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From Daniel Richards




áY business plan outline

áY business planning
áY business plans

 

 

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áY Business Plans
áY Business Planning
áY Business Marketing
áY [ome Business
áY Business Idea

It is crucial that your business plan states your business concept and value proposition. Since this
part of the business plan follows the executive summary and company history, readers already
should have a general idea of your company. The business concept, however, comprises your
vision of the company, explaining the value your product or service will bring to the customer,
why you are especially qualified to offer it, as well describing your offering's uniqueness and
growth potential.

This in turn enables you, as well as interested parties and potential investors to research and
analyze the concept for feasibility, both from a market and financial perspective.


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Think of a feasibility test as a reality check for your big idea. According to è
 

  by Kathleen Allen, a feasibility test weighs the validity of your business concept by
examining four points:

áY The product your firm will offer

áY The customer you will target
áY ·our value proposition
áY [ow you will get the product to its intended users

By this stage you should have a firm grasp on what product or service you intend to offer, as well
as who you believe will be your primary customer. The final item requires weighing various
distribution channels, but, again, should be answerable with a little leg work.



 



In essence, your value proposition is what makes customers choose you, instead of the
competition. It's part marketing, part operations and part strategy.

On a subconscious level, customers will compare the value proposition of your company against
those of your competitors when deciding where to take their business. With that in mind, a few
things to remember when writing your value proposition:

áY ^


  

" ·our value proposition explains why customers should
buy from you. If you can't sum it up in 10 words or less, chances are you won't be able to
execute it, either.
áY 



" ·our customers have specific needs; your value proposition should offer
targeted solutions
áY 

  
#" ·our value proposition should discuss only what
matters to your customers and the value you can bring to them.
áY 



 $  " Money, time, convenience and superior service are a
few of the ways you can help deliver value to your customers.

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The last part of the business concept is how you will deliver your product to your customers.
There are several factors to consider when plotting your distribution strategy:

áY Will you set up a brick-and-mortar shop or office, sell online or both?

áY What unique obstacles exist for your company in these two different channels?
áY If your company sells a product, will you have the space to keep enough inventory on
hand, or will customers have to agree to waiting periods?
áY Can you strike exclusive deals with any particular distributor or retailer? Do your
competitors have any such deals that hinder your operation?

Remember, vision is important if your business is going to grow. The more focused your
business concept is, the greater the likelihood that you'll attract investors and customers.
Y