Creating an E-Business Plan

1
Creating an E-Business Plan

• Chapter 4

2
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.

3
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

4
Small Business Administration
5
Startup Help
6
Elements of a Plan

• Coversheet
• TOC
• Executive Summary
• Description of Idea
• Information about products or services offered

7
Elements of a Plan 2

• Industry analysis
• Operating, marketing, financial and management
  plans
• Identification of critical risks
• Exit strategy

8
Cover Sheet and Title Page

• Identifies the name of the business and author.
• May identify the addressee of proposal

9
Table of Contents

• Lists all sections and subsections by page
  number.
• Must be well organized and accurate

10
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.

11
Vision and Mission Statements

• An overall statement of the business's goals and
  philosophy.
• Define your purpose
• Know your intended audience

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A Vision Statement
13
A Mission Statement
14
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

15
Industry Analysis

• An analysis of the business environment.
• Focus on the basic industry segment
• Based on verifiable data and market research.

16
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

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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

18
Operations Plan

• Description of the business
• Location, equipment needs
• Labor needs
• Manufacturing
• Logistics
• Integration of Internet services

19
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

20
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.

21
Issues analysis and Critical Risks

• Identifies threats or opportunities faced from
  outside influences.
• These include economic outlook, innovations,
  environmental and governmental factors.

22
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.

23
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.

24
E-Business Partnerships

• Many e-businesses establish partnerships with
  firms in their value chain.
• Potential partnerships should be detailed in the
  business plan.