There are five Ps to every stage of your business management and by following them and reviewing them constantly, you should be able to stay on top of the management of your business.
1. Plan
2. Price
3. Product
4. Promote
5. Place
Planning every aspect of your business launch, running costs and even planning each hour of the first weeks of business will ensure you are prepared for your new start.
Getting the price right is crucial to the business, you need to ensure you have covered your direct costs and your indirect costs (such as rent and rates) but that you haven't priced yourself out of the market. Will your customers pay it? And ensure you review your prices given market changes and competitor's activity.
Your market research should show that there is a market for your product - your research should continue as your business grows and develops. Do you know whether the market is growing or shrinking? Will you need a great deal of promotion for people to know and learn about your product and service. Have you looked at what process/systems/services would make it easier for customers to do business with your company?
Promotion is about how you market your business to your customers, your competition, your investors. It's about keeping your customers and attracting new potential customers. How can you reach your target audiences cost-effectively? What communication methods best suit your needs? Will you place advertising in specialist press or send out mail-shots?
How you place your product in the market sector will have an impact on your cost structure and the type of customers you attract. What will your distribution channels be? What companies will you rely on? How can you safeguard yourself from potential difficulties with suppliers?
