40-character Business Plan for Widget Company

Example of Business Plan for Widget company

J Wight Consulting
November 1st 2011
Jonathan Wight

www.jwightconsulting.com

Instructions
•  This is just an example of what could be written as a business plan.
Everything in this document about “Widget company” is fictitious.
•  There is always a lot more detail behind each section. You can keep this
detail in the Appendix if you believe it may need to be referenced.
•  Most important please keep to most relevant facts – “Less is more”, only
put in what is really necessary.
•  What is in “red” is commentary on each page

•  Always start with the Market and your consumer/customer or client
–  Better defined your Target Market is the more successful you will be
targeting products/services and media (online/offline) to target them
–  Additional reference to Target market is included in appendix

•  If you need help or have feedback please contact me on +61 410 813 019
or jon@jwightconsulting.com


Agenda
•  Project scope
•  The market and competition Part 1
•  SWOT and Strategy
•  Target Market
•  Objectives Part 2
•  Key Challenges and Must dos
•  Marketing 4’Ps
•  The How and Budget proposal
•  Budget Part 3
•  Next Steps
•  Appendix


Briefing and project scope
Always show a
timeline of actions

  Business Plan start
Key dates Actual
  Project Scope
Business Plan started 25th August 25th august
  Phase 1
  Delivery
of Marketing/Business Plans for Manager approval 12th 6th
September September
Widget company
Business Plan 19th 12th
  Phase 2 completion with September September
  Execute Business Plan updates

  Website development etc and and other Business Plan 29th 22nd
deployment start and September September
collateral
execution


Size, growth and trend of market
will influence your plans
Widget Market in Widgetland
2011
Market size in $$$ 5BN
  Most companies (90%) in Widgetland are small businesses
  declines in large businesses due to ease of small operators to set up Growth from 2010 5%
 Widget market is growing in volume but average spend per widget is
declining by 5% Target consumers 1M

  Biggest challenge is how to innovate and grow premium products/ Average per person $500 per
services spend $$ person

 Top
Retailers – Widget Brick and Mortar (65%), Widget Online (25%)
Widget Wholesale (10%) Widget online growing faster at 10% Source: xxx

  Online
retailers aggressively trying to take more business from Brick
and Mortar Retail stores
  Brickand Mortar retail stores are having to find innovative ways to
Employees
attract more premium customers including online channel itself
1 - 5 employees
  Top Brands 5 - 10 employees
  WiD (25%), GET (30%) , WIDG (10%) , others (35%) 10 to 50 employees
50+ employees
  Strict regulations by WIDGET association and labeling
Source: xxx
  Industry magazines/associations
  Widget Oct edition
25%
 http://www.widgetsmagazine.com Make sure data
sources are quoted


Competitor overview in Widgetland
Competitor Market Share % Focus/Strength

Widget competitor A 25% Been around since 1925, well
established, focus on customer
relationships and Brand strength

Widget competitor B 15% Up and coming. Young
management team. Some who
have come Widget A to start up
in opposition 5 years ago. Focus
on innovation and customer
loyalty
Widget competitor C (our company) 10% Established business with loyal
customers. Innovation but not
well known for marketing. Sales
focused.
Widget competitor D 9% Online competitor. Brings
widgets to market at 20%
cheaper than competitors but
mainly volume player.

Widget competitor (all other) 41% Combination of brands focused
on online, new brands focused
on marketing.


SWOT and Strategy
Strengths (internal) Weakness (internal) •  Primary Focus
o  Passionate, Good quality and o  Perceived as not a Marketing •  Launch new premium Product/Service
loyal people company by consumers and
customers •  Drive Brand Awareness and
o  Strong Customer relationships Preference for premium product/
o  Perceived as strong and
o  Strong sales team steady but unexciting Brand service
o  Innovative Products/Services o  Lack of willingness to try new •  Invest in new channels to
o  Good quality products/services things drive new excitement for
o  Profitable - % Net profit o  Traditional new offering - Online,
promotions, Create PR
Buzz, social Media
•  Sales channel/distribution
Opportunities (external) Threats (external) •  Establish new sales distribution
channels
o  Use innovation o  New and upcoming online
o  Both in marketing and businesses grabbing market •  online, premium channels
product/service share
•  Secondary Focus
offering to target o  Low barriers to start up for
premium products new brands to enter •  Internal Brand Re launch
and gain market
share o  Constant attempts of •  Incentivize and excite own
competitors headhunting employees to get buy in and
best employees passion towards new goals
Keep this to only relevant points – strategy •  Event, newsletters, internal PR

should be easy to say in 60 seconds or less


Target Market
Define Target market as clearly as you
•  Core Product/Service
can – make sure you collect as much
•  Primary Target Market
about the potential areas of
•  Located in Widgetland
psychographic information as possible
•  Age – 30 to 45
Consumer insights should be listed here
•  Male skew 65%
•  Conservative
•  Higher % than population Married, with kids
•  Hobbies include Golf, Watching Sports
•  Premium product/Service
•  Primary Target Market
•  Located in Urban Widgetland
•  Age – 22 to 35
•  Even split between Male/Female
•  Early adopters
•  Hobbies/interests include Shopping, Restaurants, Sports,
•  High readership of fashion magazines, higher % of viewers of YouTube


