business plan for e-business

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  • 8/11/2019 Business Plan for e-Business

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    CREATING A BUSINESS PLAN

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    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

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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

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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

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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

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    EXECUTIVE SUMMARY

    Can include brief information on:

    The staff and management team

    A definable market

    Any competitive advantages Financial projections

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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

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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

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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

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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

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    MARKETING PLAN

    Marketing strategies

    Marketing budget

    Action plan

    describe specific promotional tasks

    when they start / end

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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