CFO Services | Business Plan Executive Summary Differentiating Factors
When people are putting together their business plan according to CFO Services. They may not understand exactly how important the executive summary is. The executive summary will come at the beginning of the business plan. And contains a summary of all of the most important factors of the business plan.
And while a lot of people write their executive summary with obtaining financing in mind. And therefore only put financing information into their executive summary. This would be a huge mistake. Because there are many more things that belong in the executive summary than just financial information.
One example of this is putting in a business’s differentiating factors. This is what makes a business unique. It is very important to put this information into the executive summary. So that’s Financial companies like Banks and lenders. Will understand all of the ways that the business is different from the competition.
The reason why this is so important. Is because not only can differentiating factors be competitive advantages. It is also how business owners are going to attract their ideal and likely buyers. CFO Services says business owners should consider that every customer that buys a product or service. are solving a problem.
Customers are attracted to certain businesses because of what makes them unique. There are hundreds of different restaurants to choose from. And why customers choose some over others are there differentiating factors. Some go for price, some on convenience. Some friendly service.
No matter what the differentiating factors are. It is important to specify them in the executive summary. So that Anyone who reads that executive summary and understand who the ideal unlikely buyers are saying CFO services. And how they are going to be different from the competition in order to get a market share.
And while differentiating factors are not necessarily competitive advantages says CFO services. They can be similar and can help set a business apart. For example, some differentiating factors that might end up being competitive advantages are higher quality, better-trained staff, longevity, and business and the fact that a business that’s been open for a long. Of time might have a lot of contracts in place. Making all of these competitive advantages.
When a business starts focussing on what makes them unique from their competition. And then choose three of these things to focus on doing exceptionally well. Business of attract the customers that are looking for that the thing that makes them different. Because that’s what is important to those consumers.
When business owners can figure out what their differentiating factors are. And focus on getting the word out that that’s what they are doing. That can help find more of the similar types of customers that they need. To stay in business longer, serving those customers.
when business owners put their differentiating factors into their executive summary. Anyone who needs to read their business plan will see this difference between the business and their competitors. As well as remind a business owner when they review their business plan. What they need to focus on doing exceptionally well.
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It’s very important that business owners focus on what they do differently from their competition according to CFO Services. Because these are called differentiating factors. And can actually attract their ideal and likely buyers. The reason why, is because every time a consumer makes a purchase. They are solving a problem that they have.
When they come to a business because of their differentiating factors. What makes them different is what is helping them solve that problem according to CFO services. When they understand this, business owners will be able to find more ideal and likely buyers. Because they know what problems they are solving. And know what marketing message to send to them.
However many businesses may not know what their differentiating factors are. Which would make it hard to focus marketing? One of the first things that a business owner should do according to CFO Services. Is make a list of every way that they are different from their competition.
When they look at that list, it might be extremely long or extremely short. But they should focus on three of those things that they want to do exceptionally well. Because if they try to focus on doing everything exceptionally well. They won’t do everything well at all.
Many things can be differentiating factors. And so it’s extremely important for businesses to understand all of the things that set them apart. For example, if a business is focussing on a niche customer base. This could be a differentiating factor. A great example of this, is a contractor that only builds restaurants.
Restaurants typically have a lot of very specific needs. Where the kitchen and the dining room goes, the layout of the kitchen where to put the walking bridge and walk-in freezer just to name a few. Therefore, if a contractor gets extremely good at this one thing, they will attract restaurant owners. And that can be there differentiating Factor.
Other examples of differentiating factors can be unique product features. Some examples of this could be a business having a 3-year guarantee instead of just one. Perhaps it is having an online portal for easy ordering. It could be free delivery as well. Whatever ways the features and the products are different from their competition can be a differentiating factor.
Even location can be a differentiating factor for a lot of businesses. Optometrists, medical clinics, and dentists are extremely location-based. With the majority of the people using dentists, optometrists and doctors want to have them close to their home.
Or another example of a differentiating factor would be having a pharmacy right next door to a doctor’s office. Or a sporting goods store next to a recreational facility. These are always that business can have something that sets them apart that can help them find their customers.