Accelerate Cambridge October 2013
Page 7 of 11
3) Selling and Distribution
The questions here are relatively straightforward, although often neglected:
What distribution channels exist?
Which of these will you use: direct sales force, agents, freelance commission reps,
selling by the management team itself?
What is the proposed geographical coverage of your sales force, how big will it be,
how will it be remunerated and how productive do you expect the reps to be: number
of calls, conversion of calls into sales and average sales per call?
The business plan is not the place to develop a full blown marketing plan. Explain what the
marketing strategy is and why you believe it will succeed.
6. Production and Operations
As with the product description, the main danger here is that of an excessively detailed and
technical description of the processes involved in producing your product or delivering your
service. Keep it simple and accessible. Focus on key issues, such as:
Your sources of supply and degree of dependence on any single resource; e.g. skilled labour
or one type of raw material. Particular problems associated with supplies; e.g. long lead
times, dependence on one supplier, availability of alternative, back-up sources.
How you will manufacture your product and how the production process operates. Focus
specifically on those key processes that you are still developing and those critical production
stages at which problems might occur.
The proposed split between manufacturing in-house and using outside, sub-contractors;
anticipated shifts in this – e.g. as production expands or moves in-house.
The nature of the plant and machinery to be used and the financing requirements associated
with this. Do you intend leasing or buying equipment and at what cost?
Estimated manufacturing costs. It is essential that you understand fully what these are and
how they will be controlled or reduced.
The particular experience and competence of the management team to manage the
production process.
Requirements in terms of premises; use, location, type, size, cost and expansion potential.
Quality: how will this be monitored, particularly as output increases, and what are the
costs/benefits of your quality control strategy?
Finally, what stage has production reached: design, prototype, pre-production? How will you
manage the smooth transition form producing a prototype to producing in volume?
Not all aspects of the production process will be equally critical. Focus on those that are, show
that you understand where problems may occur and that you have a strategy for dealing with
these.