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Used to seek funding for a new e-business
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Serves as a design for operating an e-business after it is funded
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Forces you to think critically, objectively, and unemotionally about your idea
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Helps to find hidden strengths and fix hidden weaknesses

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A cover sheet and title page
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A table of contents
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An executive summary
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A description of the e-business idea
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Information on products or services to be offered
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Analyses of the overall industry, target market and competition
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Identification of critical risks
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An exit strategy

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Identify the e-business
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The title of the document
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The preparer’s name
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The plan copy number
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The word “CONFIDENTIAL”

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Repeat the information from the cover sheet
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Add contact information for the preparer and any associates
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May include the name of the person to whom the copy is assigned

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List all the major sections and subsections of the ebusiness plan
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Be sure it is neat, and avoid missing sections, and incorrect page numbers

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A miniature version of the complete e-business plan
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Allows readers (investors, bankers, managers) to quickly understand the opportunity and build interest
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Should generate excitement and interest
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Should be limited to 1-3 pages
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Highlight the reasons why the concept will be successful
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Is usually easiest to write after the rest of the plan

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Can include brief information on:
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The staff and management team
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A definable market
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Any competitive advantages
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Financial projections

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An outline of the background and concept
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Include information about the
 legal form of the business,
 when & where it was formed
 history
 current status
 future goals

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Provide a description of the
 products and/or services offered
 sales that each product/service group is expected to generate
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Provide enough information for a reader to understand the business
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Do not provide too much detailed information as to confuse readers

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Describe products from customer’s perspective
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Describe what the products do
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Highlight customer benefits
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Give information about the compete product line
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In appendices, add high-quality photos of a few of the major products
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In appendices, also add supporting documents such as patents, trademarks and copyrights

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Describe what service(s) you are providing
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How does the service work
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What marketplace need does the service address
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What is the customer benefit for using the service
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What makes it different
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What materials/equipment are needed to use the service

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Industry: businesses that make/sell similar, complementary, or supplemental products/services
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Examples:
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Travel Industry: airlines, hotels, travel agencies
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Auto Industry: auto, tire, and auto maintenance
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Computer Industry: hardware manufacturers, software developers, chip manufacturers
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Theme Park Industry: theme park operators, ride manufacturers, software developers, food vendors

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Describes:
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 industry size characteristics
 trends
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 growth factors distribution systems
 competitors
 effects of technology
 other relevant topics

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Based on verifiable data gathered from recognized sources
 government agencies
 industry trade associations
 studies from reliable organizations
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Changes in customer preferences, shifts in customer demographics, new technologies
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Product pricing trends, pricing advantages/disadvantages of the e-business
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Trends you can exploit to attract new customers

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Should address supplier issues
 labor shortages
 legal, technical, personnel issues affecting the e-business’s ability to deliver products/services
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Major competitors should be identified
 including their market share
(i.e. eBay owns about 80% of market share of online auctions)
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Charts and graphs help with understanding and readability – but do not make them too large

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Information about the target market
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Demographics: age, gender, income level, population density
Geographic: country/region, state city/town, climate, population
Psychographic: beliefs, hopes, fears, prejudices, needs, desires
Customer characteristics
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Frequency of use / Method of use
Frequency of purchase of products similar to those you offer
Marketing objectives
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 clearly stated and measurable have a time frame lead to sales

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Marketing strategies
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Marketing budget
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Action plan
 describe specific promotional tasks
 when they start / end

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Business location
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Warehouses, branch offices, manufacturing space
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Equipment needs
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Vehicles, computer, office equipment
Manufacturing needs
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Labor needs
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Order and Fulfillment
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Shipping

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Management team
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3-5 people involved in day-to-day operations
Important to investors!
Include description of each team member, responsibilities, previous experience and success, education
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Board of advisors
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Individuals with industry / business experience
If the board is impressive, adds credibility to the business venture
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Outsourcing
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Attorneys, accountants, insurance agents

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Identifies threats to the e-business success
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 impending product innovations environmental issues barriers to entry into market government regulations staffing concerns management experience
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Include a page with plans to resolve the issues

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How will an investor get their money back?
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Tell the investors how they will recover their money
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Identify long-term plans for the business and principals
Possible exit strategies:
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Payment plan / percentage of profits
IPO – initial public offering
Selling the company to other individuals or a business
Joining with an existing company to form a new company
Stockholder buyout

Model
Sole
Proprietorship
Partnership
Limited
Partnership
C corporation
LLC
Description
Started & operated by an individual
The individual is responsible for tax and legal claims
Two or more owners
Requires a written partnership agreement
Partners are responsible for tax and legal claims
General partners / limited partners
General: manage / unlimited liability
Limited: no management / liable for capital + accepted debt
Separate individual unit
Taxed twice: corporate income & shareholder dividends
No liability past the corporate unit
Limited Liability Company
Similar to partnership for tax purposes
Similar to a corporation for liability purposes