Blue Mountain Cycle Rentals will provide a comprehensive line of bicycles and cycling equipment for all ages and levels of ability.Since the typical customer seeks medium-quality equipment and excellent services at competitive prices, we will focus on providing brands like Trek bikes, Shimano footwear, and Giro helmets.Or if you plan to sell a commodity readily available in a variety of outlets, the key to your business may not be the commodity itself but your ability to market in a more cost-effective way than your competition.
With great timing, solid business skills, entrepreneurial drive, and a little luck, some founders build thriving businesses without creating even an informal business plan.
Does a business plan make startup success inevitable? But great planning often means the difference between success and failure.
If you need seed money from a bank or friends and relatives, your business plan can help you make a great case. Financial projections describe where you plan to go.
to show prospective employees since you're still in the startup phase.
If Blue Mountain Cycling Rentals plans to market itself as a provider of high-end bikes, describing those bikes--and the sources for those bikes--is important, since "high-end cycling rentals" is intended to be a market differentiation.
If the company plans to be the low-cost provider, then describing specific brands of equipment is probably not necessary.If your business is product-focused, you will want to spend more time describing those products.If you plan to sell a commodity item and the key to your success lies in, say, competitive pricing, you probably don't need to provide significant product detail.Determining if an idea fails on paper can help a prospective founder avoid wasting time and money on a business with no realistic hope of success.that your idea for a business is not just a dream but can be a viable reality.In the cycling rental business example we've been using, products and services could be a relatively simple section to complete or it could be fairly involved.It depends on the nature of the products the company plans to rent to customers.As a new company, you will likely be an unknown quantity in your market.Setting up a joint venture with an established partner could make all the difference in getting your business off the ground. Maybe, after evaluating the competition, you realize your plan to be the low-cost provider isn't feasible since the profit margins will be too low to cover your costs.(For example, before there was Federal Express, overnight delivery was a niche business served by small companies.Fed Ex had to define the opportunity for a new, large-scale service and justify why customers needed--and would actually Depending on the nature of your business, your Products and Services section could be very long or relatively short.