Over the last few weeks, we have spent time focusing on the individual sections of a business plan and what you should include in each. Last week, we concentrated on your operating strategies section, looking at the logistics of how you will run your business to serve customers and generate profit.
Alongside your operating strategies, you need to cover your sales and marketing plans. Although they will feature in a separate section, your sales and marketing activity is equally as crucial as your operations in the success of your business. Through them, you will garner demand for your products and services and keep customers coming back, helping you to grow a healthy base.
To achieve the outcomes you want, you need solid sales and marketing strategies. Moreover, you need to convince an investor of them if you stand a chance of securing their funding.
Below, we have outlined everything you should include in the sales and marketing section to optimise it and our top writing tips.
What to include in the sales and marketing section
There are a few different elements you should look to incorporate when discussing your marketing and sales tactics.
Firstly, you need to showcase who is leading your sales and marketing functions. Ideally, you will already have people in these roles, so explain their skills and experience and how this makes them ideal leaders. If you haven’t yet filled the position, offer timeframes of when you expect this to happen and what their responsibilities will be.
You can discuss your wider teams too, including how many people will sit under the sales or marketing departments (depending on if they’re joint or separate) and their different roles. Explain how this might change and grow over time as your company seeks scalability. If you will be utilising external resources, like a marketing agency, make this clear and give the rationale behind it.
Next, you want to explain your chosen sales model. This is the framework you will use to solicit sales for your business. There are many established models out there, such as inbound (that focus on generating sales through adverts and marketing) or outbound models (where your sales team hunt for leads using methods like cold-calling). Whichever you choose should align with your business vision, goals and target markets.
You will also discuss your sales cycles (how long a typical sale will take and the stages a customer will move through) and how you will encourage consumers to transition through them. Include any tactics you intend to pursue, such as special offers for customers or incentives for your sales team that might encourage them to meet targets.
Remember that your sales plans need to align with your financial section, including your target revenue and profit levels, so make sure that the cycles and model you choose will allow you to meet those goals.
Once you have covered your sales activity, it’s time to focus on marketing. Explore the various tactics, channels and campaigns you will use to market your business, with timelines of when each may happen. For example, you might implement a social media campaign before launch to build awareness, then utilise advertising/pay per click to generate continued demand. You need to ensure any decisions you make match with the preferences of your target customers and how they want to be approached.
Finally, define your marketing budget. This may grow over time as you begin to generate revenue, so tell investors if this is the case. Once again, ensure this aligns with your financial plans.
There are a few other things you might also want to consider when planning your sales and marketing:
- How does your product lend itself to sales? Aspects like branding, packaging and product name are integral parts of your marketing that will affect sales. Explain the choices you have made to the investors, so they see the sales impact and how it connects to your audience.
- How will people access your business? Depending on whether you’re digital or physical, it may affect the sales and marketing tactics implemented. Similarly, if you partner with another company – for example, selling a product in a supermarket chain – you need to incorporate this into your marketing and show how it may impact sales.
- What are your competitors doing? You need to get your business seen above the rest, and your marketing should enable this. Carry out competitor analysis to decipher their sales and marketing tactics, then seek ways to be more visible within that market.
Our top tips for writing
Now you know what to include, you need to write the sales and marketing section to win over investors. We’ve collated some tips to help you craft it well.
Make your assumptions clear
When planning your sales targets, it will likely be based on certain assumptions about the market. For example, if you were planning your sales in 2019, you probably won’t have expected a global pandemic to occur and change the way customers behave.
Make it clear what these assumptions are, so an investor understands the context of your intentions. However, you should also have contingencies ready so that, if the worst happens, you can move forward without derailing your business. This will show investors you are adaptable and resilient, increasing your chances of making a profit even in tricky circumstances.
Be unique
While you should utilise competitor research to see what works in marketing and sales, it doesn’t mean you need to replicate what has already been done. Seek out ways to disrupt the status quo, as this will help you stand out to consumers and draw attention to your brand.
By mixing what you know works with experimental new tactics, you can learn what brings the best results for your business and capture customers.
Keep your budget in mind
A marketing budget cannot be infinite. There will be a limit, and, in the early days of your business, there may only be a small amount of funding available. We’ve already mentioned that your budget must directly align with your financial projections, but you also need to make sure it matches the activity you promise to undertake.
For example, if you have a small marketing budget, it’s unlikely you can afford significant TV advertising campaigns or billboards. Instead, you need to find low-cost alternatives that still draw customers, such as social media posts and emails. So, be clever with your budget and don’t be tempted to promise the world if you can’t pay for it. You can always go bigger once you’ve begun to scale your sales activity and profits.
Tailor your strategies to your customer
Your marketing and sales strategies aim to convince people to buy from your business. You can only do this on their terms – so your activity needs to suit their needs. This will make them much more likely to convert.
By this point in your business plan, you should know your target audience well. Utilise that knowledge and market research to determine their preferences – like the platforms they are present on, how they like to interact with brands and the challenges they need solving. This will help you frame your tactics and messages to showcase the value of your business to them and secure sales.
Be open to feedback
The investors you are pitching to will have seen many businesses succeed and fail. They know what works. Some might even have direct marketing and sales experience.
If they point out a flaw in your plan or suggest an alternative, you need to be open to it. This will add a new perspective, show your flexibility and help you to refine your approach. It will also make an investor much warmer to collaborating with you on a long-term basis.
Get advice
Every section of your business plan is vital in convincing investors and other stakeholders of your ability to succeed. The sales and marketing section is no exception.
By carefully plotting your activity and explaining it to investors, emphasising why you have made those decisions in line with your target customers and business goals, you can assure them that you have the right processes behind you.
It also means you’re more likely to generate sales – which will spell a better return on investment.
If you need help crafting your sales and marketing plans or creating your business plan, we can help. Our team of advisors has worked with various businesses to develop investor-ready documentation, including business plans. We will work with you to understand your position in the market and translate it into efficient strategies that win over funding.