide professional advice, especially with regards financial matters.
The greatest damage is done to a business when we believe ourselves to be above questioning; when we make assumptions without investigating our conclusions, when we say “it will be alright” and simply hope for the best. Of course, luck and circumstance play an important role in the success of a business, however, long term success is based on solid foundations first laid in a professional business plan. To write a plan after the fact and assume things will just simple work out, is a primary cause of painful failures. The correct route to success involves thoughtful consideration of questions and reaching accurate and well investigated answers at every stage. The answer is not written in the stars, it’s written in your business plan!
 
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The process of writing a business plan

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The process of writing a business plan

The process of writing a business plan.
We receive over 50 requests per month from entrepreneurs, companies, and owners of old and new businesses, all of them want the same thing – a professionally written business plan.
We have already discussed the different types of business plan. This month’s newsletter considers the phases our clients must go through in the writing process, from initial phone call to final meeting.
Stage 1: Request for information
The first stage, the initial enquiry, can occur in one of 3 ways: by telephone, using the contact page on the website, or using the detailed enquiry form which is also found on our website. Before approaching the company, we suggest that you read over some of the content on our website, and get a better idea of what it is that we do and how we differ from others. You can also read about some of the clients we have worked with, and get an impression of the environment in which this product that we provide – the business plan – is created. A product, which we believe we can do better than anyone else. A short survey over the material should help you be clear and more focused in your initial request.
Stage 2: We get back to you (first cut)
We promise to get back to you within one working day and reply to some of your questions. This introductory telephone call is conducted by a professional consultant (project manager) who will be best suited to your needs. This first conversation plays an important part in our decision making process about whether or not to proceed with a client or not. At this stage a NO-GO may be due to a variety of reasons, such as: the client presents an immature business idea, or is unclear about their needs, or the business idea is virginal and needs time to develop before it can be translated into a business plan, or even the idea cannot be actualized, or there is a serious discrepancy between the entrepreneur’s expectations and the price they are willing to pay to satisfy them.
Stage 3: First consultation (second cut)
The purpose of this consultation is to get to know one another in greater depth. For this meeting, you will be invited to our offices and in most cases you will be introduced to one of the company owners, to whom you will present your reasons for needing a business plan and your intentions. Truthfully, you do most of the talking in this meeting and we mainly ask the questions. The purpose of this interview is to make a second cut before we proceed to the next stage. During this stage (and if we missed something in the first telephone conversation) a NO-GO may be due to an immature or virginal business idea, discrepancies in expectations etc. At the end of this meeting we will decide whether to proceed to the next stage – a formal proposal.
Stage 4: The proposal
Within three working days we will send you a formal proposal including a detailed description of what you will receive, an ETA and the cost of the service. At this point we will also determine the best business plan type for your venture and set a date for the first working meeting.
Stage 5: The Work begins
Once we have established the most suitable project management team for your venture, we can begin the process of writing your business plan. This process is fascinating, educational and often surprising, and demands that all parties involved remain open minded. We liken this stage to an intense two month course in business management (even for experienced businessmen). During a series of scheduled meetings we will join forces to brain storm every aspect of the business plan. You, the client, play an important role in these meetings and must arrive prepared, focused and sharp. The purpose of every meeting will be preset and prepared for. While most of the preparatory work falls on us, you must also be ready. You will receive “homework” to do, most of which involves “thinking”.
During the first meeting we mainly listening to you and ask questions for clarification purposes. The meeting is usually held in the presence of one of the Company owners as well as a project manager. Part of the purpose of this meeting is to get to know and understand exactly what it is you want, and what your expectations are. We will also set a time table and define the milestones in the plan writing process.
The second meeting, the one we like to call “the difficult one”, usually occurs after we have received initial data from you, and have conducted some of our own research into the industry. The purpose of this meeting is to clarify and verify our initial conclusions. At this point we begin to get a better idea of the business plan you need, maybe even better than you….
During the third meeting we begin to consolidate a business strategy, identify your business’s ongoing advantages, and what differentiates you from your competitors. We also begin to formulate a business model and try to understand the “message” that we are jointly trying to convey in the plan.
During the fourth meeting we ask you to “show us the money”, or in other words, we start to talk numbers. We also begin to consolidate some basic financial assumptions on which to base the financial forecast.
During the fifth meeting we continue to solidify our financial and business assumptions and touch upon all the factors related to these such as; pricing policy, target market size, perceived value of the product, organizational structure , General and administrative expenses, marketing budgets , sales and promotions, financing, tax rates and many more.
At the sixth meeting, we present you with a draft of the profit/loss statement and forecast cash flow.
The remaining meetings (7 -10) are intended for clarification of details and finalization.
Of course, every project differs in the nature and number of meetings that are held. The character of the meetings is also dependent on the personality of the client – which is what makes our job so varied and interesting.
 
