Management Business Planning
Managers may take different approaches to business planning. However, successful managers know to plan all aspects of their businesses. When planning a business, you need to know where you stand in the market, what government regulations exist and how you will operate your business. You also need to consider what distribution outlets will work best for you business. The key to planning your business is writing a comprehensive business plan before opening your doors.
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Employees
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One aspect of business planning includes hiring the right employees. Know what types of employees you need to run your business. For example, hire sales managers and sales reps to cover your markets. Bring financial people aboard to help better help you obtain financing and manage your budget. Determine how many people you will hire in a given year, and what salaries you can afford to pay. Also, determine which methods you will use to recruit your employees: online ads, executive search firms or newspaper ads.
Market Analysis
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Managers also need to study their markets and industries as part of their planning. Determine if there is room for another competitor like yours in the industry if you are just starting out. One way to accomplish this is by studying the market share of key competitors. Market share is the percentage of unit and dollar sales competitors wield in the marketplace. If there are too many well-established competitors in a certain market, consider a niche or specialty market. Most market share information is available in online industry reports. You can also purchase industry reports from research companies such as Nielsen and Forrester Research. Additionally, decide what group of customers you are targeting, according to the Small Business Administration. Define your target customers by certain lifestyles: active people, for example, or demographic characteristics such as age and income.
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Products and Services
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Management business planning also includes outlining the products or services you will be selling. Write detailed descriptions of your products, including features, sizes, scents, flavors, weights and dimensions. Decide how you will price your products or services. Also, determine what makes your products unique versus key competitors. For example, you may be the quality leaders in your industry because of your superior engineering. Plan to use your key product strengths to your advantage by communicating them through brochures and in person to customers.
Advertising
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Plan your advertising mix and budget. Your advertising mix pertains to the types of advertising media you will use, and the percentages you will allot to each media. For example, you may plan to spend $25,000 in advertising each month. Fifty percent of your advertising or $12,500 may go toward local television ads, 25 percent to Internet marketing and the rest to direct mail and newspaper advertising. Plan to test your ads so you know which ads are eliciting the greatest responses. Change your advertising mix when necessary.
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