Posts Tagged ‘Business’
This element is a brief summary, the entire contents of a business plan, both related to business objectives, business strategy, general description of business, marketing plans, production plans, financial plans, human resource plans, and business risks in the future.
General description of business
This element describes the vision and mission, along with a business carried on goods and services produced, objectives, strategies and achievements. Picture of the company’s current position, and future, the target market, competitive advantage, business location, core management, establishment, management concepts that run and so forth
Marketing plan
This element describes the chosen market share and marketing mix and promotion that made the company to meet the needs and desires of consumers, sales budgets, pricing strategy, distribution strategy is implemented and so forth.
Analysis of competition
This element describes the strength of the company against business competitors, strengths, and weaknesses of competitors.
Production plan
This element describes the production process, how the company maintain quality of the product, how companies obtain supplies of raw materials, goods and services, consideration of factory site selection, production and budget is very important especially for companies engaged in manufacturing.
The financial plan
This element describes the financial projections that show the profit expectations, projections of financial statements, cash flow projections, break-even point, capital requirements, and projected return on investment.
Human resources plan
This element describes the personnel required both in terms of number and the knowledge, skills and abilities needed in running the company.
Key risks facing
This element describes the risk faced by business in the future with anticipation of the company to address these risks. Business plans are usually made up between 25-50 pages.
Business plans that are too short, often not able to provide an adequate picture of the business. Similarly, a too long, has probably not been used or not readable. In the preparation of business plans, entrepreneurs must consider the basic elements of a business plan as mentioned above as a starting point to structure and should be modified as needed based on existing conditions. So the business plan can actually be used as a road map to business success is built
What is the Importance of Developing a Business Plan?
There are two main reasons are very important and fundamental why every entrepreneur should develop a business plan for his efforts. First, as a guide business operations, second, attract lenders and investors.
Business Operations Guide
Entrepreneur’s business plan provides guidance in running the company’s operations, because by writing plans are made for goal setting and achievement strategies, it will facilitate the entrepreneurs to do the evaluation, development and reduce the risk of operational errors are fatal to his company.
The process of preparing this business plan will make the entrepreneur changed from “MY MIND” to “I KNOW” in running the business.
Besides the preparation of a business plan forces entrepreneurs reveal their ideas in reality test, with the question “Can this business really profitable?”.
Attract Lenders and Investors
Every effort would require an amount of capital in accordance with the business to be run. Venture capital can be sourced from its own capital, loans or equity capital from investors.
Applying for loans and attract investors without adequate business plan, often fail. In other words, the best way to secure the capital needs of business is to create an attractive business plan which allows entrepreneurs and adequately convey the potential of business opportunities that will be or has been carried out to lenders and investors.
In essence, an adequate business plan is required by every entrepreneur, both as a map of running a business and a means of seeking capital in building a successful business as expected.
Five Common Mistakes in Business Planning
Here are five mistakes that often occur in the preparation of business plans with respect to submission of a loan and attract investors, namely:
1. Too much information
Is the business plan which consists of 25-50 pages is better than 200 pages? The answer is “YES”. Most lenders and investors will focus on some specific points to see the business opportunities offered, so that the business plan that is too thick, allow not read and boring.
Keep in mind, that your goal is not to create a business plan showing the reader on the breadth and depth of your knowledge, but to show the key elements of a business plan that gives hope for the future is bright for the business.
If there is information that can not be separated from the business plan, should be pasted on the back as an attachment to supporting information readers.
2. Hide the weaknesses of the business
Some thoughts that are believed by the authors failed business plan, because they often hide the weakness of business. For example, “Why do we write something that would give a negative impression” or “after we get the funds, we can handle the weaknesses that exist”.
If the author is a business plan then hide the weakness of his business failed and he is potentially fatal in its efforts. Meanwhile, savvy investors will find the answer may be in the first 10 minutes, then arises the question on the minds of investors, “What else have not you tell me?”
When you have lost the element of trust, then it has gone the chance to get funding. The best way to handle the weaknesses of the business is to explain the weakness of existing and effective plan to address weaknesses in question.
3. Channels of distribution are not clear
The business plan should explain how the products and services effectively to the intended market. Unclear distribution system, resulting in inhibition of products and services to customers. Ultimately can threaten business continuity.
Below is an example statement that informs the investors that the product does not have a clear distribution system would threaten business continuity.
