How to Write a Business Plan for an eCommerce Business

Your Retail Coach

How to Write a Business Plan for an eCommerce Business

Index Your Retail Coach

1. Introduction 2. Business identity 3. Market Analysis 4. Marketing strategy 4a. Product

4b. Pricing

4c. Promotional

4d. Place

5. Financial Planning 6. Other Operations Details 7. Executive Summary

1. Introduction Your Retail Coach

 There is an old proverb, “failing to plan is planning to fail”  In a business plan, we describe how we are going to achieve our business goals  To become successful built a road map, stick to it, and keep improvising it

Index

2. Business identity Your Retail Coach  In a business plan, while presenting the identity of a business entity it should cover all the important and relevant aspects  The details should cover  The name of your company  Background information about your company  ECommerce business model  Regulatory licenses, awards and achievements  Ownership and Leadership  vision and mission statements  The nature of business and industry  Target market segment  Offerings, USP, UVP, or any strategic advantage  Any other factual information that helps better define your company’s identity

Index

3. Market Analysis Your Retail Coach  A market analysis report presents the attractiveness and conduciveness of a market for business with a holistic approach  A good market analysis cover the following  Industry performance and trends  Market size and the demand estimates  Market trends  Availability of suppliers and distributors  Logistical ease  Demographics and customer profiling  Competitors and intensity of competition, the threat of new entrants  Substitute products, emerging products  Market-entry and exit barriers  Economic, legal and regulatory, political, social, technological, ecological factors  Bargaining edge

Index

4. Marketing strategy Your Retail Coach

 Marketing begins with the business idea itself and extends to how that idea can be converted into and delivered as a solution to the customers  4Ps of marketing include:  Product  Pricing  Promotional  Place

Index

4a. Product Your Retail Coach

 A product is basically a solution to a certain set of needs and wants  A product is also accompanied with essential features and with value addition  According to Philip Kotler, a product could be defined at 5 different levels.  Core Product  Generic Product  Expected Product  Augmented Product  Potential Product

Index

4b. Pricing Your Retail Coach

 Price of your product/service is a significant determinant of how the current market will respond to your offering  Product pricing strategy must establish how it is going to benefit the business  Pricing Strategies include:  Premium pricing  Penetration pricing  Economy pricing  Skimming strategy

Index

4c. Promotional Your Retail Coach

 A promotional strategy should present how a business is going to create awareness in its targeted market segment  The key forms of promotion are:  Advertising (television, print media, social media, billboard, SEM etc.)  Sales Promotion (discounts, stock clearance sales, freebies, etc.)  Personal Selling (one-to-one communication)  Direct marketing (SMS, emails, door to door, etc.)  Public Relations

Index

4d. Place Your Retail Coach

 The ‘place’ element of marketing commonly denotes the distribution strategy  A distribution strategy should lay out the planned journey of a finished product from its source to its destination via intermediaries

Index

5. Financial Planning Your Retail Coach  Forecasting the financial feasibility of an intended business venture  Some of the important principles, concepts and tools of financial management:  Assessment of capital requirements, source(s) of capital, capital structuring, cost of capital, terms of repayment, etc.  Operational expenditure budget  Sales forecasts  Projected cash flow  Planning for working capital management  Projected income statement  Projected profit and loss statement  Projected balance sheet  Break-even analysis  Ratio analysis

11

Index

6. Other Operations Details Your Retail Coach

 Supply chain and logistics – Production-related, distribution, and returns  The

organization,

Human

Resources,

and

Administration  IT and technological platforms

Index

7. Executive Summary Your Retail Coach

 An executive summary is a pilot blueprint of your intended business idea  The

executive

summary

should

highlight

the

potential

attractiveness of the business idea backed up the rest of the business plan  It should briefly cover all the important areas which could be of potential interest to investors and other stakeholders  An executive summary may be prepared at last but be presented at first in a business plan

Index

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