Creating a Winning E-Business Second Edition

Creating an E-Business Plan Chapter 3

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

Creating a Winning E-Business Second Edition, Chapter 3

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Learning Objectives (continued) 
Understand legal forms of businesses  Describe e-business partnerships

Creating a Winning E-Business Second Edition, Chapter 3

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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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Creating a Winning E-Business Second Edition, Chapter 3

Business Plan Organization (continued)  Government and for-profit sources for business planning information and templates ± ± ± ± ± SCORE SBA BizPlanIt Bplans.com E-Future Centre Creating a Winning E-Business Second Edition. Chapter 3 5 .

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 6 .

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 7 .

Chapter 3 8 .Business Plan Organization (continued)  Business plan components ± ± ± ± ± Cover sheet and title page Table of contents Executive summary Business description Vision/mission statement Creating a Winning E-Business Second Edition.

customer. and managerial plans Identification of critical risks Exit strategy Creating a Winning E-Business Second Edition.Business Plan Organization (continued)  Business plan components (continued) ± ± ± ± ± Information on products/services Industry. financial. Chapter 3 9 . competitor analyses Operational.

Business Plan Organization (continued)  Cover sheet ± Title of document and preparer¶s name ± Plan copy number ± ³Confidential´ notation  Title page ± Cover sheet information and ‡ Contact numbers ‡ Key team members¶ names ‡ Name of person receiving the plan Creating a Winning E-Business Second Edition. Chapter 3 10 .

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 11 .

Chapter 3 12 .Business Plan Organization (continued) Creating a Winning E-Business Second Edition.

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 Creating a Winning E-Business Second Edition. Chapter 3 13 .

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 14 .

Chapter 3 15 .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 Creating a Winning E-Business Second Edition.

Chapter 3 16 .Business Plan Organization (continued) Creating a Winning E-Business Second Edition.

Business Plan Organization (continued)  Vision statement ± A formal statement of a business¶s hopes and desires ± Written to guide and inspire employees  Mission statement ± A formal statement that explains a business¶s reason for existing Creating a Winning E-Business Second Edition. Chapter 3 17 .

Business Plan Organization (continued)  Business description ± ± ± ± ± Summary of business¶s background Information about legal form of business Business¶s history to date Key personnel Future goals Creating a Winning E-Business Second Edition. Chapter 3 18 .

Chapter 3 19 .Business Plan Organization (continued) Creating a Winning E-Business Second Edition.

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 Creating a Winning E-Business Second Edition. Chapter 3 20 .

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 21 .

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 Creating a Winning E-Business Second Edition. Chapter 3 22 .

Chapter 3 23 .Business Plan Organization (continued) Creating a Winning E-Business Second Edition.

Chapter 3 24 .Business Plan Organization (continued)  Operational plan ± Describes a business¶s physical location and equipment ± Notes the manufacturing or service actions needed to get products/services to market ± Summarizes Web site operations Creating a Winning E-Business Second Edition.

Chapter 3 25 .Business Plan Organization (continued) Creating a Winning E-Business Second Edition.

and cash flow data ‡ Pro forma balance sheet ‡ Projected income statement ‡ Planned cash flow statement ± May include ³deal plan.Business Plan Organization (continued)  Financial plan ± Explains how your e-business idea. ratio analysis Creating a Winning E-Business Second Edition. goals. Chapter 3 26 . and strategies translate into profits ± Provides standard financial statements for income. expense.´ break-even analysis.

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 27 .

Chapter 3 28 .Business Plan Organization (continued) Creating a Winning E-Business Second Edition.

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 29 .

Chapter 3 30 .Business Plan Organization (continued) Creating a Winning E-Business Second Edition.

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 31 .

Chapter 3 32 .Business Plan Organization (continued)  Management plan ± Organizational structure of business ± Information on ‡ ‡ ‡ ‡ Key members of management team Outside advisors Mentors Consultants Creating a Winning E-Business Second Edition.

Chapter 3 33 .Business Plan Organization (continued) Creating a Winning E-Business Second Edition.

Business Plan Organization (continued) Creating a Winning E-Business Second Edition. Chapter 3 34 .

Chapter 3 35 .Business Plan Organization (continued)  Appendices ± ± ± ± ± Resumes Pictures of products Explanation of services Legal documents Other supporting documentation Creating a Winning E-Business Second Edition.

Chapter 3 36 .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 Creating a Winning E-Business Second Edition.

Chapter 3 37 .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 Creating a Winning E-Business Second Edition.

Chapter 3 38 .Legal Forms of Organization (continued)  Corporation ± ± ± ± Separate legal and taxable entity from its owners ³C´ 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 Creating a Winning E-Business Second Edition.

Legal Forms of Organization (continued)  Corporation (continued) ± ³S´ 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 Creating a Winning E-Business Second Edition. Chapter 3 39 .

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 Creating a Winning E-Business Second Edition. Chapter 3 40 .

financial. and marketing plans 41 Creating a Winning E-Business Second Edition. Chapter 3 .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.

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 Creating a Winning E-Business Second Edition. Chapter 3 42 .

Chapter 3 43 .Chapter Summary (continued)  Business description should include legal form of business  Business plan should note key strategic partnerships Creating a Winning E-Business Second Edition.

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