A business plan is an essential document that all ecommerce entrepreneurs should have at their finger tips. Keep the business plan updated in order to reflect changes to your business – this will also ensure you have it ready when you need it.
What do you need to include in your ecommerce site’s business plan? Here are the key parts:
1. Executive summary
Write your ecommerce business’s history and mission statement. This should include information about your products and your office, the equipment used for your business and your employees. Make sure you also outline your goals for your ecommerce business, such as increased traffic and sales.
2. Market analysis
Who buys from your ecommerce site? Are they men or women, what age bracket, where do they live? How do they find your site? Write down how you market to them so they visit your site and buy from you.
3. Competitor analysis
What shops – both online and in the high street – sell the same products as you? Explain how your business is different to theirs (for example, what are your shipping costs, how quickly do you deliver, are your products different?). Make sure you also describe how you will set your ecommerce site apart from them.
4. Finances
Provide your business’s financial details. Over the next year, what are your projected sales and expenses? Do you plan on hiring more staff? Include both the assets and liabilities from your balance sheet.
5. Day-to-day operations
Here is your opportunity to describe the daily operations of your ecommerce site. This includes how the business is run day to day, from website statistics to marketing, orders to shipping and customer service.
6. Management
Describe your ecommerce business’s management team. Who takes care of day-to-day operations? Who looks after the website? Who does customer service and marketing? Also include information about the skills and experience that these people have.
7. AOB
Anything that does not fit into previous sections should be included here…if relevant. This could, for example, include website certification, information about your payment processes and copies of the website.
Finally, ensure you collate all of this information into a business plan document. It needs to look clean and professional, so any prospective lenders or investors know you mean business.