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Top Ten Tips for writing a successful Business Plan

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Top Ten Tips for writing a successful Business Plan

“10 tips” towards creating a successful business plan
In order to write an effective business plan one needs in-depth knowledge in several domains: economics, human resources, relevant markets, technology , organizational structures and more, all of which must be combined with a strategic vision and a good understanding of tactical business maneuvers. Ignoring any one of these elements will result in the creation of a misleading business plan and could ultimately lead to failure, and the loss of a venture and potential investment.
What makes one business plan better than another? Which sections of a business plan, if any, are more or less important? Which part of a business plan should you concentrate your time, effort and resources on the most?
 
Here are 10 tips towards writing a successful business plan:
 
 
Detail the added value of your specific product or service
 
define and identify the relative advantages of your product/service over others in the market. Two driving forces typically influence your appeal to consumers: The first is “pain reduction”, the second “increasing pleasure”. A business plan that does not clarify which difficulty the new product/ service can eliminate and/or which pleasure or convenience it can enhance, will most probably fail to convince potential investors to invest in the venture.
 
 
Identify your target consumers
 
define your potential client in terms of their socioeconomic status, income, residential area, academic background, consumer habits, familial status, age group, gender, employment etc.
 
 
Familiarize yourself with the market in which you intend to operate
 
conduct a detailed survey of the relevant market and familiarize yourself with its characteristics and the latest trends. Examine the market’s size, growth rate, and define the market sector you intend to target.
 
 
Know your competition
 
study both your direct and indirect competition – this will help you define your best business strategy. Analyze your competitor’s ability to duplicate your business model and innovation.
 
 
Create a simple business model
 
build a clear and practicable business model that clearly defines your income sources and channels.
A good business plan is based on a solid foundation of predefined suppositions derived from a detailed analysis of the market, and of real-time data from competitors in the relevant market.
 
 
Market your product/service wisely
 
the price of your product/service will be one of your potential clients’ primary considerations. Determine a price for your product/service with consideration of demand, competitors’ prices and your sales targets, while keeping in mind your product/service’s added value.
 
 
Define targets
 
set clear short and long term goals. These can be defined by financial quarter, 6 months, year or over several years. Goals can be “rigid” – such as sales targets or market segment, or more “flexible”, such as general brand awareness or product differentiation goals.
 
 
Build a winning team
 
this is one of the most important elements in a business plan. Your human resources will show potential investors who they are really investing in. Tell investors about the different members of your team, why you think they are suited to their role, why you have faith in them, and how you will all work together.
 
 
Provide detailed forecasts for cash flow and Return on Investment
 
cash flow data, as derived from operating activities, is incredibly important to investors and integral to any analysis of income and net profits. Cash flow estimates are truly one of the key elements that will decide whether your venture is a Go or No-go.
 
 
Build a realistic business plan
 
valuing your product / service too highly will raise suspicions from the first page. We all know how easy it is to be blinded by our passions, however, this blind love manifests itself in business plans when you begin to emotionalize your product or lose the ability to be critical and begin ignoring real business threats. These are signals that will alienate investors. It is dangerous to fall
in love with your idea – and as difficult as it may be to avoid, it is necessary that you maintain a critical view of your venture in the long term.
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Top Ten day after curses

