This segment should include the following elements. Describe the activities you will use to promote and sell your product or service. You should touch on each of the "four Ps" of the marketing mix:. Your marketing strategy should also include information about your budget — how much money have you budgeted for marketing and sales costs?
You may also want to include a profile of your "ideal customers". You can create profiles based on customer type — consumers, retailers, or wholesalers — or base your segments on demographic information such as age, location, and income level. Keep in mind that solid market research is the backbone of an effective marketing strategy. Your business plan should outline your current operational requirements as well as your projected requirements for the next 3 to 5 years.
Your inventory management and accounting systems should have the ability to produce up-to-date reports. Conducting a SWOT analysis is an important part of business planning. A properly prepared SWOT analysis shows investors that you have realistically and objectively considered these elements. Banks and other lenders understand that businesses will encounter difficulties at some point, and want to know how you will deal with these challenges.
Remember that overestimating strengths and opportunities or ignoring potential problems will undermine your credibility. This section addresses how you plan to manage your employees and human resources processes. You should also discuss your short-term and long-term plans for employee recruitment, training, and retention.
If appropriate, discuss any advisors, mentors, consultants that offer you support. Investors need to know that you and your employees have the necessary balance of skills, drive and experience to enable your business to succeed.
It is also advisable to outline any recruitment or training plans, including timelines and costs. In this section you should discuss ways in which your business honours ethical values and respects people, your community, and the environment. Effectively using information technology is an important part of managing a business. Our team at Prospectus. We have been involved in thousands business projects and assisted with business planning, offering and private placement setup, feasibility studies, drafting financing projection, both for private companies and those seeking initial public offerings or listings on a stock exchange.
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In a business plan that is written for investment capital, the structure of the business plans and therefore the most important point of the document will be the value-added benefit. Information on the products, services and the market will play central roles in the development of the plan, as well as various payout or exit strategies for the investors.
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In an equity business plan the company seeking funding will sell an ownership stake. If the company is a corporation they will sell shares or common stock or a variation of them.
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