The Internet has made starting a business more accessible than it was in the past. Now, anyone can start a business online and see a reasonable profit if executed right. This is called eCommerce.
Many eCommerce platforms have come up, making it easy for anyone with a product to set up shop.
If you are thinking of starting a successful eCommerce site, then we highly recommend that you draft up an eCommerce business plan first.
This article covers eight easy steps you can follow in your eCommerce business planning.
Steps to writing a successful eCommerce business plan
1. Company summary
Your company summary comes first. It doesn’t matter if it is only an online store. Writing a company summary is essential to the success of your business.
Your summary should involve;
- The company goals and objectives.
- An overview of your startup plan.
- Your plan to fulfill the requirements of the business.
2. Product analysis
The next step of your business plan is to create a product analysis. This section will provide a detailed overview of the products your company intends to render. It should touch upon the following areas;
- How you intend to get your products. Do you intend to buy or manufacture the products?
- Product cost analysis. Analysis of how much you will need to have the product available for consumers
- Product lifecycle. Mention how long the product can last, and whether or not consumers can recycle your product.
3. Market analysis
Next, you need to analyze the market. The goal behind this section is to discover if you have a demand for the products you want to sell. It analysis the viability of implementing your eCommerce business idea. Some tips for creating a practical market analysis;
- Ensure that consumers are looking for the product you want to supply.
- Discard the; if I build it, they will come, mentality.
- Avoid markets where there is strong monopoly power.
- Invest in proper market research.
4. Business strategy and implementation
When creating your eCommerce business planning, a solid business strategy is necessary for success. eCommerce has one of the most diverse and easy to apply business strategies.
This section includes sales projections per quarter and how you intend to acquire or attract new customers.
Remember, it’s not enough to create a business strategy; you also have to make a successful strategy implementation plan.
5. Market Strategy
This is one of the most diverse sections of your business plan. In this section, you should identify what marketing method you want to use to market your new online business;
- Paid marketing: In this marketing method, you pay for more people to see products from your business.
- Organic marketing: In this marketing method, you do not pay for ads. You are entirely dependent on people naturally happening on your product online.
- Hybrid marketing: This is a combination of both paid marketing and organic marketing.
6. Web Plan
As this is an eCommerce business plan, this section is essential for the success of your business. In this section, you should outline;
- What platform you intend to have your eCommerce business on. It should touch on whether you want to build your website or capitalize on already established platforms.
- Budget for hosting your eCommerce business on your desired platforms.
7. Financial plan
This section is probably one of the most complex areas to create. But, a financial plan is an absolute necessity. It covers the company’s budget splits, your initial investment, financial projections, production costs, funding requirements, expected ROI, etc.
To be on the safe side, hire a professional accountant to help you create this sector.
8. Exit plan
Finally, add an additional section into your eCommerce business plan for exit. We all hope that our business venture will be successful, but creating an exit plan ensures that no matter what happens, you have an option to leave the business.
The truth is that not all businesses work out the way we would want them to, so create an exit plan.
Your exit plan should cover your employees, consumers, and investors’ welfare should the business fail. The goal is to minimize your debt and loss.
Wrapping up
The eight steps shared in this article are the essential steps when writing your eCommerce business plan. It’s okay to feel a little confused when writing your first business plan. So, you can always hire writers from essay writing service reviews websites like Pick The Writer or Writing Judge for a little professional help.