E-Business Planning and Market AnalysisGraham Garner • E-Business Practicum BA/CA 388-01Wartburg College • Fall 2012

Tuesday, October 16, 12

Getting started

๏Have an idea or concept

๏Product or service

๏Survey the marketplace

๏Develop a business plan

Tuesday, October 16, 12

Elements of a business plan

๏Idea: Outline your proposal, describe your product or service

๏Objectives: Specific, measurable, achievable, timebound

๏Mission statement: Overall company goal and direction

๏Risk analysis: SWOT, likelihood of success

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Elements of a business plan

๏Product/service description: Technical detail, specs, drawing, photos, timelines, sourcing, quality, processes, advantages and disadvantages

๏Ownership, management, personnel: Roles, structure, experience, achievements

Tuesday, October 16, 12

Elements of a business plan

๏Markets: Size, prospects, outlook, niche, customers, competition

๏Marketing: Plans to promote, advertise, distribute, marketing mix

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Elements of a business plan

๏Financial forecast: Breakeven analysis, profit & loss, cashflow, balance sheet

๏Sales forecast: How many sold, rate, price

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Why an online business?Advantages:

๏ Inexpensive startup costs

๏Run business from anywhere

๏Customers can come from anywhere

๏Low overhead

๏24-7

Disadvantages:

๏Business ideas easily copied by competitors

๏Credit card fraud

๏Additional technical know-how

๏Rapidly evolving customer expectations

Tuesday, October 16, 12

Starting an Online Business (21:00)

Films Media Group. (2012). Starting an online business [H.264]. Available from http://digital.films.com/PortalPlaylists.aspx?aid=7090&xtid=48968.

Tuesday, October 16, 12

Homer and E-Commerce(3:56)

Cohen, D.S. (Writer), & Michels, P. (Director). (February 15, 1998). Das Bus [The Simpsons]. In P. Producer (Producer). Los Angeles, CA: Gracie Films, 20th Century Fox Television.

Tuesday, October 16, 12

Web hosting

๏Equivalent of a traditional business’s brick-and-mortar building

๏Choose the right host for your type of business

๏Photos and video

๏Shopping cart and secure processing

๏About $10 per month

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Domain name

๏This is the sign on your storefront

๏Think of branding and be unique

๏Sends a message about who you are

๏Register with ICANN-accredited registrar: http://www.internic.net/regist.html

๏About $10 per year

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Create a website

๏Create yourself

๏Hire a designer

๏Look at competitors’ sites

๏Consider a blog or resource center

๏Ranges from $1,000 to $10,000 to hire

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Driving traffic

๏Market yourself

๏Search Engine Optimization (SEO)

๏Use keywords

๏Link to other sites

๏Consider advertising

๏Social media

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Market analysis

๏Emerging trends

๏Segmentation

๏Target market segment strategy

๏Industry statistics

๏Uses of service or product as a benefit

๏Competition and buying patterns

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Market analysis๏Your Market

๏Your Ideal Customer

๏Your Products’ Benefits

๏Your Competition

๏Compare on these factors:ProductsPriceQualitySelectionServiceReputationAppearanceImage

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Online business regulations

๏Anti-cybersquatting Consumer Protection Act of 1999 (ACPA) 15 U.S.C. 1125 (d)

๏Federal Trade Commission

๏Children’s Online Privacy Protection Act of 1998

๏Local, state and federal laws and taxes

๏International trade law

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Business plan summary๏Idea and research

๏Marketing plan

๏Business structure

๏Web hosting

๏Domain name

๏Website

๏Drive and monitor traffic

๏Obey laws

๏Pay taxes

๏Keep scrupulous records

Tuesday, October 16, 12