“We will be marketed our products over the internet, distributors, agents, wholesale, direct selling, retail outlets, telemarketing,”
4. Weak competition analysis
List the name and address of the existing business competitors is not enough. Investors are very interested in knowing what you know about business competitors. Eg business strategy, core competencies, distribution system, advantages, and disadvantages they have. Knowing only a little about your competitors, is proof that you did not prepare properly the business, including the conduct of business competition.
5. The financial projections are not qualified
The financial projections are not supported by adequate analysis and forecasts will provide the investor distrust.
The business plan must prove to creditors and investors that the company is able to pay back the loan and generate attractive returns.
Basic Elements of a Quality Business Plan
Entrepreneurs who invest their time and energy to prepare a business plan, will be better prepared to face the risks of doing business competition. In previous editions we’ve talked about the business plan as a road map and a means of getting capital entrepreneurs in building successful businesses.
Although the business plan does not guarantee 100% success, but this plan would increase the chances of business success for entrepreneurs. There are many approaches in the preparation of business plans. However, a quality business plan to include at least eight basic elements, namely:
Executive summary.
General description of the business.
Marketing plan.
Production plan.
Analysis of competition.
Financial plan.
Human resource plans.
The main risks faced.
Range Rover Evoque Indonesia officially launched at Plaza Senayan, Jakarta (18/11). This SUV targeting youthful women who still want to look premium. Like what?
The car is valued Rp1, 39-Rp1 billion, 41 billion on the road in Jakarta is available in two main choices, three doors and five-door with a 2000cc petrol engine and 2,200 diesel.
Vice President Director of PT Java Motors as an agent of the holder of the Range Rover brand, this SUV targeting women acknowledges youthful.
At the launch, Andy mentioned, for this year, this SUV has received 45 orders in which the actual supply until December 2011 for Indonesia only 20 units and the rest pivot.
“The supply unit to Indonesia is still minimal because the production is still limited in this year. But next year, the Java Motors is committed to sell at least 180 units, “he said.
On the other hand, simultaneously launching this Evogue, Andi utilize this moment to mark the rebirth as a major player Java Motors premium brand Indonesia.
“So far, Java is known conservationist Motors we are now beginning to change,” he explained. This is proven Java Motors by offering special services for all variants of the Range Rover owner who has a certificate Exclusive Maintenance Package (EMP), which is free service maintenance and repair costs for three years or 70,000 miles.
“This year we intend to add five new dealers, two in Jakarta, one in Bandung, Kalimantan and Medan. For that we invest at least Rp 3 billion per dealer
Packaging or outdoor display is usually able to attract buyers to select it. In an ad “First Impressions So Seductive, then up to you”, you may be quite familiar with the phrase. The first impression when we meet with people, seeing an object or a product is on the outside. In the next stage then we can see more sides of it. Similarly, with a good product, was first seen is a form of packaging such prosuk. If the packaging to make people interested this is the beginning products can be successful in the market. Because it makes an attractive packaging is a form of marketing strategies that need to be applied.
If we went to the supermarket we come across a lot of soap products with different brands and packaging. If all brands were not known by customers, which will be judged first. If the buyers have no chance to try it is selected that has the most beautiful and attractive packaging. With the same quality of goods people will tend to come back to buy goods that have a nice packaged goods. It is therefore important to consider marketing strategy with brand and packaging a good product. With a brand people will more easily differentiate our products than any other product.
Through the product packaging impression (image) product can also be formed for example image as a solid product, durable, luxury or durable. So that consumers will choose the product because according to the requirement to buy such products that are durable, not easily damaged and the quality is maintained.
Something free would appeal to many people and this is often done to market their products. Products are given away for free does not always indicate that the product is bad. Precisely which products are free can be used as a reference for testing the quality of the product. If our product or service, the quality is already eligible to be marketed, but still a few people who knew or buy a product or service, one of the Marketing Strategy for our products is by providing free of charge to prospective customers.
Marketing Strategy by providing free, in general would be interested in attracting many people to try the product or service and then they want to find and use. If indeed the product or service quality, many people will refer the matter to another person (can be ad program “from mouth to mouth”). Thus our products or services that others could also increasingly recognized and in demand.
If it is so then the next step we have to prepare “ammunition” to give other offers regarding our products. Products that we provide for free to have better features if customers pay out its free. If the customer is already comfortable with a free product and know the advantages then of course he would want to pay for the rest.
