In the last chapter we discussed the way the market of your choice behaves and who are the major players in it. Now it’s time for you to explain how you are going to penetrate that market, what your strategic goals are and how you intend on reaching them.

1.      Definition of Objectives and Strategic Goals – This is where the word “plan” in “business plan” comes into place. Explain to the reader where you intend on being over a period of time. Remember and follow the basic rules of differentiation between strategy and tactics. Strategy is where you intend on being; tactics is how you intend on getting there. If you don’t the reader to raise an eyebrow or have a laughing fit, try and avoid phrases such as “We intend to dominate a significant part of the market within one year of launch”. Do your best to put in reasonable goals and milestones that are feasible – they will be the basis for investment if one should arrive….

2.      Market Penetration and Competitive Edge – What is it that makes your business unique? If we take into account that you have competition (everyone has competition), what is it that makes you unique? Why would people choose you over the competition? How do you intend on penetrating and establishing a foothold in the market? Try and figure out where the soft spot is and attack it with full force.

Do you know where to attack? There is an old saying – “form a beach head”. Every penetration strategy must be combined with good tactics. The tactics should take into account the problems that might emerge during the penetration phase, and offer feasible solutions. Also, it’s better to have more that once scenario – think of it as a “plan B”.

3.      SWOT Analysis – The simplest and most common analysis of them all. A SWOT analysis is basically trying to put down on paper the four elements that comprise success. These elements are Strengths, Weaknesses, Threats and Opportunities.

Here are the things needed to be addressed in each category of a SWOT analysis:

Strengths: attributes of the organization that are helpful to achieving the objective.

Weaknesses: attributes of the organization that are harmful to achieving the objective.

Opportunities: external conditions that are helpful to achieving the objective.

Threats: external conditions that are harmful to achieving the objective.

4. Future Services / Products – Isn’t it obvious that investors are looking for companies that can show a clear vision of where they intend on going? Try and focus your attention in this paragraph on the derivatives that will emerge from your current product or service. Make sure that the reader fully understand the potential of your current offering, yet acknowledges that future services or products will result in new streams of revenue.

That’s it for today’s post.

If you missed out on previous ones, please check out the intro to this series.