You have decided to create your own business, but so far you have only an idea in your head. Let's figure out how to turn this idea into a program of action.
The company's strategy is a general, master plan. She answers the questions:
1. Study the market
Before starting a business, you need to understand whether it has potential. Study the supply and demand.
If a product or service is in demand, the demand for them is growing, it makes sense to enter this market.
On the other hand, if there are already a lot of offers on this market and it is getting bigger every day, it means that competition is high. Everyone is working on the verge of profitability, it is difficult to get a profit.
Sales of chocolate and sweets in general practically do not change from year to year. At the same time, people are making more and more purchases over the Internet, and online sales are growing at a gigantic pace. There is potential.
There are only five specialized online candy stores in your city. This means that you can win back your share, and profitability is most likely still acceptable.
But you have much more competitors: these are also pastry shops, gift shops, supermarkets, and even private craftsmen who make sweets to order. To take your place among them, you need to offer something new and unusual.
2. Choose your customers
Among the many potential buyers, you need to choose your target audience and focus on it. Don't try to reach everyone. Find those whose needs or desires the current sellers have not yet satisfied, and focus on them.
Get a feel for your potential client. What is his need that you can realize? How do these people think? Where do they shop? What are their characteristics of character and behavior?
There are a lot of sweet tooths who love chocolate — in fact, all people from 1 to 99 years old. Among them, 40% are young and middle—aged people, active Internet users: they appreciate it for the speed and convenience of shopping. In addition, the Internet is usually also used for entertainment.
Among the entire Internet audience, a separate group can be distinguished. These are people who want to stand out, like to give non-standard gifts, to the creation of which they have put their strength and creativity. Let's assume that they make up 20% of Internet users. It is these people who will become your target audience.
3. Formulate a proposal
To stand out from the competition and meet the needs of your target audience as much as possible, formulate a unique trade offer (USP).
Think about how you can implement it: independently or with the help of suppliers or business partners.
For example, you will cook chocolate according to the unique recipes of your grandmother, who uses natural dyes to make it colored and adds unusual ingredients: cloves, sea buckthorn, carrots, red pepper.
At the same time, you will offer your young customers who love creativity and entertainment not just to buy ready-made chocolate, but to become its co-author: choose a pattern, color, taste and packaging. To do this, you will make a special constructor on your site.
At the first stage, let's assume that you will be able to produce such chocolate yourself, and when the volume of orders increases, you will attract a small private factory.
4. Evaluate the potential
Evaluate the prospects for your development in the market. To do this, you can use SWOT analysis.
This method helps to identify the strengths of the internal sides of the project (strengths), weaknesses of the internal sides of the project (weakness), potential external/market opportunities (opportunities) and potential external /market threats (threats) — risks that may affect the development of the company.
Example of SWOT analysis
Strengths:
Weaknesses:
Potential opportunities:
Using the same method, you can study an individual competitor or the market as a whole.
After you have compiled such a table, draw conclusions: how to respond to threats, work with shortcomings and make the most of all opportunities, relying on the strengths of your product.
Competitors can also go online and offer original chocolate. You should prepare a response to such actions: for example, to create an even more convenient mobile application for customers and expand the range. Your weaknesses, for example, working only through online, can be strengthened over time — go offline. First, you can work with partners, and then open your own point of sale — chocolateria.
5. Determine the promotion strategy
Evaluate exactly how your competitors promote their products or services, what channels they use and how much money they spend on advertising.
A well-thought-out strategy for promoting the company will allow you to use the budget as efficiently as possible. For example, if there are a lot of competitors in the market, and your budget is small, it is better not to spend a lot on advertising, but to expand partnerships.
Since you sell online, the main advertising support should be concentrated on the Internet. Participation of your company in master classes, promotions and barter partnerships can give a greater return with less investment.
6. Formulate a business goal
Be bolder, but stay realistic. Determine specific figures in terms of sales volume, number of customers, and territory. Set yourself an upper bar to which you will strive.
For example, you can set yourself a goal in a year to sell 2500 tiles a month in your city, make half of the buyers your regular customers, offer 5 options for fillings and 3 options for shapes.
In three years, you plan to expand the range to 10 fillings and 5 forms, extend delivery to the entire district and bring customer loyalty to 80%. Thus, you expect to take a share of 35% of online chocolate sales in the city.
And in five years you intend to open a chain of chocolatiers in the region, sell a franchise, distribute your goods throughout the country and increase sales to 10,000 tiles per day.
After you have compiled a business development strategy, proceed to writing a detailed business plan.
The company's strategy is a general, master plan. She answers the questions:
- What am I going to create? What will my business consist of?
- Who am I doing this for? How can I improve the lives of these people?
- How can I stand out from the competition? What is the uniqueness of my offer?
- What is the potential of my business? What are the threats and opportunities? How will I act if the business conditions change significantly?
- What results do I want to achieve in a few years?
Before starting a business, you need to understand whether it has potential. Study the supply and demand.
If a product or service is in demand, the demand for them is growing, it makes sense to enter this market.
