anced

§  Offers more useful features

§  Saves them time and money

§  Offers our users better value per dollar spent

§  Provides an alternative way to achieve a similar task.

<Service>

§  Provides a service which is not presently available in this area.

§  Is strengthened by a team with combined experience of XX years.

§  Saves them time and money

§  Provides an alternative, cost effective way for them to realize a similar goal.  

We have a [copyright, service mark, trademark] or [exclusive agency, marketing rights] for this [product/service].  This agency will last until XXX at which time it may be extended for XX years or terminated.  This agency agreement is cancelable upon XX days written notice.

<Product>

The [product/service] has a useful life of XX years.  To distribute this product so that it remains usable for our customers, we must use the following methods of storage and transportation:

1. Overnight delivery

2. Cold storage

3. Incorporate preservatives

4. Shipment within two weeks to distributors.

5. Specially padded boxcars.

Even though the technology used to create this product is new, we expect that others will be able to substantially reproduce our patented results within XX years.  To remain on the leading edge of this product, we will need to devote approximately XX% of revenues toward research and development.  Also due to the fast changing nature of this industry, we will need to retrofit these machines within XX years at customer expense.  Our manufacturing plan has considered this.

<Service>

[If general service to be offered is not obvious, such as carpet cleaning, sales rep, lawn care, consulting, etc.  explain what service is.  Then give a detailed description of your particular service and its uniqueness.]

Short Examples:

1.   Our carpet cleaning machinery is state-of-the-art.

2.   Our consulting practice will address these specialized areas:

3.   We will only rep these specific product lines.


Even though at this time our expertise is unique in the marketplace, we expect advances to be made and competitors to arise and offer similar services.  We will meet this challenge by:

1. Hiring staff specialized in these new areas.

2. Increase our continuing education and training expense.

3. Adding complementary lines.

4. Make regular investments in new equipment.


Objectives
Long Term
[My Company] believes very strongly in technical, financial, business and moral excellence.  To secure a stable future for all those connected with [My Company] we have set the following long term goals:

Present market is estimated at $XXX.  Our goal for market share is XX%.

We want to be considered by our peers to be the market leader in sales as evidenced by:

Trade industry awards

High end of scale in financial ratios

Major market share

Technical excellence (awards, honors, etc.)

Community involvement (Rotary, United Way, etc.)  

Short Term

Market share goals -

1. First Year    XX%

2. Second Year    XX%

3. Third Year     XX%

4. Fourth Year    XX%  

[Decrease, Maintain] costs through acquisition of new plant and equipment. Increase productivity by investing in employee training and education.

1. Budget for complete computer training for appropriate applications.

2. Set up, Maintain] employee benefit program for continuing college education.

3. Budget for necessary seminars and/or continuing job-specific education.

4. Maintain state-of-the-art accounting system for careful tracking.

5. Monthly reports on financial status vis-a-vis the industry.

6. Aggressive recruitment of the best technical staff in the industry.

7. Support company involvement in various local and national charity events.


Competitors
Name

Address

City, State

Strengths:
§    Location - next door to supplier factory, on major artery, close to terminal, etc.

§    Pricing - Low cost producer, known for aggressive pricing policy.

§    Delivery - ships overnight to anywhere in the world.

§    Management -   Everyone has an MBA from Harvard.  

Weaknesses
§    Service - takes more than 3 months to receive spare parts.

§    Dedication - If it’s sunny, they’re on the golf course or ski slope.

§    Machinery - Slowly approaching obsolescence unless  replaced within six months.

§    Overhead - Spend lavishly on corporate dining room, limousines and champagne.


Competitive Advantages
<Product>

The distinctive competitive advantages which [My Company] brings to this market are:

Experience in this market.  [I/we] have XXX years of hands-on experience in this industry.

Sophistication in finance and distribution.  This results in my being the low cost supplier in these price sensitive markets.

The philosophy of [My Company] is to price not just according to our costs, but also according to what the market will pay.

Our targeted minimum gross profit margin for a category  must be XX%.

By pricing to the market, [I/we] will achieve higher sales and therefore increase my buying power.  As the amounts of my purchases increase, my per unit costs of shipping decrease and [I/we] will achieve higher discount levels from my suppliers. Through these economies of scale, many items currently on the market can be sold with lower prices, yet a higher net profit.

Product pricing will include a range of quantity discounts as well as an early payment discount.

Rather than being strictly regional, [I/we] will expand into the national market.

To control foreign exchange risks, [I/we] will monitor the markets and hedge accordingly.  [I/we] will also use overseas bank accounts.

With those companies with which [I/we] have established a relationship or are known to be financially secure, [I/we] will work on a pre-pay basis.  This allows me greater discounts.

A level and policy of Capitalization that will allow me to fully address the respe

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