Business Plan Lesson 4: Business Strategy
This is the fourth part of a 10 part series on business planning.
When it’s time for a road trip, how do you plan your route? Do you tend to stick to all the major highways, do you try to save time with a little-known shortcut, or do you end up lost and confused on an unmarked back road?
The business strategy section defines the general direction your business will travel. Typically, strategy is broken into four elements: product, place, price, and promotion, often referred to as “The Four Ps.” Product description and strategy are covered earlier in the plan, so this section should focus on the other three elements. Remember, each decision should contribute to the business’ ability to meet the needs of the target customer.
In the business strategy phase, you will outline a general direction. In the next section, operations, you will expand on this information and address specific steps you will take to achieve your goals.
Place (Location) – Is location important to customers? Have you chosen a business location? Will you need more than one location? What factors are important in your choice of location?
Price – What pricing methods are you using and why? Is the price set by competitors? Is your goal to be highest, lowest, or in the middle, and why?
Promotion – What is your Unique Selling Proposition and how will you promote your product? What types of advertising and marketing will you use? Marketing Expenditures are a significant portion of your total budget, be sure to include a preliminary budget in planning.
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