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When business owners are creating their business plan, they need to include several things says virtual CFO. One of the most important things that their business plan should include is a marketing plan. And that marketing plan should have a target market.
The reason why it’s so important to have a target market as part of a marketing plan. Is because the target market is going to influence so many aspects of the marketing plan. Including how much money they will need to reach the market. And what ways they are going to Market to the area.
Virtual CFO recommends that entrepreneurs start with a small target market first. And ideally, directly within the geographical location of the business. The reason why this is an important strategy. Is because the smallest target market possible is going to be the easiest financially to Market to.
But also, because as they do their marketing in the area. As they passed the building that the business is located in, and see the sign on the building and even potential signs in the area. All this is going to reinforce the marketing that they are doing in the area.
Another reason my virtual CFO recommends that they start marketing in the direct geographical location of the business. Is because if entrepreneurs ever needs to call on their customers, or do home deliveries. Or if they are a contractor of any kind. Having a geographical location very close to the business. Will help an entrepreneur save time, not having to travel to a long distance away from the business. And therefore will help them save money.
What are the most important things that business owners can do is include the target market in the executive summary of the business plan. What the executive summary is, according to Virtual CFO is a brief synopsis that is at the beginning of the business plan.
The reason why it’s so important to have the target market listed in the executive summary. Is so that if business owners don’t have time to read their business plan on a regular basis. They will be able to look at the executive summary and be reminded of who their target market is and why.
Also, financial institutions and financing companies as well as high-level investors. Are all typically only going to read the executive summary of the business plan in order to make large financial decisions. By including the target market in the executive summary. Business owners are telling these financiers, not they have a well-thought-out business plan and a well-thought-out marketing plan as well.
By including their target market in the executive summary of their business plan. Entrepreneurs are considerably more likely to get the financing that they need in order to help grow their business.
For all these reasons, it’s incredibly important that business owners are including the target market in their business plan, and then putting it into their executive summary.
Not only are many entrepreneurs knots defining their target market says virtual CFO. Some business owners don’t even have a business plan at all. This would be a huge mistake. Because many studies have shown that business owners that have a business plan are far more likely to succeed than business owners without. Palo Alto, the software company did a survey to find out how businesses were more likely to succeed with a business plan. And they found out that 50% more entrepreneurs were able to grow the revenue of their business with a business plan. Then businesses without a business plan at all.
Therefore, business owners should work with their virtual CFO in order to create not just an effective business plan. But a marketing plan within that business plan. That’s going to outline every task they need to do in their business in order to succeed.
One of those tasks that they need to outline is who their target market is. The reason why it is so important to include this in their business plan and marketing plan. Is because of entrepreneurs without having any idea of who they’re going to start marketing too. As soon as they open the doors to their business, might stall on their marketing plan. Because they don’t know where they’re going to start marketing first.
The target market is so important, that virtual CFO says it is actually going to influence several aspects of the business plan including cash flow projections. And other things such as the pricing that a business owner has for their products and services. This is why it is so important for business owners to know who their target market is.
As they get a return on investment in there marketing strategy. They’re going to be able to grow the revenue in their business. And as they grow their revenue, they will be able to gradually increase their target market. They can also include this strategy and their business plan. So that as soon as an entrepreneur knows who their next target market is, as soon as they reach their targets, they can increase their advertising area.
It’s very important that entrepreneurs understand that in order to generate a return on investment in their marketing. That they are reaching out to the same potential customers an average of 4.3 times. When they do this, they are more likely to have more customers respond to the advertising then if they sent it out once or twice.
The smaller a target market area is says virtual CFO. And the less money it’s going to cost an entrepreneur to consistently get in front of those ideal and likely customers enough times. Every time a business reaches out to the customer, it counts as one of the four-point three times. So by being consistent, entrepreneurs will be able to increase the effectiveness of their strategies.
The sooner business owners know their target market, the sooner they’re going to be able to succeed. Therefore creating a business plan before they even open the doors to their business and outlines their marketing plan and target market. Can be an incredibly effective strategy on how to increase their revenue.
