The business plan - the simple story (4) second Product / service "The worm has to taste the fish and the angler"
The chapter "product / service" is the key chapter of every business plan. In the first technical paper on "The Business Plan - a simple story," I have shown the pattern of this simple story in the form of 4 points. Of these 2 points in the "product / service" are treated namely:
a. There are people who have (or that) problem, which costs them xxx money / time / quality. b. I have a solution for this problem that these people will cost around yyy money / time / quality less.
Here you will describe to what business idea you have. But soon after that you respond to the above two points, because that you show that your business idea is not merely an idea, but that this is actually a Business Opportunity (business opportunity, business opportunity) is.
target customers you start with a point by showing once your (ideal) and describe its target customer needs, this target customer - is out of your experience - in terms of your product / service. Try to prove this by "evidence" (observations, studies, ...). These needs arise from a perceived lack of accessible (= problem), which causes costs (in terms of money, time, place, quality, etc.).
hear the presentation of your target customers at more simple than you think, because first you must determine who is defined in general as
customer will :
- the
end user (consumer)
- the
buyer or, decision-makers (buyer or decision maker)
- the
influencers (Key Influencer)
makes in my view it makes sense to first define those as customers who buy your product (your service) or decide on the purchase. You should, however, the decision influencers not ignore that will play especially in the marketing plan a major role.
customer benefits What keeps your customers are valuable? (Peter Drucker)
Absolute Benefits
then explain They (= point b) as you do with your product (your service) for this target customers with a solution. This solution provides customer benefits and the degree of "savings" (cost, space or time savings or increase in quality, etc.) that your customer has with your product (service). Represent these "absolute" customer benefits in terms of numbers, such as:
- monetary units (euros, etc.)
- time units (minutes, hours, etc.)
- Percent
- Other units (m2 with space saving, consumption in liters, etc.)
Relative customer value and differentiation - USP
"In real estate it is location, location, location, in the economy, it is the differentiation, differentiation, differentiation" (Roberto Guizeta, ex-Coca Cola boss)
Another important aspect that is related to deal with the utility representation, the question of the competitor products and their benefits. In addition to the total customer value, it is therefore necessary to look also to the "relative" Customers benefit because there will almost certainly already existing solutions to satisfy customer demands, you have described. In other words, do the benefits that donates your product (service), also in Related to competitor products (services) describe.
In other words it is the relative customer value and to the relevant competitor products back to the customer's perspective. How do your customers have this need, which you intend to satisfy, as far met and how to make it better with your solution, in relation to the previous solutions.
Here you answer the questions:
- What they do differently?
- What do you make of new (innovative) than the previous solutions?
- What makes your product (service) is unique over the competition (= USP - Unique Selling Proposition)?
In connection with the relative customer value there is in addition to the benefits presentation about how you differentiate from the competition. Here it is important that the differentiation is clearly proved that it is credible and real. The differentiation is necessary for survival for new businesses, because there are usually no logical reason why customers should buy from them, not when - already active in the market - competition. This information will then be your marketing messages.
my product (my service) there are not yet on the market Very often we read in this context, "my product (my service) is so new, there are no solutions on the market. " This can be good for you, as a rule but this is rather very bad for you. Bad it is for you so far, taking the counter question must be dropped, which says, "if there are no comparable products / services in the market there, maybe there is then no market?" And this question should be answered valid can.
customer value is not the same product benefits
Very often observed that customer benefits and product benefits (service users) are confused. This is not meant that you refer to the product details. What your product (service) may or may not be decided solely your customer. Therefore, make the value that your product (service) has, from the perspective of the customer and in the above form dar.
state of development addition, you should answer in this chapter, the question of the level of development . Is your product (service) in the development, there is already a prototype or the customer can buy it already.
manufacturing, production and core competence No less important is the question of the production or creation. Here you describe primarily the first part Their business model, namely:
- What do you produce yourself?
- What store to partners (or third) look like?
These points are important because you're focusing here on the question of your core competence. The other process steps that are not part of your core competency should be outsourced to third parties who the better and more efficient (cheaper) produce, because it is in their core competence. You show that you understand your business something that you think strategically (in terms of building partnerships) and that you want to tackle your project cost conscious.
more information and the central questions of this chapter, see:
http://www.gruenderservice.at/publikationen/Handbuch_p4ye_teil1.pdf The next technical paper I go to the chapter on "Industry and Market" and I will include the five market forces imagine by Michael Porter and their importance in more detail.
