Business Plan for Honey Production

Introduction

Most of the entrepreneurs venture into businesses without a proper business plan. They sometimes end up not accomplishing their targets. Failure is not only brought about by lack of finances but also poor information about the customers' needs about the product offered. In this case, therefore, I would design a business plan for honey production that will be very useful for an entrepreneur wishing to venture into that industry. Most of the people across the world have not got to understand the usefulness of honey products, especially in the human body. The reason behind little consumption of honey is its higher prices and poor understanding of its importance to the human body. As an entrepreneur who wishes to venture into the production of honey, then I would advise him or her to take into consideration the following steps that will lead him/her to the success of the business.

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Step 1: Market Segmentation: Who is Your Customer?

Before venturing into the production of honey, you first have to understand the market segmentation. This is where you will draw your potential customers from. Clients are the most critical factors for any business. Therefore, you need to build the business around the clients and not the commodities first. There are situations where you need to limit the point of customer-oriented guidelines in any decision making. It is not advisable to follow up every lead that is linked to a potential customer in the market.

As an entrepreneur, you need to come up with a good profile for the business and consider the intended clients. Prospective clients include prime clients (the final users). These are usually similar entities but not all the time. When focusing on the final user, it is essential to conduct market segmentation. You are supposed to take some time thinking of a wide range of market opportunities; at this level, you can even begin talking to some of the potential clients and what they think. Do the analysis of the available market and the possible industries who may require a supply of you and enjoy the benefits of it (Dewhurst, J. eds., 2016, 19).

Make the field to be slight and convenient, produce a list of the most exciting opportunities for the commodities; these opportunities comprise of a particular final consumer and many other. In most cases, people have understood honey production from a different perspective, at this stage therefore as an entrepreneur; you must able to know if:

• Will the honey be affordable?
• If you will reach the customer without involving the intermediaries?
• You have a business rival sharing the same market you want to invest in?

In this venture also, you need to undertake market research by talking to prospective clients, take note of their ideas. Also, you need to identify the negative opinions and do not sell anything at this point. In every market, ensure that you have acquired sufficient information because you need to know the ultimate consumer and how the commodities are used.

Step 2: Chose a Beachhead Market

As an entrepreneur wishing to venture in honey production, you must be in a position to know where to supply the products. You must also let the people understand the importance of honey to human health as they will be the immediate customers for honey. Also, you need to identify potential industries that can use honey as an ingredient for the production of other products. Such industries are some of the potential customers that will ensure the success of your venture. You are expected to pick a position to attack, similarly, in the business, you are required to have a stand, pick a market and strive to win market battles.

Step 3: Build a Final User Profile

Once you have identified the marketplace for your honey ( direct consumers and industries), it is time to put more effort into the customer, and you require to make use of market research in order to help you find the specific customer from the target market who will have a positive attitude towards your honey and business (Shen, L., 2019, p23).

Typically, every buyer has two functions in a business; play a role of as a consumer and decision-making component. In some cases, you may find two different clients, but in most cases, a customer is just one person serve in different ways, i.e., the last consumer, is that final client who is going to consume the honey.

Step 4: Calculate the Total Address Market Size

Next, after identifying the intended marketplace and the end consumer, you are in a perfect place to give an estimation of total address market; TAM, this is the size of the strategic position in the market. The cost of the revenue that you would make if all of the clients in the market decide to purchase from you is what is referred to as TAM. To estimate this, you first need to figure out the number of potential clients who are there in the market who suit the last user specifications. Since you have acquired this number, multiply it by the value of the customer you have acquired and the resulting value is TAM. To have a detailed TAM, do both calculations, i.e., bottom-top and top-d-bottom breakdown to figure out how many people may be able to fit into the final user profile. To decide the value the user worth, find out the value of the user, and that can be incurred on the commodities annually.

The amount you think the customer can incur in a year Y multiplied by the quantity of predictable total clients = TAM.

Step 5: Profile the Persona for the Beached Market

Brand a persona to act as an exemplary; the person is used to represent the primary client for the selected market; this makes it easier for everybody to have thoughts concerning the type of client you struggling to reach. In this case, it is good to select the actual individuals and targeted industries since you cannot manage to know what they think and how to survive.

