2. Customers Created by: Dr. Janet Ratliff & Ms. Jenna Johnson

8. Financial: Fundamentals 9. Financial: Funding Product/Service Describe Product or Service. What is it solving? Why will customers buy it? How is it different from products similar? How will you manufacture this product? 2. Customers Creating Value? Customer/Target Market? Where are they located? How large is your market? Marketing Competitors’ strengths and weaknesses? Competitive advantage? Promote or advertise? Brand/Logo?   5. Team Members Team members? Member responsibilities? 7. Summary Short description Target market? Value Proposition? Provide a vison/mission statement. Start selling? 3. Channels/ Distribution Distribution? Quality assurance? Customer service? Operations Legal structure? Location? Capital resources? Rented? Used? Purchased? 8. Financial: Fundamentals Cost Structure Cost to start up? Fixed/variable costs? Breakeven point? Revenue Structure Sales projections? Revenues? 9. Financial: Funding External funding? Borrowing? Equity financing?

Business Model Canvas 2. Customers For whom are you creating value? What is your target/niche market? Who is your typical/desired customer? (age, sex, income, lifestyle, education, et cetera). Where are your customers located? What is the size of your market? (number of customers).

Creating Value and Value Proposition For whom are you creating value? Who is benefiting from your product or service? What is the nature of the benefits provided? Customer Value = Benefits – Cost Features offer specific benefits. Value Proposition The set of benefits or values your product or service promises to deliver to consumers to satisfy their needs

Target Market Individuals or companies interested in a particular product or service, and willing to pay for it. Is there a niche within this target market?

Niche Market A specialized position in the market. Concentrating all marketing efforts on specific groups of the population. Niches are created by identifying needs, wants, and requirements that are not being addressed at all or are being poorly addressed. As a strategy, niche marketing is focused on developing and distributing products or services that satisfy needs and wants specifically defined. Big fish in a little pond.

Market Segments Groups of customers within a large market who share common characteristics. Market segmentation is important because most products and services appeal to only a small portion of the population. Coming up with good ideas for a business is not enough to guarantee success. Customers or organizations are the key because they are the ones that will buy products or services.

Identify Your Target Market Who is your potential market? (individuals or companies) If individuals: age, income, location, spending behavior, et cetera? If companies: industry, location, demand, et cetera? What needs or wants are to be satisfied?

Continued How many potential customers are in your location? What is overall demand for product or service? Where do these potential customers currently buy? What price are they willing and able to pay? What can I do for my customers that other companies are not already doing?

Description of the characteristics of the person or company that is likely to purchase a product or services. Demographics Data collected in terms of age, marital status, family size, ethnicity, gender, profession, education, and income Psychographics Data collected in terms of consumer tastes, opinions, personality traits, and lifestyle habits Geographic Data Data that helps determine where potential customers live and how far they will travel to do business Customer Profile

Customer Profile Once you narrow down your customer profile, ask where are your customers? How large is that market? Are there enough people fitting your profile within that market that you do not have to worry about sales?

Market Research A system for collecting, recording, and analyzing information about customers, competitors, products, and services. Six Steps of Market Research Define the question Determine the data needed Collect the data Analyze the data Take action Evaluate the results

Two Types of Market Research Primary Data Secondary Data

Primary Data Information collected for the very first time to fit a specific purpose. Survey A list of questions you ask your customers to gather demographic and psychographic information. Focus Group An in-depth interview with a group of target customers who provide valuable feedback on products or services.

Secondary Data Data found in already-published sources. Publications issued by the government and community organizations Books about specific industries Books about other entrepreneurs who set up similar businesses Trade magazines and journals Newspaper articles and statistics