Mini Business Plan Assessment
Background:
A huge number of successful businesses–such as Apple, The Cheesecake Factory, and Amazon–were built around the personal passions of their founders. Consider your own personal passions. What do you love to do? What are you great at doing?
Can you shape any of your interests into a business opportunity? Be sure to think big. For instance, if you love hanging out with friends and listening to music, a club promotion business might make sense for you. Or, do you see a business opportunity or unsolved need/problem in the marketplace that you could build a business around? (2019 Cengage Learning).
For inspiration, check out these top ideas or do other research:
Review the basic sections of a business plan in Chapter 7 and information shared in the class resources. Additional resources regarding business plans and research links can be found at:
https://articles.bplans.com/how-to-write-a-business-plan/
Write your business plan (Links to an external site.)
Business idea (product or service): [MARKETING, chapter 12]
Provide a detailed description of what your good/service/idea does or what is it overall and then:
Share a minimum of 3 features and benefits
If service business, explain the service scape as well (pgs 316-317) and include the physical location of the business (city, state). If an online service business, explain service scape relating to your website, customer service, etc.
How does your good/service/idea solve your potential customers’ problems or pain points better than other potential solutions or the competition…is it better performance, customization, design, price, convenience, delivery method, comfort, quality, etc.?
Target Market/Customer Segments: [MARKETING and RESEARCH, chapter 11]
Describe the characteristics of your ideal customers (demographics, behaviors, interests, values).
Remember consumer markets can be segmented by: age, gender, location, income level, educational level, psychographics (purchasing patterns, hobbies, activities), and more. Business customers could be segmented by: type of industry, location, business size (revenue or employee size), technology used, and more.
What is the geographic location of your target market – is it a certain mile radius around your location, regional, national, etc.?
What could be the size of your target market or estimated number of potential customers based on your target market definition? (You may include general market trends or stats to support that there is a market by Googling it or by using the research resources from the IGNITE! website above. source where you got your information.)
Competition: [EXTERNAL ENVIRONMENT, chapter 1]
Describe your direct (sell the same type of product/service) and indirect competitors (sell similar or a different type of solution to the same customers)? How do they differ from your business idea/what do they do better or known for?
What are the barriers to entry to the industry (type of business you are opening) and market such as capital costs to get the business started, technology needed, lots of competition, patents required, other external environmental factors like social trends, regulations, etc. from Chapter 1?
Sales & Marketing Activities: [MARKETING, chapters 12 & 13]
Describe how will your target market buy from you? (i.e. storefront, website or e-commerce, sales teams, distributors or retailers, direct face to face if consulting).
What are the key ways you will reach your customers and make them aware of, desire and purchase your good/service/idea (radio; direct mail; sales promotion; social media like Facebook, Instagram, SnapChat, blogs, etc; website; sales people; word of mouth or buzz marketing; etc.)?
Revenue Streams/Pricing (How will you make $$?): [ACCOUNTING & MARKETING, chapter 8, 13]
How much will your good/service /idea cost the consumer to buy it?
What pricing strategy will you use such as penetration pricing, matching the competition, prestige, cost based, etc.? Explain why?
What does the target market currently pay for a different solution from a competitor to solve their problem?
Operations and Management: [ENTREPRENEURSHIP/BIZ FORMATION, MANAGEMENT, OPERATIONS, chapters 6, 14 & 17]
What is your relevant experience and education related to the product/business idea? For example, what’s your expertise, entrepreneurial characteristics, and Clifton Strengths that you bring to the business?
What are the backgrounds or strengths of your team or possible employees, if you hire people. What roles would they assume if your business would launch? (Think about who might you need to compliment your strengths and fill gaps of your weaknesses?)
Some businesses also need key partners in order to launch such as a lawyer for intellectual property, accountant, or other businesses that could compliment yours to sell your product, etc. List any additional partners and resources needed.
Explain how your business venture will be structured such as a sole proprietorship, partnership, LLC, or corporation. Give rationale about why this structure was selected and provide any other relevant details.
Ethics and Social Responsibility: [ETHICS, chapter 4]
Outline ethical standards, values, or guiding principles that will be used to guide decision making for the new venture.
What will be the company’s approach to social responsibility as it relates to stakeholder groups such as employees, community, environment, customers? For example, will you donate to the community and if so, what causes?
Cost Structure/Expenses/Funding: [ACCOUNTING & ENTREPRENEURSHIP, chapter 8 & 7]
What are your major expenses or costs to get the business started including customer acquisition costs (marketing), cost to produce good/service/idea (ingredients, supplies, raw material), distribution costs, human resources, equipment, tools, operating costs, building leases or purchase of property, etc.? Think fixed and variable costs. List these out and give estimates to those costs.
How much funding do you need to open the business based on first bullet about expenses/costs?
What will be the sources of that funding (personal savings, loans, lines of credit, friends/family, equity funding, etc.)? Give rationale about why these would be good sources.
StrengthsFinder Application: Select one or more of your strengths ( FUTURISTIC) from the StrengthsFinder LP and describe how you utilized it in the completion of this assessment.
REF :
Kelly, M., & Williams, C. (2018). Bundle: BUSN + MindTap Business (11th Edition). Cengage Learning US. https://ecampus.vitalsource.com/books/9781337671736
Last name, First Initial. Second Initial. Year of Publication. Title of Book (Edition of book if later than 1st ed). Publisher name.