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STAGES IN A BUSINESS PLAN" - Coggle Diagram
STAGES IN A BUSINESS PLAN"
MARKETING ANALYSIS
A market analysis is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation.
Regulation
If regulation is a barrier at entry in your sector then I would advise you to merge this section with the previous one. Otherwise, this section should be just a tick the box exercise where you explain the main regulations applicable to your business and which steps you are going to take to remain compliant.
How to do a market analysis?
Following plan:
Demographics and Segmentation
2.Target Market
3.Market Need
4.Competition
5.Barriers to Entry
6.Regulation
Demographics and Segmentation
When assessing the size of the market, your approach will depend on the type of business you are selling to investors. If your business plan is for a small shop or a restaurant then you need to take a local approach and try to assess the market around your shop
Target Market
The target market is the type of customers you target within the market.
Market Need
This section is very important as it is where you show your potential investor that you have an intimate knowledge of your market.
Competition
The aim of this section is to give a fair view of who you are competing against. You need to explain your competitors' positioning and describe their strengths and weaknesses. You should write this part in parallel with the Competitive Edge part of the Strategy section.
Barriers to Entry
This section is all about answering two questions from your investors:
1.- What prevents someone from opening a shop in front of yours and take 50% of your business?
2.- Having answered the previous question what makes you think you will be successful in trying to enter this market? (start-up only)
Examples of barriers to entry:
-Investment (a project that requires a substantial investment)
-Technology (sophisticated technology a website is not one, knowing how to process uranium is)
-Brand (the huge marketing costs required to get to a certain level of recognition)
-Regulation (licences and concessions in particular)
-Access to resources (exclusivity with suppliers, proprietary resources)
-Access to distribution channels (exclusivity with distributors, proprietary network)
-Location (a shop on Regent's Street)
TECHNICAL ANALYSIS
Technical analysis is used to predict the probable future price movement of a security – such as a stock or currency pair – based on market data.
Technology
Marketing technology is a general term for tech used to assist marketing teams in their work. The technology is mostly used in the sphere of digital marketing, and also for the optimization of offline marketing channels.
Quality Control
:Is a process through which a business seeks to ensure that product quality is maintained or improved. Quality control requires the company to create an environment in which both management and employees strive for perfection.
Physical Facilities
Consist of all the buildings, grounds, equipment, and infrastructure required to create your product.
Supplier
Is a person or business that provides a product or service to another entity.
Innovation
In marketing is an activity that involves new ideas that have a positive impact to a new product and service. Marketing is a process that involves marketers to communicate product and service information to consumers.
Location
Based marketing is the strategy that matches opted-in, privacy-compliance location data received from smartphones to points of interest such as restaurants, grocery stores, and shopping malls.
FINANCIAL ANALYSIS
Calculate financial figures including start-up, monthly operating expenses and projections for the next five years. Include forecasted income statements, balance sheets, cash flow statements and capital expenditure budgets.
Net Present Value
NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.
Present Value Index
This index measures the efficiency of investment decisions under capital rationing.
Internal Rate Of Return
(IRR) is a metric used in financial analysis to estimate the profitability of potential investments
Payback
Shows how long it takes for a business to recoup an investment.
Cash Flows Income and Expenses
Shows your revenues, expenses, and profit for a particular period
Fixed and Variable Costs
Variable costs are directly related to sales volume and Fixed costs are the costs associated with your business's products or services that must be paid regardless of the volume you sell.
ADMINISTRATIVE ANALYSIS
Analysis of economic, geographic, demographic, census, or behavioral data to identify trends and conditions useful to aid administrators in making policy and/or resource allocation decisions.
Economy
A market economy is a system in which the laws of supply and demand direct the production of goods and services.
Budget
Is a spending plan for your business based on your income and expenses.
Recruitment
Attracting potentially qualified candidates to join the organization.
Training and development
The purpose is to maintain or improve the performance of current or future employees.