1. BUSINESS PLAN 102 – GETTING STARTED
Define your product/service, identify your customer, develop a value proposition.
Use with Worksheet WS-BP102 in the library.

2. “Setting goals is the first step in turning the invisible into the
GETTING STARTED
“Setting goals is the first step in turning the invisible into the
visible.”
― Tony Robbins
Define Your Product or Service
Identify Your Customer
Develop Value Proposition

3. WHAT
WHAT IS YOUR PRODUCT OR SERVICE?

4. WHAT WHAT IS YOUR PRODUCT OR SERVICE?
“You can’t be EVERYTHING to everyone.” 
Let’s define exactly what you have to offer.
It’s important to know everything about your product or service from what it is to how it works and why someone may want it. This crucial first step will assist you later in defining marketing and sales approaches, budgets, and even complimentary products and services as you grow your company.
What is it you want to buy, build, sell, or develop?
Is it designed or created by you or someone else?
How does it operate, what does it do, will it do more later?
What are the features and characteristics of your product/service?
What benefit does it provide to the consumer?
What problem is your product or service solving?

5. WHAT WS WHAT IS YOUR PRODUCT OR SERVICE?
“To give real service, you must add something which cannot be
bought or measured with money, and that is sincerity and integrity.”  Douglas Adams
Now determine the important features and benefits your product or service will provide.
FEATURES
FEATURE: An interesting or important part; a prominent characteristic.
- Describe each part of your product or service in detail.
BENEFIT: An advantage or profit gained from something
- Describe the solution each feature offers.
- Understand what’s in it for your customer.
BENEFITS
WorkSheet WS
Keep in mind that your customer must be the focus of the exercise. Use the worksheet to determine features and benefits of your product or service.

6. WHO
WHO IS YOUR CUSTOMER?

7. WHO WS WHO IS YOUR CUSTOMER?
“Build the right relationships with the right customers.” 
Develop a customer profile to understand who they are.
Customers are the heart and soul of your business. Focusing on your customer as you develop your product and sales strategies will give you the greatest return. Now that you’ve identified and shaped your product, let’s determine what your perfect customer looks like?
Who would benefit from my product or service?
Identify the demographics of your target audience.
Is the target group willing to pay for my product or service?
What characteristics does my customer have? Do they shop online or in a store?
WorkSheet WS
Identifying your customer is a critical step in laying the foundation for your business. The worksheet will guide you through discovering your market segment.

8. WHO 10x 10x 80% 80% 82% 82% WHO IS YOUR CUSTOMER?
“Customers are the glue that hold an enterprise together.” 
Now we’ll explore and find out more about what makes your customer happy.
10x
10x
80%
80%
82%
82%
On average, loyal customers are worth up to 10 times as much as their first purchase.
80% of Americans agree smaller companies place greater emphasis on customer service.
82% of small businesses have said their main source of new business is referrals.

9. Describes the outcomes and benefits your customers want.
WHO
WHO IS YOUR CUSTOMER?
“You’ve got to know your customer better than they know themselves.” Stephen Little
Knowing your customers pains and gains will provide you valuable insight for your marketing efforts and overall company planning.
The fist step is identifying your customer. The next step is understanding your customer to find out what they really want. Let’s work on finding out your customers pains and gains.
GAINS
PAINS
Describes the outcomes and benefits your customers want.
Describes anything that annoys your customer before, during, and after trying to get a job done.

10. WHO Customer Pains Customer Gains DO YOU REALLY KNOW YOUR CUSTOMER?
“All of your customers are partners in your mission.”  Shep Hyken
Take time to really understand your customer. Don’t rush it and waste valuable time and money on the wrong market segment.
Finding out what triggers your customers to buy your product or service is worth its weight in gold. Create a list of questions to help you get started identifying pains and gains. Below are a few to help you get started.
Who are they?
What do they do?
Why do they buy?
Know your customers “Why” just as you know your “Why”
When do they buy?
Are they spontaneous, seasonal, is there another pattern?
How much money do they have?
Is your customer financially viable?
What are your customers expectations?
Does your customer expect great service, cheap prices, reliable product?
What does your customer think about you?
What do they think about your competitors?
Customer Gains
Customer Pains
What would make their job easier?
What do they dream about?
How so they measure success?
What difficulties do they encounter?
What keeps them up at night?
What makes them feel bad?

