# Need Help With Business Plan



## jogador74 (Feb 24, 2010)

Hello all! I've been reading these forums for a while now and am amazed at the wealth of knowledge you guys posses.

I, like many others here, am working toward launching a brand of T-shirts. I am writing out my business plan with plans of submitting it through the proper channels to obtain financing to get my project launched. I am using business plan pro software which makes a lot of the numbers and financial data manageable, but I am still having some trouble in a few areas and am hoping for some help from some of you here.

The areas I need help on are:
market analysis
market segmentation
industry analysis
competition and buying patterns

I figure that since many of us are embarking upon similar paths there would be a few that could point me in the right direction to put together this section of my plan.

My brand will be targetted toward a specific niche much like MMA enthusiasts. The buyers and wearers of my products will primarily be individuals involved in the activity. 

Most of my selling will be done online through my website but a good bit of my initial sales will come from selling them to individuals at specific events (ceremonies if you will) that support the acticity. 

As far as competition goes, there isn't a lot since the group I am targetting is such a unique niche. Again, think MMA but pre-UFC/Tapout exposure. I have searched online and only found a handful of sites that offer anything even remotely dealing with the niche I am targetting and only very few of those target the niche specifically rather than having it as a T shirt available right along with many other niches. The only viable place that people who engage in the activity I want to support can get any type of clothing related to their passion is when they attend classes or attend ceremonies where many other like minded people get together.

Hopefully this all makes sense and there is someone that can help. I am just unsure how to dig up the numbers or any other supporting info for the market and industry.

Any help would be appreciated!


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## TeesForChange (Jan 17, 2007)

congrats on launching your brand? what are MMA enthusiasts? I can give you more specific info once i know...


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## kimura-mma (Jul 26, 2008)

MMA = Mixed Martial Arts.

But if I'm understanding correctly, MMA is not the niche the OP going for. They were just using that as an example of a unique niche that was once underground but has now gained mainstream acceptance with the exposure of the UFC, Tapout, Affliction, The Ultimate Fighter reality show on Spike, etc.


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## bornover (Apr 10, 2008)

To get good data for market analysis you need to find credible documentation on aspects on your niche market. The most important data you need for market analysis is statistics from a credible source for the demographics of the market giving an accurate picture of the current market size and projected growth rate. Other important data also goes into a good market analysis, but that data is the most critical because if you don't have a sizable and growing market to begin with, you will not get angel funding or even a glance from venture capital.

From your brief and slightly vague description of your market, it seems rather specialized, so it does not seem to me that you actually have any market segmentation.

Industry analysis is synonymous with market analysis in many areas. The difference being you analyze the competition and industrial trends within the market.

To get accurate buying patterns of your demographic you need to find research data collected by a reputable firm that closely matches the type of people in your niche. I am assuming it is not large enough for a firm to have gone ahead and compiled data they would then sell. Most of the time on new or smaller demographics, a company marketing in that space has to pay for the research.

Unless you find credible data, no one will believe the numbers you come up with. Especially at this time venture capital is very tight and seems only interested in markets that show long standing solid and essential needs in large demographics. New ventures in medicine, health care, energy infrastructure services, food production and like seem to be where their interests are right now. Not in the things that are luxuries and non-essential. 

Don't get me wrong, I am not saying you should give up or don't have a chance to find funding. What I am saying is that if you don't have credible data from reputable sources, you will not get a second chance or a second look from funding sources. You need to have bullet proof data or don't walk in their offices because you will burn a bridge. Say they don't go for your vision right away, but, they saw you did solid research and had superb data, they _*will*_ take your next call or even think of you later when something might change in their picture.


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## PowerPromotions (Dec 31, 2010)

some people may disagree with what i am about to say so take it for what it is worth. 

unless you are sinking tons of money into this company, quitting your current job, or cashing out your retirement I would recommend........ not writing a business plan. 

a formal and complete business plan has stopped more good ideas from becoming reality than anything else. understand your costs and margins. make some and see if they sell. Guy Kawasaki wrote a great book called "art of the start". he basically says the same thing. a great read if you are serious about starting.

i would recommend building a great facebook page with custom fbml or a good website. make some of your product and then try to sell it. think like a guerilla fighter. go to where your customers are. be aggressive and good luck


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## thutch15 (Sep 8, 2008)

PowerPromotions said:


> some people may disagree with what i am about to say so take it for what it is worth.
> 
> unless you are sinking tons of money into this company, quitting your current job, or cashing out your retirement I would recommend........ not writing a business plan.
> 
> ...


Agree 100%


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## bornover (Apr 10, 2008)

PowerPromotions said:


> some people may disagree with what i am about to say so take it for what it is worth.
> 
> unless you are sinking tons of money into this company, quitting your current job, or cashing out your retirement I would recommend........ not writing a business plan.


You left out one thing. Unless you are going for financing.



PowerPromotions said:


> a formal and complete business plan has stopped more good ideas from becoming reality than anything else.


Who says? What facts do you have to say that?



PowerPromotions said:


> understand your costs and margins. make some and see if they sell.


Yes, but see if they sell how? Don't you need to have some type of marketing plan?



PowerPromotions said:


> Guy Kawasaki wrote a great book called "art of the start". he basically says the same thing. a great read if you are serious about starting..


Guy Kawasaki is successful and his stuff worked for him and his ventures he has financed. His ideas are only one of many ways to approach starting a business venture. They might be good for someone who likes that style.