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Top Ten day after curses

The ten “day-after curses”.
It is not enough to simply write a good business plan. In order to meet your targets and raise capital it is vital to plan for the day after investment is received and be prepared for each subsequent stage. Many entrepreneurs, who undergo the intensive business plan writing process with us, ultimately fail after completion of the plan due to the following 10 “day-after curses”:
1. A lack of focus – oftentimes, entrepreneurs “shoot” in several directions at once in the hopes of securing investment. This is not always the best strategy. It is imperative to define a list of preferences you have so as to grade potential investors according to predetermined criteria, such as: are you interested in securing a strategic investor, a financing investment, a passive or active investor, etc. You should only start a broader search for investors if and when you reach a “dead end” and have exhausted all your best possibilities. Apart from that, you should bear in mind that some organizations are more suitable for securing investments than others. For example; you would be unlikely to receive investment from the government subsidized Tabor fund for an internet venture.
2. Immature business – this is a problem that characterizes many Israeli and global ventures. This phenomenon usually comes to light when as entrepreneur considers offering potential investors shares in the business. Cash flow projections indicate that the sum required to repay the investor is, for example, 2 million NIS. The question then arises; how many shares is the investor willing to receive in lieu of 2 million NIS that do not yet exist? The answer to this question will differ depending on the investor and largely depends on the business valuation presented in the business plan. However, even with a valuation many entrepreneurs fall down because they insist on maintaining “control” over their business. This actually translates into offering a maximum of 49% in shares to any potential investors – an impractical and naive attitude that can alienate many.
3. Arrogance – confusion is typical during the early business plan writing stages, however this is often replaced by a sense of euphoria (usually around the same time we swap our “bad cop” act for our “good cop” act). And often, with a business plan is in hand in all its detailed glory, entrepreneurs can become overly confident and even arrogant, acting as though investment has already been secured and all one must do is decide which bank to deposit it in.
4. Being secretive – even if there is no patent or industrial secret included in your plan, there is a good idea at stake and an interesting business model and plan. However, often entrepreneurs become deeply suspicious of others, refusing to let anyone see the plan without signing a confidentiality agreement to “protect” themselves from anyone hearing about their idea or turning up with a similar one. This attitude is ultimately counterproductive and can lead to many doors being closed.
5. Disregarding problems – ignoring those parts of the business plan that are less “strong” (and they always exist). Often the business plan writing process is “closed” even when it is still evident to us and the client that there are chapters and/or data that will need completing in the future. Unless these are completed, the chances for getting a ‘GO’ are limited.
6. Living in a bubble – refusing to deal with changes in relevant factors or operating systems, or listen to the opinions of partners or potential investors, and the general mood in the relevant business environment.
7. Rigidity – every business plan has to be open to modification. Even though part of a good business plan involves laying out a “plan B”, we can never take into consideration all the things that might possibly occur and change on the way.
8. Decompressing– you’ve completed your business plan – but that is only the beginning. Up until now, you have been living in a bubble, but things are about to become more complicated. This is precisely the point when true battle beings, even though writing a business plan is challenging, it was only practice for what is to come – now is not the time to relax!
9. Impatience – friends, this is not going to be an easy mission! It demands patience, composure, stubbornness, determination and endurance. Impatience usually leads to failure. This process can often take a lot longer than you anticipated.
10. Cash flow – you often have to abandon a secure source of income to become an entrepreneur of something that exists only on paper. However, you still need to make a living, you may have children, a mortgage and even young entrepreneurs need money to cope with the period before funds are secured….
In conclusion, this is not an easy mission; however with careful planning and the correct guidance you can make your business plan a reality.
And finally…
 
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The value of using enticing language in a business plan

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The value of using enticing language in a business plan

