e–CommerceAdvi$er.com

For Small Businesses and Home Based Businesses

E-Commerce Business Plan -- Topics
1. Introduction 4. Competitive Analysis
2. Product Analysis 5. Financial Analysis
3. Market Analysis 6. Implementation Plan
.

E-Commerce Business Plan

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Introduction


by Maggi Hall, E-Commerce Adviser staff (rev022708)

Factors for Success

E-Commerce Business Plan



There are many similarities between an e-commerce business and a "brick and mortar" business. In particular, they both require hard work and commitment.

However, establishing, promoting and growing a virtual business has one very distinct

factor for success

, specifically "

information

."

By learning to harvest and apply competititive, market and product information that is readily available on the Internet, an e-commerce business owner with limited resources can successfully compete against medium and large companies in national and international markets.


Most people react to the idea of writing a business plan in the same way, by asking ...

Do I really need an e-commerce business plan? And the answer is always -- YES!

It's true there are some very successful websites, such as YouTube.com, that were started without an e-commerce business plan. But they're the exceptions and they were very lucky.

Many people also think a business plan isn't necessary because the start up costs for an e-commerce website are relatively low compared to a storefront on Main Street. But the path to success is really no different.

You need to know the details of your business, such as what you are going to sell, who your suppliers are, where and when you will advertise. It is possible that you may end up succeeding without a business plan, but you'll probably end up wasting a lot of time and money.

An

E-Commerce Business Plan

will increase your opportunities by focusing you and your resources on the important issues.

What is an e-commerce business plan?

A simple business plan is a 10 to 12 page document, which contains
  • Business objectives
  • Strategic overview
  • Business environment details, e.g. market, competition, suppliers, etc.
  • Budget and financials
The process for creating an

E-Commerce Business Plan

is a reiterative process. That is, after finishing each part of the business plan, e.g. Product Analysis, Market Analysis and Competitive Analysis, you should revisit the other sections to revise them and then revise them again.

E-Commerce Business Plan Outline.

A core business plan includes information needed by the business owner. An extended business plan includes additional information required to qualify for financial assistance.

Core Business Plan
  1. Vision: A concise statement about your objectives and "factors for success"
  2. Strategic Overview: Summary of how the objectives will be accomplished, e.g. product positioning, marketing campaign, etc.
  3. Products/Services Analysis: Evaluation of features and benefits, as well as sourcing and fulfillment options
  4. Marketing Analysis: Identification of target market(s) including demographics and how to communicate with them, plus a promotional strategy
  5. Competitive Analysis: Assessment of key competitors' products/services, website promotional strategy and search engine activity
  6. Financial Analysis: Current and projected cash flow and profit and loss statements with critical assumptions explicitly identified
Extended Business Plan
  1. Executive Summary: One or two page overview
  2. Company Description: Legal entity, background, etc.
  3. Management Team: Key members profiles and staffing strategy
  4. Financial Plan: Core Plan information plus balance sheet, break-even analysis and business ratios
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