Development of Business Plan Components for a Web-based Business|Legit essays

Posted: January 25th, 2023

Business Plan Development Project

Part 2

Task: Development of Business Plan Components for a Web-based Business

Continue with the Business Plan

 

1. Competitive Positioning

Complete the Competitive positioning table. Describe each aspect in minimum 1 to 3 sentences. Note:. Listing or describing in few words for aspects that are applicable – will be accepted. You need to have at least two Competitors in the table.

TERM PROJECT part 2

Competitive Positioning

■ A well-done competitor table succinctly portrays a value proposition offering relative

to your competition in tabular form.

■ Competitor table lays out the decision-making process of the customer among

competitor.

– Write like a customer

■ Who are your competitors? No competitor?

– Internet search, North American Industry Classification System, industry

associations, etc.

■ It should get updated and referenced often.

Competitive Offering Your Business

(Type here)

Competitor #1

Home Depot Garden

Center

Competitor #2

Wildcat Garden Center

Value Proposition Native, distinctive, and

uncommon plants, trees and

shrubs

Lowest prices for the most

common mass-market

plants and materials

One-stop shopping for all

your garden center needs

Geographic area server 7-mile radius of single location

with mobile outreach

10-mile radius of multiple

locations

5-mile radius of single

location

Core products or services

Locally grown green goods,

glowers, plants trees and

shrubs, and premium

accessories

Name-brand discounted

flowers, nursery stock,

garden tools, greenhouses,

planters, water, and

accessories

Everything from plants to

pots, chemicals, accessories

and more

Value-added offering

Landscape architecture design,

sourcing perfect plants, in-

house delivery, installation,

education events

Installation, low-prices sales,

project how-to-guides for do-

it-yourselfers, e-commerce

Store-owned delivery,

category event sales, private

consultations

Pricing strategy

Premium price for a premium

product to premium

customers, 50% gross margin

minimum

Name brands at low prices

Event sales, prices within

20% of Home Depot’s for

overlap, 45% gross margin

pricing on all other products

Café? No No No

Milestones

■ A good business plan provides a guide, like a road map, for you to reference when

you need one.

– Talk to your customers first before you write any business plan.

■ Milestones represent significant events in the life of a business

– It can be used to check whether your business is on the right track.

■ How can we possibly predict what our business will be doing 90 days from now, or

one, three or even five years from now?

■ We need the milestones to happen.

– Action plans and items

Milestones

■ Three elements

– A significant business event, a deliverable date, and a measurable description

of the business event.

■ What are some classic milestones in business?

– Completing the product or service prototype for customer testing.

– Hiring the first employee

– Obtaining the first sales order

– Receiving your first customer payment

– Paying back your investors

Milestones

■ With the proper level of sandbagging

built into your milestone, you can

reduce uncertainty and myriad

business risks.

– You do not want to create future

business millstones that you

cannot achieve because they

might also be used as weapons

against you.

■ Action plan and action items for the

milestones

Mini Budget

■ Recording the early customer financial transactions is the most important part of

the budget process.

– We ignore most expenses for now, except for those that enable us to achieve

the first customer transaction.

■ Mini budget is a major cornerstone for your business model, and we will see how it

naturally folds into a more complete profit-and-loss budget.

Mini Budget

■ Selling price: the price at which something is offered for sale.

– Market-based method: based on your competitors’ selling prices.

– Mark-up method: establishing a selling prices based on all known costs.

■ Cost of goods sold: the direct costs attributable to the production of the goods sold

by a company.

– This amount includes the cost of the materials, direct labor costs, packaging

costs, inland freight, etc.

– For service goods, costs related to employee training, travel, and printed

materials should be considered.

Mini Budget

■ Average sales cycle time/customer acquisition time

– How many days will it take you to acquire your first customer?

– You will need to estimate and later refine your average sales cycle time as a key business model performance indicator.

■ Add (#) of days from first contact to customer conversion for all deals = Total (#) of days for all sales combined

■ Total (#) of days for all sales combined / (#) of deals = (#) of days for Average Sales Cycle. E.g., 20 days / 50 transactions = 0.4 day.

■ Unit sales forecast

– How many units of your offering you can sell in your average sales cycle time?

– How many customers can you approach in one month?

Mini Budget (an example of Aruba)

■ Aruba’s snorkeling business example

– 2.25 trips per day (0.25 from the night snorkeling.)

– Two vans seating five people each on average. The second van breaks down a

lot.

■ Unit sale forecast by month.

– 30 days * 2.25 snorkeling event per day * 1.25 vans * 5 people per van *

0.65 average van capacity

– 274 average snorkeling unit sales per month.

Mini Budget

Question?

 

SOLUTION

A business plan for a web-based business should include the following components:

1. Executive Summary: This section provides a brief overview of the company, its products or services, and its goals.
2. Company Description: This section provides more detailed information about the company, including its history, ownership structure, and mission statement.
3. Market Analysis: This section describes the target market for the company’s products or services, including information on the size and growth of the market, as well as the key trends and opportunities in the industry.
4. Product or Service Description: This section provides a detailed description of the company’s products or services, including their unique features and benefits.
5. Marketing and Sales Strategy: This section describes how the company plans to market and sell its products or services, including information on pricing, distribution, and promotional activities.