Writing a business plan proposal
Practical aspects of writing a business plan proposal for an ecommerce business.
Planning the Ecommerce Business
Most e-businesses fail because:
1. the business plan is not properly researched and implemented,
2. ecommerce is not sufficiently integrated with current business, and
3. proper advice is unsought — not for reasons of cost or limited time, but because the company doesn't see a need until too late.
Practical aspects of writing a business plan proposal for an ecommerce business.
Planning the Ecommerce Business
Most e-businesses fail because:
1. the business plan is not properly researched and implemented,
2. ecommerce is not sufficiently integrated with current business, and
3. proper advice is unsought — not for reasons of cost or limited time, but because the company doesn't see a need until too late.
The business plan has to be sound because:
* you'll not manage effectively without targets and strategies clearly set out.
* funding agencies won't invest without having detailed plans to examine.
* a good plan ensures that the vital questions are properly addressed.
* the plan forms the basis of the records you'll have to submit to the tax authorities.
A good business plan is one that works, and therefore has to be specific, simple, realistic and complete.
How complete? To raise venture capital, or secure a large private placing, you'll need to cover all aspects at length, backed up by documented research. If, on the other hand, yours is a part-time business needing no additional finance, then the plan can be a few pages. But one thing is essential. A business plan is a support and guide in the years ahead — which means it absolutely has to be clearly thought-out and honest. Skimp or kid yourself, and grief will surely follow.
A business plan will be tested against and extended to meet new circumstances and opportunities, but initially at least will cover four areas:
* Nature of Business
* Marketing
* Financial Control
* Management
Taking these in turn, you'll be providing answers to:
* Nature of the Business
o what are you selling?
o what's the company name and domain name?
o how is it going to make money, precisely?
o start-up date?
o projected turnover and profit? By when?
o overall goals and objectives?
* Marketing
o how are your products or services better/cheaper/more attractive?
o how will you advertise, on and offline?
o what's your pricing policy?
o what's the competition, and how will you cope?
o what are the prospects in your market sector?
* Financial Control
o who's supplying the startup or seed capital?
o how long before the business is profitable?
o what's the break-even point in services or units sold?
o for the first 3 years what are the projected
+ cashflows
+ income statements
+ balance sheets
* Management
o how many hours per month will it take to:
+ fulfill orders
+ update content
+ market the site
+ handle the accounts
+ produce reports
o who's doing this work, and at what cost?
o what staff need to be recruited, and when?
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