Free Sample marketing strategy is, if we have a workshop so we put a banner that read “FREE” with flashy writing. Of the free ones are on certain things such as free oil change costs, the cost of servicing the radiator free, free car wash, a free air fill for tires, free brake check fees and others.
Free features in the workshop is certainly attractive to many people living next we offer other products outside of these free products
Some entrepreneurs market their products only on his own interpretation, so they found a “brilliant idea”, without doing their market research directly realize their ideas. Problems appropriate or not in accordance with the needs of the consumer’s case later, when the product is not required by the market. What’s worse, it does not use research, directly produced on a large scale without test and measure first. The reason is very classic, . As a result instead of a profit in the can but instead received stumps.
How to Conduct Market Research
If it does market research play an important role in the success of our business, then how to do marketing research? There are three methods of marketing research populer quite commonly applied to determine whether the product can be accepted in the market or not.
1. Questionnaire.
Methods of marketing research questionnaire can be done with paper surveys (interviews) or online. In general, the questionnaire is more likely to be answered if there is incentive (ie reward).
2. Focus Group.
Focus group is a method of marketing research by using a small group of consumers is collected under the direction of a moderator, while the researchers recorded and record their observations on the responses, reactions, and customer comments. Participants are usually paid for their time.
Based on the experience of ten respondents with one moderator and three researchers quite effective for this method of marketing research. But be careful if using this method of marketing research, the answers obtained from respondents often biased.
3. Survey.
Shorter than the questionnaire survey, so no need to return. Online survey will receive tremendous response if this method of marketing research you positively. Through your website, you can put a few questions (which do not interfere, simple, and easy to answer) to obtain comments and suggestions from web site visitors, especially shoppers.
Methods of marketing research is a way that customers will use our product instead of our will to the product. If the research results were different from the products we have, we must adapt the product to the wishes and needs of the market. Do not force yourself to sell products that are not needed by the customer. Marketing strategy which was decided after going through a marketing research will help marketers reach a predetermined target marketing. Please select a research method that suits your business
Marketing a product will succeed if executed with a good marketing strategy. In addition to the shrewdness of a marketer in the offer of a product, should also support measures implemented marketing strategies in selling the product. Marketing strategies undertaken to obtain as many customers as possible and satisfied customers buy our produk. The marketing strategy is an activity that is very dynamic and always changing. One of the initial process before deciding on a marketing strategy is to do marketing research. Marketing research is an input to business owners who need to be followed up through subsequent processes until the product is really ready to be accepted by the market. Usually before launching a new product needs to be done this marketing research.
Surely the marketing research plays a fairly important to the success in launching a product. For Small And Medium Business Group almost vocabulary is never entered into the dictionary of marketing their products. For some others may have done market research, just not specifically done through agencies such as Research and Development. Although this market research will be formalized or not, is not too important, the important thing is prior to launching the product to the market needs to be preceded by marketing research that will determine what marketing strategies will be used.
Marketing research will provide data that we need about segmentation, profiles and consumer behavior, appreciation of our products, and many other interesting and useful. Therefore, although not all of us have been directly involved with marketing research, at least we must never take advantage of data derived from marketing research that correlates to our products.
Furthermore, after having a vision, mission and clear objectives, to consider some external factors or environmental factors ditekuni business. Mapping of these conditions will result in our competitors’ strengths and weaknesses, as well as see which aspects which could serve as a competitive advantage. Policies and government regulations also need to be considered in establishing marketing strategies. External factors have become important factors to consider in determining marketing strategies for many things outside ourselves will affect the marketing is done.
Customer Understanding
Consumers or customers are the base or the target of our products, then understand the consumer or the customer becomes an important thing to do. An understanding of the consumer, the values that they profess, and value-added largely what they would greatly assist companies in designing products and services that are needed. To understand the customer needs to do marketing research. Marketing research is part of the marketing strategy undertaken by way of surveys or interviews with prospective customers about what their hopes and desires about the company, is one way of understanding the customer.
Determining the Target Market
Determining specific target market that already is a marketing strategy so that no one sells a product at the wrong people. One small problem is the difficulty to determine the market segment of the products, whether destined for the upper middle class or lower middle to. Businesses Small businesses from the beginning should determine which business is directed to the class. By determining the intended target market, the company can provide an added value that made the difference compared to its competitors. Added value is what is referred to as differentiation. With a strong differentiation, could be a weapon in the face of competition.