MARKET PROBLEM AND BUSINESS PLAN

Question 1

existing inefficiencies, awkward workflows, non-optimal solutions (silent/stated)

Answer 1

MARKET PROBLEM

Question 2

IMPORTANCE OF MARKET PROBLEM

Answer 2

*Understanding: key to uncover what drives customers to buy a product
*Provide information needed to develop right products and market efficiently

Question 3

5 IMPORTANCE OF NEEDS/HIERARCHY

Answer 3

1 | SELF-ACTUALIZATION
2 | ESTEEM
3 | LOVE AND BELONGING
4 | SAFETY
5 | PHYSIOLOGICAL

Question 3

TYPES OF MARKET

Answer 3

1 | EXISTING CUSTOMERS
2 | PROSPECTS:
3 | TARGET MARKET USERS

Question 4

already purchased

Answer 4

EXISTING CUSTOMERS:

Question 4

BASIC GOAL TO MEET TARGET MARKET DEMAND

Answer 4

otal quantity of product/service consumers are able and willing to purchase at given price within market

Question 5

not yet purchased but considering

Answer 5

PROSPECTS

Question 6

not currently looking

Answer 6

TARGET MARKET USERS

Question 7

2 KNOW EXACT MARKET NEEDS

Answer 7

STATED NEEDS
SILENT NEEDS

Question 8

problems with undefined solutions

Answer 8

SILENT NEEDS

Question 8

explicit (declares)

Answer 8

STATED NEEDS

Question 9

*quantitative/data collection
*market problem applies to *significant percentage of target market

Answer 9

2 | PERVASIVENESS:

Question 10

3 HOW TO EVALUATE MARKET PROBLEM

Answer 10

1 | URGENCY
2 | PERVASIVENESS:
3 | WILLINGNESS OF THE BUYERS

Question 11

*Is the market problem urgent?
*Problems need immediate solutions
*Customers care if problems not solved
*No other way to solve problem

Answer 11

1 | URGENCY

Question 12

*Will your buyers pay to have this problem solved?
*If significantly urgent and pervasive, chances are good that customers will

Answer 12

3 | WILLINGNESS OF THE BUYERS

Question 13

survive/persist; quality of being able to happen or have reasonable chance of success
linked to financial performance/position

Answer 13

VIABILITY

Question 14

9 NEW VENTURE IDEA: TEST-CHECK VIABILITY

Answer 14

1 | UNIQUENESS:
2 | FINANCIAL:
3 | CUSTOMER:
4 | COMPETITION: d
5 | ECONOMIC MOOD:
6 | TIMING:
7 | MARKETING:
8 | CASH FLOW:
9 | FEASIBILITY: legality

Question 15

how to stand out from others

Answer 15

1 | UNIQUENESS

Question 16

how much needed to finance

Answer 16

2 | FINANCIAL:

Question 17

Who is going to buy it?

Answer 17

3 | CUSTOMER

Question 18

do better than competitors

Answer 18

4 | COMPETITION:

Question 18

concerns affect spending

Answer 18

5 | ECONOMIC MOOD

Question 19

seasonal business or not

Answer 19

6 | TIMING

Question 20

strategy

Answer 20

7 | MARKETING

Question 21

proper financial plan

Answer 21

8 | CASH FLOW

Question 21

legality | Can product/service work?

Answer 21

9 | FEASIBILITY:

Question 22

*Professional, easy to read, well-put-together *Same information on title page binder, cover, business name, names of principals, address, phone number, email, websites, date, and logo

Answer 22

1 | TITLE PAGE AND CONTENTS

Question 23

*written document convince reader that business can produce enough revenue to make satisfactory profit and attractive as investment opportunity *Guide throughout life of business *All lenders, investors require business plan *Key: conduct international marketplace *Describe nature of business, sales and marketing strategy, financial background

Answer 23

BUSINESS PLAN

Question 24

*short, concise, optimistic overview *captures attention (2 pages) *brief summary of other sections of plan *mission, introduce management and company, ownership, main product and service offerings, customer base target, service, competition, market share, outline of financial projections for 1st few years

Answer 24

EXECUTIVE SUMMARY

Question 25

*overall nature of industry (scales, statistics, trends, demographics, economic cultural, governmental influences) *Describe business, fits in industry, competition, target market areas, unique, improved, and lower cost services

