1. Revenue Models and the Business Plan in E-Commerce Back to Table of Contents

2. Revenue Models and the Business Plan in E-Commerce E-Commerce Revenue Models E-Commerce Business Plan 2 Revenue Models and the Business Plan in E-Commerce Section 8-1 Section 8-2 Chapter 8

3. Revenue Models and the Business Plan in E-Commerce Section 8-2 Why It’s Important Creating a company is hard work, and entrepreneurs must have a clear path, or business plan, laid out when they begin and as they continue to operate their businesses. Knowing what a business plan contains will help you to understand more about what creating and running a business entails. Section 8-23

4. Revenue Models and the Business Plan in E-Commerce Section 8-2 Key Terms business plan forward-looking statements income statement balance sheet assets liabilities 4Section 8-2

5. Revenue Models and the Business Plan in E-Commerce What Is a Business Plan? Your business plan will be used to show potential investors what you hope to accomplish and how you plan to get there. business plan a detailed description of a business’s objectives, products and services, operations, potential customers, and financial resources 5Section 8-2

6. Elements of a Business Plan 6Section 8-2 Cover Page Title Page Table of Contents Executive Summary Management Plan Company Description Product and Service Plan Mission and Vision Statements Industry Overview Market Analysis Competitive Analysis Marketing Plan Operations Plan Organizational Plan Financial Plan Growth Plan Contingency Plan Supporting Documents

7. Revenue Models and the Business Plan in E-Commerce Cover/Title page Centered vertically Company name Your name Date Presented to: Insert a FEW graphics for visual appeal 7

8. Revenue Models and the Business Plan in E-Commerce The Introduction Short but interesting General description of your company Mission statement explaining the purpose and goals of your business –Goal: What you hope to accomplish –Double spaced written in complete sentences

9. Revenue Models and the Business Plan in E-Commerce Executive summary The executive summary of your business plan is a brief but detailed description of the company’s mission, objectives, products, and competition. It is used to convince the reader that an operation is well-planned and has a good chance of success. 9Section 8-2

10. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan Your business plan should include forward-looking statements. forward-looking statements the parts of a business plan that describe the future of a company in both the short and the long term 10Section 8-2

11. Revenue Models and the Business Plan in E-Commerce Management Plan Company’s form of ownership and legal structure –Include relevant professional experiences –Partner’s experiences –Key employees –Board of directors Explain day by day business operations 11

12. Revenue Models and the Business Plan in E-Commerce Marketing Plan Explains how you will launch and develop your business. Description of products and services How they will be priced, packaged and delivered Terms of sale –Methods of payment –Refund policies 12

13. Revenue Models and the Business Plan in E-Commerce Marketing Plan cont. Explain how you will advertise –Where –How often –cost 13

14. Revenue Models and the Business Plan in E-Commerce Market Analysis/ demographics Investors will want to know about the demographics of your Web site. Demographics include information about a customer’s age, income level, and location. This information is used to identify a target market for a business. 14Section 8-2

15. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan An income statement is an important financial statement. income statement summarizes a company’s revenue and expenses for a period of time and shows profits or losses 15Section 8-2 A balance sheet is another important financial statement. balance sheet shows how much a business is worth at a specific time

16. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan A balance sheet lists all of a business’s assets and liabilities and shows the net worth, or actual value of the business. assets all of the things owned by a business 16Section 8-2 liabilities debts or lawsuits

17. Revenue Models and the Business Plan in E-Commerce Elements of a Business Plan No matter how you choose to raise money, your business plan will serve as your primary set of credentials. If you don’t need to raise money, your plan will serve as a road map for success. 17Section 8-2

18. Revenue Models and the Business Plan in E-Commerce Section 8-2 Review What is a business plan? Why is it important? What is an executive summary? Why is it an important component of a business plan? What does an income statement reveal about a business? Why is it important? What are customer demographics? Why is this information important? 1. 2. 3. 18Section 8-2 4.

19. Revenue Models and the Business Plan in E-Commerce 19

20. Revenue Models and the Business Plan in E-Commerce End of Back to Table of Contents