The Definition Of The Business
After the executive summary, the next part or section of the business plan is the definition of the business. This describes the business to be carried out, as well as basic aspects related to it, such as its description and the reasons that justify its start-up.
business definition-The Definition Of The Business
The objective of the definition of the business is that the reader knows what the business to be carried out consists of, and knows the basic aspects related to it. Learn more business plan
The part or section of the business definition should include the following elements:
The name that the business will have.
The location of the business
The physical location where the business will be located.
The type of company
The type of company under which the business will be legally incorporated (for example, if it will be an EIRL, an SC, an SA, etc.).
The type of economic activity
The type of economic activity to which the business will be engaged (production, marketing, or provision of services).
The business description
The description of the business that is going to be carried out, as well as the product or service that is going to be offered.
At this point, for example, what the business to be carried out consists of, how it works, what will be the product or service that is going to be offered, what will be its main characteristics or benefits, etc.
The degree of detail in the business description will depend on the type of business and the objectives of the plan. If you consider it appropriate, you could include here, for example, some images of the product or service that you are going to offer to help you make a better description of it.
The differentiating characteristics
The distinguishing features are the characteristics of a business, product, or service that allows them to differentiate or distinguish themselves from the competition.
Today with so many competitors that exist in the market, every new business, product, or service should have at least one differentiating characteristic that allows it to stand out, and thus not end up being one more business, product, or service than the many that already exist. there are.
Some examples of differentiating characteristics are:
- a special function in the product that competitive products do not have.
- higher product performance.
- The lowest prices in the market.
- a more efficient distribution system.
- excellent customer service.
- The business vision
- The vision of a business is a statement that indicates where the business is heading in the long run.
An example of a business vision is:
be the leading brand in the world.
The mission of a business is a statement that states the purpose or reason for the business.
An example of a business mission is:
offer excellent quality products at competitive prices.
Every business should also have objectives, since these, among other things, allow to establish a course to follow and serve as a source of motivation.
At this point, the main objectives to be achieved once the business is launched, both general and specific, are indicated.
Some examples of the general objectives of a business are the leading company in the market.
- be a recognized brand in the market.
- Some examples of specific business objectives are:
- be the leading brand in the market within 3 years.
- Achieve a 15% market share by the end of the first year.
- increase sales by 20% for the second half.
- open 2 new stores for the first quarter of next year.
- Business strategies
- Another important element in any business plan is business strategies.
- At this point, the main strategies that will be used to achieve the proposed objectives are indicated.
- Some examples of business strategies are:
- specialize in a certain type of product.
- provide a wide variety of products.
- launch prices lower than those of the competition.
- sell the product on the Internet through an online store, and promote it through advertising programs.
- have active participation in social networks.
4. The market study
The market study describes aspects related to the market in which the business will operate, such as the target market to which it is going, and the competition it will have.
The objective of the market study is to show the reader relevant information from the market in which the business will operate and indicate how that information will be used for its benefit.
Keep in mind that to carry out this part it might be necessary to previously carry out a market study that allows you to collect and analyze market information, which does not have to be a difficult task either since it could only consist of going to the places where frequent the consumer that makes up the target market, and observe their behaviors.
The market study part or section should include the following elements:
The target market
The target market (also known as the target market or target audience) is the set of consumers to whom a business is directed or, in other words, the set of consumers to whom a business directs its products or services.
Every business must always define its target market as this allows it to specialize and focus on a certain type of consumer, and thus achieve greater efficiency than it would be if it addressed all the consumers that exist for its type of product.
At this point, it should be pointed out what the target market will be, and what are the main characteristics of the consumer that makes it up; For example, what are your tastes and preferences regarding the product to be offered, where do you buy it, when do you buy it, how often do you buy it, how much do you usually spend on it, what are your consumption habits, what are your customs, etc.