A
Note 1
Note 2
Note 3
Note 4
Note 5
Note 6
B
C
Total
Notes
n Note 1 – Assuming that the business has chosen segments that already exist in the market – the market size would be readily available by adding the turnover of potential competitors with the same segment. Otherwise a simple multiplication of the proposed price of the product by the size of the market (number of customers in the market) would suffice in estimating a market size.
n Note 2 – If it is an existing market, the information as to the growth trends of the market would be available on the internet (it is important to use a reliable source such Financial Times or Bloomberg). The average rate growth rate can then be used to predict the market growth rate for the next 3 years for each segment. Assuming that the growth rate remains constant makes it easier.
n Note 3 – To determine the forecast market size in the next three years, the, the growth rate of the market size over the last three years could be examined to arrive at an average figure which can then be used to forecast the market size in the next three years.
n Note 4 – The competitive position of the company in the next three years on a scale of 0 -5 (5 being the highest) may be determined by figuring out how much market share the company can realistically acquire in each year. For example if the company is starting up the fourth mobile phone network in a country that already has three, it is unlikely that the company would have a 25% market share in three years, rather it may have between 8-10% following an intensive marketing campaign (Evans, 2010).
n Note 5 – as explained in note 4.
n Note 6 Likely revenue should be informed by the market size divided by the market share and then multiplied by the price per unit of the product. The revenue forecast in 3 years’ time should be determined by the growth rate of the market and the market share of the company.
Control
Control involves a system of controlling an organisation’s expenditure over a period of time such as budgeting, variance analysis, and internal and external auditing (Evans 2010). However where a start-up is concerned, budgeting may be more suitable for controlling the expenditure of the company after its first year in business.
Funding
The following are the most popular and relevant sources of funding for a startup; self-funding, friends and family, small business grants, loans or line of credit, start-up incubator, angel investor, venture capital and partnership (Zwilling, 2010).
References
Barnett, W. (1988). Four Steps to Forecast Total Market Demand. Harvard Business Review. Retrieved 9 June 2015, from https://hbr.org/1988/07/four-steps-to-forecast-total-market-demand
Evans, V. (2011). The Financial times essential guide to writing a business plan. Harlow, England: Financial Times/Prentice Hall.
Grant, R. (2015). Contemporary Strategy Analysis (8th ed.). West Sussexx: Wiley and Sons.
Hooley, G., Piercy, N., & Nicoulaud, B. (2012). Marketing strategy & competitive positioning. Harlow: Financial Times Prentice Hall.
Jenkin, M. (2014). Small business tips: how to write a business plan executive summary. the Guardian. Retrieved 9 June 2015, from http://www.theguardian.com/small-business-network/2013/aug/22/small-business-tips-write-business-plan-executive-summary
Kotler, P., & Keller, K. (2012). Marketing management. Upper Saddle River, N.J.: Prentice Hall.
Porter, M. (2008). The Five Competitive Forces That Shape Strategy. Havard Business Review, 86(1), 78-93.
Sba.gov,. (2015). Business Plan Executive Summary | The U.S. Small Business Administration | SBA.gov. Retrieved 9 June 2015, from https://www.sba.gov/content/business-plan-executive-summary
Zwilling, M. (2010). Top 10 Sources Of Funding For Start-ups. Forbes. Retrieved 9 June 2015, from http://www.forbes.com/2010/02/12/funding-for-startups-entrepreneurs-finance-zwilling.html from:http://www.51fabiao.org/lxlwzq/
