Okay, okay… so in a previous post, we learned about the importance of having a business plan for your e-commerce business and how it can be useful in setting goals, monitoring your business and carving out a roadmap for scaling your business in the long run. In that post, I promised to give you tips on how to go about writing your business plan, and that’s what we are gonna do today.
I keep my promises *winks*
With that in mind, I’ll be giving you a few pointers on how you can go about this – that is, writing a business plan for your e-commerce business. So what goes into your business plan?
Well… first up, you need to ensure your business idea is simple, thorough and precise. Have a simplified description of the kind of e-commerce business you’re going into. Sophistication sounds cool, but this is going overboard. When writing out your business idea; assume you are explaining it to a friend or a potential investor.
Next up, you’ll have to construct a framework for your business model. You can do this by identifying:
- What you sell
- Who you are selling to
- Where/How you will source for your products
Having definite answers to these questions will help create a mold around which a business model can be constructed.
A crucial aspect of your business plan would include market analysis. It is actually impossible to succeed in e-commerce without understanding the market. You need to have a firm understanding of the niche you’re working with, the existing competition and your target consumer demographic. A section in your business plan should contain detailed information from market analysis. The following key questions would serve as guidelines for carrying out your market analysis.
- What is my competition doing differently?
- How much are people willing to spend on your products?
- What are your best selling products?
- Can your products generate repeat buyers?
- How crowded is your niche?
- What is the competition missing from their product?
- How can I capitalize on this and use it to my advantage?
Also, ensure you include a section that will handle products/services you intend to sell in the future. Perhaps you’ve successfully sold T-shirts, and you have a decent customer base, you can influence your manufacturing relationships to branch into selling shorts or socks. I’m talking about creating a plan for you branch out into other things. I’m talking expansion and scaling your business! What are your plans for the future? Be sure to include them as well. This would be your product pipeline, that will guide you in scaling your business.
Another important thing to include is a well-detailed financial section that would handle – sales forecast, expenses and the net income of your business. This would help you have an idea of what needs to be done to achieve your profit goals. These projections may not be always accurate, but it is always good to give yourself some measurable goals to strive for.
Lastly, you need to include the platform you will use for your e-commerce business. I presume that would either be Amazon or Shopify.
If you can follow up with the information presented, you will be able to create a great business plan for your e-commerce business and improve your chances of succeeding.
Don’t be a lazy entrepreneur! Create a business plan and structure your path to greatness
Keep selling guys.
Have a great day!
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