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  • 1. Creating an E-Business Plan Chapter 3 Creating a Winning E-Business Second Edition MIS/ENTR 375 Global E-Commerce
  • 2. Learning Objectives
    • Organize a business plan
    • Prepare an executive summary
    • Write a mission statement
    • Prepare a marketplace analysis
    • Create operational, financial, and management plans
    • Understand legal forms of businesses
    • Describe e-business partnerships
  • 3. 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
  • 4. Business Plan Organization (continued)
    • Government and for-profit sources for business planning information and templates
      • SCORE
      • SBA
      • BizPlanIt
      • E-Future Centre
  • 5. Business Plan Organization (continued)
    • Business plan components
      • Cover sheet and title page
      • Table of contents
      • Executive summary
      • Business description
      • Vision/mission statement
  • 6. 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
  • 7. Business Plan Organization (continued)
    • Cover sheet
      • Title of document and preparer’s name
      • Plan copy number
      • “Confidential” notation
    • Title page
      • Cover sheet information and
        • Contact numbers
        • Key team members’ names
        • Name of person receiving the plan
  • 8. 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
  • 9. 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
  • 10. Business Plan Organization (continued)
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. Business Plan Organization (continued)
  • 18. Business Plan Organization (continued)
  • 19. Business Plan Organization (continued)
    • Management plan
      • Organizational structure of business
      • Information on
        • Key members of management team
        • Outside advisors
        • Mentors
        • Consultants
  • 20. Business Plan Organization (continued)
    • Appendices
      • Resumes
      • Pictures of products
      • Explanation of services
      • Legal documents
      • Other supporting documentation
  • 21. 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
  • 22. 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
  • 23. 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
  • 24. 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
  • 25. 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