The value of using enticing language in a business plan.
You have an amazing idea. You’ve thought of everything, you’ve analyzed the market and you have relative advantages that will destroy your potential competitors. You’ve built an impressive strategy, and you have the ability to reach potential clients at a minimal expense. From a technological point of view, you have the winning equation and the business plan that you hold dots all the ‘I’s and crosses all the‘t’s and shows that, without a shadow of a doubt; your venture is the next Google. You’ve showered, shaved and shined your shoes. You’ve out your best suit on and headed for a meeting with an investor – surely there is no way that he could not be interested in investing.
The investor you meet is a busy person, with limited patience. He has opinions and personal experience, and as far as he is concerned – or at least that’s how he makes you feel, sitting in his office – you need him more than he needs you. Subsequently, unless you intrigue him, unless you present him with a sexy and attractive business plan, he will simply be bored and will not invest in your idea.
Here are 10 tips to help you encourage investors to invest:
• Match chapter titles to their content. You thought you were going to get something totally different on this page didn’t you? Exactly – chapter titles prime certain expectations in the reader. Unclear, irrelevant or false chapter headings cause a cognitive dissonance that can alienate the reader and negatively influence the investor’s decision with regards investing in your business.
• Teasing – if you have gotten this far, then the chapter title has obviously done its job! Interest the investor by using attractive, perhaps even provocative, language and content.
• Executive Summary – at the front of any business plan you will find the true value to the investor. Executive summaries should be written in simple and inviting language. This chapter represents your first encounter with the investor. Psychological research has shown that it is very difficult to alter a negative first impression. A ‘sexy’ executive summary will prevent investors from getting a negative first impression of the entrepreneur.
• Think before you write – know what it is you want to say and its purpose, only then begin to write it down.
• Clear and neat presentation – a business plan should be relevant, clear and focused. Be careful not to be drawn into using poetic language and long sentences.
• Add color and interest using descriptive language – adjectives add life and color to a description. Use them to make a boring text, interesting, but be careful not to go overboard. Business plan writing style lies somewhere between dry, informative content and literature. You should try to include enough description in your plan to moisten the dry text, but not so much that you drown it.
• Avoid overusing terminology – don’t assume that your investor is familiar with the industry and its terminology. You can provide a short glossary for key terms in your plan; however, you should also ensure that even a layman (not a professional in the relevant field) could understand your plan.
• Say things “nicely” – using rich and beautiful language will give your business plan gravitas. You want to appear intellectual and serious before investors to encourage them to invest. So rather than writing: “What we want is to get as many customers as possible”, write “we wish to obtain the largest possible market segment”. These two sentences may mean the same thing but the impression they create differs significantly.
• Know your investor – even the best business plan will not help you secure investment from an investor if he cannot read the language it is written in or connect to its style. The style of writing that might intrigue a 35 year-old investor may not be suitable for one who is 70 years –old, or one that only recently came to the country and has limited vocabulary.
• Go to a professional to write your business plan.
 
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How to Identify a business plan that should Be avoided

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How to Identify a business plan that should Be avoided

The process of transforming an idea into a successful product or service begins, as with every process, in the very first steps – in the business plan.
What makes one business plan better than another? Is there only one correct way to write a business plan? Which parts are more important and which are less? Which parts should be emphasized? On which parts of the plan should you invest more efforts, money and time? How should you analyze information, collect external data, and use databases correctly? Who can be counted on, and who should not… and how can you avoid making critical mistakes that will lead an investor to NOGO your plan after reading only the executive summary?
Experienced investors are able to quickly recognize a business plan that does not reflect the business reality.
So what are those common mistakes that can be identified in the first reading?
 
An Excessively Favorable Assessment of the Product and/or Service (in other words, endless love…)
An excessively high assessment of the product and/or service will raise immediate suspicions in the early executive summary stage. We all know that when we are in love – any mention of faults in the object of our love will fall on deaf ears. The signs of “endless love” include a conceptual fixation when describing the initiative, a lack of objective scrutiny and judgment and ignoring risks. It is dangerous to fall in love with an idea! It is difficult, but definitely possible, to maintain a shrewd point of view throughout the entire process.
Investors put their money and hopes on people and usually this is not only a result of the product… surprising, but this is reality. A dreamer’s plan presenting a product whose essence will “save humanity”, will probably raise suspicions. It’s important to remember, your product and/or service will probably not change the face of the planet…
 
Simplistic and Unfounded Assessments
A simplistic statement: we are going to sell 10 million NIS during the second year of our operation… without any explanation on how this figure was estimated, will raise questions. It’s obvious that there is no method that can lead to a 100% accuracy in the assessment of future business activities, especially when discussing a start-up, but even so, a good business plan will be founded on a series of detailed basic assumptions, backed by market research and real data on competitors and the field in which you operate. A plan with no clear business model “flow” will increase the investor’s diffidence in the results presented in the plan.
 
