How to Write a Business Plan

ChApter 8 | WRITE YOUR MARKETING AND PERSONNEL PLANS | 145

you will probably use mass media as an
effective communication method. On the
other hand, if your target market is the
presidents of the 100 largest companies in

your trade area, you are more likely to use
individual contacts than mass media.
Once you’ve chosen the communication
methods you like best, fi gure out how
much it will cost to reach your customers
using each of the fi ve methods.
Note that some of Antoinette’s more
sensible ideas don’t take any money
at all, just some time to convince the
magazines and papers to carry her material
and the time to produce it. Perhaps you
can develop some similar ideas for your
business.

Create a Marketing Budget

Now that you have a wish list of things
you’d like to do, it’s time to decide which
of the promotional ideas you can afford
and which are too costly. In Chapter 7
you prepared a Capital Spending Plan and
estimated how much money you’d allow
for an opening promotion to let people
know you’re in business. In Chapter 6 you
prepared a Profi t and Loss Forecast that
took into account your monthly marketing
costs. If you allowed enough money to
provide the sort of promotion you want,
you can fi nish writing your marketing plan
now.
However, if you didn’t allow enough
money, or if you’re not sure how much
money is enough, you’ll want to stop here

Antoinette’s Dress Shop:

Costs of Reaching My

Target Customers

I have about 20,000 potential customers in

the greater New City trading area. I don’t

anticipate reaching customers beyond this

area.

1. I like direct mail, since I can develop
   lists of active businesswomen in
   the area. I’d like to bulk-mail a fl yer
   announcing our opening for about 30¢
   to 50¢ each, for a total cost of $6,000
   to $10,000.


2. Limited ads in the New City Monthly
   will run about $300 to $500 per month
   for a few months.


3. When anyone comes into the shop, I’ll
   ask for her name and address and later
   I’ll send notices of fashion shows and
   fashion tips. Th e cost will depend on
   the size of my list and the frequency of
   mailings.


4. I can place announcements of my
   fashion shows in the two daily papers
   serving the area at no cost.


5. I’ll see if one of the local papers will
   carry a column I’ll write for free on
   fashion tips.


6. I’ll join all the professional women’s
   groups in the area and become a visible
   spokesperson for my shop.