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Business Plan Preparation

A comprehensive guide for developing a successful business plan including product/service elements, market analysis, financial planning, and competitive advantage strategies. Learn to articulate unique features, benefits, and growth potential effectively.

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Business Plan Preparation

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  1. Business Plan Preparation Frank MoyesLeeds College of Business University of ColoradoBoulder, Colorado Product/Service

  2. Tonight’s Agenda Product/Service • Topics • PRODUCT/SERVICE DESCRIPTION • Margins • Read BP pp 6-7 • OneButton (Vilo) business plan • Elevator Speech • In the Fire • Preliminary Market Analysis Results • Preliminary Interview Results • Turn-in • 3 alternative value propositions • Customer Survey Questionnaire

  3. Next Week • Team to make appointment with instructor next week • Marketing Plan • Revenue Model • Read BP pp 14-18 • In the Fire - Prelim Industry Analysis • Model company description • Hand in • 10 Call Reports • Preliminary Competitive Matrix • Model company description Product/Service

  4. In the Fire Grading Product/Service

  5. Business Plan Elements Product/Service Executive Summary Company Overview Market & Industry Analysis Product/Service Description Marketing Plan Operations Plan Development Plan Management Competitive Advantage Financial Plan Funding

  6. Product/Service Sections Product/Service Features Benefits Proprietary Rights Stage of Development

  7. Features Product/Service • Detailed description • Attributes • Environment • Use photos, images, schematics http://leeds-faculty.colorado.edu/moyes/html/documents/Business%20Plan/Amari%20Final%20BPLAN.pdf • What is unique? • What is evidence that customers want these features? • How produce & deliver – systems approach • Don’t assume people know or understand your product/service

  8. 0 Attributes Bad Slide Product/Service Performance: durability, quality of materials, defect levels, tolerances, construction, dependability, functional performance (acceleration, nutrition, taste), efficiency, safety, styling, packaging, etc. Cost: purchase price, quantity discounts, operating costs, repair costs, cost of extras or options, cost of installation, trade in allowance, likely resale value, etc. Availability: carried by local stores, credit terms, quality of service available from local dealer, delivery time, credit card, on-line transactions, etc. Service: hours, warrant, guarantee, return/replacement policy, upgrades, maintenance, training, installation, repair service, spare parts, customer support, tech support, training, product design, make to order, level of inventory, quotation response time, lead time, quality certification, employee capabilities, etc. Environment: location, atmosphere, layout, fixtures, aesthetics, style, sound, lighting, color, etc.

  9. Benefits Product/Service Describe major benefits - be specific What is the evidence that benefits are understood by the market?

  10. Benefits Product/Service Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self Improvement, etc. Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc. Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc. Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc. Convenience? Objective is distinguish between benefits and features, not put into categories

  11. Feature vs. Benefits Product/Service

  12. Product/Service

  13. Product/Service

  14. Product & Service Conclusions Product/Service • Make it real • Photo, rendering, specs • Prototype • Evocative description • Make it exciting • Sell your concept

  15. Quality Dimensions I Product/Service Performance - the primary operating characteristics of the product or service Features - the characteristics that supplement the basic functioning of the product or service Reliability - probability of the product or service failing within a specified period of time Conformance - the degree to which a product or service meets acknowledged standards

  16. Quality Dimensions II Product/Service Durability - a measure of product life (both technical and economic) Serviceability - the speed, courtesy, competence, and ease of repair or recovery Aesthetics - how a product or service looks, feels, sounds, tastes, or smells Perceived Quality- various tangible and intangible aspects of the product from which quality is inferred

  17. Service Quality Dimensions Product/Service Reliability - ability to perform service dependably & accurately Responsiveness - willingness to help customers & provide prompt service Assurance - knowledge & courtesy of employees and ability to convey trust and confidence Empathy - provision of caring, individualized attention to customer Tangibles - appearance of physical facilities, equipment personnel and communication material

  18. Margins Revenue – COG’s Revenue Revenue – Variable Costs Revenue Net Earnings Revenue Sales, General & Admin Revenue Product/Service % Gross Profit Margin % Contribution Margin % Net Profit Margin % Operating Expenses

  19. Margins % Product/Service

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