three years. These projections should not go into elaborate detail.
They can be expanded in an appendix.
It is necessary to explain the basis for the projections – why
you think the sales and gross profit figures will be achieved.
Refer as necessary to other sections in the plan where this is
covered in more detail, for example, a marketing plan. Figures
which have been affected by such things as a change in the
product mix, the injection of extra resources into marketing or
streamlining production or distribution, or reductions antici-
pated in unit costs should also be explained.
The market
Describe:
■ who your existing customers are and who your new
customers will be;
■ why they buy an existing product or service or will be keen
to buy a new product or service, emphasising any particular
features which will persuade existing customers to buy more
or will attract new ones;
■ the current size of the market;
■ trends in the size of the market – ideally it should be
growing, but if it is static or declining you have to show
convincingly that you can buck the trend and increase your
market share or obtain a reasonable amount of market share
on entry;
■ the location(s) of the market – local, national or international;
■ the competitors – who they are or might be, the existing and
potential strength of the competition as measured by market
share;
■ why you believe you can achieve sustained competitive
advantage and beat the competition with your product or
service in terms of quality, cost, level of customer service, the
uniqueness of your product or service, or the special charac-
teristics of your operation in terms of the people you employ,
the technology you use, your research and development
expertise and the effectiveness of your distribution system;
■ your pricing strategy;
■ your marketing plans – sales, promotion, advertising and
distribution.
210 How to be an Even Better Manager