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

12. 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

17. 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.