We are really into this business plan series now on the One Fat Frog blog. We are turning and burning here, and now we’re really digging into the part that matters: getting the money you put in back in your and your investors’ pockets. That all starts with your market and your audience.
First, let’s start with your market. Your business plan should include a little something called a market analysis which provides a breakdown of the market you want to compete in as well as the other competitors in the same market. To use a really obvious example, if you wanted to open a fast food franchise, you’d include the other fast food competitors that are within proximity of your place, their hours, and what draws customers to them, plus what you have that might draw customers to you. And if you can add sales information on those competitors, then that’s even better.
In your market, you have direct and indirect competitors. Your direct competitors serve the same kind of food as you (such as other fast food restaurants), and indirect competitors are vying for the same customers without sharing the same concept as you. A fast food restaurant may compete for a dinner time rush with a family restaurant, for example; not the same concept, but you’re still competing for certain customers.
The next element of your market, your target audience, is where things get really interesting. First, you need to describe what kind of clientele you hope to draw. You want to be concise when you do this, so don’t wander with your words (I’m a notorious word-wanderer…so don’t do what I do). This information may include income levels, how often they go out to dine at a restaurant, and where they like to go. How do you find this information? Well, one easy (but potentially pricey way) is to contract out to a demographic research company, and they can get you all of that information. Of course, sometimes common sense can help; for example, opening a fine dining restaurant in a college town may not be a smart move as college students aren’t known for having loads of cash in their pockets. Now, a cheap bar, on the other hand…
Next time around, we’re really going to dig into what matters, and that’s the financial picture of your business plan. Remember: you’re starting a BUSINESS. That means your goal is to make money. So, the next blog post or two in this series will be CRUCIAL, so make sure you come back soon.
One Fat Frog Restaurant Equipment
One Fat Frog •2416 Sand Lake Road• Orlando, FL,32809 • 407-480-3409
www.onefatfrog.com
www.onefatfrog.tumblr.com
www.facebook.com/OneFatFrogRestaurantEquipment
www.twitter.com/#!/onefatfrog