How to formulate a business idea example
To open your own business, you need to organize and plan everything correctly, and this is where our business website will help. To do this, at the beginning, before implementing a business idea, it is necessary to draw up a competent business plan.
If you made it right, this is the basis of your case.
It will help you understand whether you have chosen the right direction of activity, whether this business is worth the money invested in it and whether your costs will pay off, and most importantly, whether you will make a profit.
How to write a business plan yourself
How can you write a business plan yourself:
There are specialists in this area who will help you for a fee.
However, for writing it, you will be charged quite a considerable amount, which can range from 2 thousand dollars and reach 40.
But if you study all the aspects and rules of drawing up a business plan, you can master this task yourself, with minimal costs.
A business plan is usually not written for the short term, but should be in the long term.
It can be 3, 5, 10 years ahead, maybe more. But most often it is written for a year.
We continue to draw up a business plan according to the Entrepreneur-Pro version. By now, we have made a "Cover Sheet", "Content and Summary" and a section "About the Company". Now we have everything to start the essence of the planning process for any business, i.e. what he will sell - goods and / or services. The section "Description of products in the business plan" is on the way.
Product description in business plan
So far, we have developed introductory elements aimed at capturing the interest of readers of the business plan for further reading. If in the previous sections you managed to get the reader's attention, then the next thing he wants to read is a description of the product or service you are selling.
Every business sells something. And part of the money received from sales again needs to be invested in the business. This is the main cycle of any business. That “something” can be a product, or a service, or a combination of both. In recent years, a new type of product has been noticed on the market - an electronic (or informational) product. And this is also a business.
The purpose of this chapter is to accurately define the characteristics of a product and / or service, and to clearly indicate the benefits that the consumer will receive from these products and / or services. Therefore, I recommend using this section of the business plan to improve your business idea.
Contents of the section “Description of products in the business plan”
You should include the following subsections here:
- Introductory summary of products and / or services.
- Description of products and / or services.
- Comparison with competitors (by product and / or service).
- How will you receive products and / or services?
- Future plans.
Introductory summaries should be written just below the section title. Before starting to fill in the remaining subsections, you briefly indicate what will be discussed next. Consider the section introductory summary as analogous to the summary of the business plan as a whole - it can help you write the rest of the subsections, and at the end it can be adapted to the content. In each part of the business plan, try to give a brief overview of what will be covered in the upcoming subsections. This way you will make it easier for the reader and yourself to navigate.
Description of goods and / or services
In this article I am not writing how to "give birth" to a project idea - I am considering the option that you first had an idea, and then you decided to write a business plan.
I would like to make a reservation that what I call an idea is not the idea of "starting your own business", but a specific thought about what you will be doing - a business idea, the idea of your business. The idea must be stated verbally on paper., Clearly, clearly, understandably.
However, the presentation of an idea does not mean that you will implement it. In the process of drawing up a business plan, you will analyze, calculate and check everything. If necessary, correct and change the wording. But still - the Idea is the leading one in drawing up a business plan.
If in the process of drawing up a business plan it turns out that the idea is too risky, then you can refuse it.
At this stage, you must set the direction for business planning: formulate a business idea, substantiate its relevance (necessarily based on market analysis), conditions for the implementation of the idea. It is worth describing the benefits of the proposed idea and its market benefits.
If you do not have marketing data, then first describe the relevance and conditions based on your assumptions, but be sure to check the correctness of the assumptions during the development process.
At the end of the business plan, you will write down the project idea in the project summary, and then you can correct it.
So, let's summarize. This section of the business plan is aimed at knowing where to go and imagine for yourself how the final result of the project will look like. In addition, it allows you to show future investors the attractiveness of the project. The idea should be written brightly, emotionally, capaciously reflect the relevance and necessity of the project, draw attention to it.
An example of an idea description.
I will make a reservation right away that the examples in the section "Developing a business plan" I give abstract, not tied to the real situation on the market. Accurate marketing information is commercial.
Idea: Online-product online store of food products with round-the-clock delivery in Yekaterinburg.
The online store will be the only online food store in Yekaterinburg that accepts and delivers orders around the clock.
The Online Product online store offers customers prices below average prices in the city, a wide range and a range of additional services. As part of the Internet project, there is a product planning and reminder service, where a person can program the consumption of food products once, and orders will be placed automatically.
Financial model of an online store
Brief Investment Memorandum
Today, Internet commerce (e-commerce) all over the world, as well as in Russia, demonstrates high growth rates. An additional incentive for opening an online store is created by a drop in the solvency of customers. As a result, most consumers are looking for the best deal online. This is reflected in the fast payback period of the project, which is 10 months. The break-even point is 3 months.
Staff will also be required to open the store. The total number at the opening will be 4 people. Also, for placement of goods and prompt delivery, a warehouse (office) room of 50 m2 is required.
The business plan is based on 120 sales per month. Of these, 60% are sales within your city, 40% in other regions. This business does not have a pronounced seasonality. The average cost of one sale is 4,825 rubles. Considering the growth of Internet commerce and the high demand for this type of product, the project has positive financial indicators of the project:
The amount of initial investments is 505,000 rubles.
Payback period 10 months.
Break-even point 3 months.
Description of business, product or service
Nowadays, more and more people purchase products in online stores. The reasons are low prices, convenience and the ability to get your order at home. Now, quite often, a customer comes to an offline store to inspect the product "live" and then orders it in the online store.
The main task when opening an online store is to create a functional website, as well as organize fast delivery to a client. To create a website, you can hire competent specialists, or create a landing page on various platforms (LP Platform, InSales, etc.). To organize fast delivery, you need to conclude an agreement with a courier service or find couriers for outsourcing. Free bulletin boards can be used as a platform for finding couriers.
In this section it is necessary to describe your main products and services, assess their advantages, disadvantages and liquidity. Compare your products with those of competitors and analyze further stages of production development.
First of all, give a brief description of your products or services, then focus on specific qualities and functionalities that are especially important to customers or set you apart from your competitors. Do not forget to provide examples of the use of the proposed products
The following form can be used as a template:
Product / Service Description
The _______________ offered by us can be characterized as ____________________. The main purpose they serve is _________________. We first proposed _________ in _______. Since then, they have undergone the following changes ____________________.
Indicate the cost of the offered products depending on the volume of production, emphasize its manufacturability and evaluate its versatility.
The company offers a new product / service. This product has the lowest price and is more practical in comparison with competitors' offers. It is more advanced from a technological point of view than existing analogues, and allows consumers to save time and money.
The service offered has so far been unavailable in this region. High quality service is provided by a team of company employees, whose total experience in this area is _____ years.
The laws and regulations in your industry can have a profound impact on your business.
Therefore, the point of the business plan is of particular importance, in which you describe the compliance of your products with accepted international or Russian standards and quality control requirements. Indicate existing regulatory and certification requirements. If, in addition to the product itself, you also provide related services (for example, warranty service), be sure to mention this.