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 Used to seek funding for a new e-business  Serves as a design for operating an e-business after it is funded  Forces you to think critically, objectively,

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Presentation on theme: " Used to seek funding for a new e-business  Serves as a design for operating an e-business after it is funded  Forces you to think critically, objectively,"— Presentation transcript:


2  Used to seek funding for a new e-business  Serves as a design for operating an e-business after it is funded  Forces you to think critically, objectively, and unemotionally about your idea  Helps to find hidden strengths and fix hidden weaknesses

3  A cover sheet and title page  A table of contents  An executive summary  A description of the e-business idea  Information on products or services to be offered  Analyses of the overall industry, target market and competition  Identification of critical risks  An exit strategy

4  Identify the e-business  The title of the document  The preparer’s name  The plan copy number  The word “CONFIDENTIAL”

5  Repeat the information from the cover sheet  Add contact information for the preparer and any associates  May include the name of the person to whom the copy is assigned

6  List all the major sections and subsections of the e- business plan  Be sure it is neat, and avoid missing sections, and incorrect page numbers

7  A miniature version of the complete e-business plan  Allows readers (investors, bankers, managers) to quickly understand the opportunity and build interest  Should generate excitement and interest  Should be limited to 1-3 pages  Highlight the reasons why the concept will be successful  Is usually easiest to write after the rest of the plan

8  Can include brief information on:  The staff and management team  A definable market  Any competitive advantages  Financial projections

9  An outline of the background and concept  Include information about the  legal form of the business,  when & where it was formed  history  current status  future goals

10  Provide a description of the  products and/or services offered  sales that each product/service group is expected to generate  Provide enough information for a reader to understand the business  Do not provide too much detailed information as to confuse readers

11  Describe products from customer’s perspective  Describe what the products do  Highlight customer benefits  Give information about the compete product line  In appendices, add high-quality photos of a few of the major products  In appendices, also add supporting documents such as patents, trademarks and copyrights

12  Describe what service(s) you are providing  How does the service work  What marketplace need does the service address  What is the customer benefit for using the service  What makes it different  What materials/equipment are needed to use the service

13  Industry: businesses that make/sell similar, complementary, or supplemental products/services  Examples:  Travel Industry: airlines, hotels, travel agencies  Auto Industry: auto, tire, and auto maintenance  Computer Industry: hardware manufacturers, software developers, chip manufacturers  Theme Park Industry: theme park operators, ride manufacturers, software developers, food vendors

14  Describes:  industry size  characteristics  trends  growth factors  distribution systems  competitors  effects of technology  other relevant topics

15  Based on verifiable data gathered from recognized sources  government agencies  industry trade associations  studies from reliable organizations  Changes in customer preferences, shifts in customer demographics, new technologies  Product pricing trends, pricing advantages/disadvantages of the e-business  Trends you can exploit to attract new customers

16  Should address supplier issues  labor shortages  legal, technical, personnel issues affecting the e-business’s ability to deliver products/services  Major competitors should be identified  including their market share (i.e. eBay owns about 80% of market share of online auctions)  Charts and graphs help with understanding and readability – but do not make them too large

17  Information about the target market  Demographics: age, gender, income level, population density  Geographic: country/region, state city/town, climate, population  Psychographic: beliefs, hopes, fears, prejudices, needs, desires  Customer characteristics  Frequency of use / Method of use  Frequency of purchase of products similar to those you offer  Marketing objectives  clearly stated and measurable  have a time frame  lead to sales

18  Marketing strategies  Marketing budget  Action plan  describe specific promotional tasks  when they start / end

19  Business location  Warehouses, branch offices, manufacturing space  Equipment needs  Vehicles, computer, office equipment  Manufacturing needs  Labor needs  Order and Fulfillment  Shipping

20  Management team  3-5 people involved in day-to-day operations  Important to investors!  Include description of each team member, responsibilities, previous experience and success, education  Board of advisors  Individuals with industry / business experience  If the board is impressive, adds credibility to the business venture  Outsourcing  Attorneys, accountants, insurance agents

21  Identifies threats to the e-business success  impending product innovations  environmental issues  barriers to entry into market  government regulations  staffing concerns  management experience  Include a page with plans to resolve the issues

22  How will an investor get their money back?  Tell the investors how they will recover their money  Identify long-term plans for the business and principals  Possible exit strategies:  Payment plan / percentage of profits  IPO – initial public offering  Selling the company to other individuals or a business  Joining with an existing company to form a new company  Stockholder buyout

23 ModelDescription Sole Proprietorship Started & operated by an individual The individual is responsible for tax and legal claims PartnershipTwo or more owners Requires a written partnership agreement Partners are responsible for tax and legal claims Limited Partnership General partners / limited partners General: manage / unlimited liability Limited: no management / liable for capital + accepted debt C corporationSeparate individual unit Taxed twice: corporate income & shareholder dividends No liability past the corporate unit LLCLimited Liability Company Similar to partnership for tax purposes Similar to a corporation for liability purposes

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