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Writing the Marketing Plan Section of a Business Plan31. August 2010 by Frank Goley, Business Consultant for ABC Business Consulting.
First Develop the Products and Services Section of the Business Plan Developing, writing and implementing a successful Marketing Plan starts with solid Industry and Market Analysis and concludes with an implementable Marketing Strategy and Marketing Programs. A Marketing Plan is not developed and implemented independently; rather, it should be developed in close coordination with your Business Plan Products and Services Section and ultimately implemented through your Company’s Strategic Plan and Sales Plan. The Marketing Plan Section of a business plan is typically developed after the Products and Services Section of the plan have been developed. This gives the marketing plan process a head start on developing a cohesive and competitive marketing strategy and program. What The Marketing Plan Does
How Your Products and Services will be Positioned The Marketing Plan explains in great detail how your products and services will be positioned in the market, all supported by detailed, believable market research. The Marketing Plan carves out your target market niches and develops effective Marketing Programs, along with a Strategic Marketing Plan. Example Format of the Marketing Plan Section of a Business Plan 1) Industry Overview 2) Industry Distribution 3) Market Segments Description 4) Market Segment Needs 5) Market Segmentation Strategy 6) Market Trends 7) Market Growth 8) General Nature of the Competition 9) Customer Choice Factors 10) Product and Service Competitive Comparison 11) Competitive Analysis 12) Competitive Positioning 13) Competitive Edge 14) Marketing Strategy 15) Marketing Programs For more information and a step by step guide on developing a Marketing Plan, see the ABC Business Consulting Business Plan Workbook.
Posted in Business Planning, The Business Success Blog | Print | No Comments » The Products and Services Section of a Business Plan30. August 2010 by Frank Goley, Business Consultant for ABC Business Consulting.
Your Competitive Advantages and Disadvantages The Products and Services Section of a Business Plan is the “meat” of the plan. By the time you get to this section, you should have developed the Company, Management and Operation Sections. It is now time to describe in detail your company’s Products and Services. This section also contains information on your competitor’s products and services. One of the most important aspects of this section is to explain why your products and services are unique. This includes your competitive advantage. On the converse, this section states where you have weaknesses in your product and service line-up. Start with a Resource Audit A Resource Audit is an honest self-evaluation of your company. In this analysis you identify your strengths, weaknesses, opportunities and threats (SWOT), which will be considered in your Marketing Plan and addressed in your Strategic Plan. In this section you develop your product and service price points, features and value to be fully exploited in the Marketing Plan. Customer identification, analysis and segmentation starts in this Section to be later developed in the Marketing Plan. The Products and Services Section Sets Up Your Marketing Plan This initial analysis of your products and services sets up the success of your Marketing Plan. It lays the foundation to develop an effective Marketing Strategy. Spend time on your competitive advantages and disadvantages, your price points and initial SWOT analysis in this section and developing your Marketing Plan will be much easier and much more effective. A Sample Format for the Products and Services Section of a Business Plan 1) Products and Services Description 2) Awards, Honors & Achievements 3) Case Studies 4) Product and Service Mix and Price Points 5) Product and Service Analysis 6) Life Cycle 7) Production Strategy 8 ) Research and Development Strategy 9) Space Utilization 10) Departments Descriptions 11) Future Products and Services 12) Effects of Technology 13) Computerization Requirements 14) Company Sales Literature and Brochures 15) Internet Strategies 16) Electronic Ordering and Fulfillment 17) Inventory Method and Management 18) Regulatory Compliance 19) Product and Service Liabilities
Posted in Business Planning, The Business Success Blog | Print | No Comments » The Company, Management and Operations Sections of a Business Plan27. August 2010 by Frank Goley, Business Consultant for ABC Business Consulting.
In an eight section Business Plan, the Company Section and the Management & Operations Section come in as sections 2 and 3 respectively. These two sections set up the meat of the business, the Product and Service Section, which is typically Section 4 of a business plan. These two sections of a plan are critically important as they speak to the quality of how a company is set up and run, as well as, the quality of the team running the company, which will ultimately spell success for a company. Many think the Marketing Plan section and the Products and Services section are the most important in a business plan, but without sound company management and operational management, the best products and awesome marketing can not make it successful. It is the team and how it runs a company that makes it successful. It is the heart of a company. A Company’s Management Team is of Paramount Importance No matter how good the company’s Products or Services, it can not be successful with out the solid building blocks of the Company, Management and Operations Sections of its business plan. I usually combine Operations with the Management section but it can stand on its own or be part of the Company Section. Either way, it is important to establish the connection between Company Structure, the Management Team, Management Objectives and the Operational aspects of the company. It is a very important and necessary triangle to plan well for. The Company Overview Section The Company section of a Business Plan speaks to all the pertinent details of your particular company. This section comes first in the Business Plan (after the Executive Summary) as it serves as an introduction to the necessary details and background of your company. For instance, the Company Section could contain this type of information…
Suggested Format for the Company Overview Section 1) Company Establishment 2) Company History 3) Company Structure 4) Company Ownership & Legal Formation 5) Facilities & Locations 6) Products & Services Overview 7) Trends Affecting the Company 8 ) Customers 9) Competitive Strategy 10) Company’s Strengths & Weaknesses 11) Company Performance 12) Company Finance 13) Company Assets Management and Operations Section You can have the greatest business idea or concept but lack the people to execute the plan. Therefore, the Management Section of the Business Plan is the most important element of the plan and often scrutinized as such by finance sources, customers and your Business Plan audience. This section builds on the Company Section explaining in detail…
Example Format for the Management and Operations Section 1) Employees 2) Management Philosophy 3) Management Requirements 4) Management Gaps 5) Organizational Structure 6) Founders / Directors / Principals / Management / Key People 7) Management Administrative Procedures & Controls 8 ) Decision Making Teams & Processes 9) Company and Management Objectives, Goals and Strategy 10) Compensation Structure 11) Human Resources 12) Outsourcing 13) Consultants and Advisors 14) Products and Services Production and Delivery 15) Distribution System 16) Order Turn Around 17) Suppliers and Vendors 18) Service Standards 19) Customer Service Plan 20) Quality Control 21) Costs Minimization 22) Technology 23) Production and Operation Advantages 24) Capacity 25) Safety Procedures 26) Inventory 27) Environmental Considerations
Posted in Business Planning, The Business Success Blog | Print | No Comments » How to Write The Executive Summary Section of a Business Plan26. August 2010 by Frank Goley, Business Consultant for ABC Business Consulting.
