Business Plan Format, help me understand it?
I have to fill a business plan format, but I dont understand exactly what I have to write in some parts.
I’ll copy and paste the complete sections and will indicate the ones that I do not understand with the @ symbol
PROBLEM
* Describe the pain of the customer (or the customer’s customer). (I understand this and already write it)
@* Outline how the customer addresses the issue today.@ (confuses me, it is repetitive?)
SOLUTION
* Demonstrate your company’s value proposition to make the customer’s life better. (i understand this)
@* Show where your product physically sits.@ (dont understand)
@* Provide use cases.@ (is it repetitive?)
MARKET SIZE
* Identify/profile the customer you cater to.
@* Calculate the TAM (top down), SAM (bottoms up) and SOM.@ (please give me a little idea)
PRODUCT
* Product line-up (form factor, functionality, features, architecture, intellectual property).
@* Development roadmap.@ (Help me with a little idea or commentary)
Thanks !
1. Outline how the customer addresses the issue today: Maybe some repetition, but the objective for this section is to list out the current solutions available in the market place, e.g., for video gamers there are many solutions such as Xbox, PS3, etc. This section covers your understanding of the competition — difficult to show how superior your offering is if you don’t know how the market is currently served.
2. Show where your product physically sits: What stage is it in, i.e., development, ready for market, still in R&D
3. Provide use casses: repetitive for sure but do you have any current customers?
4. TAM: Total Available Market — read about.com’s article re: “Defendable SWAG” — NOTE: this area is your opportunity to demonstrate the size of the market place, e.g., the market size for some software is billions/year with millions of potential customers while in more specific areas it maybe as small as a few hundred customers with less than $100k/yr potential. Important for investors to know that there is plenty of space available for growth.
5. SAM: Served available market
6. SOM: Share of market — see windowmanager.blogspot.com article below for more info
7. Development roadmap: what is the plan to deliver the product to market (more r&d, find a manufacturer, etc.)
After you understand these items, draft a plan which will create more questions. I trust you have a sample business plan which will give you some point of reference. NOTE: the questions you listed indicate you are using what is aka 3C businss planning process. Good luck!