On the other hand, if there are already a lot of offers on this market and it is getting bigger every day, it means that competition is high. Everyone is working on the verge of profitability, it is difficult to get a profit.
Sales of chocolate and sweets in general practically do not change from year to year. At the same time, people are making more and more purchases over the Internet, and online sales are growing at a gigantic pace. There is potential.
There are only five specialized online candy stores in your city. This means that you can win back your share, and profitability is most likely still acceptable.
But you have much more competitors: these are also pastry shops, gift shops, supermarkets, and even private craftsmen who make sweets to order. To take your place among them, you need to offer something new and unusual.
2. Choose your customers
Among the many potential buyers, you need to choose your target audience and focus on it. Don't try to reach everyone. Find those whose needs or desires the current sellers have not yet satisfied, and focus on them.
Get a feel for your potential client. What is his need that you can realize? How do these people think? Where do they shop? What are their characteristics of character and behavior?
There are a lot of sweet tooths who love chocolate — in fact, all people from 1 to 99 years old. Among them, 40% are young and middle—aged people, active Internet users: they appreciate it for the speed and convenience of shopping. In addition, the Internet is usually also used for entertainment.
Among the entire Internet audience, a separate group can be distinguished. These are people who want to stand out, like to give non-standard gifts, to the creation of which they have put their strength and creativity. Let's assume that they make up 20% of Internet users. It is these people who will become your target audience.
3. Formulate a proposal
To stand out from the competition and meet the needs of your target audience as much as possible, formulate a unique trade offer (USP).
Think about how you can implement it: independently or with the help of suppliers or business partners.
For example, you will cook chocolate according to the unique recipes of your grandmother, who uses natural dyes to make it colored and adds unusual ingredients: cloves, sea buckthorn, carrots, red pepper.
At the same time, you will offer your young customers who love creativity and entertainment not just to buy ready-made chocolate, but to become its co-author: choose a pattern, color, taste and packaging. To do this, you will make a special constructor on your site.
At the first stage, let's assume that you will be able to produce such chocolate yourself, and when the volume of orders increases, you will attract a small private factory.
4. Evaluate the potential
Evaluate the prospects for your development in the market. To do this, you can use SWOT analysis.
This method helps to identify the strengths of the internal sides of the project (strengths), weaknesses of the internal sides of the project (weakness), potential external/market opportunities (opportunities) and potential external /market threats (threats) — risks that may affect the development of the company.
Example of SWOT analysis
Strengths:
- One-click online purchase
- The ability to design an order yourself
- Original products
- High quality of the product
- A wide range of
- Round-the-clock express delivery on the same day
- Development of a mobile application to attract an audience
Weaknesses:
- Lack of experience in organizing own production
- The lack of funds for the project to develop a mobile application at the first stage
Potential opportunities:
- Opening of a physical point of sale — chocolateria
- Expansion of the assortment due to other original sweets, except chocolate
- Formation of a permanent clientele, which can be offered new options and bonus programs
- Consumers are ready to use mobile apps for purchases, so the project will be able to attract an additional sales channel
- Competitive market
- Consumers at the first stage are only those who buy online
- Strengthening of competitors' positions
- Additional state control of product quality
- Unreliable manufacturer and the threat of disclosure of the recipe to competitors
- Unfavorable economic situation in the city, bureaucracy
Using the same method, you can study an individual competitor or the market as a whole.
After you have compiled such a table, draw conclusions: how to respond to threats, work with shortcomings and make the most of all opportunities, relying on the strengths of your product.
Competitors can also go online and offer original chocolate. You should prepare a response to such actions: for example, to create an even more convenient mobile application for customers and expand the range. Your weaknesses, for example, working only through online, can be strengthened over time — go offline. First, you can work with partners, and then open your own point of sale — chocolateria.
5. Determine the promotion strategy
Evaluate exactly how your competitors promote their products or services, what channels they use and how much money they spend on advertising.
A well-thought-out strategy for promoting the company will allow you to use the budget as efficiently as possible. For example, if there are a lot of competitors in the market, and your budget is small, it is better not to spend a lot on advertising, but to expand partnerships.
Since you sell online, the main advertising support should be concentrated on the Internet. Participation of your company in master classes, promotions and barter partnerships can give a greater return with less investment.
6. Formulate a business goal
Be bolder, but stay realistic. Determine specific figures in terms of sales volume, number of customers, and territory. Set yourself an upper bar to which you will strive.
For example, you can set yourself a goal in a year to sell 2500 tiles a month in your city, make half of the buyers your regular customers, offer 5 options for fillings and 3 options for shapes.
In three years, you plan to expand the range to 10 fillings and 5 forms, extend delivery to the entire district and bring customer loyalty to 80%. Thus, you expect to take a share of 35% of online chocolate sales in the city.
And in five years you intend to open a chain of chocolatiers in the region, sell a franchise, distribute your goods throughout the country and increase sales to 10,000 tiles per day.
After you have compiled a business development strategy, proceed to writing a detailed business plan.