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

2. 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?

3. 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).

4. 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

5. 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?

6. 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.

7. 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.

8. 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?

9. 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?

10. 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

11. 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?

12. 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

13. Two Types of Market Research
Primary Data
Secondary Data

14. 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.

16. 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