In this post, we will go through the components of the business plan. Explaining how they should be viewed, information that should be gathered. And internal and external specifics.
You know that your solution will be offered to medium-sized real estate companies. For example. Right, but this is still not a strategic concept for the customer segment. As it must predict and document characteristics observed later in practice for marketing and sales actions, such as:
- specific needs that companies of the defined size and industry have and in which the product or service can fit;
- how do these potential customers communicate;
- how to define the persona (the individual participating in the purchase process of these businesses) to prospect;
- financial capacity and budget availability they may have for the solution offered.
Here we cite a customer segment as an example. But we know that it is quite common for there to be two or more. As businesses of different financial capabilities, sizes and markets reveal differences in their purchase journeys and decision-making processes.
Considering their needs and expectations, how will customers perceive that it is worth purchasing your company’s solution? This question must be answered to decide the value proposition of the startup’s business plan.
It is the idea that needs to be passed on to potential customers, in addition to the benefits arising from features and other resources, which marketing and sales actions should explore and which should inspire the brand’s slogan and communication in general.
The value proposition needs to be easily understood and meet what potential customers expect and seek. For example, if the startup offers a budget control tool, it is important to demonstrate the system’s functions. Still, it must demonstrate its value proposition: helping customers reduce costs and better control finances, increasing the profitability of its business. It is for these reasons that potential customers should hire the solution.
Acquisition and distribution channels
The business will use marketing and sales channels to reach the intended customers, using much of the information documented in the customer topic. Other factors influencing channel decisions are the product or service and the format of the business process required to sell ataşehir escort it.
Some additional questions that must be answered before the definition are:
- Does the customer need to invest high value, or for a long time, to acquire or contract?
- Is a more detailed presentation necessary because of its complexities?
- Is the type of solution easily and commonly sold only online, without the participation of sellers?
- Is there any bureaucracy involved in selling and delivering the solution?
Channels can be online, most used today, and offline, separated into marketing and sales channels. The most common marketing ones are the website, content production and ads on Google and social networks. In contrast, the sales are the people who receive the leads and initiate negotiations. However, sales channels can also be online and automated, such as purchase checkout or direct contracting on the website.
Retention and loyalty
If the company sells a one-time, one-off product, it can run return campaigns for new purchases or sell products that complement the first. And this strategy can be automated, especially if the products are of low financial value or easily sold online.
High-value solutions, on the other hand, justify a closer human follow-up, including professionals dedicated to one or a few clients due to the need to deeply understand each client’s scenario and give them security.
Strategic partners are those with whom the startup’s business plan seeks to achieve results such as increased efficiency, improved distribution, process optimization, higher quality, less risk, etc.
They include key partners, in addition to the most important suppliers, service providers and other people and companies that are not part of the internal environment but are important for the enterprise’s progress and its results. Some examples are marketing agencies, legal advice, external sales representatives, independent audits and accounting offices.
When defined, these partners stay in the company’s operating structure for the long term.
Together with strategic partners, these resources form part of the business’s ongoing structure.
Here, the main activities that will make the business model run and the value proposition delivered are mapped. In addition to producing the design of workflows. This topic helps to design the necessary resources (staff size, budget, etc.) for the operation and to choose the strategic partners.
As every operation encounters inconvenience at some point. Even if only due to external factors and agents, the action plan must prepare the business to deal with these cases.
This topic must also project the scalability of activities. Leaving the enterprise prepared to increase productivity and the market share served without having to invest in the same proportion of people and other resources. Keeping the cost structure lean.
Documenting the cost structure has two objectives. To guarantee the minimum necessary for the operation of the business and its budget and to control expenses to maintain financial health. Which is essential for the survival and growth of the company. At least once a year, to evaluate possibilities and opportunities to reduce it. Which means increased profit margins.
Before establishing values and billing format, those responsible have to analyze the payment capacity of the customer segment (at least in a projection) and how much and how similar companies already pay for similar or substitute solutions in the market.
The objective is to follow some criteria known to potential customers and already accepted by them while applying changes and innovations in the revenue model that will help the business be more competitive with its values and conditions.
We have just cited the assessment of the competition and the market in general for the revenue model, but this observation is also important for other factors. Mainly to take advantage of opportunities that other players left.
For example, post-purchase or contracting support from the competition may be lacking for customers. In this sense, it is worth researching what some companies failed to do or tried to change, unlike most, which ended up being negative.
The financial projections for startup involves many criteria and a lot of information for each. Therefore, when documenting the planning. Confusion can occur when describing actions and assets, forgetfulness, disorganization. And especially difficulty relating one factor to another. Which is essential because there is a relationship between several of the different points of the plan.
Therefore, it is always valid to have the Business Model Canvas layout as an attachment. To be a clear and objective design of the planning. Functioning as a facilitator for its understanding and the realization of the relationship between factors and specific data of each topic.
Even for startup startups and micro-enterprises. The Business Model Canvas can replace strategic planning, acting as its own.
Startup business plan review
We have cited the review only on the topic of cost structure so far. But the planning as a whole requires a semi-annual or annual review for corrections and improvements.
After a year, for example, one of the key activities may have become obsolete because of new trends in the line of business. Or, just after six months. It may be necessary to review the cost structure because it has become heavy in terms of revenue and number of customers.
And suppose the list of products or services expands. In that case, changing the customer segment or acquisition channels will probably be necessary to communicate the news and distribute the new options.
Two other facts that justify the revision of the plan are the need to make many decisions in elaborating the plan. And the uncertainties that arise during the first definitions. Over time and testing the plan in practice. Many findings may emerge that require additions, deletions, and corrections.
For more information you should visit business plan consultant.
And suppose entrepreneurs will participate in a process that involves the search for acceleration or investment. In that case, it is important to review the plan so as not to allow weak, dubious or outdated points to reach the analysis of potential mentors and investors.
We’ve produced a long piece of content to cover all the key components of the business plan for startups looking to get off to a good start and scale successfully. Still, we have a lot more on the blog for you to read about finance, scalability, marketing and sales, management, and accounting and legal issues.
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