11. HOW
HOW DO YOUR CUSTOMERS PERCEIVE VALUE?

12. HOW WS HOW DOES YOUR CUSTOMER PERCEIVE VALUE?
“A customer’s perception is your reality.” 
Be creative. Find the key to reaching your customer.
To realize your company’s potential, products and services should fill a void in the marketplace not in your product line. Deliver a product that has true value to your customer. Value is what a product or service does for a customer.
Now that you’ve defined your product/service and understand more about your customer’s pains and gains, let’s build a Value Proposition?
Find your niche. Check out the competition and find ways to differentiate your product or service.
WorkSheet WS
Section three of the worksheet will help you pull everything together to build a Value Proposition for your service or product. Revisit this exercise on a regular basis to keep your value proposition relevant to your customer.

13. HOW WS VALUE PROPOSTION
HOW DOES YOUR CUSTOMER PERCEIVE VALUE?
Find a way to convey your unique space to potential customers.
VALUE PROPOSTION
Describes a bundle of products or services that create value for a specific target market. It solves customer problems or satisfies a need.
WorkSheet WS
Section 3 of the worksheet will walk you through quick exercises to assist in creating a great value proposition. Use it as you review the following slides.

14. HOW HOW DOES YOUR CUSTOMER PERCEIVE VALUE?
“Sell the problem you solve, not the product.” 
The key to an effective value proposition is keeping the focus on the customer.
Whether you have a new invention or are in an industry with many companies providing similar services, your company and offering needs to stand out. You may have similarities with others, however, you are bringing something unique to your product or service. Discovering what that is can sometimes be difficult.
The Value Proposition is the foundation for all businesses. Your Value Proposition is the reason why customers turn to one company over another.
It solves a customer problem or satisfies a need.
Each consists of a selected bundle of products and/or services that caters to the requirements of a specific customer segment.
Some may be innovative and represent a new offer.
Others may be similar to existing market offers, but with added features and attributes.
Find your niche. Check out the competition and find ways to differentiate your product or service.

15. HOW HOW DOES YOUR CUSTOMER PERCEIVE VALUE? “Think like a customer.”
- Paul Gillin
Discover the value in your product or service.
A value proposition creates value for a customer segment through a distinct mix of elements catering to a customer’s needs. Following are examples of things that can create value.
Newness: some value propositions satisfy an entirely new set of needs that customers previously didn’t perceive because there was no similar offering. (cell phones)
Performance: another way to create value is by improving product or service performance.
Customization: offering products or services to satisfy the specific needs of individual customers.
Getting the job done: value can be created by helping a customer get a certain job done.
Find your niche. Check out the competition and find ways to differentiate your product or service.

16. HOW HOW DOES YOUR CUSTOMER PERCEIVE VALUE?
“The more alike two products are, the more important their differences become.”
- Regis McKenna
More ideas that can create value in your product or service.
Brand: customers may find value by using or displaying a specific brand.
Cost Reduction: helping a customer reduce cost.
Risk reduction: reducing the risk a customer may incur when purchasing a product or service (Car warranty for example)
Accessibility: making products or services easier to obtain.
Convenience/Usability: making things more convenient or easier to use.
Find your niche. Check out the competition and find ways to differentiate your product or service.

17. HOW HOW WILL YOUR CUSTOMER PERCEIVE VALUE?
“Whatever you are, be a good one.”
- Abraham Lincoln 
Pulling it all together.
Value propositions need to constantly evolve to remain relevant to your customers. This too should be reviewed regularly along with your business plan.
Below is a sample Value Proposition developed for BizQuack. Now get quackin’ on yours!
SAMPLE
“BizQuack provides affordable and immediately applicable support for small businesses so that they can Grow, Profit, Thrive, and Survive.”

18. NEXT WHERE TO NEXT? “Never forget why you started.”
So you are starting to form a strategic view of your offerings and how they relate to your customer segment. Now let’s look ahead to determine your hopes for your company’s future.
In Business Plan 103, we’ll work on your company Vision.
What do you want your business to look like in the future?
How do your strengths and weaknesses affect your vision?