Creating a Winning E-Business
Second Edition
Creating an E-Business Plan
Chapter 3
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 2
Second Edition, Chapter 3
Learning Objectives
(continued)
Understand legal forms of businesses
Describe e-business partnerships
Creating a Winning E-Business 3
Second Edition, Chapter 3
Business Plan Organization
Business plan
– 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 4
Second Edition, Chapter 3
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 5
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 6
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 7
Second Edition, Chapter 3
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 8
Second Edition, Chapter 3
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 9
Second Edition, Chapter 3
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 10
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 11
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 12
Second Edition, Chapter 3
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 13
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 14
Second Edition, Chapter 3
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 15
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 16
Second Edition, Chapter 3
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 17
Second Edition, Chapter 3
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 18
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 19
Second Edition, Chapter 3
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 20
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 21
Second Edition, Chapter 3
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 22
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 23
Second Edition, Chapter 3
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 24
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 25
Second Edition, Chapter 3
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 26
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 27
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 28
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 29
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 30
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 31
Second Edition, Chapter 3
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 32
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 33
Second Edition, Chapter 3
Business Plan Organization
(continued)
Creating a Winning E-Business 34
Second Edition, Chapter 3
Business Plan Organization
(continued)
Appendices
– Resumes
– Pictures of products
– Explanation of services
– Legal documents
– Other supporting documentation
Creating a Winning E-Business 35
Second Edition, Chapter 3
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 36
Second Edition, Chapter 3
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 37
Second Edition, Chapter 3
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 38
Second Edition, Chapter 3
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 39
Second Edition, Chapter 3
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 40
Second Edition, Chapter 3
Chapter Summary
A business plan is used to
– 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 41
Second Edition, Chapter 3
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 42
Second Edition, Chapter 3
Chapter Summary
(continued)
Business description should include legal form
of business
Business plan should note key strategic
partnerships
Creating a Winning E-Business 43
Second Edition, Chapter 3