PowerPromotions said:


> i would recommend building a great facebook page with custom fbml or a good website. make some of your product and then try to sell it. think like a guerilla fighter. go to where your customers are. be aggressive and good luck


Yes, all this is part of a business plan. Whether a person takes the time to go all out with a formal plan (which is a requirement in certain circumstances) or just writes down notes in a notebook, you must have some sort of plan that encompasses the essentials and has the important details mapped out. I guess there are a few individuals that could keep track of everything in their heads, but most people can't do it like that it seems. It is hard enough to get it all down in some sort of recorded fashion.

Everyone is different, some people need a rigid and structured program to follow. Some are more relaxed about it and don't like a lot of structure. But very very few people have succeeded in business with out a plan of some kind.

Myself, I am going for some financing in 2011, so I need a formal plan for investors to look at. Now I am a creative person, so my formal type plan will be a bit unconventional, but, it will have all the data they need to make a decision with.


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## thutch15 (Sep 8, 2008)

bornover said:


> You left out one thing. Unless you are going for financing.


Which your BEST option would be to avoid financing.


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## bornover (Apr 10, 2008)

Not necessarily Troy. Depending on what a particular business venture is about, acquiring some venture capital can be a very good thing. If you have a market that is open but requires a large presence quickly to gain a large market share before competition, you need the capital to execute production and marketing needs to be able to run at the front. Not all venture capital contracts require someone to give away the company or profits. Even a plane old bank loan in the right situation can be a good thing. 

It really depends on what kind of company and what kind of market they are in. I would not recommend a local community promotional printer to take out loans or look for venture capital. In fact I have recommend just the opposite here on this forum. In that kind of situation not having leases or loans is a great benefit. But when people ask about business plans or financing I do discuss it because I have been involved in that kind of thing very heavily and successfully in a past career. I have acquired financing to start businesses, to launch products, and to acquire other companies. Some crashed and more worked and were successful.


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## thutch15 (Sep 8, 2008)

bornover said:


> Not necessarily Troy. Depending on what a particular business venture is about, acquiring some venture capital can be a very good thing. If you have a market that is open but requires a large presence quickly to gain a large market share before competition, you need the capital to execute production and marketing needs to be able to run at the front. Not all venture capital contracts require someone to give away the company or profits. Even a plane old bank loan in the right situation can be a good thing.
> 
> It really depends on what kind of company and what kind of market they are in. I would not recommend a local community promotional printer to take out loans or look for venture capital. In fact I have recommend just the opposite here on this forum. In that kind of situation not having leases or loans is a great benefit. But when people ask about business plans or financing I do discuss it because I have been involved in that kind of thing very heavily and successfully in a past career. I have acquired financing to start businesses, to launch products, and to acquire other companies. Some crashed and more worked and were successful.


You should listen to Dave Ramsey... based on your bornover apparel I think it would give you a new insite on this topic.

Nothing is guaranteed, so I am not going to finance something that I don't know if it will turn out... sorta like all these people that maxed out there house debt, because real estate ALWAYS goes up.


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## bornover (Apr 10, 2008)

I don't understand Troy. What do you mean "based on your bornover apparel"?

I do listen to Dave Ramsey and Clark Howard. They are on the radio Saturdays where I live. Both have very good advice, but, not the only good financial advice out there. In my opinion, their advice is very solid for an individual, but not necessarily great at all times for the corporate world. Myself, I don't believe in carrying personal debt other than a home mortgage. But I have using borrowed money in the corporate world with excellent results.


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## thutch15 (Sep 8, 2008)

bornover said:


> I don't understand Troy. What do you mean "based on your bornover apparel"?
> 
> I do listen to Dave Ramsey and Clark Howard. They are on the radio Saturdays where I live. Both have very good advice, but, not the only good financial advice out there. In my opinion, their advice is very solid for an individual, but not necessarily great at all times for the corporate world. Myself, I don't believe in carrying personal debt other than a home mortgage. But I have using borrowed money in the corporate world with excellent results.


Why would you believe in no personal debt, but ok for corporate debt? Debt equals risk and that is why I made my suggestion of avoiding financing. 

No negative towards your clothing line just thought with your belief that what Dave says would stick with you more than the avg person.... I know it does for me.


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## bornover (Apr 10, 2008)

thutch15 said:


> Why would you believe in no personal debt, but ok for corporate debt? Debt equals risk and that is why I made my suggestion of avoiding financing.
> 
> No negative towards your clothing line just thought with your belief that what Dave says would stick with you more than the avg person.... I know it does for me.


Because corporate debt does not use money people can't afford to lose. The people who loan the money in the corporate world are loaning money they don't need in reality. If they lose it, it does not hurt them. 

When a corporation borrows money, the personal assets of the officers of the company are not at risk. The company may be at risk and could fail (that has happened to me), but the personal assets of the officers and employees are not.

Now if a corporation is not in the position to acquire venture capital or loans without securing the funds with the personal assets of the officers, I would not recommend going down that path.

In my opinion, keeping the passages that do discuss finances in context, the Bible does not speak against using any money over and above your needs for living in business ventures, nor does it speak against loaning or borrowing that kind of money. It does speak against putting your personal assets at risk and getting yourself in a position for someone to be able to take what you have away from you over debt you owe them.

To me, there is a clear and distinct difference between money and assets that are necessary for providing for yourself and family, and money and assets that are above those needs and can be risked with no real personal loss if the funds and/or assets are lost. You can separate the two in business and that is where corporations and corporate laws have financial advantages. Yes, corporate laws have been and are being abused in this area and people have been hurt, but taking advantage of corporate law in a responsible manner, working contentiously to minimize risk and maximizing the chance of success can be a very good thing for the people involved (in my opinion).


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