IDEA FROM GERMANY: BUSINESS PLAN ON BEER STAND
Can you place a business plan on a beer stand? Impulse, a German online magazine, explains why this is a useful exercise and tells how to use a beaker (as this cardboard stand is called) for business purposes.
Based on an article by designer and brand consultant Matthias Barth.
A classic business plan is a voluminous document with dozens or hundreds of pages of text, graphs, and tables. Often, it loses relevance even before the company is opened.
Only a few entrepreneurs make up a business plan for themselves. Most do this to attract investors and partners. Instead of a document useful for business, we get an embellished picture and a description of bright prospects.
Test yourself: can you formulate in three sentences what your company does, who your ideal client is and why he should buy from you?
Only a few entrepreneurs can explain the essence of their business in a few words. Sounds a lot of common phrases and disparate details. As a result, the model looks complex and devoid of specificity.
The strength of a business plan on a beer coaster is in its brevity. He demands to concentrate on the main thing and, without further ado, formulate the strategic foundations on which the company relies.
How it works
Any business model can be described through simple relationships. There is a proposal (product or service) and the target audience for which it is created. The entrepreneur’s task is to attract customers and make them pay for his offer. Success depends on how valuable the offer is to the customer.
To fix each parameter and the relationship, a circle of a beaker is enough.
A quick test to verify your company’s business plan. 0
At the center of everything is the good
Determine the benefits of your offer to the client. It can be a solution to his problem (pain) or fulfillment of a desire.
Pain is the difficulty the target customer is facing. For example, for pet owners it is problematic to take your pet in a taxi, because many drivers refuse to do this. A valuable offer for them would be a service that guarantees the transportation of animals.
Desires are, for example, the need for entertainment. The benefit of gaming applications for CA is to close this need.
2-3 words should be enough to describe the benefits.
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Offer and perfect customer
In the “Offer” section, briefly describe the key characteristics of the product or service. Do not write obvious things. You make a plan for yourself, and you know what you are selling.
We pass to the “Ideal customer.” No vague wording like “women from 30 to 50.” Often, gender and age are less important than place of residence, education, income, marital status, and other factors. And remember: you describe the “ideal customer” – the one who will pay that amount and use the product as you expect.
The top of the triangle: customer acquisition
Can you describe the company’s marketing strategy in a few words? If not, you may have too many channels. Focusing on several working tools gives better results. Switching to new channels is worth it when you have exhausted the possibilities of existing ones.
Where can customers purchase your product? It’s good if you have several distribution channels, but, as a rule, one of them gives the greatest turnover. He needs to focus on.
Business foundation: price
How much can your product or service cost?
Often, the calculation is based on the cost of manufacturing a product or the time it takes to provide a service. But try to form a valuation based on the value created.
State what advantage the client receives. What pains / losses does he get rid of?
The answer to these questions may be specific numbers (for example, 10% savings in comparison with competitors’ products). But more often, value is in the emotional plane: status, love, recognition. Despite the fact that these values cannot be expressed in monetary terms, this is an important starting point in the formation of pricing policy.
Two sides of the coin
Let’s not forget about the back side of the coaster. On the front side, we talked about business strategy, and the back side will be entirely devoted to your vision of the business and company values.
A quick test to verify your company’s business plan. 1
What do you want to do for the world? What are your values? Why are you doing this? Just following a clear mission, the company will become more than just a business. This is how brands are born – with a unique voice and a solid place in the market.