Business Plan Preparation Frank Moyes Leeds College of
Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Product/Service 1
Tonight’s Agenda n Topics n n n One. Button (Vilo) business plan Elevator Speech In the Fire n n n PRODUCT/SERVICE DESCRIPTION Margins Read BP pp 6 -7 Preliminary Market Analysis Results Preliminary Interview Results Turn-in n n 3 alternative value propositions Customer Survey Questionnaire Product/Service 2
Next Week n n Team to make appointment with instructor next week Marketing Plan Revenue Model Read BP pp 14 -18 n In the Fire - Prelim Industry Analysis n n Hand in n Product/Service Model company description 10 Call Reports Preliminary Competitive Matrix Model company description 3
In the Fire Grading Product/Service 4
Business Plan Elements n n n Executive Summary Company Overview Market & Industry Analysis n Product/Service Description n Marketing Plan n Operations Plan n Development Plan n Management n Competitive Advantage n Financial Plan n Funding Product/Service 5
Product/Service Sections Features n Benefits n Proprietary Rights n Stage of Development n Product/Service 6
Features n Detailed description n n n Attributes Environment Use photos, images, schematics http: //leedsfaculty. colorado. edu/moyes/html/documents/Business%20 Plan/ Amari%20 Final%20 BPLAN. pdf What is unique? What is evidence that customers want these features? How produce & deliver – systems approach Don’t assume people know or understand your product/service Product/Service 7
Attributes n n n Performance: durability, quality of materials, defect levels, tolerances, construction, dependability, functional performance (acceleration, nutrition, taste), efficiency, safety, styling, packaging, etc. Cost: purchase price, quantity discounts, operating costs, repair costs, cost of extras or options, cost of installation, trade in allowance, likely resale value, etc. Availability: carried by local stores, credit terms, quality of service available from local dealer, delivery time, credit card, on-line transactions, etc. Service: hours, warrant, guarantee, return/replacement policy, upgrades, maintenance, training, installation, repair service, spare parts, customer support, tech support, training, product design, make to order, level of inventory, quotation response time, lead time, quality certification, employee capabilities, etc. Environment: location, atmosphere, layout, fixtures, aesthetics, style, sound, lighting, color, etc. Product/Service 8
Benefits Describe major benefits - be specific n What is the evidence that benefits are understood by the market? n Product/Service 9
Benefits n n n Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self Improvement, etc. Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc. Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc. Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc. Convenience? Objective is distinguish between benefits and features, not put into categories Product/Service 10
Feature vs. Benefits Product/Service 11
Net. Dog Feature Benefit Adaptable to new network Protection without a reduction in user threats productivity Modular rules based system Adaptable to new business requirement and new threats Guaranteed zero packet loss Eliminates the risk of false negatives Intelligent network adaptation Protection is provided regardless of the network topology Ships with a standard rule Provides out of the box protection from set common attacks Scripting language and API Customers can develop their own powerful rules Web based reporting system Improves forensics and visibility into the security of the network Web based interface Product/Service Makes administration of the system easy 12
DUO Benefits Features Ergonomic design Eliminates back and shoulder pain so parents feel more comfortable while carrying their baby. Cocoons Allow parents to more easily attach and detach baby from harness, eliminating fear of straining arms, dropping or tightly squeezing baby. Multiple Cocoons Parents maintain a look that can be seasonally updated to provide the feeling that they are on the leading edge of fashion. Babies are happier and more comfortable in Cocoons specifically designed to fit their current developmental stage. Unexpected Convenient features allow parents to keep important Attributes items, like keys, easily accessible. This saves time and energy spent preparing to get out the door. Product/Service 13
Product & Service Conclusions n Make it real n n n Photo, rendering, specs Prototype Evocative description Make it exciting n Sell your concept n Product/Service 14
Quality Dimensions I n n Performance - the primary operating characteristics of the product or service Features - the characteristics that supplement the basic functioning of the product or service Reliability - probability of the product or service failing within a specified period of time Conformance - the degree to which a product or service meets acknowledged standards Product/Service 15
Quality Dimensions II n n Durability - a measure of product life (both technical and economic) Serviceability - the speed, courtesy, competence, and ease of repair or recovery Aesthetics - how a product or service looks, feels, sounds, tastes, or smells Perceived Quality - various tangible and intangible aspects of the product from which quality is inferred Product/Service 16
Service Quality Dimensions n Reliability - ability to perform service dependably & accurately n Responsiveness - willingness to help customers & provide prompt service Assurance - knowledge & courtesy of employees and ability to convey trust and confidence Empathy - provision of caring, individualized attention to customer Tangibles - appearance of physical facilities, equipment personnel and communication material n n n Product/Service 17
Margins n % Gross Profit Margin n % Contribution Margin n % Net Profit Margin n % Operating Expenses Product/Service Revenue – COG’s Revenue – Variable Costs Revenue Net Earnings Revenue Sales, General & Admin Revenue 18
Margins % Product/Service 19
- Slides: 19