Strategic Considerations for a New Business

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Information about Strategic Considerations for a New Business

Published on June 10, 2008

Author: Meetior

Source: slideshare.net

Description

A client has requested a communication strategy for an unconsidered business. This proposal recommends pre-comm considerations.

Tamavic Promotions cc NETWORK

Tamavic Promotions cc Network (hereafter referred to as TPN) has approached  RippleComm Communication cc, with the objective of developing a communication proposal for the launch of this new entity The process that I normally entertain, would take the following format:   Brief  Strategic Audit  Current Climate  Understanding your Micro Environment  Understanding your Macro Environment  Identification of KSI (Key Strategic Issues)  Developing a cohesive, manageable and achievable proposal, utilising your company’s:  Values  Mission  Vision  Presentation & Buy-in  Identification of Projects  Allocating People & Resources to Projects in order to enable the strategy

A strategic audit takes a “Snapshot” of your current environment (internally and  externally), looks realistically what can be identified as key communication and position issues that could assist in meeting the company objectives TPN have as yet not developed the fundamental objectives of the company, with the  following specific criteria: Product , too broad - yet to be defined   Place, distribution – direct influencers are  Your Customer (Target Market)  Your Customer’s Target Market  Your Customer’s Channels to Market Price, as yet to be determined – based on competitive environment, key influencer:   Product Value Proposition People – Your Target Market   Promotion – Creating awareness, to create momentum, to develop credibility TPN have identified a broad industry segment that you have identified as something you  “like to do” You are, to date, unaware of the trading environment of this industry segment, or whether  you are able to penetrate this market Without any of this key information, which I will look at separately, the most I can do, is  assist you in the identification and repackaging of your product and a communication plan

TPN have identified the following products (from Provantage) as their own product offering:  Transit  Taxi, Train & Bus Advertising  Vehicle Branding  Rank Activation  Blitz Teams  Leaflet & Sample Distribution  Activation   Mall Activation  Shoppa Shows  Instore Activation  Brand Vans  Task Force & Special Projects  School & Campus Activation  Intersection Activation Transit TV  Events   Product Launches  Roadshows  Conferences  Publicity Stunts  Staff Incentives

TPN have to decide which of these product categories you wish to focus on, based on the following  criteria:  Offer “Unique Value”  Can you provide a service or deliver a product that has a USP (Unique Selling Proposition)?  Based on the above, do you have the necessary knowledge and insight of the competitive environment, in order to deliver an extraordinary PVP (Product Value Proposition)? Knowledge of the specific sub category   Do you have the necessary “intellectual property” to launch all of the categories, within each intended products? Resources   It must be clearly understood that each of the sub categories, within each product, require dedicated resources or teams, to fulfil each of these functions – WITH AUTHORITY! Serviceability   If you were to launch each and every product and sub category, will you:  Be able to sustain the product and grow each product into substantial businesses  Consistently add value to your client’s business Deliverables   Based on your idea of what each product and sub category should deliver (bearing in mind your competitors deliverables), can you consistently deliver a comparable (if not better) product? Viability   Will each of your selected “modules” translate to:  A viable business proposition and consistently assist in a positive growth to company  A positive ROI (Return on Investment), through sound strategic product development (my recommendation would be to create product modules, with a “set price” for base services, and escalating

The following illustration shows the depth of insight and knowledge you will require,  should you wish to “speak from a position of Authority” Client or Client’s Your Target Agency's Client Market Comm. Agency Client’s Target Client (if Consumer’s Consumer’s Buying direct) Market Playground Behaviour The above illustrates the knowledge of the various markets you require in order to provide your  clients with a valuable service Bear in mind that the relationship you create may not be one with the actual brand, but would  probably be with the advertising agency or communication company, on behalf of the client These entities have existing relationships in place, and securing business is going to be difficult 

One of the key factors in selecting the services of a company, such as the industry you wish  to pursue, is price You will need to secure the pricing structure of all your competitor’s product modules, in order  to develop a competitively-priced product You do not have to present a “discounted” product in order to secure business, but may want  to look at adding value to your product, at the same price – which has the perception of being more cost-effective – as they are “getting more for their Rand” This comes back to your Value Proposition  Is the value going to be apparent to the client, before and after the “deal”?   Is your product strong enough, so that a client would select your company, as opposed to that of, say Primedia, Provantage, etc?  Will you be able to populate the promise with the experience (simply put, will the customers get what you promised them)? Understand that your business will be enabled by people, NOT technology and NOT product  The people you select are the diplomats for the brand  The BIG QUESTION... Would you pay the amount you are asking your client to pay, for your services?