Smart Goals – specific and
Objectives Year 1 to Year 3 measurable – most relevant

Current Year 1 Year 2 Year 3

$$$ Turnover $XXX $XXX $XXX $XXX
+ 10% growth + 10% growth + 10% growth + 10% growth

$$$ Net Profit /EBIT $XXX $XXX $XXX $XXX
+ 11% growth + 12% growth + 14% growth + 15% growth

Market Share % 10% 11% 12% 13%

Average price $500 $525 $550 $575

Brand preference % 20% 22% 24% 25%


Key challenges and top must do’s
Key challenges Top must do actions

o  Develop comprehensive o  Create Big “idea” to get attention of
Marketing Plan to Target market

o  Drive Brand awareness o  Brainstorm activities – internal
employees and external agencies
among customers/
o  Involve and communicate with Key
consumers for new
internal people
premium product/service
o  Plan Marketing launch

o  Deploy Marketing communication
o  How to Build internal excitement
strategy to Internal people with
around launch of new product/ launch event
service o  Involve Sales/customer service etc
in key activities

o  Activate marketing Plan

o  PR Buzz, online and offline activity


Marketing – 4 P’s

•  Product
•  Premium Product/Service with: Be as specific as you can
•  innovative functionality identifying differentiating and/or
•  superior design
positioning attributes.
•  ease of use
•  Targeted at Competitor A with differentiation
of design and ease of use
•  Price
•  Positioned at 20% premium above core product/
service range and directly targeting Competitor A
•  Place (Distribution)
•  New Premium sales outlets, Online channels
•  Promotion
•  Online – Social Media, Web promotions, You tube
•  PR and publicity campaign – create Buzz
•  Added Value Sales promotions
•  Internal and External Launch event


How Budget proposal
Budget (Rec)
Widget Premium
•  Primary Focus
•  Drive Brand Awareness and Preference for premium Launch Event (internal) $X,XXX
product/service
•  Invest in new channels to drive new Launch Event (customer and $X,XXX
excitement for new offering - Online, press)
promotions, Create PR Buzz, social
Online - Social media, You tube $X,XXX
Media
etc
•  Sales channel/distribution
Offline Media $X,XXX
•  Establish new sales distribution channels
PR $X,XXX
•  online, premium channels
Collateral $X,XXX
•  Secondary Focus
External Agency fees $X,XXX
•  Internal Brand Re launch
Other $X,XXX
•  Incentivize and excite own employees to get
buy in and passion towards new goals Total $XXX,XXX
•  Event, newsletters, internal PR

Remember this is a top line plan,
so keep to main items
Details of timeline of activities can
be put in appendix


Next Steps This slide recommended if
presenting to an audience or
needing approval

•  Approval for Budget
•  Approval for People resources
•  Approval for Timeline
•  Any stakeholder questions?


Presentation written by:

Jonathan Wight
J Wight Consulting, Sydney, Australia

Jonathan Wight

Linked in: http://au.linkedin.com/pub/jonathan-wight/7/32/a74

You tube channel: http://www.youtube.com/user/JWightConsulting

Twitter: http://twitter.com/Jonathan_Wight

Email: jon@jwightconsulting.com

Phone: +61 410 813 019


Appendix


Target market thought starters
Defining your customers/consumers is the most important thing you can do. The more specific
the definition of who you are wanting to talk to the better the service or product will be to help
them. The 3 categories below help to define the target market.

  Geographic segmentation – based on location such as home/business addresses
  Demographic segmentation – based on measurable statistics such as;
  Age: by age bracket or by children, teens, young, middle, seniors
  Gender: male, female
  Education: high school, college, university, post grad
  Income: low, medium, high or by income brackets (Household or single income)
  Marital status: single, married, divorced, separated
  Ethnic and/or religious background
  Family life cycle: newly weds, married for 7 years + , with or without children.
  Psychographic segmentation – based on lifestyle preferences, such as being living in urban
location or lovers of sports/hobbies or even pets.
  Lifestyle: conservative, exciting, trendy, economical
  Activities, hobbies, interests: sports, physical fitness, shopping, media they consume,
social media
  Social class: lower, middle, upper
  Opinions: easily led or opinionated
  Attitudes and beliefs: environmentalist, security conscious.

Please note: You may have many different segments so remember try not to be all things to all people


40-character Business Plan for Widget Company

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