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8/11/2019 Business Plan for e-Business
1/23
CREATING A BUSINESS PLAN
8/11/2019 Business Plan for e-Business
2/23
BUSINESS PLANS
Used to seek funding for a new e-business
Serves as a design for operating an e-
business after it is funded
Forces you to think critically, objectively, and
unemotionally about your idea
Helps to find hidden strengths and fix hidden
weaknesses
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BUSINESS PLAN CONTENTS
A cover sheet and title page
A table of contents
An executive summary
A description of the e-business idea
Information on products or services to be offered
Analyses of the overall industry, target market and
competition Identification of critical risks
An exit strategy
8/11/2019 Business Plan for e-Business
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COVER SHEET
Identify the e-business
The title of the document
The preparers name
The plan copy number
The word CONFIDENTIAL
8/11/2019 Business Plan for e-Business
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TITLE PAGE
Repeat the information from the cover sheet
Add contact information for the preparer and any
associates
May include the name of the person to whom thecopy is assigned
8/11/2019 Business Plan for e-Business
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TABLE OF CONTENTS
List all the major sections and subsections of the e-
business plan
Be sure it is neat, and avoid missing sections, and
incorrect page numbers
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EXECUTIVE SUMMARY
A miniature version of the complete e-business plan
Allows readers (investors, bankers, managers) to
quickly understand the opportunity and build
interest Should generate excitement and interest
Should be limited to 1-3 pages
Highlight the reasons why the concept will besuccessful
Is usually easiest to write after the rest of the plan
8/11/2019 Business Plan for e-Business
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EXECUTIVE SUMMARY
Can include brief information on:
The staff and management team
A definable market
Any competitive advantages Financial projections
8/11/2019 Business Plan for e-Business
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BUSINESS DESCRIPTION
An outline of the background and concept
Include information about the
legal form of the business,
when & where it was formed history
current status
future goals
8/11/2019 Business Plan for e-Business
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PRODUCTS AND SERVICES
Provide a description of the
products and/or services offered
sales that each product/service group is expected to
generate Provide enough information for a reader to
understand the business
Do not provide too much detailed information as to
confuse readers
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PRODUCTS
Describe products from customers perspective
Describe what the products do
Highlight customer benefits
Give information about the compete product line
In appendices, add high-quality photos of a few of
the major products
In appendices, also add supporting documentssuch as patents, trademarks and copyrights
8/11/2019 Business Plan for e-Business
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SERVICES
Describe what service(s) you are providing
How does the service work
What marketplace need does the service address
What is the customer benefit for using the service
What makes it different
What materials/equipment are needed to use the
service
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INDUSTRY ANALYSIS
Industry: businesses that make/sell similar,
complementary, or supplemental products/services
Examples:
Travel Industry: airlines, hotels, travel agenciesAuto Industry: auto, tire, and auto maintenance
Computer Industry: hardware manufacturers, software
developers, chip manufacturers
Theme Park Industry: theme park operators, ridemanufacturers, software developers, food vendors
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INDUSTRY ANALYSIS
Describes:
industry size
characteristics
trends growth factors
distribution systems
competitors
effects of technology
other relevant topics
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INDUSTRY ANALYSIS
Based on verifiable data gathered from recognized
sources
government agencies
industry trade associations studies from reliable organizations
Changes in customer preferences, shifts in
customer demographics, new technologies
Product pricing trends, pricing
advantages/disadvantages of the e-business
Trends you can exploit to attract new customers
8/11/2019 Business Plan for e-Business
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INDUSTRY ANALYSIS
Should address supplier issues
labor shortages
legal, technical, personnel issues affecting the e-
businesss ability to deliver products/services Major competitors should be identified
including their market share(i.e. eBay owns about 80% of market share of online auctions)
Charts and graphs help with understanding andreadabilitybut do not make them too large
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MARKETING PLAN
Information about the target market
Demographics: age, gender, income level, population density
Geographic: country/region, state city/town, climate,
population
Psychographic: beliefs, hopes, fears, prejudices, needs,
desires
Customer characteristics Frequency of use / Method of use
Frequency of purchase of products similar to those you offer
Marketing objectives
clearly stated and measurable
have a time frame
8/11/2019 Business Plan for e-Business
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MARKETING PLAN
Marketing strategies
Marketing budget
Action plan
describe specific promotional tasks
when they start / end
8/11/2019 Business Plan for e-Business
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OPERATIONS PLAN
Business location Warehouses, branch offices, manufacturing space
Equipment needs
Vehicles, computer, office equipment Manufacturing needs
Labor needs
Order and Fulfillment
Shipping
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MANAGEMENT PLAN
Management team
3-5 people involved in day-to-day operations
Important to investors!
Include description of each team member, responsibilities,
previous experience and success, education
Board of advisors
Individuals with industry / business experience
If the board is impressive, adds credibility to the businessventure
Outsourcing
Attorneys, accountants, insurance agents
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RISK ANALYSIS
Identifies threats to the e-business success impending product innovations
environmental issues
barriers to entry into market
government regulations
staffing concerns
management experience
Include a page with plans to resolve the issues
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EXIT STRATEGY
How will an investor get their money back?
Tell the investors how they will recover their money
Identify long-term plans for the business and principals
Possible exit strategies: Payment plan / percentage of profits
IPOinitial public offering
Selling the company to other individuals or a business
Joining with an existing company to form a new company Stockholder buyout
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LEGAL FORMS FOR E-BUSINESS
Model Description
Sole
Proprietorship
Started & operated by an individual
The individual is responsible for tax and legal claims
Partnership Two or more owners
Requires a written partnership agreement
Partners are responsible for tax and legal claims
Limited
Partnership
General partners / limited partners
General: manage / unlimited liability
Limited: no management / liable for capital + accepted debt
C corporation Separate individual unit
Taxed twice: corporate income & shareholder dividendsNo liability past the corporate unit
LLC Limited Liability Company
Similar to partnership for tax purposes
Similar to a corporation for liability purposes
Recommended