It is a fundamental part of the plan: it is not enough to have a great idea, an unmet need, but we are also going to know how to sell it. For this reason, we will have previously carried out a market study to detect:
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Who is my potential audience? Who am I addressing, what spectrum of population, age range, geographical areas …
Price hall. Take into account three concepts: if it is the same product that is already on the market, but that will cover new needs that we have detected, the price will be lower because it is easier to imitate. If it is a different product that will cover needs that other products already cover, but otherwise, the price will also below, for the same reason. If it is a different product that will cover other needs that we have detected, then we can put a higher price.
Who is our competition. Here we must include who is doing something similar to what we want to do and how our proposal differs from what is currently offered, either because the target audience is different, or because we are going to change the distribution channel, or because we have detected a hollow uncovered. A good analysis of the competition also allows us to know what our weaknesses are. To explain this competition analysis, we can use the customer experience map.
Set the sale price. That is, the one that leaves us a profit margin. To fix it, once we have determined our clientele, the price aisle and the price of our competition, we have to apply the formula: unit gross margin = unit sale price – unit variable cost. The variable cost is not the same if it is a commercial company, one of the services or another industrial one. In the first case, the variable cost is the same as the product plus the provisioning costs. In the second, since there is a manufacturing process, it is necessary to add to the cost of the product the cost of labor in manufacturing. In the case of a service company, as it is more intangible, it is also difficult to determine the price, but in any case it is necessary to count on the price of labor.
Sales forecast. You have to take into account the high and low seasons of the business. It is best to make a downward forecast so as not to be too optimistic. A monthly first-year forecast should be made and then a three to five-year forecast. Do it in tables and be careful to include them again in the financial plan.
How are we going to distribute it . Explain the sales channels you will use.
How are we going to count it . You have to explain how you are going to communicate it. It can be structured as follows:
Detailed description of the brand and logo and definition of our brand.
Promotion policy: fairs and congresses, sponsorship programs, sponsorship …
Direct marketing and telemarketing actions.
Advertising in specialized and general media.
Sales network. Also make a monthly and a three-year forecast of marketing expenses. In the business plan that you will find on our website, you can see examples of tables.
In the executive summary and in the first part, in the product description, we have ventured the promoter team. Here we will talk about the rest of the necessary personnel. These points must be recorded:
Organization chart . Description of the positions and number of people who will become part of the project.
Description of the functions and tasks to be carried out and the profiles sought.
Labor conditions. Salaries, shifts, legal status, types of contract.
We will detail the logistical development of our idea: whether it involves industrial production, whether it affects distributors or the technology we will use. Be careful with this point. What we have to do here is advance the data that may be public and that should be known by the investor, never more than necessary and, of course, without revealing the know-how, so as not to incite the copy.
Description of the production process of the product (how it is going to be done, in which facilities, by what means) or of the service (how we are going to provide the service …). If we have our own patent or software, it is time to say it.