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B. The company, the product and the market



If the company already exists, the first chapter of the business plan explains how it was started and how it has grown, and gives a history of sales and profits. It describes the company today, and the plans for the future.

The second chapter describes what you already sell or want to sell. It explains what differentiates the product or service from other existing ones - what makes it different or unique. It focuses on the benefits or advantages for customers - how it will improve people’s lives!

The chapter on the market describes the industry you operate in, the market segments, the other firms in the market (your competitors), changes in the industry, and projected trends - forecasts for the future - and technological opportunities. It outlines what the customers need, where they are, and how you plan to reach them. It explains how you will make sure that customers know about your product or service and why they will prefer it to the competition. It gives details of your marketing strategy, including sales tactics - the ways you plan to achieve sales, advertising, publicity and sales promotions - incentives to encourage customers to buy.

The chapter on the management team gives details about the most important staff. The chapter on strategy outlines your strategies for marketing, pricing, distribution, sales, etc., and how you are going to implement them or carry them out.





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