Are you aware of your direct competitors ?
Ideal Answer Example:
- Direct Competitors means, brands who have the same brand positioning as yours and are into similar products. - One thing is common is the Target Audience - Do not consider Global brands as your direct competitors. They can be considered as "Inspiration"
Have you analysed your direct competitor's pricing range i.e. starting range, upper limit range, best selling price range?
- Starting price: 20$ onwards - Upper Limit price: 100-120$ - Best selling price range: 20-30$
Are you aware that "In which price range does your competitor has maximum product range"?
20-30$: more than 50% of products fall in this range
Do you have a Project Manager (designation can be different) who is responsible to get things done
As a founder, are you involved in day-to-day minuscule tasks?
As per your gross margin, do you know what is your revenue target for breakeven ?
"- Average Gross Margin 30% - OPEX: 20,000$ per month - Revenue to breakeven: 67,000$ per month"
As per your business plan, do you know within how many years, you shall be reaching your breakeven month?
"- As per the marketing to revenue projections, in 18th month i would be reaching my breakeven revenues - Average loss per month until 18th month would be: 5,000$ per month"
Have you analysed the following metric of your 03 direct competitors? 1. How many visitors does your competitior has? 2. Which are the top visiting pages of their website? 3. Top keywords driving traffic to their website 4. Top sources which are driving traffic? it is driven by social media, google, how many are directly visting the website? 5. Major competitors of the website you are analysing
Have you analysed, "How many people are searching for your products or services every month" ? (within your target regions)
Do you know, "Within how many months will you get 3x returns on your marketing spends"?
"Do you know ""What is the expected ROAS to breakeven""? Note: ROAS = Return on Ad Spent"
"- Marketing Budget: 10,000$ - Expected Breakeven Sales: 67,000$ - Expected ROAS: 6.7"
Have you allocated a marketing budget allocated towards each marketing activity, as follows: Social Media Marketing Google Ads SEO- Organic Youtube Press Release Conventional Marketing (if any) Email Marketing Others
"Socail Media Marketing: 30% Google Ads: 30% SEO- Organic: 10% Youtube: 10% Press Release: 10% Conventional Marketing (if any): Not within the plan Email Marketing: 7% Others: 3%"
Have you allocated the marketing budget allocated towards each region?
- Region 01: 20% of budget allocation - Region 02: 50% of budget allocation - Region 03: 30% of budget allocation
As per the business plan, do you know "In how many months the ROI is expected"?
Is your "bounce rate" at-par with the market standards?
50% BR on website. Market average is 30%. Action plan is: Design improvisation and website speed optimization to be done.
Is your "visitor average time on the website" at-par with the market standards?
Are you taking action to reduce your "abandoned cart rate"?
Last month out of 200 order, 500 were abandoned carts. Thus, out of 700 users who add products to cart, only 200 checkout i.e. 72% abandonded carts. Plan of action is: send monthly reminded emails and discount coupons to encorage checkout to abandoned cart users.
Is your Website load time good?
Do you offer fast delivery (for example: same day or next day) to major cites of your target countries
Do you offer easy payment options (for example: COD or CCOD)
Do you have an easy return policy (for example: easy return within 14-days)
Yes. Its similar or better than the direct competitors policies
Are you aware of your ideal CPO (Note: CPO means Cost Per Order)
- Budget of Marketing is 10,000$ - Average Order Value is 100$ (determine based on past data or projections) - No of orders required to breakeven is 670 orders (breakeven value divide by average order value. Breakvene value is considered as 67,000 $) - Targeted CPO is 15$ (Total budget divide by breaven number of orders)
