CFO Services | Should Business Plans Outline Their Differentiating Factors
If businesses aren’t able to figure out their differentiating Factor according to CFO Services. They might not be able to figure out who their ideal and likely customers are. In a timely fashion. This is why it’s very important that when a business owner is writing their business plan. They need to figure out what sets them apart from their competition. So that they can figure out who their ideal customers are.
Not only should an entrepreneur figure this out. But it’s so important to the success of an entrepreneur’s business. That they should be putting it into the executive summary of their business plan as well. The reason why according to CFO Services. Is because this is often the most important part of the business plan. Because a large number of people only read the executive summary.
For example, when an entrepreneur is applying for financing. There is a good chance that they most likely will only read the executive summary. And if an entrepreneur has put in their differentiating factors. As well as their competitive advantages in this important summary.
The financing companies or the financial institutions will see that an entrepreneur has thought about their marketing plan very carefully. And that they are going to be more likely to grow the revenue of their business. And be able to pay back the loan and a timely fashion.
However, CFO Services says many entrepreneurs don’t know what differentiating factors they have. Or what characteristics their business has that makes them differentiating factors. Or that makes their differences a competitive Advantage.
One of the easiest ways to figure this out according to CFO Services. Is for an entrepreneur to make a list of all of the ways that their business is different from their competitors. This can be everything from location, pricing structure, niche market or Niche customers. There are many different ways that businesses can be unique. And all of these things that are unique set them apart from their competitors.
When they have their list, CFO Services says a business owner should look at it and consider what three things they would like to focus on doing exceptionally well. If they try to excel in all of the ways that they are unique. They won’t do any of them particularly well.
But focussing on three things can help an entrepreneur find the ideal and likely buyers that value those things the most. Not only will that help them at figure out who their ideal and likely buyers are. But also it’ll help figure out what problem those buyers are solving when they purchase those products and services. So that they can find more of those clients consistently.
But how important this is in pulling together the marketing plan. CFO Services as an entrepreneur should do this exercise before they open the doors to their business. And then let that influence their entire marketing plan. So that they can hit the ground running with knowing exactly who they’re looking for as soon as they open the doors to their business.
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Knowing what they’re competitive Advantage is according to CFO services important to all entrepreneurs. The reason why is because when they are different from the competition. They will attract people who weren’t getting serviced by the competition and the way that they want.
And when a business opens up that fills that Gap, they will attract all of the customers that we’re not getting those needs met by a competitor. This is why understanding their differentiating factors is important. Because if an entrepreneur builds their marketing plan around that. Not only will they know who their ideal and likely customers are. But that will help them reach those customers. To get a consistent marketing message to them.
However many entrepreneurs don’t understand exactly what are there differentiating factors. They may get into business because they’re very passionate about what they do. But they don’t know how they are different. Or that some of what they think are subtle differences are actually significant.
Convenience and customer experience can be a huge differentiating factor. For example, if an entrepreneur opens up a sports clothes store next to a recreational facility. That convenience could be there differentiating Factor says it’s CFO Services.
A lot of people don’t want to have to travel a large distance in order to get the products and services that they’re looking for. So convenience can be huge. It can be as simple as being in the neighborhood and attracting customers because it is close to their home.
Or convenience factor could be having the business close to a location that makes sense. Such as a daycare opening up next to a new and large office building. If parents know that they will be able to take their child to daycare on the way to work. That might be the deciding factor between that daycare. And they care that they have to drive out of the way to get to.
And customer experience is another way that these can be differentiating factors. For example, home delivery of food wasn’t very popular until several pizza joints started doing this says CFO services. And soon all of the pizza places had to offer free delivery. In order to remain competitive.
If a business owner can figure out a way that they do things differently from their competition or is unique. No matter how small they think these things maybe. They will be important differentiating factors for the business.
Putting these differences in their business plan is extremely important. Because that’s how business owners are going to find their ideal and likely customers. And how they’re going to significantly grow their business. When they understand that. Then business owners will be able to put together a more comprehensive marketing plan. Showing how they are planning on finding those ideal unlikely customers. And what’s their messaging is going to be.