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

Business Plan Organization 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

Business Plan Organization (continued) Government and for-profit sources for business planning information and templates SCORE SBA BizPlanIt Bplans.com E-Future Centre (Canadian)

Business Plan Organization (continued) Business plan components Cover sheet and title page Table of contents Executive summary Business description Vision/mission statement

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 What is an exit strategy?

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

Business Plan Organization

Business Plan Organization (continued)

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

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

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

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

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

Business Plan Organization (continued) Marketplace analysis Information about specific industry of which business is a part Description of targeted customers Description of major competitors Overview of marketing and sales strategies

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

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

Business Plan Organization (continued) Management plan Organizational structure of business Information on Key members of management team Outside advisors Mentors Consultants

Business Plan Organization (continued) Appendices Resumes Pictures of products Explanation of services Legal documents Other supporting documentation

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

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

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

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