Growth Strategy
After having successfully introduced the complex widget into the American market, our expansion will be in two separate areas: increasing sales in the USA and entering various foreign markets.
After we have reached our first year sales goals, we intend to offer our sales reps the opportunity to sell our products exclusively by joining our company. We expect that a small percentage will desire to remain independent and these will have to be replaced with our own sales force. We intend to
develop further sales reps from within by hiring and training them in our own sales methods. We will increase national advertising and begin targeting smaller accounts and specialty outlets. Additionally, we will conduct in house seminars for various OEM’s demonstrating how the inclusion of complex widgetry into their own products will increase the value of their products.
After having successfully completed this entry phase into this market in the geographical are we have chosen, we will then expand our market by doing the following:
1. Expand telemarketing pool to 20. 2. Increase number of direct sales reps. 3. Expand into neighboring cities.
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Market Size and Share
The American market for [product/service] is estimated at $8 Billion annual sales based on data furnished by XYZ Survey. We estimate that we can achieve XX% market share within XX years. Marketing data for other markets is in the process of collection.
Other Markets
Use the same format for additional markets.
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Targeting New Markets
To continue our growth, we will be using the following methods to expand our markets and to increase our new areas of doing business:
? ? ? ? ? ? ? ? ?
Customer contact - find out their needs Look for complementary products Trade shows
World Trade Center “Network” U.S. Government trade leads State Government trade leads
On-line computer prospecting and qualification (DIALOG, D&B, etc.) Market surveys
Research & development
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Location
RETAIL EXAMPLE:
This business will be operated at 123 Any Street. This location is desirable because:
1. The traffic flow has been rated at high. 2. The rent is below market
3. The building has the necessary facilities to operate this business. 4. The location is convenient for our customers.
We are renting this building on a XX year lease. We will have renovations costing $XXX based upon three estimates. The building is zoned R-3, commercial use.
OTHER SAMPLE:
This business will be operated at 123 Any Street. This location is desirable because:
1. The building is structurally compatible for our use. 2. The rent is below market
3. The building has the necessary facilities to operate this business.
4. The location is convenient for our freight companies, suppliers, clients and employees. 5. Possibility of expansion in the area.
We are renting this building on a XX year lease. We will have renovations costing $XXX based upon three estimates. The building is zoned R-3, commercial use.
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Manufacturing Plan
SAMPLE:
We will be using a conventional assembly line method of construction of our complex widgets. Our main supplier of component parts will be DEF Manufacturing of Fort Lee, NJ. In the event that they are not able to ship according to our specifications our secondary supplier will be MNO Amalgamated located in Charlotte, NC. These parts will be shipped to us by motor freight.
The actual machinery used in the production line will be manufactured by A&M Machine Tools of Arlington, Texas. They also will be doing maintenance under a service contract. This design of machine and assembly will allows us to produce 24 hours a day as the entire assembly process is fully automated with state-of- the-art robotics of American manufacture.
With robotics our labor costs and therefore our production costs will be the lowest in the industry. To maintain our advantage we have established lines of communication with all of our potential
machinery suppliers. Most importantly we have an ongoing relationship with several universities and are actively participating in various studies and experiments relating to production methods.
These machines also incorporate quality checking by lasers. All products must come within XX% of specifications. Also, at regular intervals we will be using human inspection of products and machines. We do not anticipate generating any toxic materials at this time for these products. However, we will be closely monitoring all production to determine if any hazardous materials are being generated. We have contracted with an environmental engineering company to advise us on any possible problems as well as solutions including legal disposal of all hazardous wastes.
We anticipate the following outlays for this capital equipment:
A&M Machines $XXX Service Contract $XXX
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