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

2. Learning Objectives Organize a business plan
Prepare an executive summary
Write a mission statement
Prepare a marketplace analysis
Create operational, financial, and management plans
Creating a Winning E-Business Second Edition, Chapter 3

3. Learning Objectives (continued)
Understand legal forms of businesses
Describe e-business partnerships
Creating a Winning E-Business Second Edition, Chapter 3

4. 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
Creating a Winning E-Business Second Edition, Chapter 3

5. Business Plan Organization (continued)
Government and for-profit sources for business planning information and templates
SCORE
SBA
BizPlanIt
Bplans.com
E-Future Centre
Creating a Winning E-Business Second Edition, Chapter 3

6. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

7. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

8. Business Plan Organization (continued)
Business plan components
Cover sheet and title page
Table of contents
Executive summary
Business description
Vision/mission statement
Creating a Winning E-Business Second Edition, Chapter 3

9. 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
Creating a Winning E-Business Second Edition, Chapter 3

10. 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
Creating a Winning E-Business Second Edition, Chapter 3

11. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

12. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

13. 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
Creating a Winning E-Business Second Edition, Chapter 3

14. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

15. 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
Creating a Winning E-Business Second Edition, Chapter 3

16. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

17. 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
Creating a Winning E-Business Second Edition, Chapter 3

18. 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
Creating a Winning E-Business Second Edition, Chapter 3

19. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

20. 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
Creating a Winning E-Business Second Edition, Chapter 3

21. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

22. Business Plan Organization (continued)
Marketplace analysis
Information about the specific industry of which business is a part
Description of targeted customers
Description of major competitors
Overview of marketing and sales strategies
Creating a Winning E-Business Second Edition, Chapter 3

23. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

24. 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
Creating a Winning E-Business Second Edition, Chapter 3

25. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

26. 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
Creating a Winning E-Business Second Edition, Chapter 3

27. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

28. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

29. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

30. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

31. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

32. Business Plan Organization (continued)
Management plan
Organizational structure of business
Information on
Key members of management team
Outside advisors
Mentors
Consultants
Creating a Winning E-Business Second Edition, Chapter 3

33. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

34. Business Plan Organization (continued)
Creating a Winning E-Business Second Edition, Chapter 3

35. Business Plan Organization (continued)
Appendices
Resumes
Pictures of products
Explanation of services
Legal documents
Other supporting documentation
Creating a Winning E-Business Second Edition, Chapter 3

36. 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
Creating a Winning E-Business Second Edition, Chapter 3

37. 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
Creating a Winning E-Business Second Edition, Chapter 3

38. 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
Creating a Winning E-Business Second Edition, Chapter 3

39. 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
Creating a Winning E-Business Second Edition, Chapter 3

40. E-Business Partnerships
Strong positive relationships with strategic partners are critical
Partnerships that help build market awareness
Public relations firms
Marketing consultants
Partnerships that assist in operations
Suppliers
Distributors
Web hosting companies
Creating a Winning E-Business Second Edition, Chapter 3

41. Chapter Summary A business plan is used to A business plan includes
Check feasibility of business
Seek funding
Guide operations
A business plan includes
Cover sheet and title page
Table of contents and executive summary
Marketplace analyses
Operational, financial, and marketing plans
Creating a Winning E-Business Second Edition, Chapter 3

42. Chapter Summary (continued)
Business plan appendices can include
Resumes
Pictures of products and information on services
Legal documents
Other supporting details for the overall plan
Creating a Winning E-Business Second Edition, Chapter 3

43. Chapter Summary (continued)
Business description should include legal form of business
Business plan should note key strategic partnerships
Creating a Winning E-Business Second Edition, Chapter 3