E-Commerce Financial Analysis

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

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Financial Analysis

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

Online businesses are started to generate income and, hopefully, a profit. Starting a profitable business requires an investment.

Investments typically includes the cost of developing your website, building a product inventory and a promotional plan. It may also need to supply temporary income for the business owner until the business begins generating revenue. Even the best start ups rarely see profits for 3 years, so don't count on too much, too quickly.

The first financial details that are critical to getting a business going is a Start-Up Budget.

Start-Up Budget

Website Design & Development
Promotional Programs
Product & Service Inventory
Hosting Services
Merchant Account setup
Legal & Accounting Services
General Office Expenses
Professional Classes and Workshops

Other significant financial details you want as part of you business plan are Financial Projections to determine if the proposed business is viable. Can you make a profit? When will it the business be profitable?

Financial Projections

Sample 2-Year Income Statement Projection

	Year 1	Year 2
Revenues
Net Sales	$ 00.00	$ 00.00
Other Income	00.00	00.00
Total	00.00	00.00
Cost of Goods
Line item 1	00.00	00.00
Line item 2	00.00	00.00
Total	00.00	00.00
Gross Margin	00.00	00.00
Expenses
Line item 1	00.00	00.00
Line item 2	00.00	00.00
Total	00.00	00.00
Net Income Before Taxes
Taxes	00.00	00.00
Net Income After Taxes	00.00	00.00

Sample 12-Month Cash Flow Projection

	Jan	Feb	...	Dec
Cash at Start	00.00	00.00	00.00	00.00
Receipts:
Accounts Receivables	00.00	00.00	00.00	00.00
Payments:
Line item 1	00.00	00.00	00.00	00.00
Line item 2	00.00	00.00	00.00	00.00
Total	00.00	00.00	00.00	00.00
Net Cash	00.00	00.00	00.00	00.00