What is a Business Plan and How to Prepare it?

Ecommerce sector always requires a business entrepreneur to have a business plan and a strong decision to gain success within terms of this plan. Without planning nobody has the opportunity to improve his/her business since plans can lead the way to the success. A business plan is a kind of guidance and a proof to be shown the angel investors and VC that you deserve their support. Since ecommerce has a strong relation with technology, fast and variable ambience, a successful business plan for an ecommerce entrepreneurship must have some features. So what should a business plan have? And why should a business owner create a business plan?

4 Reasons to Prepare a Business Plan

It shows “Profitable” aspects

You can have a brilliant and unique idea but it is impossible to know exactly whether it will bring profit to you or not. And at this point a business plan clears your mind and makes your idea match with the reality.

It provides financial guarantee

A business plan enlightens a business entrepreneur about how much money he/she will need. All possible expenses in the future can be taken into account in advance.

It defines specific priorities

An efficient business plan is a real guidance for an entrepreneur and defines all the steps to be taken during operational process.

It places milestones

What you have done for the long term will define your future success. And a business plan helps you to find the right way to follow within long and short terms.

8 steps to Create a Business Plan

8 steps to Create a Business Plan

1. Business Plan Summary

In this section, you should that the entrepreneur’s identity, the business description and building period of this business.

2. Personal Characteristics of the Entrepreneur

Here you need to write down educational background, previous jobs, and knowledge-skills-experience information of the entrepreneur. Also the reasons to choose this sector and short-long-term plans of the entrepreneur should be mentioned here.

3. Basic Features of the Business

All the information related to juridical status, partnership structure and features are to be added to this section.

4. Market and Demand Efficiency

In which sector are your products or services included? What do you have about potential customers, data, and labor market and research results? Have you got important information about customers, to whom you will offer service? What are the basic factors for competitor analysis and advertisement/promotions? All the answers are covered by this section.

5. Marketing Plan

You can consider it as a detailed explanation of Point 4. Target market and regions are explained here. All the steps for competition, negative and positive aspects of the business idea, and measures to be taken against these negative aspects should be written down. Sale values of products and services are defined upon preparation of monthly/yearly sale plans.

6. Manufacturing/Supplying Process

This section covers the process in which the product or service are get ready and delivered to the customers. Alternative methods should be stated in addition to labor information and 3-5 years of capacity rates.

7. Management Plan

Business management, control and administrative processes are included into this section. Job descriptions of purchasing and marketing departments, administrative staff should be stated here.

8. Financial Plan

Loan, capital, equity capital or investment funds needed for the entrepreneurship should be considered within “Structure Table of Finance”. Profit and loss account statement, break-point analysis is also to be defined.

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