 
Using Slogans and Clichés
“We intend to be number 1 in the category…”, “we will offer the best service…”, “we’ll conquer the market”… grandiose slogans and hollow sales pitches will raise suspicions if they are not backed by a clear business strategy. Two forces usually affect that chances of selling product and/or service to customers; the first, alleviating pain. The second, increasing pleasure. A business plan that does not clearly detail which pain the product and/or service can alleviate for its potential customers, and/or alternatively, which pleasure it can increase, will probably not be able to convince your potential investor to invest money in the initiative.
 
Disregarding Cash Flow. Disregarding Return on Investment Period.
Many people tend to think in terms of profit instead of cash flow. A business plan with no cash flow is lacking and should raise suspicions. A cash flow analysis stemming from business activities is of high importance to investors and precedes an analysis of revenues or net profits. A business plan without a cash flow offers only partial data of the described initiative. Examination of the return on investment using the NPV method is affected by the operational cash flow after tax and other flowchart adjustments, such as working capital, investments etc.
 
Other Warning Signs
Lack of clear milestones for business development, ignoring competitors, lack of focus on target audience, gaps in the plan’s implementation schedule, ignoring seasonal coefficients, ignoring first months of activities stabilization coefficients, using an excessively technical terminology, over optimism in the basic assumptions, vague/unclear phrasing, errors in understanding basic terms related to the anticipated financial statements, an entrepreneur’s vague resume, ignoring manpower qualifications and credit structure.
 
Also…
Using poor language or alternatively, using overblown language, a plan that is either too long or too short, repetitive content throughout the plan, a redundancy of appendixes and an unprofessional appearance.
 
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Business plan – GPS

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Business plan – GPS

If your goal is to reach the widest possible audience, then Facebook offers excellent return on  your investment.,
your target audience, users
 electig
When should I use Facebook to advertise my business?
Advertising on Facebook is particularly useful if you are offering a new service or targeting the widest possible audience. However, this demands that you ask yourself; “who is my target audience?” if your advertising is aimed at attracting random surfers, then Facebook presents a cost effective solution. However, if you are interested in attracting surfers with specific search criteria, then you are better off concentrating your advertising budget on search engine optimization and on placing banner ads on relevant websites.
 
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Business plan for social projects

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It is very important to maintain flexibility of thought, not to lose Critical vision and ability to judge
Have a business plan for a project with social significance?
Note that enlisting donators to the capital financing of the project (alongside private investors / bank loan etc.), will  actually reduce the ROI – in terms of amount and time period

Capital Raising After Writing a Business Plan

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Capital Raising After Writing a Business Plan

Capital raising options for financing a new project include various types of potential investors. Each option has its advantages and disadvantages for its pursuer during the process of capital raising, after writing a business plan.

  1. A Private Investor (or in professional terms: an “Angel”) –  Is a wealthy individual who seeks to invest his money is new projects, which will potentially give him better financial return, more than the standard investment options available in the market.
  2. A Strategic Investor – Is one who seeks to invest in any plan or idea that meets his ongoing business operation. For example: A well based leading green energy company which promotes a new, relevant project, which integrates successfully with its own business plan.
  3. Venture Capital Funds – This mainly refers to those who invest in technological projects and start ups, which involves a greater risk factor (and higher return as well).
  4. State Given Sources – Just like the “head scientist”. Investing in technologies and ideas which were defined by the Ministry of Industry, Trade and Laborof Israel, under specific requirements, as a high business potential in accordance to the state’s priorities.
  5. Private/Public Funds – Occasionally, there are private or public funds available which are designated for developing specific ideas which were prioritized by the state (public funds), or that match the investor’s intents (private funds).

GOOD LUCK!

