Some business plan questions
Here are some questions we send to prospective clients to help them flesh out their business plan. This is just to get them started, a starting point. There are more detailed questions that should be asked later.
Maybe these will help you get started.
The Market and Competition
What is your market?
If you are looking at a market segment, what is that market segment?
What is the size of your market?
If your company is looking to manufacture and/or sell a product, how much of the market is from domestic manufacturers?
i. How much is from imports?
What is your competitive advantage?
Quality? What is it about the quality of your product that is better than that of the competition?
Cost? If it is cost, will it be cost alone? How will the company make sure that it remains competitive on cost in the face of increased competition?
New technology? Why will the consumer purchase the new technology over staying with the old?
If your competitive advantage is a new technology, is that new technology protected by a patent, copyright (for things like computer code), or trade secret?
If a patent, who owns the patent? Do you have a royalty agreement with the patent holder?
i. If so, please include the details of that agreement?
If the business is dependent on a patent or proprietary formula and the company does not now have the rights to manufacture or market the product under the patent or proprietary formula, how is the company going to secure the rights to the product or formula?
What is your competitive strategy?
Why do you think you can capture market share with your product?
Why will the consumer buy from you rather than buying from the other current competitors?
If you are looking to build a factory to produce the product, why build a factory instead of having it manufactured for you either locally or in some other country?
Financials
If you are already an existing company:
Include Information on the sales history of the company for the past three years. This will mean total sales set out by month as well as information on the source of these sales. (Who were the customers who bought the companyÂs products?)
Include information on the expenses of the company from month to month set out by month. This would include wages and salaries for workers and management; any payments on leased equipment; any rent needing to be paid for company offices, warehouse or factories; shipping charges; advertising expenses; any taxes paid for the business from month to month including the date due; and any other expenses needing to be paid monthly.
Both of these will be needed to put together an income statement for the company.
Management
Who will be the principal managers of the business?
What is their experience, education and background?
What are their management responsibilities going to be?
Please include a current curriculum vitae for each.
Marketing
What is your marketing plan?
How will you price your products for sale?
If you are now a company doing business, who are the principle customers the company has now?
Who are the customers the company is looking to sell to in the future?
What method will you use to market to these customers?
How will these potential customers be identified by you?
How will they be informed of your products?
Why are they going to buy the product from you rather than to keep purchasing the product from the competition?
What methods will be used to sell these potential customers your products?
i. A sales staff?
ii. Advertising?
Where will the company advertise and how much will it cost per month?
We ask for the information on the principles because we need to know who they are andwhatt their experience is. This the kind of information you will need to provide when looking for financing. So be prepared to give a good account of yourself.
Maybe these will help you get started.
The Market and Competition
What is your market?
If you are looking at a market segment, what is that market segment?
What is the size of your market?
If your company is looking to manufacture and/or sell a product, how much of the market is from domestic manufacturers?
i. How much is from imports?
What is your competitive advantage?
Quality? What is it about the quality of your product that is better than that of the competition?
Cost? If it is cost, will it be cost alone? How will the company make sure that it remains competitive on cost in the face of increased competition?
New technology? Why will the consumer purchase the new technology over staying with the old?
If your competitive advantage is a new technology, is that new technology protected by a patent, copyright (for things like computer code), or trade secret?
If a patent, who owns the patent? Do you have a royalty agreement with the patent holder?
i. If so, please include the details of that agreement?
If the business is dependent on a patent or proprietary formula and the company does not now have the rights to manufacture or market the product under the patent or proprietary formula, how is the company going to secure the rights to the product or formula?
What is your competitive strategy?
Why do you think you can capture market share with your product?
Why will the consumer buy from you rather than buying from the other current competitors?
If you are looking to build a factory to produce the product, why build a factory instead of having it manufactured for you either locally or in some other country?
Financials
If you are already an existing company:
Include Information on the sales history of the company for the past three years. This will mean total sales set out by month as well as information on the source of these sales. (Who were the customers who bought the companyÂs products?)
Include information on the expenses of the company from month to month set out by month. This would include wages and salaries for workers and management; any payments on leased equipment; any rent needing to be paid for company offices, warehouse or factories; shipping charges; advertising expenses; any taxes paid for the business from month to month including the date due; and any other expenses needing to be paid monthly.
Both of these will be needed to put together an income statement for the company.
Management
Who will be the principal managers of the business?
What is their experience, education and background?
What are their management responsibilities going to be?
Please include a current curriculum vitae for each.
Marketing
What is your marketing plan?
How will you price your products for sale?
If you are now a company doing business, who are the principle customers the company has now?
Who are the customers the company is looking to sell to in the future?
What method will you use to market to these customers?
How will these potential customers be identified by you?
How will they be informed of your products?
Why are they going to buy the product from you rather than to keep purchasing the product from the competition?
What methods will be used to sell these potential customers your products?
i. A sales staff?
ii. Advertising?
Where will the company advertise and how much will it cost per month?
We ask for the information on the principles because we need to know who they are andwhatt their experience is. This the kind of information you will need to provide when looking for financing. So be prepared to give a good account of yourself.
posted by Scott W. Clark at 1:43 AM
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