Creating a Winning E-Business Second Edition

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Creating a Winning E-BusinessSecond Edition

• Creating an E-Business Plan
• Chapter 3

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Learning Objectives

• Organize a business plan
• Prepare an executive summary
• Write a mission statement
• Prepare a marketplace analysis
• Create operational, financial, and management
  plans

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Learning Objectives(continued)

• Understand legal forms of businesses
• Describe e-business partnerships

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Business Plan Organization

• Business plan
• Formal business planning document
• Identifies the business and its mission
• Names the key management team members
• Describes the products or services to be offered
• Provides a marketplace analysis
• Identifies customers and competitors
• Determines resources for profitable operations
• Sets a timetable for profitability

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Business Plan Organization(continued)

• Government and for-profit sources for business
  planning information and templates
• SCORE
• SBA
• BizPlanIt
• Bplans.com
• E-Future Centre

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Business Plan Organization(continued)
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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Business plan components
• Cover sheet and title page
• Table of contents
• Executive summary
• Business description
• Vision/mission statement

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Business Plan Organization(continued)

• Business plan components (continued)
• Information on products/services
• Industry, customer, competitor analyses
• Operational, financial, and managerial plans
• Identification of critical risks
• Exit strategy

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Business Plan Organization(continued)

• Cover sheet
• Title of document and preparers name
• Plan copy number
• Confidential notation
• Title page
• Cover sheet information and
• Contact numbers
• Key team members names
• Name of person receiving the plan

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Business Plan Organization(continued)
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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Table of contents
• Lists all the major sections and subsections of
  the plan
• Prepared after rest of plan is complete
• Carefully checked for omissions and page number
  errors

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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Executive summary
• A condensed version of the complete plan
• Used by interested parties to quickly assess the
  business idea and weed out plans
• Keep it short (one to three pages)
• Use clear and concise language and action words
• Create last after plan details are developed

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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Vision statement
• A formal statement of a businesss hopes and
  desires
• Written to guide and inspire employees
• Mission statement
• A formal statement that explains a businesss
  reason for existing

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Business Plan Organization(continued)

• Business description
• Summary of businesss background
• Information about legal form of business
• Businesss history to date
• Key personnel
• Future goals

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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Products or services section
• Description of products or services offered
• Anticipated sales for each product or service
• Describes benefits of product or service to
  customers

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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Marketplace analysis
• Information about the specific industry of which
  business is a part
• Description of targeted customers
• Description of major competitors
• Overview of marketing and sales strategies

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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Operational plan
• Describes a businesss physical location and
  equipment
• Notes the manufacturing or service actions needed
  to get products/services to market
• Summarizes Web site operations

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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Financial plan
• Explains how your e-business idea, goals, and
  strategies translate into profits
• Provides standard financial statements for
  income, expense, and cash flow data
• Pro forma balance sheet
• Projected income statement
• Planned cash flow statement
• May include deal plan, break-even analysis,
  ratio analysis

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Business Plan Organization(continued)
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Business Plan Organization(continued)
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Business Plan Organization(continued)
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Business Plan Organization(continued)
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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Management plan
• Organizational structure of business
• Information on
• Key members of management team
• Outside advisors
• Mentors
• Consultants

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Business Plan Organization(continued)
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Business Plan Organization(continued)
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Business Plan Organization(continued)

• Appendices
• Resumes
• Pictures of products
• Explanation of services
• Legal documents
• Other supporting documentation

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Legal Forms of Organization

• Sole proprietorship
• Business started by an individual
• Owner and business are one in the same for tax
  and legal liability issues

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Legal Forms of Organization (continued)

• Partnership
• Legal business entity with two or more co-owners
• Follows a partnership agreement
• General partnership Tax and legal liabilities
  flow through to individual partners
• Limited partnership
• General partner manages and assumes unlimited
  liability
• Limited partners have liability for amount of
  their capital contribution and their accepted debt

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Legal Forms of Organization (continued)

• Corporation
• Separate legal and taxable entity from its owners
• C corporation owners are it shareholders
• Liability is limited to investment in business
• Profits are taxed twice once for the corporation
  and again when distributed to owners as stock
  dividends

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Legal Forms of Organization (continued)

• Corporation (continued)
• S corporation gives owners partnership status
  and corporate liability protection
• Limited liability company (LLC)
• Tax status of sole proprietorship or partnership
• Liability status of a corporation

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E-Business Partnerships

• Strong positive relationships with strategic
  partners are critical
• Partnerships that help build market awareness
• Public relations firms
• Marketing consultants
• Partnerships that assist in operations
• Suppliers
• Distributors
• Web hosting companies

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Chapter Summary

• A business plan is used to
• Check feasibility of business
• Seek funding
• Guide operations
• A business plan includes
• Cover sheet and title page
• Table of contents and executive summary
• Marketplace analyses
• Operational, financial, and marketing plans

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Chapter Summary(continued)

• Business plan appendices can include
• Resumes
• Pictures of products and information on services
• Legal documents
• Other supporting details for the overall plan

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Chapter Summary(continued)

• Business description should include legal form of
  business
• Business plan should note key strategic
  partnerships