Congratulations! You’ve started a consumer product business and you’ve come to the right place to learn what to do next. The steps you’ll take from here are all defined and will, when completed, create a comprehensive business plan. Let’s get started!
Question: What product are you bringing to the market?
Analyze these questions and answer them thoroughly and thoughtfully: Is the product you’re providing one that is truly needed? Is it essential, useful, and profitable? Will your product bring something beneficial to consumers? Are you committed to your product?
Question: Who is Your Customer?
Firstly, before starting any business, you’ll want to understand who will buy your product. You will want to meet the needs, problems, or wants of your customer with solutions that are satisfactory and complete. Ask the following questions to define your customer:
- Where do my customers live or work?
- What age range is my customer?
- Which price will my customers be willing to pay for my product?
- What lifestyles do my customers have – busy professionals, young adults, stay-at-home moms?
Answering these questions will give you a sense of your customer, what that customer needs or wants, and what the customer is willing to pay for it.
Question: Who is Your Competitor?
Just as you’ve defined your customer, you’ll want to understand your competitors, if any. Ask these questions to learn what is valuable to know about your competition:
- Who are my competitors and where are they located?
- What unique or special value do my competitors bring to customers?
- How large are my competitors’ businesses?
- What are the pricing models of my competitors?
- What are the marketing strategies used by my competitors?
Answering these questions will give you a sense of your competitors, what they offer, and how they price their offerings. Use this information to add to your understanding of your clients.
Define: The Mission and Objectives of Your Business
You’ve answered tough questions and created detailed answers. Your next task is to define the mission and objectives of your business. What is the purpose of your business and why do you care about it? The objectives of your business outline in specific ways how you plan to grow and develop the business to the levels you perceive are optimal. In brief, if your underlying goal is to create personal wealth, include that information and detail the levels of profitability you would like to achieve.
Define: Your Financial Projections and Funding Needs
A professional business plan should contain solid and sufficient financial projections which include both expected income from sales revenue or royalties and expenses associated with launching and running the business. This will help potential investors understand the financial needs and potential of your business. From time to time travel expenses, shipping and demonstration costs will be substantial if travel is international or if numerous potential clients will want to review presentations or demonstrations.
When calculating your financial projections, consider the costs of manufacturing; including design, engineering, prototyping, product development, case packaging, and shipping. Also, consider whether manufacturing will be conducted internationally or domestically. Additionally, all of these initial costs will become relevant during the first year of business, therefore, they will need to take a priority position in terms of funding. Also, calculate the cost of sales and marketing to potential clients.
Define: Your Marketing Strategies
Developing a solid marketing strategy is essential for the success of your business. Combine both online and offline marketing strategies and techniques to reach potential clients. Spread brand awareness by using social media callouts. Also, attend major consumer product trade shows to exhibit and collaborate with other companies. A comprehensive marketing plan considers digital advertising, public relations campaigns, social media outreach, and traditional print materials. Use any or all of these, as desired.
Detail: Your Operational Plan
Setting your operational plan in place is dependent on the products your business will provide; however, some basic elements are always in place. You’ll want to secure a location for your business and ensure it meets the requirements of the business. Also, purchase office equipment, computers, software programs, and furnishings. In addition, you must supply employees with needed work-related tools and equipment. Hire and train employees and set protocols in place.
Obtain any licenses or permits needed and purchase insurance to cover buildings and any vehicles. Cover your employees with worker’s compensation insurance and review safety protocols with all employees. Additionally, engage a bookkeeper or accountant to keep financial records and create payrolls, as well as pay quarterly taxes in a timely manner.
Complete: Your Business Plan
Lastly, place all elements of your business plan, including your target audience and competitor research, the mission and goals of your business, financial projections and funding needs, and your marketing strategies into one comprehensive plan. If you do not have a comprehensive plan, use this template business plan as a robust executive platform. In brief, utilize this plan as needed to secure funding, gain investors, stakeholders, or borrow funds for expansion.
In conclusion, you just started a consumer product business and you’ve now completed a comprehensive business plan as your first step to long-term growth and success. What comes next? Given these points, you’ll put your business plan to very good use. We wish you every success!