Monthly Archives: August 2014

Why Do You Want To Write A Business Plan?

To write a complete business plan may take up a lot of your time and financial resources. Here are some reasons why you need a business plan:

Why do you need a business plan?

To get money for starting your business

You may have a brilliant business idea, however, with no money to start; your business will remain an idea.

Most lenders or investors require a written business plan before they even consider investing in your idea. Landlords nowadays demand a written plan before they will lease your retail space.

Before making a commitment to you, they want to make sure your business has a good chance of succeeding.

To help decide you to proceed or stop

The most important person to convince about your business is you – the business owner.

The amount of effort that you put in planning your business may be fruitful in helping to find answers about yourself and the business. You will discover how money will flow through your business and the strengths and weaknesses that it may possess.

To improve your understanding of your business

Writing a business plan may allow you to see how changing parts of the plan increases profits or accomplishes other goals.

Using a excel spreadsheet to make financial projections gives you the opportunity to try out different alternatives more quickly. By using the spreadsheet,   you may discover what alternatives to use in order to improve the chances for success of your business.

To improve your odds of success

Writing a business plan may help you to beat the odds.

Most new small businesses don’t last very long; and most new small businesses don’t have plans. Increase the chance of your new business to succeed by writing a business plan.

To help you to keep on track

A written plan gives you a clear course toward the future and makes your decision-making easier.

Visit www.ebizplan.co.za for more on business plans.

Image: pizabay.com

Note

Mike McKeever, 2012. How To Write A Business Plan, 11th Edition, Nolo, 950 Parker Street, Berkeley, California 94710.

Offering Value to Your Customers

Many companies still believe that their customers exchange money for products that they offer. You rather should offer value to your customers…

What value means to your customers

Customers want value before they spend their money on your products or services. The common definition of value relies on the price-quality ratio of a product or the difference between perceived benefits and perceived costs.

To put it practically – if your competitor can offer the same value for a product or service as you do, but at a lower price, you’re going to lose customers.

What do customers perceive as value?

Perceived value comprises two complementary concepts, namely perceived benefits and perceived costs.

In today’s digital market place, there are numerous identical products on offer (e.g. cosmetics), with many at the same price. What will make a customer to buy from you instead of the others? Your products or services should provide superior benefits to the customers.

Customers may perceive benefits in the following ways:

  • Product features,
  • Product design,
  • Timing,
  • Location,
  • Reputation, and
  • Service and support.

Value is created when the perceived benefits that a company offers meets the needs of its customers.

Planning to deliver superior value to your customers

Companies that strive to survive and grow should know what the value offer of their competitors are to customers in the market as well as what the customer’s needs are.

A differentiation strategy with a customer focus will go long way to ensure that the company enjoy a competitive advantage in the marketplace.

Visit www.ebizplan.co.za for more information as well as help with business plans and marketing plans.

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