How to compose an excellent e-commerce business plan for your startup
In anything you wish to do, having a plan should be step one. Plans guide your efforts in a direction that will help you better accomplish the goals you set out to achieve. It is, thus, very important to have plans outlined for your startup. Plans will help you gain a competitive advantage, increase efficiency and reduce costs while maximizing profit margins.
For an e-commerce business, having a plan is even more crucial. While some entrepreneurs who want to venture into e-commerce avoid creating a business plan claiming it can be an unnecessary challenge, at Mount Bonnell Advisors, we believe this is an easy thing to do. In fact, it’s a crucial part of laying the foundation for an e-commerce business. We have created a guide to help you come up with a business plan that will work for your e-commerce business.
How to write a business plan
An entrepreneur can create a business plan using a variety of formats. One can customize the plan depending on the type of business they are creating. A more basic business plan, however, is formatted as shown below. Ensure the following factors are addressed while creating your business plan.
Executive Summary
The Executive Summary should be the first item on your business plan; however, some people usually include it as the last item. In fact, experts argue that the executive summary should be the last thing because many ideas will come up while you create the rest of the business plan. The executive summary should be a brief explanation of your business strategy.
Company Description
In this section, give a little description of your business. This should include what it is about and how it started. You should also include what products or services your business will offer. Other company information is also welcome in the description including a little info about you as the founder. Think of it from the perspective that you are introducing your company to someone with little to no knowledge about it. This implies that you should give as much interesting information as you can share.
Products and Services
Even though your company description gives a sneak peek into your services, the products and services section should give more, in-depth details. In this section, describe each of the products or services you will be providing to the market and what sets it apart from other competitors. When crafting the descriptions, use persuasive language in a way to entice potential customers. Ensure you are in compliance with U.S. consumer protection laws. Look over your products or service and, confirm you are not selling illegal or hazardous products.
Organization and Management
This section informs the public about the owners and operators of the business. Here, you give a brief introduction of the individuals who make up the management team. You can also mention their qualifications and the positions they hold within the company. Share their professional background and any other relevant information that may help beef up the teams ‘credentials.
Market Analysis
A good business analysis should include a market examination. One should have a conclusive understanding of the general market and their target demographics. Knowing who makes up the target market can help you better implement marketing strategies that do well in the industry. Notably, understanding your market can help you bypass the competition. Gaining full knowledge about the market may take a lot of study on your behalf, but in the end, with the success of your business, it will be well worth the time.
Operational Plan
Of course, the business will have daily operations. There is no better place to define what these day-to-day operations at your company than your business plan. In this section, define what are the functions that will be done on a daily basis. Also, highlight the departments or teams that are responsible for each business function. Show the plans that the teams will follow to ensure that operations are done in a timely, efficient manner. In this part, note the key performance indicators that define a team’s success.
Marketing and Sales
Your business plan should also contain a discussion on your general marketing and sales strategies. Please make sure that the marketing and sales activities of your business are in compliance with the federal and local marketing laws in the U.S and your specific state, respectively. Additionally, outline your target sales revenue and ways on you to achieve your target goal Include the sales channels that you intend to tap into and the marketing platforms that you wish to use.
Funding Requests
This part is essential, it scrutinizes the financing options available to start your business. Here, you should list how much you need to start your business and the breakdown of the overall cost. It is also best to put in the funding requests how you plan to repay the capital amount you owe. In as much detail as possible, give a viable repayment schedule that you will easily follow atop the request letter.
Financial Projections
It is best to have a picture of your business’ financial capabilities before you start operating. This is whether you are using your own money to start your business or if you intend to get a loan. While creating your business plan, craft your best and worst case financial projections.. Creating a financial projection may be quite challenging, but a business owner should foresee how their business could perform. Financial projections help in proving your bank or investors that you will be able to generate enough revenue to repay them.
While it may be challenging to create a business plan, it is very helpful. We can help you to come up with the perfect business plan. Contact us for more information.
