This section of the business plan deals with the analysis of the target market into different groups of customers (customer or target market segments) each having distinct characteristics and needs from the product.
The reason for customer segmentation is to allow a different marketing plan be identified for each customer segment, dealing with questions such as distribution channels, marketing activities, product usp, and price.
Metrics are how you will gauge the success of your business. This is the most crucial – and intimidating – part of any business plan for a bank loan.
Your prospective lender will look especially close at this section to determine how likely your business is to succeed.
Here's a quick overview of the step–by–step process we guide entrepreneurs through when they sign up for Live Plan.
Detail exactly what problem you are solving for your customers.The target market segmentation strategy depends on the business and the product, but generally segmentation falls into the following customer characteristics groups.Psychographic segmentation splits up a sales market of a business based on such things as the social class, lifestyle choices, personality traits, tastes, attitudes, and the opinions of its customers.Psychographic market segmentation examples include the promotion of products such as cars as these often reflect a customers lifestyle, and leisure activities.For example, a car business might identify customers who are interested in keeping the environment green and promote hybrid cars to them, or a business involved in activity holidays will seek to market to customers who show a preference for an active lifestyle.But the financial section doesn't have to be overwhelming, especially if you break the work into smaller pieces.Here are 3 items that your plan must have: Exactly how will you use any investments, loans or other financing to grow your business?The three main components of this step include: There can be a lot of moving parts to this one, depending on your business model.But most importantly, you'll need to fully explain how you plan to reach your target market and convert those people into customers.How do their lives improve after you solve that “pain point” for them?We recommend actually going out and chatting with your target audience first. This is crucial information for determining whether or not your business will succeed long–term.