How are you going to create the awareness required, in order to generate the  momentum which would assist in building the character of your brand, resulting in networking opportunities? This is where I should be focusing my service delivery  The challenge is to communicate the following:  The right product At the right time To the correctly targeted customer Using the most efficient and effective mediums Thereby capturing and maintaining their attention For a period, determined by you Thereby allowing you to “Define the Terms of the Relationship”

Other factors that are equally as important as the above mentioned are:  Is there a need for the goods and/or services you are going to offer?   Are you equipped to fill the need?  Will there be a market for your product in the future? Fads, technology, and innovations all affect the opportunity for any  business to be and remain successful Lack of management experience accounts for nearly all of small business  failures. This does not mean that all small business managers have poor management  skills.  More accurately it refers to the person's ability to deal with the quot;unknownquot; that is likely to occur Desire and persistence along with innovative thinking improve the odds  In tough times, a small business can quickly change direction by introducing new  ideas and creating better methods to help move its product and sustain an adequate income

Why are you starting up a business?  Setting up and running a business is a time consuming task - you need to be  dedicated and focused and able to structure your time in order to be successful  The rewards of starting up your own business can be great, but think carefully if you have the attributes and right sort of personality to cope with going it alone Company Structure  You will need to decide what business structure you will trade under (sole trader,  limited company, LLP or partnership) and what obligations and responsibilities you will have as the owner of a new business Skills  Identify your skills and particularly your weaknesses  Be honest and ask friends and colleagues for input  If you are less hot in certain areas, hire people with complimentary skills or seek  professional advice when you need it Funding  Even if you have the best idea in the world, you are unlikely to make a killing instantly  Be conservative with your funding estimates and either save enough money to keep  you going while the business goes through its initial stages, or present your bank manager with a well thought out business plan and request sufficient start up funds

Competition  Never underestimate it!  Thoroughly research the competitors in your chosen industry  Identify any weaknesses they may have and try to ensure your product or service is a  cut above theirs  Competition is a very healthy thing, but you need to do constant research and never be complacent Marketplace  Make sure that there is a market for your product or service  Just as Texaco wouldn't build a petrol station next door to two others, a start-up  business should ensure that the market for buyers or users is strong in the area he intends to set up in. Business Plan  Never underestimate how helpful this stage can be  Even if you never consult the plan again, it is amazing how many thoughts and ideas  can evolve if you put all your thoughts down on paper in a structured format  Not only will you require a well thought-out plan when seeking funding or new business partners, but a decent plan will help you focus on your goals and ensure you are less likely to stray from your real priorities  You can read our Business Plan Guides for ideas

Staff  As your business expands, you may well need to hire people to manage certain  aspects of your operation. You need to ensure they have the right skills for the job. Above all, you need to be able to quot;clickquot; with the people you work with - this simply cannot be underestimated. Seek Professional Advice  When running your business, a few words with a trusted adviser (accountant,  lawyer, business adviser) can make the difference between success and failure Before hiring a professional, you should visit several to compare and don't  necessarily make the decision based purely on price. Biggest causes of failure  The biggest causes of failure for start ups are - setting your sights too high, not  researching your market thoroughly, hiring the wrong staff and not putting enough funds aside for contingency Keep an eye on these potential pitfalls at all times 

Please bear in mind that I am not “sales” and do not undertake the  responsibility of generating business or business leads for you – this is not and has never been a primary marketing function (the spin off of awareness does, by default, generate business This is the focus of key management, as well as a sound “sales strategy”  I will assist with the following:  The creation of a platform for your brand, from which to launch your services into the  marketplace Guidance with routes to market  The tone and manner of the look and feel of your brand  The way in which your brand is presented  The sustenance and maintenance of a relevant and consistent communication plan  Equipping your “sales team” with tools in which to capture and hold potential client’s attention  The management of your communication with potential, new and existing clients  Bearing the above in mind, as I cannot enter into a risk agreement with  Tamavic Promotions Network cc, we will need to discuss a mutually accepted fee structure

Should I chose to undertake this project, in order to commence I recommend following  process: Research the environment   Decide on viability of the services you wish to offer  Define your product The product should define the embodiment of the communication, not via versa  Once this is achieved, I will be able to commence with a communication plan, which  includes Relooking your corporate identity (this is essential, as your logo represents a 1. “technologically-driven environment”, as opposed to a “people-driven environment”, and does not communicate the “results of your intentions”) Packaging your brand, products , categories and sub categories – in such a way as to be 2. appealing to your intended audience Develop a sound communication platform (with a tangible and real product selection), from 3. which to launch your brand Secure targeted databases with which to communicate relevant information 4. Develop a launch and maintenance communication strategy 5.

It would be simple to take the specifications from Provantage and repackage the  products, but in this market it would be completely transparent and will work against you Bear in mind that if you choose to launch with everything that Provantage has in  their stable, you will be spreading yourself thin, and I assure you, you will not be able to offer the services required in order to sustain (never mind launch) this platform The flow plan and costs that follow, are based on you launching the entire stable of  products to the market These are my hard costs and have not been marked up  Please remember that the “building” of the web portal is just a shell, and that I  would be populating the site with strategic content that would ultimately “sell” your brand, which has not been factored into

Design and development of the front end of the website, which includes:  Website look and feel and navigation template R 600.00  Home page R 300.00  Design of about us page R 300.00  Contact us page R 350.00  Customer registration page. R 600.00  Customer login page R 400.00  Customer login template R 350.00  Page for customers to view and edit their details R 600.00  Total R3500.00  Design and development of the back end of the website: (Optional)  Setup of the SQL Server database with tables to hold information for administrators,  customers, products, customer orders, general enquiries R 2 400.00 Design of Administration Applications Pages: (Optional)  Login page R 800.00  Login template page R 800.00  Home page R 800.00  View all products that are currently on the website R 800.00  List all customers that have registered on the website R 800.00  View website traffic statistics R 800.00  All prices exclude VAT.

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