marvin ryder assistant professor, marketing & entrepreneurship

Marvin RyderAssistant Professor, Marketing & Entrepreneurship

MBA P715Entrepreneurship

Week 3

Types of Planning Documents Marketing Plans

Feasibility Studies

Business Cases

Operating Plans

Business Plans

Three Goals: 1) test the viability of the business idea; 2) attract the capital (debt and/or

equity to start the business; and

3) compare actual performance for the

first three operating years to plan.

Components of the Business Plan Executive Summary

Table of Contents

Product/Market or Service/Market Description

Entrepreneur Profile

Basis of Competitive Advantage

Business/Personal Objectives

Market Analysis Customers – “Top-Down” & “Bottom-up” Analysis Competitors

Product or Service Description Develop a basic description of each product

or service offered Comprehensive – “Closed Eyes” Test Comprehensible – NO Jargon

Identify the product or service … Purpose: What does it do? Benefits: What does it does it do for the

user?

Consider “negatives” – products/services not offered

Target Market Definition Try to describe the consumer in rich detail:

Demographic variables – be precise Geographic – take a map and define the trading area of the business – consider helpful borders Psychographic – what is motivating them to buy?

Bad Examples: “Anyone with teeth” – Sid’s Sunflower Seeds “Young men, aged 12 to 20” – Laserquest Arcade

Consider “negatives” – who is not part of the target market

Psychographic Target Markets – An Example “Tax Avoiders” – People who feel they are

paying more tax than they should – Motivation: Resentment

“Money Makers” – Conspicuous consumers who are making “good” incomes but are not satisfied – Motivation: Greed

“Future Security” – People who are worried about the future of CPP/OAS/Company pension plans and want to build a “nest egg” to protect their future – Motivation: Fear

Mapping Products/Services and Target MarketsIt is possible that different products or services

offered might target different market segments.

Customer Group

1

Customer Group

2

Customer Group

3

Customer Group

4

Product/Service 1

Product/Service 2

Product/Service 3

Product/Service 4

Product/Market Mapping Example Tax

AvoidersMoney Makers

Future Security

Tax Partnerships *

RRSP’s * *

Accounting Services *

Estate Planning * ∆

Stocks ∆ *

Investment Real Estate

∆ *

Canadian Mutual Funds

* ∆

Foreign Mutual Funds *

Leverage ∆ * ∆

GIC’s *

Bonds ∆ *

RRIF ∆ *

Life Insurance *


Table of Contents






Examples of Competitive Advantage Image-based: * Reliability * Prestige

* Awards * Event Associations

Product or* Patents * TrademarksService based: * Quality (?) * Custom options* Service (?) * Technical features* Low prices (?)

Alliances: * Financing * Delivery* Guarantees * Pre- or Post-* Availability Purchase Service


Table of Contents






Business Objectives

The best are: Measurable – what exactly will be achieved? Timely – when will target be achieved? Realistic – at the right level to motivate

At a minimum, I want sales revenue and profit objectives for each of first three years.

Include no objectives outside of a three year time horizon.

“Qualitative” objectives are goals. Can include as many as you like.