9 SWOT Analysis Strengths Opportunities Weaknesses Threats
10 Tips for writing a business plan
- Know your audience Remember who you’re writing for. Is your business plan primarily for your own use or are you looking for a loan from somebody else? If you’re writing for someone else, ensure that your business plan is clear and persuasive.
- Keep your business plan succinct Don’t write a long business plan that risks losing the reader’s attention.
- Keep it clear and simple Don’t make your plan too complicated. Readers will have questions about complex plans, or may lose interest altogether. Don’t use industry jargon. Not everyone who reads your plan will be an expert in the sector in which you plan to operate.
- More than just words If you are seeking investment for your business, your business plan should be well presented. You may want to get outside help with visuals and design.
- Ask a friend to review your plan Having someone review your plan will help you to be prepared when potential investors ask questions about it. Other useful websites for guidance on business plans • British Business Bank / Start-up Loans startuploans.co.uk/support-and-guidance/business-guidance/business- planning-templates/business-plan-template • The King's Trust kingstrust.org.uk/how-we-can-help/tools-resources/ business-tools/business-plans • Gov.uk gov.uk/write-business-plan
11 JUDY Drawing on her lifelong passion for jewellery, Judy founded Delmora, a brand known for its elegant designs crafted from recycled sterling silver, gold and stainless steel. Blending Latin American and European influences, Delmora features certified Colombian emeralds and semi-precious stones to create timeless, sustainable necklaces and earrings. Judy’s journey with the Business & IP Centre began even before her business was launched. Through her local library in Bromley she discovered the support available and connected with our team who guided her through free training in key areas such as online marketing. Since then, Judy has continued to draw on many resources, from industry guides to market research reports, and has even opened her first shop in Bluewater Shopping Centre. judy chicangana Delmora
12 Customer profile Who is your customer? What do they do throughout the day? What is their life like? Developing your Unique Value Proposition (UVP) Customer tasks Imagine you are developing a value proposition about cars. Don’t just think about functional tasks that your customer has to carry out, such as driving to work. Think about social and emotional tasks too, such as driving to spend time with family. These customers might have different needs. Do they want a car to drive alone, to drive with family, or to make them look good? Ask ‘why’ your customer wants what they want. And always remember, the best way to learn about people is to talk to people. Customer pains What gets in the way of the tasks your customer has to do? How could their work or free time be easier or more enjoyable? Ask about frustrations and difficulties they are experiencing. Customer gains Gains are people’s hidden ambitions; their goals in life; the things that make them happy. Ask your potential customers questions and dig deep. What does your customer aspire to do that they can’t do now? What can you help them discover based on what they already enjoy? The book The Mom Test by Rob Fitzpatrick is a quick and easy handbook about how to learn more and make more sales based on the conversations you have with your customers. A video about The Mom Test youtube.com/watch?v=ocwlR0M0PuY • Your Unique Value Proposition (UVP) is the unique offer you are bringing to the marketplace that makes your business stand out. • To help you develop your value proposition, explore who your ideal customers might be. This helps you step into the shoes of your customer to understand what they might want. • Once you know who your customers are, you can start developing your value proposition. This exercise is called developing your persona canvas. First, explore your customer profile. Then, look at your value proposition.
13 Value proposition Now you’ve found out about your customers and their motivations, you can describe the features of the product or service offered by your business. Pain relievers How will the product or service you’re offering solve the pains your customers are experiencing? When explaining your pain relievers, use nouns to describe features of your product. Gain creators Describe the gains you are offering your customers. Look at what your customers are doing and see what gains you can offer them. For more information, look at Strategyzers' video strategyzer.com/library/value-proposition- canvas-a-tool-to-understand-what- customers-really-want on the Value Proposition Canvas. Consider the unique ways in which you will do this. Think about how you will incorporate sustainability, customer service, geographic catchment and branding in ways your competitors don’t. CHarlie smark Dolly's Desserts
14 Customer segmentation and profiling Customer profile templates You can use free templates to help you understand your ideal customer. Build customer profiles for your marketing, sales and customer service functions to convert into sales. HubSpot has several customer profile templates that you can modify. offers.hubspot.com/customer-profile-templates Discover the ideal groups of customers who will benefit from your UVP and find out how to communicate with them. It’s important to be as specific as possible. You need to be solving clearly defined problems for specific groups of people. The more problems you solve for your customers, the more valuable you become to them. Become obsessive about your customers’ problems. Your products and services should be the solution they need.