A successful business plan

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It is very important to maintain flexibility of thought, not to lose Critical vision and ability to judge

A successful business plan

6 important questions to ask on route to a successful business plan.
Ready, Set, GO!
Successful marketing of your product or service is critical for old and new businesses alike. Failure to disseminate a product or service into the market may lead to financial loss or even destroy a business’s chances of survival.
A detailed marketing strategy, which forms part of a business plan, can shrink the risks of failure and increase the chances of success, regardless of whether the product is new or already exists in the market.
In the competitive world of marketing that is played out on every shelf and in every sector, you simply cannot afford not to have a targeted and detailed marketing strategy that asks the right questions and responds with the best solutions.
GONOGO presents 6 questions that you should ask and the answers that may make the difference between success and failure.
1. Is your market overview inclusive? Have you accurately defined the market you are targeting, is it recognized and unambiguous?
Before you can begin planning your marketing strategy and setting yourself targets, you must first collect information about, and investigate, the market you intended to operate in. Market analysis should include a general overview of the market as well as an assessment of its more specific trends and trajectory. You should also include a customer profile and a consideration of consumer preferences, identify existing or potential competitors, direct or indirect, and provide an introduction to their products and services, as well as their quality and price points.
Your market analysis can follow the Porters Five Forces methodology, which involves examining competitors and substitute products, as well as customer and supplier bargaining leverage and possible barriers to entry into the market. An additional methodology that can be used to help you assess your business venture within its context is a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. This involves examining the internal (strengths and weaknesses) and external (opportunities and threats) factors related to the product or service.
2. Have you accurately defined your long and short term goals?
Defining business goals can be conducted on a quarterly, half-yearly, annual or multiyear basis. In addition, you should define the type of goals you are aiming for. Goals can be “rigid”, such as sales goals and market segments to target, or they can be “soft”, such as building brand reputation, public awareness or differentiation in the market.
3. Have you determined a marketing strategy?
In order to build an action plan that will help you meet your predefined targets, you must first define the way in which you intend to make your product or service attractive to your target audience. To do this, you must chose differentiation and branding strategies that are most relevant to your product or service.
Differentiation – define the unique advantages your product or service has, so that you can emphasize them via various media channels.
Positioning – what “place” will your product or service take in your target audience’s psyche? This means thinking about the features of your product or service as they are perceived by the customer, what they find interesting or how to create an emotional connection to your product/service.
4. Have you thought in depth about your marketing mix?
Once you have decided on the differentiation and positioning strategy best suited to promoting your product or service, you must identify the channels that will ensure your target audience receives your message. In order to do so you will need to choose the right marketing mix. This includes 4 main elements:
The product- defining product or service features, including design and packaging.
Price – it is obvious that the price of the product or service plays an important role in your potential customers’ considerations. Nonetheless, you must also determine a price with consideration of the demand for your product or service, competitor’s prices, profit margins, and also the brand image you are trying to create.
Place – you must chose the marketing channels through which you want your product or service to reach the target audience. Direct or indirect marketing? Should you choose indirect marketing; you will also need to define the terms and conditions of your engagement with distributors (profit margins or commissions etc). Similarly, you will need to think about their geographical location and your ability to cover the market etc.
Promotion – the activity that is intended to communicate your message to your market and should include the following elements:
Advertising and marketing – communicative activities intended to convey your advertising message to various target audience. There are a broad range of channels and media at your disposal.
Sales Promotion – includes methods intended to entice existing or potential new customers, such as attractive discounts etc, with the intention of increasing sales during certain periods.
Public Relations – using traditional PR methods to promote the image of your business/product or service
5. Have you prepared a budget that will enable you to realize your chosen marketing strategy?
This means assessing the cost of your marketing strategy and the forecast income from its realization. At this stage you must set quantitative targets and various measurements that will support future and ongoing decision making.
6. How will I supervise this activity?
The final stage in preparing a marketing strategy involves forming a team or setting up a system whose function will be to oversee the progress of your marketing plan. This team/system will be responsible for updating and modifying your marketing strategy and budget as necessary.
How to begin?
Don’t forget: a good product or service, as innovative and groundbreaking as it may be, does not guarantee success in the market. It is important to make good use of the period before the product’s or service’s launch to examine whether you have complete solutions for the many questions that will arise along the way. We exact the greatest damage to a business when we feel we are above being questioned, when we make assumptions without investigating our conclusions, when we say “all will be well” and hope things will simply fall into place. True, luck and circumstance play an important part in the success of a business, but long term success relies on strong foundations formulated in a professional business plan. Writing a plan in retrospect and assuming things will sort themselves out is one of the main factors that lead to painful failure. The surest route to success is to thoroughly think about the possibilities and reach well examined conclusions, at every stage. The answers are not written in the starts – they are written in your business plan.
 
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