What is a Business Justification? The purpose of a business justification is either 1 To describe a proposed or existing business or venture e. For more on writing an external business justification for a loan, see the full story on www. You can think of it as a kind of an unsolicited internal business proposal.
In the Products and Services section of your business plan, you will clearly describe--yep--the products and services your business will provide. Use simple terms and avoid industry buzzwords so your readers can easily understand.
On the other hand, describing how the company's products and services will differ from the competition is critical. So is describing why your products and services are needed if no market currently exists.
For example, before there was Federal Express, overnight delivery was a niche business served by small companies. FedEx had to define the opportunity for a new, large-scale service and justify why customers needed--and would actually use--that service.
Patents, copyrights, and trademarks you own or have applied for should also be listed in this section. Depending on the nature of your business, your Products and Services section could be very long or relatively short. If your business is product-focused, you will want to spend more time describing those products.
If you plan to sell a commodity item and the key to your success lies in, say, competitive pricing, you probably don't need to provide significant product detail. Or if you plan to sell a commodity readily available in a variety of outlets, the key to your business may not be the commodity itself but your ability to market in a more cost-effective way than your competition.
But if you're creating a new product or servicemake sure you thoroughly explain the nature of the product, its uses, and its value, etc. Key questions to answer: Are products or services in development or existing and on the market? What is the timeline for bringing new products and services to market?
What makes your products or services different? Are there competitive advantages compared with offerings from other competitors?
Are there competitive disadvantages you will need to overcome? And if so, how? Is price an issue? Will your operating costs be low enough to allow a reasonable profit margin?
How will you acquire your products? Are you the manufacturer? Do you assemble products using components provided by others?Video In Review – How to Write a Business Case: Jennifer explained the need for a business case, as it collects the proposal, outline, strategy and marketing plan in one document and offers a full look at how the project will benefit the organization.
Product. The most vital justification for a structured marketing plan is how well it communicates the virtues of its product.
The plan must show how the company's product satisfies the needs of. Cisco Partner Ecosystem Joint Opportunity Plan Template Target Architecture/Solution (check all that apply) Enterprise Networks CollaborationData Center Security Other.
A business justification is a justification for a proposed business venture or expense.
Usually in written form, the document is often included in business plans created as part of a loan application. When writing a business justification letter, the first thing is the contact information for the. It can be included in a business plan to be presented to a financial institution as part of a loan application.
A business justification may also be used internally to gain approval for funds for a particular project. Whatever the need, most business justifications should contain the same basic elements. The Justification of a Business Plan for Rebecca’s Hotel Introduction The significance of business plans in all types and sizes of b.