Step 9: Identify Next Ten Customers

The persona that you have identified so useful in this case, but are still required to select other clients to ensure that you are not specific to only one persona. It is advisable to select at least ten potential clients that match the description of the final user. People from this list should know that you are just seeking for the information and not making sells

Step 6: Full Life Cycle Use Case: What Can You Do for Your Customer?

Now that you have got the necessary information about the selected customer for your honey production which are the direct individuals and the targeted industries, you are required to collect exact info concerning what you will do to those potential customers. The prices that you will quote on honey should be favorable to your targeted clients. It should be a price that gathers for both the expenditure and the targeted profit. Through the main market study, find out how the customer will consume the honey. It is also essential to deliberate on the consumer's point of opinion.

Step 7: High-Level Commodity Specification

Since you have determined and analyze the client, it is time to turn the attention to the quality of honey to produce. The clients are interested in the quality of products; therefore, as an entrepreneur seeking to venture in honey production then be keen on the quality. In this case, you need to produce quality honey, include a physical representation of it. You must be able to provide a sketch, an illustration or any visual aid that would help in communicating the honey to the customer.

Step 8: Quantity of the Value Proposition

Since you have a higher expectation that the targeted clients will purchase your honey, then you should look at the quantity and cost proposition that measure its value, concentrating on the client's expectations and not the technology or the features of it. This should show how the clients will get a benefit from honey; this is articulated as a real metric. To evaluate the enumerated value proposal, begin by the top precedence of the persona or priorities. The enumerated value scheme has to be valuable through the process of launching a business.

Step 10: Validate the Code

From this stage, you have to define precisely the requirements the business will offer to the clients that other companies supplying substitutes of honey do not have. Therefore, this is referred to as the company's core which is the factor that differentiates the company or commodities from the other companies. Also, the core should not be a thing that can easily be duplicated by any other company. Lowering the cost of honey, in this case, can be the core; clients go for the lower cost of commodities in some circumstances. Identifying a core is not easy but is an essential part of maximizing the value of the business (Freiling, J., 2019, p20).

Step 11: Chart the Competitive Position

Using the competitive position scheme, you are required to examine the way you and the competitor shall strive to meet your target customer's priorities. You must provide evidence showing how best you are in the market and you can offer better services than that of the competitor and the other current substitute of honey in the market. If this fails, then it would be good to reevaluate the market assortment and the core.

You need to construct a chart that shows a comparison between two priorities of the persona, use the axis (x) for persona's precedence and axis (y) for the second precedence.

Step 12: Determine the Customers Decision Making Unit (DMU)

It is essential to ensure that the client can easily purchase the honey without necessarily spending a lot to reach the product. You are therefore required to identify ways in which your customers will acquire your products. You should choose a way that will be less costly to both you as a producer and the customer. To make sales, it is crucial to understand the decision maker, to learn this, you need to do research, talk with the customer, and again it is important to know that you are not making sales, and instead you recollecting information. You may have to obtain information about those influencing business operations right from the persona, and you should continue revising on this tool until it accurately shows the DMU.

Step 13: Map the Process to Obtain a Paying Customer

On identifying the person who is going to decide to buy the honey, you should understand their process of decision making to enable you to make the honey fit the process. You need to know the time that will be taken for payment and distribution from the time you present honey to the buyer (Milani, F., 2019, p10). Also, you need to know the amount that will cost you to obtain new clients, and finally you are required to be ready for any obstacle that comes on the way when making sales.

The map must rely on business only, and it contains things such as less generation, purchasing, contact to those influencing the market, sales cycle, and installation.

Step 15: Design a Business Model: How Do You Make Money off Your Product?

Developing a business model will help you understand ways in which you will make off money from honey production. As you have got clients, it will not be easy to change the model of the business, and so you need to try and get this right while you still have time in the process. Think about a thing that the customer is ready to undertake, return to the unit of decision making and analyze the information you gathered. It is also vital to know that you should remember the rivalry. Distribution channel, in this case, has to be considered, and you should understand it properly.

Step 16: Set the Pricing Framework

The process of rating or giving prices begins from this point, but prices are likely to fluctuate severally. Detecting spec...