PROFITABLE OPPORTUNITY: Key Sections
This is Part 1 (continued) in our 5-part New Business Plan.
So if you think that you have a PROFITABLE OPPORTUNITY, let’s take it to the next level. These will be key sections to include in the PROFITABLE OPPORTUNITY section of your business plan.
Product Description
What are the details of your product or service? Most important, what makes this product/service special, and what is your advantage over the competition?
Key Trends
What key trends are working in your favour? These could be ‘macro’ trends (trends that affect all businesses, like interest rates, employment trends, population trends, etc.) or ‘micro’ trends (trends in your industry). You don’t want to enter an industry with negative trends!
Target Market
Who is your target market? Start with the demographics (age, gender, etc.) and socio-economics (occupation, income, education, etc.), then include some key psychographics (their values, attitudes, interests and buying behaviour).
The Competition
Who is your competition, and what are their strengths and weaknesses?
Pricing
Can you price your product/service competitively and make a reasonable profit? You will go into more detail in your final section on financials, but it is important that your pricing be reviewed in this early stage. After all, we did say that it had to be a profitable opportunity!
Distribution
Do you have access to key distribution outlets? If you are opening a store where location is important, have you secured a strategic spot? A superior product is no good if people can’t get it!
Level of Demand
Can you reasonably project your level of sales? This is somewhat easy if you have experience in the industry. If you don’t have relevant experience, you will have to carefully research the opportunity to have faith in your projections.
Preliminary Profitability
If you have calculated preliminary profit margins and projected your volume, you shoud be able to forecast your estimated profit. Many entrepreneurs struggle with this calculation at this stage, but that’s okay. You can come back and sharpen the numbers after you have completed your detailed section n Financials.
