What is E-Commerce Business Plan
Just because you are opening an e-commerce store does not mean that you do not need a business plan. If you do not have a physical location for your business premises such as an actual store which people can physically visit as opposed to the e-store you have, does not mean you do not need no planning in terms of your business structure and for its future. An e-commerce business is just like any other business. It requires planning and a solid plan laid out which can be followed.
There are multiple reasons why you need a business plan; to let your employees know what you are doing, to have an idea of what your business will be like initially, to secure funding or a loan and many more. To be taken seriously you need to have a serious business plan. But first make sure you are using a good ecommerce platform. We recommend Shopify because it is a reliable one and simple to use.
Here are a few things you need to include in your e-commerce business plan:
1. Executive Summary
These are just the basics about your business. You need to talk about what products you are selling, what unique selling point your e-commerce business has over others. If there is a gap in the current market that you will be filling. Write down the hierarchy; your managing team and employees. Make predictions for your costs and profits and how much money you need. Mostly the executive summary is viewed by people investing in your business or loan officers. This is the first thing which will help them decide whether your project is something they want to fund. Having a strong executive summary will get you through the preliminary round of getting funded or a loan.
2. Background Information
This will basically explain the background information about your business. When you conceived the idea and what you envisioned it as. Who you are working with, who gets how much equity in the company; where did you get your initial funding. Who are your competitors, how much success have your competitors amassed, the demographics and psychographics of your target market. If you have started your business already, how much success have you seen in the recent past. All these questions and more have to be answered.
3. Competitor Information
This is incredibly important. You need to know everything there is to know about your competitors, what they are doing and how they are doing it better. You need to have a clear idea about your competitors since these are the people you will be trying to get business from. Find out about who their vendors are, who they ship through, where they store inventory and everything you possibly can so you can be as competitive as them as you can.
4. Marketing Plan
Coming up with a marketing plan is very important for your e-commerce business plan since this is the way you will bring awareness amongst your target market about your business. You need to know where exactly you will advertise, for how long, at what times and what it costs for one advert to be put up on that site. You will decide the visuals and the copy and what not. You need to first identify what websites your target market frequents and at what times, this is how you will then decide if you will advertise.