Question by : How do I write a business plan for online business?
I need to write a business plan for DVR (division of vocational rehabilitation). The business I want
to start is a online business, so how I need know how go about writing business plan for online business.
Answer by Tony
If you’re starting a business, you’re absolutely correct to write a business plan. The first question is:
Are you writing the plan because you’re going to need financing and will be approaching a bank?
If the answer is yes, your plan will need to be more formal in it’s layout and design.
If no, you’ll still need a plan but it will be mainly for your own information.
It sounds like you already know what your business will be, so the first step is writing a summary of it. What is it? What will you be selling, What is the nature of your customers?
You’ll also need to do market research. Are there other companies in your field? What do they sell? Prices? What is the market for your product? Why? How did you come up with these figures?
Next, you’ll need to know how you’ll be gaining customers. How will you be advertising? If you’re online, where will you be advertising? What is the cost? What response rate can you estimate based on sound industry figures?
Next, you’ll need a forecasted profit and loss statement. What are your start-up costs? Expenses? Income? Profit? Forecast this over the short term (1 year) and long term (5 years).
If you’re writing your plan to present to a bank or other financing entity, you need to be thorough, convincing, and sure of yourself. “I know this will work, and this is why!”
These are the basics.
I’ve been in business for myself for over 20 years and I’m well aware of what it takes.
If you want more information, visit my website: The Website Warrior http://thewebsitewarrior.com/business-planning
This page and site has lots of information you may find helpful.
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