What is a startup? A startup is a company, either solo or partnership or corporation, designed to develop a repeatable and scalable business model. It is an organization looking to find solutions to a problem, by innovating on existing ideas to solve critical pain points. Oftentimes, the success of the solution is not guaranteed. Startups are kind of business ventures that tries to meet a specific need of a marketplace by developing a viable and scalable business model around an innovative product, process or platform.
The goal of your business is to get some candies from the other babies playing within the industry’s market. This does not necessarily mean that they should be largest in size, but rather, being recognized as a major player that captures a significant percentage of the sector’s sales and revenues, where the total revenues of the industry can be seen as a pie. The larger the company’s market share or slice of the pie, the better the business would be.
Determining your market potential can speed up the process of uncovering your sales growth. Of course, the best way to determine which customers are the most valuable to target is simply getting some statistics and knowing the current customer or market potential of your chosen business. An average company may be able to increase profitability by 10% or more through programs that improve the sales organization structure. Most have been successful in powerfully optimizing the company’s sales force for a well-balanced territory coverage through engineering. Re-engineering a well-thought organizational structure makes it possible to match people and their relative skills with the market environment.
This guide for writing a startup business plan helps you understand the need to determine the behavior of your target market. Behavioral analysis of markets typically integrate psychology and its insights with the neo-classical economic theory focus entirely on the actual market participants. Behavioral research particularly study the variables that influence the formation of habits, which includes the habitual patterns of decision making.
How do you understand and define your target market? No one has the time and the money to spend targeting everyone. Even small businesses need to segment the target market, so it can effectively compete with the other players in the industry. Segmenting the target market does not mean you exclude those who were not included in your small group.
Analyzing your industry to understand the trend and the other factors affecting the health of the industry is very basic. What happens to the industry clearly impacts the life and health of your business. There are external factors you need to evaluate, whether you can control it or not, you should know how to respond on its highs and lows. A thorough understanding about how your industry works and where your business fits in is critical to strategic risk management and control.
Determining the demand and supply is very important in knowing whether there is still room for your goods or services in the market. In short, is there a place for you in the market and industry? A surplus of the goods or services, would mean less demand or customers for you, besides the very fact that you would be offering your goods or services at a much lower price but higher quality to compete with the established players, being a newcomer or a new entrant.
The market analysis is the process of determining the attractiveness and the dynamics of your target market. The most common tool for marketing analysis is the SWOT and the PESTLE analysis. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.
PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental. You need to understand the demand and the supply that occurs within your industry as they relate to your target market.
What is a business plan in the perspective of a startup company? How can writing the business plan help your company achieve its goals? Why is a business plan vital to the direction, strategy, and health of your business? First of all, there is one thing I am sure you would all agree. All financial and lending banks and institutions requires a business plan before they open their ears and listen to what you have to say about your business.