SEGMENT 2: PRODUCTS and SERVICES
By Patrick Dengel
This is Segment 2 of 13 segments in which I am discussing building a business plan following a 13 step outline.
Whether the items sold are new or similar to others, there are several key questions the entrepreneur must answer. These surround the WHAT, WHO, WHEN, WHERE and WHY:
WHAT: Let's start with the WHAT. In one (1) sentence, the entrepreneur should be able to give a definite description of what the business sells and services. An example would be: I sell Trendy fashion shoes to 20-40 year old Women. I am an automobile mechanic that repairs engines as well as preventative maintenance such as oil changes. Another descriptive example would be: My restaurant sells home cooked meals as well as catering. I realize that businesses can have many products and services, but usually, there is one major product or service that carries the business.
WHO: The WHO are the targeted customers willing to consider one's product or services. The Entrepreneur must ask themselves WHO would continually buy the products and services. Demographic information is not just how many available customers there are in an area, but also about the behavioral and emotional characteristics and needs of the customers. Likewise are the socio-economic impacts regarding the community and the customers residing there? Targeted customers must feel that the products / services meet a need and are affordable.
WHEN: Our commerce society revolves around cycles. In any given year, we have 12 months which have 18 and more different shopping periods. To name a few, we have Thanksgiving, Christmas, New Years, Easter, Memorial Day, Labor day and many others. Customers follow buying cycles and are dependent on paydays, credit, days of the week and so forth. Some products and services can be periodic and can be limited based on a variety of cycles. The WHEN can be a significant determiner as to the availability of customers purchasing products and services.
WHERE: As our technology increases and our global markets expand, the WHERE is becoming an important part of the products and services. We no longer live in a buying community that serves regional areas. We have co-op buying markets; internet/global sales; large inventory stores such as Wal-Mart, Target, Lowes etc; and secondary/tertiary competition. In addition, customers look for convenience, travel time, parking and oftentimes multi-task shopping experiences. Location is becoming an even more important factor in selling products and services.
And finally WHY: WHY is one of those open-ended questions that cannot be easily dismissed. A Business Entrepreneur should ask themselves : 'Why should a customer buy their products and services?' The easy answer might be that the price could be lower and the quality will be much higher. Sometimes entrepreneurs might see that there is no other business in the area and consequently, it would be assumed that a lot of people would frequent the business. There is a variety of answers and the closer we come to answering the WHY, the more our products /services will be considered.
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The Product Planning Processby victorholman245 views
great video.
Ramazed 1 month ago