Question

WHO ARE YOUR COMPETITORS? Once you determine who and where your customers are, you must determine whom you have to share them with. Find out if similar products are carried in retail outlets. Once identified, search for information on competitors in industry directories, either in print or online databases.

WHAT PRICE DO THEY CHARGE? Establish what your competitors charge and list the selling points of their product or service. Try to find your industry's wholesale and retail prices.

WHAT PRICE CAN YOU CHARGE? Determining how competitive you can be is a big step toward establishing how feasible your idea is. If your product is superior to your competition and your market is not very price sensitive, then you may be able to charge considerably more than your competition. If you are selling to retailers or wholesalers, you will have to leave enough room for others to mark your products up.

7 DEFINE YOUR UNIQUE SELLING POINTS (USP) What is unique about your offer that would benefit your customer? There may be something about your product, your price, the friendliness and speed of your service, your hours of operation, your level of quality, the skills of your employees, or other aspects of your business.

8 IDENTIFY TRENDS IN YOUR MARKET OR INDUSTRY Knowing trends in your market or industry will help you determine where it's going and how your business can take advantage. Check business and industry/trade magazines for recent articles. Some libraries have a business periodicals index to help you find these articles.

9 ANALYSE YOUR GROWTH POTENTIAL Is your industry or market growing or declining? Are trends or new fads peaking or declining? Generally, you will be more successful as part of a growing market. Check business and industry/trade magazines for recent articles.

10 HOW WILL YOUR CUSTOMERS KNOW YOU EXIST? So now you know who your customers are, where they are and why they will buy your product. How are you going to communicate your offer to them? Will you rely on having a good location? How will you promote or advertise?

11 ESTIMATE SALES FOR THE FIRST YEAR Base your estimates on the size of your market, level of competition, your price, your plans for promotion, and trends in your industry. Create a pessimistic, an optimistic, and a conservative forecast.

12 GOVERNMENT APPROVALS There may be some extensive or expensive regulations involved with your type of business. Bizpal (www.bcbizpal.ca) can assist you with determining municipal, provincial, and federal regulations and licensing requirements affecting your business.

13 MANUFACTURING, PURCHASING, OR PRODUCTION State how you will make or acquire the goods, or produce and deliver the services, you plan to sell. Use your sales forecast to help you plan this part of your operation. Think about potential growth in future years.

14 FULFILLMENT How does your customer get their order and how do you get paid?

CAPACITY OF YOUR OPERATION IN THE FIRST YEAR. How big will your operation be? What is the limit of what you can produce, stock, service, and sell. Can you meet your sales forecasts? Have you taken future growth into consideration?

POTENTIAL SUPPLIERS. Your concept may rely heavily on the reliability of your raw material suppliers and/or your subcontractors. How dependent will you be? Figure out who your suppliers will likely be and try to find back-up suppliers.

17 RESOURCES YOU’LL REQUIRE List the employees, floor space, leasehold improvements, equipment, vehicles, inventory, supplies, and services you will require to open your business. Estimate the costs of each item on your list. You will need this list to determine your start up costs.

18 RESOURCES YOU WILL FINANCE, LEASE, OR RENT You will probably not pay for large purchases outright, but will instead lease, rent, or finance these items. You will need to estimate your monthly payments to help you prepare a cash flow worksheet.

19 FINANCIAL STRENGTHS AND WEAKNESSES. How much of your own money do you have for this business? What assets can you use as collateral to secure a loan? Do you already own the vehicles, computer equipment, or tools needed to start your business? Do you have family, friends or others who are prepared to invest in your business? Do you have a strong personal credit rating?

20 MONTHLY CASH FLOW FORECAST FOR YOUR FIRST YEAR A cash flow forecast shows the critical “whens” of cash coming in and cash going out during a certain month. Preparing a monthly cash flow forecast provides you with the opportunity to show dollar figures, representing revenues and expenses, in the month the business expects to collect and spend the cash. Cash flow can demonstrate the need for cash injections at critical periods when sales are lower in seasonal businesses.

Note: Business is an Indian Restaurant in Canda

Answer 1