“Want to Propel Your Business Plan? (Now You Can!)”
Small Business Online Coach
“If you have a few minutes, I’d like to tell you how to make your business plan sizzle for every investor, every bank and every partner. It will apply even if you’re looking for an sba loan”
Six reasons affect every item you want to have in your plan. It does not change if you offer goods or services. They are: market, uniqueness, demand, price, value and growth.
As you may already know, it always helps to work with a small business online coach. You could get a jumpstart on your small business. This is your chance to collaborate with someone and grow simultaneously.
Are you ready to look at the 6 reasons now? Let’s check.
1) Market Positioning
Think of where your services fit in the market. Are they high-end? Are they competitive? Or, are they low price? This is one way to slice market positioning.
Look at how you compare to your competitors. Do you focus on cost, quality, innovation or service? Then look at the playing field. If you are into product positioning, you may already know that you will disrupt the market sooner or later if you focus on innovation.
2) Unique Selling Proposition
You may know that your competitors could offer services just like yours. If some of them didn’t succeed, find out how you will do it differently. Find the edge in your services.
Your unique selling point is all about the difference. It finds your market niche. It’s more than just a better service. It shows how your services fit some customers.
Have you made that clear in your message to your ideal customer? There are many unique selling proposition examples that mark what small businesses offer. Check them out.
3) Expected Demand
This part is the most difficult, if you ask me. You have to study your leads and then estimate who is likely to buy from you. Then you have to estimate how often they will buy from you.
If you’re selling goods, it could be easier than selling services. Customers want to see the value when they get ready to buy from you. I don’t blame them. I do the same when I want to buy. Don’t you?
What do they feel about market certainty? Such questions affect buying patterns. Finance and cash flow is always important. It is all about small business administration.
These reasons also affect your 6-month or yearly estimates to have a fit small business.
4) Pricing Strategy
Every small business has pricing strategies. Sometimes it is price skimming, where you set a high start price and then lower it over time. Other times small businesses use penetration pricing, where you offer a low entry price for a new service to steal customers from competitors. If you use cost based pricing or value pricing, show the reasons you chose that strategy. Investors and bankers look for them.
5) Value to Customer
If you are in services, offering value in exchange for fees tops the list. If you offer goods, customers want to pay what the market will bear.
Services or goods fall into 3 broad groups--need, luxury or somewhere between the two.
Research the market. Evaluate the demand for your services or goods. Then check the extent of value you offer to your customers. Make certain the value is 5X what you charge for it. Some may want it to be 10X. It’s your call. It depends on the distance you want to keep from your competitors. Importantly, set up your message so it (clearly) shows off the value.
Once you have long-term customers, calculate your customer lifetime value (CLV). That will show you your growth potential. We will look at this next.
6) Growth Potential
Some services produce offshoots. Check the growth you see in the services you offer your best customers.
Look at where the percentage of highest growth lies. Invest in those services that have the highest potential to grow revenues. That’ll give you the focus you need.
If you need help writing a business plan, work with a small business advisor. Or, find a small business online coach. That's even better. You'll recover what you paid quicker than you think.
Want even faster results? Are you ready to discover how? Schedule your Explosive Business Results session now.
Written by Suresh Iyengar, P.E., President, Business Unit Execution LLC––“Explosive Business Coaching Houston Results For Small Business”. Want even faster results? Are you ready to learn? Call 281.410.5375 and speak to your Profitability Coach Houston
“This Just in: Role of Top Management in Business Plan Project”
Small Business Online Coach
“Let me tell you about a small business owner in Houston, Texas who got her business plan approved by the bank, her investors and her partner.”
As a Houston small business owner, Sarah had her ducks in a row. She included key job descriptions for roles in top management in her small business plan. She showed who handled critical roles. And showed how you use absence management when work falls through the cracks.
Many small business owners write business plans but they don’t get bank approval. Investors shy away because they see risks. They want to see the potential for success.
If you wonder what could be wrong, you aren’t alone. One of the key areas of a business plan is your top management. How strong are they? And why do you think that is the case?
Do you remember the famous quote? “People are your greatest asset”. Most investors, partners and employees believe in it.
Include job titles. Include background and education. Include their work in the industry. Include awards, milestones and top management skills. Remember to list any previous businesses they owned. Show how each partner or employee fits each job. Show how work connects people. Explain who will take action in each area. Use a flowchart. Show reporting layout.
If you have critical roles, then include them in the plan. If your business focuses on accounting, then a certified accountant is a critical role. Similarly, if your business is engineering, then a licensed engineer is a critical role. Critical roles exist in all small businesses. List them if you have more than one in your small business. Show how you handle absence management.
Now, it's possible to have a flowchart that shows vacant positions. For each such position, list the title, the number, expected turnover, skills and date you plan to fill it.
List any training programs you plan to hold if you don’t find the right staff. Point out training you’ll take as the small business owner to stay current.
Preserving skills is equally important. Highlight how you plan to divide the work. Show how you’ll pass this information to staff. Document internal steps to check if you’ve trained your staff to do the work.
Such steps assure investors that you will be able to lower risks. Markets go through highs and lows. Small businesses that survive remain steady in their approach. That’s what a great business plan project showcases.
As a benefit to you, having the right top management in the plan will help you evaluate the skills, experience and training your business needs. Complement that with absence management and you will cover the gaps.
At the end of the business plan project, you could include resumes of your staff.
If you need help writing a business plan, work with a small business advisor. Or, find a small business online coach. That's even better. You'll recover what you paid quicker than you think.
Want even faster results? Are you ready to discover how? Schedule your Explosive Business Results session now.
Written by Suresh Iyengar, P.E., President, Business Unit Execution LLC––“Explosive Business Coaching Houston Results For Small Business”. Want even faster results? Are you ready to learn? Call 281.410.5375 and speak to your Profitability Coach Houston