Answer 25

3 | BUSINESS/INDUSTRY OVERVIEW

Question 26

*demonstrate thoroughly analyzed target market, enough demand for product/service to make business viable *assessment of competition in sector

Answer 26

4 | MARKET ANALYSIS AND COMPETITION

Question 27

*entice customers to buy products/services *ads, promotion, pricing strategy, sales, distribution, post-sales, endorsement

Answer 27

5 | SALES AND MARKETING PLAN

Question 28

*describes legal structure, ownership management, staffing requirements *Ownership structure, management team, external and human resources and services

Answer 28

6 | OWNERSHIP AND MANAGEMENT PLAN

Question 29

*outlines physical requirements of business *1 person home-based consulting business the operating plan will be short and simple *Custom facilities, supply chains, specialized equipment, multiple employees, operating plan (very detailed)

Answer 29

7 | OPERATING PLAN

Question 30

*most important to grow and profitable *debt financing/attract investors *new business; forecasts *Good Rule of Thumb: underestimate revenues and overestimate expenses *Projected income statements, cash flow statements, balance sheets

Answer 30

8 | FINANCIAL PLAN

Question 31

- detailed information needed to support other sections of business plan *Credit histories for business owners *Market research & analysis of competitors *Resumes of owners and key employees *Info about industry, products, services *Site, building, office plans *Mortgage documents, equipment leases *Marketing brochures and others *References from business colleagues *Supporting materials impress potential lenders or investors if looking for financing

Answer 31

9 | APPENDICES AND EXHIBITS | APPENDICES AND EXHIBITS

Question 32

2 MARKET/ENVIRONMENTAL ANALYSIS

Answer 32

MACRO MICRO: internal or controllable

Question 33

: external or uncontrollable

Answer 33

MACRO

Question 34

internal or controllable

Answer 34

MICRO

Question 35

1 owner (sari-sari store)

Answer 35

SOLE PROPRIETORSHIP

Question 36

shareholders

Answer 36

CORPORATION

Question 37

2/more owners (magkakaklase)

Answer 37

PARTNERSHIP

Question 38

4 SALES AND MARKETING PLAN

Answer 38

*PRODUCT OR SERVICE OFFERINGS *PRICING STRATEGY *SALES AND DISTRIBUTION: *ADVERTISING AND PROMOTION:

Question 39

how it benefits customers and sets apart from competitor offerings

Answer 39

PRODUCT OR SERVICE OFFERINGS

Question 40

*based on markup cost, value to buyer, comparison with similar products/services *Competitive to attract customers but high enough to cover costs/generate profit

Answer 40

PRICING STRATEGY:

Question 41

*selling wholesale/retail *Type of packaging *Shipment of product *Payment methods

Answer 41

SALES AND DISTRIBUTION

Question 42

*Media to get message to customers *Sales promotional methods *Marketing materials *Product launch and tradeshows *Approximate budget for ad/promo

Answer 42

ADVERTISING AND PROMOTION:

Question 43

4 OWNERSHIP AND MANAGEMENT PLAN

Answer 43

OWNERSHIP STRUCTURE MANAGEMENT TEAM: EXTERNAL RESOURCES AND SERVICES HUMAN RESOURCES

Question 44

legal structure, percentages, sole proprietorship

Answer 44

OWNERSHIP STRUCTURE

Question 45

managers, roles, key employee positions, compensation, resumé

Answer 45

MANAGEMENT TEAM:

Question 46

external professional resources required

Answer 46

EXTERNAL RESOURCES AND SERVICES:

Question 47

list type and number of employees and estimate salary and cost

Answer 47

HUMAN RESOURCES

Question 48

5 OPERATING PLAN

Answer 48

*PRODUCTION *FACILITIES *STAFFING *EQUIPMENT *SUPPLIES

Question 49

how long it takes to produce unit and when to start production

Answer 49

PRODUCTION

Question 50

physical location of business, square footage estimates with room for expansion, and expected maintenance, zoning approvals

Answer 50

FACILITIES

Question 51

list of specialized equipment needed, cost and leased or purchased

Answer 51

EQUIPMENT

Question 52

manufacture, retail, food services, description of materials needed, how reliable sources are, descriptions of major suppliers, manage inventory

Answer 52

SUPPLIES