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Then, for each consumer group, construct what is called a demographic profile: Age Gender Location Income level Social class/occupation Education Other (specific to your industry) Other (specific to your industry) For business customers, the demographic factors might be: Industry (or portion of an industry) Location Size of firm Quality/technology/price preferences Other (specific to your industry) Other (specific to your industry) Competition What products and companies will compete with you List your major competitors: Names addresses Will they compete with you in across the board, or just for certain products, certain customers, or in certain locations Will you have important indirect competitors (For example, video rental stores compete with theaters, though they are different types of business.) How will your products/services compare with the competition Page 10 of 26 Use the table called Competitive Analysis, below to compare your company with your three most important competitors.. Names addresses Type amount of inventory furnished Credit delivery policies History reliability Should you have more than one supplier for critical items (as a backup) Do you expect shortages or short term delivery problems Are supply costs steady or fluctuating If fluctuating, how would you deal with changing costs Page 16 of 26 Credit Policies Do you plan to sell on credit Do you really need to sell on credit Is it customary in your industry and expected by your clientele If yes, what policies will you have about who gets credit and how much How will you check the creditworthiness of new applicants What terms will you offer your customers i.e., how much credit and when is payment due Will you offer prompt payment discounts (hint: do this only if it is usual and customary in your industry).. Appendices Following is a list of all the spreadsheets required in this business plan in order of appearance: Name of spreadsheet Filename 12-month Sales Forecast TBD Personal Finance Stat
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