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It is necessary to decide what type of business you are going to establish since the business structure has future legal and tax implications. For more information about the different business entities check out the IRS Business Structures Webpage
A Mission Statement is a optional, brief statement outlining the objectives and goals of the business
For example: average growth of 10% per month, or 5000 paying customers
Using complete sentences describe any relevant work experience, educational background, past accomplishments, and any other pertinent information about the founder(s).
Use the Add Another button to include additional members of your leadership team
List the particular industry most closely correlated with your business (examples include: Real Estate, Electronics, Food, Entertainment, Information Technology, Cosmetics, Retail, etc.)
Describe the service in a few sentences. What does the service do? Does it differentiate itself from other similar services?
Use this section to describe any distinguishing factors about your service, market trends, and any competitive advantages
Select 'Yes' if the business is actively seeking investors to assist with business finances
When financing through a business loan, the borrower repays the loan over time, and the lender has no control over the company. When financing through an equity investment, a lump sum of money is provided in exchange for a partial ownership of the company.
When financing through an equity investment, a lump sum of money is provided in exchange for a percentage ownership of the company.
Use this section to describe how the investment/loans will be spent for the benefit of the business. It's common to allocate a portion of the funds on production of goods (often through staffing), as well as providing a method for the customers to receive these goods.
If unsure about when the business will break even, use Breakeven Analysis to gain a better understanding of when the breakeven point will be achieved.
A target market is a specific group of customers who are most likely to use or purchase your product or services. It is necessary to determine a well-defined target market to aim marketing and merchandise at. Try to describe your target market with as much detail as you can. A comprehensive target market will typically include descriptions from some of the following distinctions. <br><br> <b>Geographic:</b> location, climate <br><br><b>Demographic/Socioeconomic:</b> gender, race, age, income, occupation, education <br> <b>Psychographic:</b> personality, values, lifestyles
In other words this question is asking what factors will influence a customer to purchase a certain good over another one. For instance will cultural factors determine what an individual will buy or is it rather personal ones such as income or the efficiency of a product.
How big is the market size? Estimate the number of potential customers are available for your business to target
In other words, how much money do current consumers in the industry spend per year? This is to measure the potential value of the target market
Short-term goals are usually ones that involve processes that <b>show results within a year</b>. They are objectives that specifically task what must be accomplished within a time frame and provide the foundation for taking action.
Long-term goals are usually ones that are <b>set multiple years into the future, at least five,</b> and involve the overall goals of the company. They are more aspirational in nature but must also must be reasonable-- practical and obtainable-- enough to provide direction for the company in the long run.
Use this area to describe methods to distribute and deliver your product to customers e.g. retail, online etc.
Use this area to describe the pricing strategy the company will use to sell the product or service. There are many different pricing strategies used by different businesses, such as penetration pricing, price skimming, discount pricing, product life cycle pricing and even competitive pricing just to name a few.
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is a methodological tool designed to help businesses address their current status and strategically plan for the future. For more information check out The Essential Guide to Swot Analysis
Strengths will be qualities of the business or of your product/service that will lead your business to succeed. These could include the unique technology of your product or your pricing strategy. Strengths could also be that your product/service is particularly suited to your geographical area or your business' stellar reputation in your community. Explore how you can build on your strengths.
Weaknesses will be any quality of the business or of your product/service that will lead your business to fail. These could include your staff's lack of expertise in an aspect of the business, such as operations or marketing, weak demand for your product in your geographical area or high costs of manufacturing your product. In addition to recognizing these weaknesses, make sure to explain how you plan to address and solve them. Honesty is crucial in determining what your true weaknesses are.
Opportunities will be any factors <b>external</b> to your business that can lead your business to succeed. These could include general market trends of increased demand for your product/service or new technology that will make manufacturing your product cheaper. Opportunities can also include any other marketing or sales channel that your business has not taken advantage of yet. Think of how you can capitalize on such opportunities.
Threats will be any factors <b>external</b> to your business that could lead your business to fail. These could include new competitors easily entering the market or replicating your product, any legislation that could negatively affect your business or a market trend of decreased demand for your product/service. Describe how you plan to prepare for or overcome these threats.
Gross Profit or Gross Loss is the calculation of Revenue minus the cost of goods sold