Independent business plan Small Business Management/Entrepreneurship

INDEPENDENT BUSINESS PLAN PROBLEM Problem 2: Customer Service First impression Happy customers come back Each contact with customer must be pleasant and accommodating Sample: Restaurant Business Problem 1: Menu # of items: balance Prices Coherent Theme: Tour guide, build around popular items Problem 3: Unique Selling Point Why should I come here? Burger King: have it your way Farm to table HINT! Complete an internet search of your business type to identify “the three biggest problems in your industry.

INDEPENDENT BUSINESS PLAN Solutions Feature a factual statement about the product or service being promoted features aren't what entice customers to buy. Feature Batteries included Benefit product is ready to use out of the box Solutions/Results I'll never have to see the crushed look on my child's face when his toy won't work because I forgot to buy batteries. Benefit answers the question "What's in it for me?“ the feature provides the customer with something of value to them. What are the top 3 features of your product or service?

INDEPENDENT BUSINESS PLAN KEY METRICS Metrics for industries vary. Research “key metrics for (your type of business) industry” Metrics for new businesses are also unique. Research and identify key metrics for startup business. Once you have identified and understand the key metrics for your industry, review the link below about “business dashboards. Shape this section based on using a business dashboard to monitor key metrics Businesses rely on metrics to measure performance over time and monitor progress towards achieving key goals.

INDEPENDENT BUSINESS PLAN UNIQUE VALUE PROPOSITION Make a great first impression Differentiate your business Key to the marketing of your business Must be more than a slogan What is the single, clear, compelling message that states why your product/service is different and worth buying? 20 Value Proposition Examples & What You Can Learn From Them

Independent Business Plan Competitive Advantage What about your business cannot be easily copied or bought How are your different than the competition Do you have a patent or the exclusive rights to use a product in a select area? Why are you better than the competition? Expand your unique value proposition into a “how to” Summarize why your ideas will make your proposed business stand out in a crowded marketplace!

Independent Business Plan Channels Distribution What are your products/services pathways to customers? Review your revenue sources (brick & mortar, web base, catalog, etc.) Communications Let customers know about your products! Be creative and use any means available Advertising, websites, social media, events, etc. Tie in to target consumer and distribution How do customers get your product/service?

INDEPENDENT BUSINESS PLAN CUSTOMER SEGMENTS Primary Customer? Early Adapter? Secondary customer? Customer Profile/Snapshot Demographics Psychographics Why they buy How often they buy Loyalty Perceived value Research your industry for business similar to yours-who are for their customers? INDEPENDENT BUSINESS PLAN CUSTOMER SEGMENTS

Independent Business Plan Cost Structure What Are Customer Acquisition costs? How much does it cost for you to acquire a customer? Research what it is, “how to”, average customer acquisition costs for your industry What are the distribution costs? Costs to put product in customers hands Transportation to your site/storage/ delivery Research the average costs to your industry What are the human resources costs? People costs How many employees will you hire? acquire/train/ evaluate/pay Research the average costs to your industry Additional Costs? Are there any special costs to operate your business that are just in your filed? Independent Business Plan

Independent Business Plan Revenue Streams What is the revenue? How will your business make money? List and explain all sources/methods your business will make money! What is the revenue model? Transaction revenue model Recurring Revenue Model Service Revenue Model What is the gross margin? Gross margin is a company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. The higher the margin the better What are the life time values? How often does the average customer purchase g/s from you per week? What is the average purchase amount? (52 weeks x average purchase)