Write the Executive Summary Last The Executive Summary should be written last. Why? Because it organizes and summarizes the entire Business Plan. You cannot achieve this effectively until all other sections of the Business Plan are completed. You should develop two types or renditions of the Executive Summary for your Business Plan. A short version which is 2-3 pages and a longer version that is 5-7 pages long. The Executive Summary contains the Company Statement, Visions and Mission, the Purpose of the Business Plan and a short summary of each section of your Business Plan, along with a Financial / Profitability Section. You can also provide the key strategic competitive success areas of your Marketing Plan. The Executive Summary is a Mini Business Plan The Executive Summary (short version) is part of your Business Plan, giving the reader a quick overview of the important facts contained in your Business Plan. The Executive Summary (short and long versions) can also operate as a stand-alone document to be used to generate interest in your business opportunity or venture, i.e. to be sent to a funding source to generate and gauge their initial interest. An Executive Summary can accompany an Investment Overview to provide more details to a venture capitalist about your particular business opportunity. Brevity and Inclusiveness are both Key Brevity, yet completeness and inclusiveness, is key when writing your Executive Summary. It should be concise yet have adequate detail about your Business Plan. This can be difficult to achieve if you attempt to write it prior to completing all the sections of your Business Plan. An Example Format of an Executive Summary This is an example of the different sections that an Executive Summary can contain. Adjust for long or short versions and for your intended audience. 1. Company Information 2. Business Plan Purpose & Objectives 3. Company Goals & Vision 4. Company Mission Statement 5. Company Description 6. Company Purpose 7. Company Situation 8. Founders, Management & Principals Capabilities 9. Products & Services 10. The Competition 11. Keys to Success 12. Finance 13. Growth & Expansion Goals 14. Sales Forecast 15. Return on Equity / Return on Investment
Posted in Business Planning, The Business Success Blog | Print | 2 Comments » How To Organize and Use Your Business Plan for Best Effectiveness25. August 2010 by Frank Goley, Business Consultant for ABC Business Consulting.
I. Table of Contents The Table of Contents of a Business Plan is one of the most important elements of the plan. The Table of Contents should be very detailed, so that the person reading and using the Business Plan can find and access the information needed very easily and quickly. You can write a great Business Plan with all the necessary information in it, but if you can’t easily find or access that information, then the Business Plan ceases to be a useful tool. How to Organize the Table of Contents The Table of Contents should be organized by each section of the Business Plan and the specific page numbers of each section and sub-section. It is strongly recommended that a Business Plan be organized as an online document, with the sections and sub-sections hyperlinked to the page where that information resides. This way you can access information very quickly on a computer online versus having to flip through the paper document to find the information. II. Organization The Organization of the Business Plan is quite important. The 8 Section Business Plan is in a specific order from which each section builds on the previous section. There is fluid thought and reasoning employed to achieve a Business Plan which reaches its specified purpose- i.e. to run a business, to buy a business, to expand a business, to enter a joint venture, to finance a business, to complete a particular project. Although the Executive Summary is the first section of a Business Plan, the Executive Summary should be written last. With the exception of the Executive Summary, all the other sections should be written in the order they are listed. Business Plan Format Remember that a Business Plan is a Business Document; you are NOT writing prose. It should contain a very precise and concise format and be organized into numbered sections and sub-sections, which contain specific information in short, paragraph form. Business Plans should be written in paper form, computer format and online format. Computer Format means the Table of Contents are hyperlinked so you can easily access certain information quickly and precisely in one click on your computer. Sharing the Business Plan You should have your Business Plan published securely, online (via password access) so that certain key managers or employees can access and manage remotely. Also, you can use an online Business Plan to attract funding for your venture. You can have different versions accessible online for particular purposes. For example, you could have your Marketing Plan accessible remotely so your Sales Manager can update it or refer to it while in the field or on an important sales call. You could have a funding version of your Business Plan accessible online for angel investors or venture capitalists to view your opportunity. The Business Plan is a Living Document A Business Plan is a dynamic document, as it changes on a daily, weekly and monthly basis. By being able to access it on your company computer network and / or online, the CEO, Executives, Management and Key Employees can update it easily and effectively. For a Business Plan to be successful, it must be intertwined into the fabric of your business and implemented through the Strategic Plan. Having the Business Plan organized with Hyperlinks with highly organized sections and uploaded on your company’s computer network and accessible online, allows the Business Plan to become a “living” document which can effectively:
Keep Your Audience in Mind Organization of your Business Plan is KEY to its effectiveness and utility. It is important to remember that too many Business Plans are written from the perspective of the Business Owner. When writing your plan, remember your audience extends beyond you, the Owner. Don’t neglect your Managers, employees, customers, the marketing aspects and the potential investor elements. This is also why I suggest writing one Comprehensive Business Plan to run your business and develop other Specific Purpose Plans for different audiences, i.e. a Customer Plan, an Investor Plan, a Lender Plan, a Strategic Management Plan, a Marketing Plan, Supplier Plan and so forth.
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