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In this section, you will make a short list of your competitors.Your competitors are divided into two categories: direct and indirect.The next step is to describe your company and the business opportunity it will be taking advantage of.
You need to know the number of people who make up your target market and how much they averagely spend each year to address the problem you intend to solve.
Some market research will be needed for this aspect and you can get market data from sources like the United Nations, World Bank, and National Bureau of Statistics.
For our poultry farming business plan and for your plan, you need to separate direct costs from other expenses because it lets you understand your gross margin.
Shown on the profit and loss statement, gross margin shows the portion of your revenue — as a monetary value and a percentage — that is left over after paying your direct costs, but not your other expenses.
Identifying your sales channels is important to understanding the economics of your business model. Common examples of direct costs (also known as costs of sales, costs of goods sold, or just COGS) are the raw materials you need to manufacture your products, wholesale purchases of products you are reselling, and sales commissions.
In this section, you explain how you plan to attract attention, build interest in your offerings, and convert prospects into customers. Where regular expenses like rent, marketing, and insurance may remain steady as your sales fluctuate, making more sales always means incurring more direct costs.In this section, you explain and describe how you plan to get your products or services to market. If your direct marketing is largely done by resellers or dealers, what kind of marketing will you do to attract and keep those key partners?Are you selling and delivering to your target customers directly through a retail store, website, or catalogue? Do you plan to sell through intermediaries — distributors, dealers, resellers, or others? When you are confident that you have identified a market with a problem worth solving, it's time to put together a quick financial forecast for your solution. Some opportunities look good at a glance, but don't hold up to financial scrutiny. The idea behind direct costs is that every time you make a sale, you incur more costs.Also, get a good graphic designer to design a nice logo for your company.Doing this will give your business plan a professional look and it will immediately make it stand out from the crowd.A key feature or component that defeats most business plan in real life is not taking competition into consideration.To prevent this from happening to your business, you need to have a good grasp of your competitive landscape.The lenders must see clearly what your company offers and how your solution provides a different and unique alternative to what is presently in the market place.You must be crystal clear about the type of people your agriculture business intends to serve.This will be achieved through our unique and proprietary methods of raising poultry gained from over 20 years of experience in the poultry farming industry.Here you have to state the problem(s) that your company intends to solve for your target customers.