e-commerce Business Plan
The main reason that some people take opportunities when they arise, and others do not, is that some people are ready.
They have their e-commerce Business Plan ready and all they need to do is take advantage of the opportunities.
Where can you find the right e-commerce Business Plan?
If your e-commerce Business is based in the United States - click here
If your e-commerce Business is based in the U.K. - click here
e-commerce Business Plan
Your e-commerce Business Plan must form a clear account of your individual and business aims, the rationale for why they are within reach, and how you will be achieving the objectives. Your business plan will question your branding, the purchaser your company needs and in what way the e-commerce Business should be looked at by your audience.
Your business plan will be the leading document you'll use for observing how your company is put together. You'll utilize the plan to check progress, hold your employees accountable and run the e-commerce Business. Developing your business plan will ensure you review everything your organization does:
- customer relationship - the advantages of what you'll deliver to possible customers,
- potential marketing assumptions - projections of your potential market size, anticipated competition and significant economic considerations,
- operations plan - linking key strategic goals and objectives to tactical goals and objectives and setting target dates,
- financial calculations with an estimation of cash requirements and details on how the organization will be funded
- staffing plan - outlining the way you'll organize your staff and resources to meet the businesses needs.
By establishing your business plan you will discover issues that may have been missed. This means you'll establish handy partnerships, target dealers and find out the perfect method for getting the Business that you need. You will list crucial marketing and organizational target dates and the e-commerce Business Plan will become a baseline for auditing your organizations improvement.
You need definite landmarks together with specific completion dates and what you will learn will help you operate your e-commerce Business and set up the successful business that you need.
The Ten Issues All e-commerce Businesses Must Address In Their Business Plan.
Why do only 10% of e-commerce Businesses ever get financed? The straightforward truth is that there are too many businesses going after too little capital. However the majority of investors will state that the true reason is that there are too few "quality" business plans.
Without doubt, you and any likely investor will always consider the qualities of your e-commerce Business in wholly distinct ways. Many new business owners often make the error of not understanding that financiers will essentially evaluate the quality of their e-commerce Business relative to the other deals their company is considering, in preference to other similar businesses.
You need to understand the plain truth that raising money is not simply about marketing yourself, and your business, to win a limited amount of available funds. Instead, it is really a contest against other startups to win the interest of likely investors. Business owners who are the best at obtaining finance understand this basic point, and promote their business based upon this knowledge.
Assuming that you have identified that there is a broad and expanding opportunity for your businesses products, what are the other issues that you need to consider when presenting an idea or new business to a potential financial backer?
Here are ten things that you should be appreciative of, if you want to get the financing that you require into your e-commerce Business:
- Getting your business plan reviewed or are you at the bottom of the pile? In any given year, investors receive around 600 business plans; 50 plans per month. These must be considered whilst the lender is handling due diligence on other opportunities and actively participating in their organizations current portfolio: attending board meetings, general administration, and working with management and staff. Given they have these obligations, most decision-makers are left with little time to fully review plans for new investments, therefore a plan that is referred by someone who has a connection with the lender, such as the president or a senior executive of an existing portfolio company, a lawyer, or even another lender, will secure more consideration, and will climb to the top of the pile.
- The Right Management: If you do not possess, or cannot entice, the ideal management team, you can never maximize the opportunity for your organization. Any potential lender will want to ensure your businesses management team can demonstrate suitable experience and the skill to carry out the plan, making changes or taking difficult decisions to ensure the business stays on course. Your business must already have, or are able to engage, the people that are essential to achieving success over the longer term.
- Spelling out your companies sustainable competitive advantage: Far too many small business owners aim their competitive focus solely at similar new entrants, and fail to address the established businesses in their market. These companies usually have the cash, patents, research programs, delivery networks, and relationships to easily kill off unprepared new businesses. Small business owners should present a defensible and continuing competitive edge in their e-commerce Business Plan.
- Describing who will be purchasing your companies services: If you cannot find customers, your company will soon collapse. The subject your business plan must concentrate on is how will the company generate revenues? In order to make your plan believable, you need to do at least one of two things: compare your financials against a comparable public company in its early stages (statistics that are available from online filings and software like ours; or, prove your pricing policy by demonstrating how much potential clients will pay and what distributors will charge. You need to clearly establish that you have been conversing with, and understand the requirements of, actual customers.
- You must give investors reasons to say "yes": Do not stop building your company while you are attempting to raise funds. New clients / sales will validate your business plan and create confidence. If your business can make progress and good things take place during the fundraising process, you will boost the probability of gaining the funding that you are seeking for your e-commerce Business.
- Setting out the personnel that your organization will need: If really good people commit to joining your business when it has been funded, it is a real positive. If you cannot demonstrate that the appropriate prospective employees are interested, then lenders may have misgivings about the qualities of your company and will be less predisposed to lend. It is your obligation to convince prospective lenders that you can create a team that can carry out your plans.
- Your e-commerce Businesses vital Executive Summary: This will be your first, and usually only, opportunity to impress prospective investors. Only a few people, maybe only you, will read through your entire business plan. For all that, many lenders will read through the executive summary. Your executive summary should be your businesses main sales document, while the rest of your business plan should only serve to support the wording in it. An overlong business plan might indicate to possible investors that you are spending far too much of your time analyzing and not enough time executing.
- Finding the right lender: You must know your lender. You have to figure out the type of investment they are looking for, and then make up you mind if your deal is the correct fit. For instance, it is self-evident that you must not send your businesses plan to an investor that only invests in certain markets, that have little to do with your business.
- Know the person making the decision: Securing support from one person might or might not make the deal happen. All investors have a prescribed system for how loans will be sanctioned; many may require seemingly countless levels of approval. Whatever the circumstances, you should find out how the investment decision will be taken and conduct the politics appropriately.
- Location does matter: A constant trait of small businesses is that there is a lot of system building to be done. Almost all investors will want to work with you and your company and cannot afford to spend their valuable time traveling. Due to this, it is a good idea to start with local lenders prior to spreading your search wider.
A Great e-commerce Business did not just happen - It was planned that way.