concepts have been explained further its a continuation of the previous presentation

1. Creating a Winning E-Business
Second Edition
Creating an E-Business Plan
Chapter 3

2. Creating a Winning E-Business Second Edition, Chapter 3 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

3. Creating a Winning E-Business Second Edition, Chapter 3 3
Learning Objectives
(continued)
 Understand legal forms of businesses
 Describe e-business partnerships

4. Creating a Winning E-Business Second Edition, Chapter 3 4
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

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

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

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

8. Creating a Winning E-Business Second Edition, 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

9. Creating a Winning E-Business Second Edition, Chapter 3 9
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

10. Creating a Winning E-Business Second Edition, Chapter 3 10
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

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

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

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

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

15. Creating a Winning E-Business Second Edition, 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

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

17. Creating a Winning E-Business Second Edition, Chapter 3 17
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

18. Creating a Winning E-Business Second Edition, Chapter 3 18
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

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

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

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

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

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

24. 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

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

26. Creating a Winning E-Business Second Edition, Chapter 3 26
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

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

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

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

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

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

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

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

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

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

36. 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

37. 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

38. Creating a Winning E-Business Second Edition, Chapter 3 38
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

39. Creating a Winning E-Business Second Edition, Chapter 3 39
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

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

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

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

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