1. Business and Financial Planning

2. Strategic Project Plan Business Description – the purpose of the business, the product or service provided, an industry analysis, and the business model. Market Analysis – a description of the venture’s target consumers, market and key competitors. Preliminary Financial Plan – cost/benefit analysis, financing required and sources, profit and cash flow projections.

3. Vision and Mission Statements An overall statement of the business's goals and philosophy Define your purpose Know your intended audience

4. A Vision Statement

5. A Mission Statement

6. Products and Services A description of each product or service you plan to offer Level of detail is important Enough for the reader to understand and not be confused

7. Industry Analysis An analysis of the business environment Focus on the basic industry segment Based on verifiable data and market research

8. Business Model The method by which a firm builds and uses its resources to offer its customers better value than its competitors and to make money doing so! Two major parts of the business model: Value Proposition Financial Model

9. Value Proposition The value your company adds that would make customers switch to you from their current provider. Concepts involved in Value Proposition Choice of Segments Choice of Focal Customer Benefits Choice of Unique and Differentiating Capabilities

10. Value Proposition Choice of Segments –market size or growth –unmet customer needs –weak or no competition Choice of Focal Customer Benefits –One or two KEY benefits based on the marketing mix variables –Ex: fast delivery, high quality products, customer service, low-prices, unique product Choice of Unique and Differentiating Capabilities –Also known as : Core Competencies or Unique Resources –Tangible assets (location), Intangible (Brand name) or corporate skills and capabilities (knowledge of customers)

11. Financial Models There are four revenue models: –Advertising (sell ads, site sponsorships, interstituals) –Product sales (income from the sales of products, services, or information) –Transaction (revenue from charging a fee or a taking a % of a transaction) –Subscription (subscriber fees for magazines, information, services, …) –Or a combination of these

12. Revenue Model - Advertising

13. Revenue Model – Product Sales

14. Revenue Model – Transaction

15. eBay fee Structure http://pages.ebay.com/help/sellerguide/selling-fees.html

16. Revenue Model – Subscription

17. Marketing Plan Target market description Demographic, geographic, and psychographic characteristics of market Competitive analysis

18. Financial Plan Shows the reader how all the ideas, concepts and strategies described elsewhere come together in a profitable way. The plan should include pro forma: –Balance sheet –Income statement –Cash flow statement Financing required and sources

19. Financial Plan Balance Sheet –Assests –Liabilities –Equity Income Statement –Revenues – Cost of Goods Sold = Net Income Cash Flow Statement –Operating Activities –Investing Activities –Financing Activities

20. Startup Financing As an entrepreneur starting a new e- business, you must be prepared to invest time, effort, and your own money to get your new e-business off the ground. Personal Assets Friends and Family Venture Capital Business Incubators

21. Personal Assets Sweat Equity: putting in time and effort Mortgage Personal Assets: put up property as collateral to a bank Personal loans: taking a loan without collateral (higher interest rate) Credit card/credit line advance: similar to a personal loan (usually a high interest rate)

22. Friends and Family Friends and family investors are family members or friends who invest in a business. Many entrepreneurs successfully solicit startup money from their network of friends and family. A network of potential friends and family investors extends beyond immediate family members and friends, to their families and friends, to their families and friends, and so on. Advantage: It might be the easiest money you’ll ever get. Disadvantage: Putting their money at risk.

23. Venture Capital Investors Venture Capital (VC) firms are organized to invest specifically in new business startups. Typically take a significant equity interest in the firm with in exchange for providing startup capital. May also provide expertise. Typically do not invest for the long term but expect to “cash out” after the business establishes a successful track record and can be sold or acquired by others. There are many established VC firms

24. Venture Capital Investors

25. Business Incubators Have traditionally been government- or university-supported nonprofit organizations that nurture new businesses Provide startup companies with management advice, office space, networking opportunities, and other critical startup services May take an equity interest as well as charge for services Not-for-profit incubators may use returns from equity to reinvest

26. http://www.digitalrhine.com/

27. Commercial Business Incubators Offer startup e-businesses access to the same services offered by nonprofit incubators Are primarily interested in high-technology businesses that can become financially viable quickly and leave the incubator within six months to a year