Creating an E-Business Plan
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Transcript of Creating an E-Business Plan
Creating an E-Business Plan
Chapter 4
E-Business Plan Organization
• A e-business plan is used to seek funding for an new or existing e-business.
• It serves as a “Blueprint” for operations after the business is founded.
• Developing a plan takes time effort and thought.
• Many sources of help for the e-entrepreneur.
Business Plan Help Sources
• Small Business Administration (SBA)
• Service Corps of Retired Executives (SCORE)
• Small Business Advancement National Center (UC Arkansas)
• Others….
• Commercial Sources i.e.. BisPlanit.com
Small Business Administration
Startup Help
Elements of a Plan
• Coversheet
• TOC
• Executive Summary
• Description of Idea
• Information about products or services offered
Elements of a Plan 2
• Industry analysis
• Operating, marketing, financial and management plans
• Identification of critical risks
• Exit strategy
Cover Sheet and Title Page
• Identifies the name of the business and author.
• May identify the addressee of proposal
Table of Contents
• Lists all sections and subsections by page number.
• Must be well organized and accurate
Executive Summary
• An overall view of the entire plan
• May be used to screen plans by bankers and investors.
• Should highlight key points including the idea, the competitive situation, the financials and the “players”.
Vision and Mission Statements
• An overall statement of the business's goals and philosophy.
• Define your purpose
• Know your intended audience
A Vision Statement
A Mission Statement
Products and Services
• A description of each product or service you plan on offering.
• Level of detail is important.
• Enough for the reader to understand and not to be confused
Industry Analysis
• An analysis of the business environment.
• Focus on the basic industry segment
• Based on verifiable data and market research.
Marketing Plan
• A critical element of the plan.
• Target market description
• Demographic, geographic, and psychographic characteristics of market
• Competitive analysis
• Objectives, tactics, and strategies
• Budget and timeframe
Marketing Plan
• Marketing Objectives should be clearly stated, measurable, and lead to sales.
• Marketing Strategies describe the features of the products, and services offered, and pricing strategies.
• Marketing Budget is an estimate of the costs for all the activities described in the marketing strategies portion of the plan
Operations Plan
• Description of the business:– Location, equipment needs– Labor needs– Manufacturing – Logistics – Integration of Internet services
Financial Plan
• Shows the reader how all the ideas, concepts and strategies described elsewhere come together in a profitable way.
• The plan should include pro forma– Balance sheet– Income statement– Cash flow statement
Management Plan
• A strong management team is critical as many investors base their decision on this factor.
• The plan should list and describe the experience base and background of the key indivduals who will be involved in the day-to-day operation of the firm
• The Plan should detail those areas that will be outsourced.
Issues analysis and Critical Risks
• Identifies threats or opportunities faced from outside influences.
• These include economic outlook, innovations, environmental and governmental factors.
Exit Strategies
• How will investors get their money back?
• Describe long term plans….– Public Offering (IPO)– Acquisition/merger– Sale to others….
• Discussion of these issues adds credibility.
Legal Forms of Organization
• There are three basic forms of legal organization for a firm– Sole Proprietorship
– Partnership
– Corporation
• Complex legal and tax issues are involved; form chosen is highly contingent on individual circumstances. Seek counsel from attorney and accountant.
E-Business Partnerships
• Many e-businesses establish partnerships with firms in their value chain.
• Potential partnerships should be detailed in the business plan.