15 Researching and testing the market Desk research is research carried out using published information from magazines, newspapers, reports and websites. You can use this information to understand what is happening in your industry or business sector. You can also find out more about the practicalities of starting and running your business. Some information is available for free online and can be found using search engines like Google. However, much of the high quality information that will be most valuable to you sits behind pay walls. The good news is that you can access a significant amount of this premium information for free through library services. For example, get an overview of your market using databases such as IBISWorld, COBRA, GlobalData, Passport and EMIS.
16 British Library Business & IP Centre (BIPC) Based in the British Library, the BIPC holds the UK’s largest collection of business information resources. Anyone with a free British Library Reader Card can use these resources. Some of the resources are: BIPCs in local libraries across the UK Business & IP Centres (BIPCs) are also based in over 70 libraries across the UK, offering business resources, training and events – all for free. At many BIPCs you can also find other specialist services to help your business journey, such as meeting rooms, podcast studios and maker spaces. To find your local centre and a full list of services visit bl.uk/bipc/network Market research reports provide a detailed assessment of specific market sectors. These contain statistics including market share and sales, expert analysis of the state of a market and future trends. Trade journals are published for people operating within an industry. They contain stories about new products, company performance, upcoming legislation, new technologies and changes in customer behaviour. They are an excellent way of testing the prevailing mood of an industry sector. Business Source Complete by EBSCO provides access to articles from over 11,000 business journals. Company reports provide financial profiles of companies in the UK and overseas which enable you to track the performance of individual companies and those within a sector. Trade directories are listings of companies that can supply specific products or services. The most valuable directory is the Kompass database, which provides product and service listings for 2.8 million companies worldwide. Intellectual Property (IP) guides and resources enable you to identify how intellectual property can protect your business. They also help you to conduct research to ensure you do not infringe on existing protection. bl.uk/bipc/ip-guides Industry guides offer a range of free guides to help you to understand and research specific industries. bl.uk/bipc/industry-guides Events, workshops and one-to-one information clinics. The BIPC offers a range of free workshops, webinars, mentoring and networking.. Find full listings and more information at bl.uk/bipc
17 Finding out what customers want There are two ways to research your market: desk research and field research. You will need to use both methods to have a complete understanding of your market and customers. Learning about the market – desk research When starting a business, it’s important to understand consumer trends. To do this, you can use market intelligence databases such as Mintel, eMarketer, Passport and GlobalData. Once you have the outline of an idea for your business you must consider the potential market. To do this you will need to consider who your customers will be and whether they will want to purchase the product or service you are offering. You should focus on these key questions: • What types of people could become my customers? Think about how your business will enhance an aspect of their lives by solving a problem or making something they do more enjoyable. • Do they have a need for what I am offering? Will they want it? Focus on the part of your customers’ lives that you plan to improve. If your business is based on solving a problem you need to consider how your customers are solving that problem at the moment and whether they are ready to look for a new solution. • Will my customers want to pay for my product or service? Think about whether the people you have identified as being potential customers will value the specific product or service you are offering. • Are my customers prepared to pay enough to make my business sustainable? In order to answer these questions you need to learn about the market sector in which your business will operate and where your business will fit. • Is the market growing or declining? • What types of products or services are being offered by players in the market? • How is the market likely to change and develop? • Who is buying these products or services and why? • How much are they paying? This research will help you to develop an understanding of your customers’ choices. It will also give you a wider understanding of the environment in which you will be operating (and how it’s changing). You will need to develop an understanding of your potential customers’ experiences and find out what’s influencing their decisions.
18 Market Research I need... Database insight into consumer trends and what my customers want, in the UK. Mintel to know everything about the industry I’m planning to enter or keep up to date with the industry I am in. IBIS World to discover the current state of online marketing and how people are shopping online. eMarketer actual and forecast sales data for my Fast Moving Consumer Goods business plan. GlobalData market research and strategy reports for technology related businesses. Frost & Sullivan consumer, company and country statistics from around the world to gain insight into my business. Statista in-depth information on consumers and industries around the world. Passport (Euromonitor) Company Data I need... Database information about companies in the UK and Ireland to understand my competition and/or find B2B customers. FAME to find suppliers and distributors from around the world to support my business or become a potential customer. Kompass information about companies around the world to understand my competition and/or find B2B customers. Orbis to research international markets, companies and industries. EMIS Advice and Funding I need... Database practical information about setting up, running or growing my business in the UK. For example, an industry-specific business checklist, how to register VAT, hire employees, organise taxes and more. COBRA (Complete Business Reference Adviser) to identify and apply for grants, funding and development opportunities. GrantFinder