ABM Grade 12 Modules and activities! 2022-2023

Entrep lessons (1)

LESSON 1: DEVELOPING A BUSINESS PLAN

EXECUTIVE SUMMARY
➤is basically the elevator pitch for your business.
➤it distills all the important information about your business plan.

BUSINESS DESCRIPTION
This is the entrepreneur's chance to describe their business and what it does. This is the thing that tells their story and allow others to connect to them. This serves as their own reminder of why they established this kind of business in the first place.

MARKET ANALYSIS
This is the entrepreneur's chance to look to their competitors and the state of the market as a whole.

ORGANIZATIONAL MANAGEMENT
Use this section of your business plan to show your team's superstar.

SALES STRATEGY
Is a plan by a business or individual on how to go about services and increasing profits.

FUNDING REQUIREMENTS
➤ Here is where you ask for the amount of money you need.
➤ Make sure you will be realistic as possible.

FINANCIAL PROJECTIONS
➤ The last section of your business plan.
➤ This is especially important if you hope to secure funds for expansion of your existing business.

Even though it can be time-consuming to create business plan, your efforts will be rewarded.

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LESSON 2: NATURE AND CONCEPT OF MANAGEMENT

Unique Selling Proposition (USP)

Definition: The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition

Before you can begin to sell your product or service to anyone else, you have to sell yourself on it. This is especially important when your product or service is similar to those around you. Very few businesses are one-of-a-kind. Just look around you: How many clothing retailers, hardware stores, air conditioning installers and electricians are truly unique?

The key to effective selling in this situation is what advertising and marketing professionals. call a "unique selling proposition" (USP). Unless you can pinpoint what makes your business unique in a world of homogeneous competitors, you cannot target your sales efforts successfully.

Pinpointing your USP requires some hard soul-searching and creativity. One way to start is to analyze how other companies use their USPs to their advantage. This requires careful analysis of other companies ads and marketing messages. If you analyze what they say they sell, not just their product or service characteristics, you can learn a great deal about how companies distinguish themselves from competitors .

For example, Charles Revson, founder of Revion, always used to say he sold hope, not makeup. Some airlines sell friendly service, while others sell on-time service. Neiman Marcus sells luxury, while Wal-Mart sells bargains.

Each of these is an example of a company that has found a USP "peg" on which to hang its marketing strategy. A business can peg its USP on product characteristics, price structure, placement strategy (location and distribution) or promotional strategy. These are what marketers call the "four P's" of marketing. They are manipulated to give a business a market position that sets it apart from the competition.

Sometimes a company focuses on one particular "peg," which also drives the strategy in other areas. A classic example is Hanes L'Eggs hosiery. Back in an era when hosiery was sold primarily in department stores, Hanes opened a new distribution channel for hosiery sales. The idea: Since hosiery was a consumer staple, why not sell it where other staples were sold--in grocery stores?