As they say, having a great business idea is never enough. While it’s true that the most successful businesses start with a good business idea, it doesn’t mean that a good idea is the only thing you need to become successful. Remember, an idea will only remain an idea until you actually put it into action. So what do you need to hit the ground running?
Well, the best place to start is with a business plan.
What is a business plan?
“A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. It’s a way to think through the key elements of your business.” – U.S. Small Business Administration
While writing a business plan sounds overwhelming, the good news is that there is no right or wrong way to write one. It all depends on what kind of business you want to start and what strategies you are planning to put in place to achieve your business goals. A good business plan should be able to lay the necessary groundwork that would help you manage your business as you scale and grow.
What are the benefits of having a business plan?
What can a great business plan bring to the table? Check out some of the benefits of having a business plan:
- A business plan enables you to get funding. One of the most important requirements that lenders ask for when reviewing a business loan application is a business plan. A business plan conveys your plans for growth as well as the strategies you plan to put in place to achieve your goals.
- A business plan helps you manage change. A formal business plan is not a static document. Whether you’re just starting out or expanding your business, a business plan should function as a comprehensive guide when making informed business decisions. The market can be an erratic space to operate in, make sure to craft a business plan that is flexible enough to adapt to the changes in your specific industry.
- A business plan gives you a better understanding of your target market. A common mistake that many business owners make is that they try to cater to a bigger audience as opposed to defining a target market. Not only is this unsustainable for a business that is just starting out, but it will also present branding issues that would prevent you from setting yourself apart from your competition. When developing your business plan, remember to conduct a comprehensive market analysis to better understand your customers as well as your competitors.
Why does your eCommerce business need a business plan?
As with any brick-and-mortar and online business, your eCommerce business would also need a business plan to help you identify measurable goals and put strategies in place to achieve those goals. Simply put, all businesses can benefit from a robust business plan. When looking for funding, a business plan will also help you convince your potential investors about the feasibility of your business.
How do you write a business plan for an eCommerce business?
There’s no one-size-fits-all business plan template when it comes to writing eCommerce business plans. It all depends on the type of business you have, the business model you have chosen to use, and the goals that you want to achieve. Without a customized business plan, you would have a difficult time adjusting to changes in the market as well as changes within your business. To give your business plan a bit of structure, here are some factors to consider before writing your business plan:
Establish your goals
We all want our products to be profitable. After all, that’s the main push when starting a business, right? However, goals should be measurable. Before starting a business, you need to have a well-defined strategy to be able to hit your profit goals. When developing your business plan, it is important to define quantifiable short-term and long-term goals that will entail a roadmap for success. Only with a clearly defined goal will you be able to set your plan in motion and stay motivated to follow through.
Conduct market analysis
The main purpose of conducting market analysis is to give you an overview of the market that you are trying to penetrate. It will also give you an idea about your potential customers and your direct competitors.
Come up with a financial plan
As the name suggests, a financial plan is a document that determines how a business will allocate the necessary resources to achieve its goals. As mentioned above, the market can be unpredictable. It only makes sense to develop a financial plan that allows you to monitor your progress and provide some wiggle room when sales are slow. A great financial plan enables your eCommerce business to better manage your finances and ensure that your business stays profitable.
Develop a marketing strategy
Should you use organic channels or utilize paid marketing? Should you make use of social media ads or stick with increasing your social engagement through meaningful content? One important thing to remember is that your marketing strategy should match your business identity. Developing a marketing strategy goes hand-in-hand with your market analysis especially when it comes to understanding your customers and their consumption patterns. Another thing to take into account is to understand the different marketing tools and channels that would best reach your customers. It doesn’t matter if your content is amazing if no one sees it, right?
Key Takeaways
- A stellar eCommerce business plan should function as a roadmap that motivates you to achieve your goals.
- A business plan is not meant to be static – it should help you manage change while keeping risks low.
- A business plan should help you determine your target market as well as allow you to analyze your potential competitors.
- A solid business plan helps you identify opportunities in the market and allows you to pounce on them at the best possible time.
