How to Write a Business Plan for an Online Start-Up
Why should you write a business plan for an online business? Even if you are not looking for financial investors, it is an essential part of the planning of any successful business venture to lay out a clear business plan.
Many of the top corporations in the world did not have a business plan, but that does not mean that you shouldn’t either. Having a business plan can help you see potential problems before they even arise and the best part is the plan can be as simple or detailed as you want.
Myths & Facts About Business Plans
| Myth | Fact |
| Writing a business plan is hard. | Writing a business plan is actually a lot easier than people think. There are many online templates you can fill out if you do not know how to get started. |
| You need to hire a professional to write your business plan. | Hiring a professional to help you pen your business plan certainly will not hurt, but it is not necessary. You probably already have most of the business plan for your passion project written inside your head. |
| You do not need a business plan for an online business. | Just like any business, there are potential risks for starting an online business. You may need to account for start-up costs, employees, and taxes. A business plan can help you hash out your plan of attack clearly. |
What Should You Include In Your Business Plan
Here is a list of the basic elements of a business plan. Depending on what kind of business you are starting, you may need to add or remove sections.
1. Executive Summary
The executive summary is an “elevator pitch” that summarizes your entire business plan in as few words as possible.
2. Business Description
Here is where you describe the basic information about the business: what industry it is in, what demographic your buyer is, and what problem your product or service is solving.
3. Market Analysis
The market analysis is all about pinpointing the buyer and projecting how much of a demand there is for this business.
4. Competitive Analysis
How does your business compare to the competition? What edge do you have?
5. Marketing Plan
The marketing plan is where you describe how you plan on getting your first sale. What sales strategy will work best for your business?
6. Management Plan
Who is going to manage this business? One CEO or a team of advisors? Here is where you plan the management team and approach.
7. Operations
The operating plan is the logistics of how the business will work. Online start-ups may have a different set of operations than a physical store. Suppliers, web hosting, and customer service are a few examples.
8. Financial Plan
How are you going to fund this initial start-up and when will you make a profit? Do you need investors? Crowdfunding? A loan?
9. Additional Information
Finish up the business plan by adding any supporting information, graphs, or photographs.
Conclusion
Your business plan does not have to be lengthy; in fact, sometimes the more concise the plan the better. Whether you want to attract investors, crowdfund a start-up, or just organize your thoughts more, writing a business plan is an essential step to starting a successful new online business venture.