Day
3 = Illustrate you know your market / prospective customers
You
want your bank to strongly believe that you know your targeted
markets and prospective customers. The more detailed, specific,
and credible you are on this point, the more likely the lender
(or investor) is to believe you have made intelligent revenue
projections.
This
is a central part of the loan proposal. To accomplish this,
here are some things we want to demonstrate knowledge of:
-
Market segments
Most
companies sell to several different customer types. Segmenting
customers into multiple types shows your lender you understand
your customers. While this number can range, we would suggest
you highlight 3 to 6 different customer types. Exceptions
can be made to this, but is a reasonable starting point.
-
Market Size
Doing
some research on the market size helps quantify the market
potential and infers the share of the market you will need
to capture to achieve your revenue goals. Identifying statistics
from outside parties (research, publications, website, government
agencies, etc) provides credibility.
-
Tendencies, likes, and dislikes
Demonstrate
some knowledge of what is going on in the lives (or businesses)
of the people you plan to sell to. If your product or service
solves a problem, you want to show you understand the problem
(or the pain) the customer is experiencing. Prove the customer
has a problem and you hold the key. This may not be a scientific
or as quantified as the item above, but shows an understanding
of the mindset of customers.
-
Where customers are and how to reach them
While
you are at demonstrating your knowledge about customers, it
makes sense to explain how you will identify and reach potential
customers. The more "reachable" customers seem the
more lenders will believe you can achieve your goals.
A very common mistake in marketing plans is to be too broad,
and too vague in describing the customers you plan to sell
to. Great marketing plans get into these details and make
lenders feel good that the company is knowledgeable about
how to connect with the market.
Let
us know if you have any questions or
challenges. Contact us
at training@FAMEE.org
.
