Writing a strong online store business plan is one of the primary starting points whether you’re planning to launch an online store or another kind of ecommerce venture. This could seem like a difficult chore, but with proper planning, it need not be. You require a business strategy if you want to enter the world of online commerce. By establishing a broad direction for your new venture, it will prove essential to your entire success.

The objectives of your business plan can be varied. You might find investors or company loans with its assistance. It can be utilized as a tool for partner and employee recruitment. You can use it as a road map as well.

Investors rely on business plans to evaluate the feasibility of a business before funding it, which is why business plans are commonly associated with getting a loan. But there are several compelling reasons to consider writing a business plan, even if you don’t need funding.

• Strategic planning: Writing out your plan is an invaluable exercise for clarifying your ideas and can help you understand the scope of your business, as well as the amount of time, money, and resources you’ll need to get started.
• Evaluating ideas: If you’ve got multiple ideas in mind, a rough business plan for each can help you focus your time and energy on the ones with the highest chance of success.
• Research: To write a business plan, you’ll need to research your ideal customer and your competitors—information that will help you make more strategic decisions.
• Recruiting: Your business plan is one of the easiest ways to communicate your vision to potential new hires and can help build their confidence in the venture, especially if you’re in the early stages of growth.
• Partnerships: If you plan to approach other companies to collaborate, having a clear overview of your vision, your audience, and your business strategy will make it much easier for them to identify whether your business is a good fit for theirs—especially if they’re further along than you in their growth trajectory.
• Competitions: There are many business plan competitions offering prizes such as mentorships, grants, or investment capital. To find relevant competitions in your industry and area, try Googling “business plan competition + [your location]” and “business plan competition + [your industry].”

If you’re looking for a structured way to lay out your thoughts and ideas, and to share those ideas with people who can have a big impact on your success, a business plan is an excellent starting point.

Every business plan is individual and will cater different needs and objectives. However, there are several features that need to be included:

Executive summary

The word summary in this section isn’t without reason. This part is a company description that introduces and highlights key elements of your business. It serves as a booklet presenting your mission statement and describes your major objectives. The more objectives you enumerate, the better sense of direction you will get.

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Present your online store platform and describe briefly your products. Think about what makes your online store so special and how you are going to stand out from other companies. Remember that it’s a summary- keep your executive summary brief and consistent. 

Company description

It’s a good idea to start from the very basics of the plan. Writing down the list of people working for your company will give you a clue who is responsible for which task. Moreover, it will not only present their responsibilities but also illustrate their qualifications and skills. Also, think about the business model you represent- Are you a solo proprietorship, general/limited partnership, incorporated company/ LLC?

Market analysis

Before launching your product or service, it’s of great value to spend some time on the market analysis. Try to understand your ideal customer: Who and how old are they? What professions do they represent? What social media/e-commerce platforms do they use? What will they buy? What kind of products or services might they be interested in? Also, don’t forget to research relevant industry trends and its trajectory. Will your products be in demand next year? Is your target market stable or rather changeable? Is your ecommerce platform efficient? All that information will give you a clue about the feasibility and viability of your business plan.

Products

This seems to be the very cornerstone of your online store. This is where it all began, right? Think about the product/service you are selling. Focus on their specifications and benefits. To help you sort all those aspects out, I strongly recommend following the questions below: What are your main products? What makes them unique? How do you acquire them? What kind of materials are used to produce your product? How much will they cost? Are your products seasonal? Will they last? How long?

Marketing strategy

Next step in the process of designing an ecommerce business plan is to think about the means you are going to use in the process of customer acquisition. How will you acquire, convert and retain customers? Consider the following: SEO (Search Engine Optimization), PR, Content Strategy, Search Engine, Social Media (e.g. Linkedin, Facebook, Instagram), Email marketing, Promotions. In addition to that you might consider Customer Loyalty as well. How are you going to reward returning customers? According to statistics, 58% of customers that belong to a brand’s loyalty program make purchases from that brand at least once per month. As you can see, having an effective marketing strategy will keep your ecommerce business sustainable.

Operations

Let’s talk about logistics as this is the essential part of every ecommerce business. Behind every successful delivery and customer-friendly service, there is a meticulous and efficient process. Therefore, it’s a good idea to give this aspect a longer thought. Think about things such as, the website of your online store, the shipping process, payment processing, the staff and management team, suppliers, couriers and 3PL services. A smooth workflow has an immense impact on the final outcome and the future success of your company. 

Financial plan

Talking about money is never an easy task; However, in terms of your business plan it is one of the most important aspects to ponder on. Without money, your business wouldn’t happen in the first place and that’s why it needs your attention. By planning your finances, you won’t be taken aback by unexpected expenses and if it comes to outside funding, you  will stand out as a transparent and scalable company. The complexity of this part of your business plan depends on the goals, audience, and the size of the business. Typically, there are three major factors to consider: an income statement, a balance sheet and a cash flow statement. Nevertheless, feel free to include as much information as you need.

In conclusion, creating a business plan offers you the chance to evaluate each component of your online store critically and to present your mission statement. Make sure it’s not just a difficult task and approach it as a thorough examination of your business concept. Highlighting the important details you learned while drafting your plan could prove useful. You might discover something that requires adjusting.

Focus on elements like the following: fundamental ideas, the mission and goals of the company, the description of the product, the planning strategy, the target market, the operations (such as the platform, the shipping process, the processing of payments, etc.), the ask, the team, and the current/projected financial situation. Keep in mind that success takes time and requires patience, but with a good plan, it is possible.