How to write an effective business plan? - Part 2

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Let’s continue with 2. Product or service. What are the key questions for Product or service ? Here you are:

• What are the features or functions of the product/service ? You should clearly identify these.
• Who are the target customers ? You should know your target customers and their needs.
• What value propositions does the product/service provide to the customers?
• What is the revenue model ? How will your small business make money ? Describe revenue sources, such as advertising revenue, transaction revenue, commission revenue etc.
• What is the development status of the product ? What remains to be done to convert the business idea into a tangible product or service ?
• Has this model been proven elsewhere? What are some successful examples?
• What is the plan to maintain the loyalty of the customers?

For a successful business plan, there is one key question to be answered : Has this model been proven elsewhere?

My Opportunity: why will or won’t this work?

Just as you take a road test before you buy a car, you should run road tests of the opportunities you consider. It is obvious that each road test resolves a few more questions and eliminates a few more uncertainties.

The aim of this blog is to provide a road test toolkit for entrepreneurs like you. Hence you may resolve some questions and eliminate these uncertainties before writing your business plan. Together we will analyze most common mistakes and learn from other’s faults in the future posts.

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