Write your ecommerce Business Plans

The Ecommerce Business Plans

Simply put, business plans can make or break your business. Starting a Drop Ship business online is no different from starting a traditional non-online business. With the strong emphasis individuals place on writing business plans for starting up non-internet-based companies,



it is equally crucial to prepare a Business Plans for your online business.

A Business Plans serves many important purposes for the online business. First, because the Business Plans has a detailed list of the tasks to undertake, it is a call to action for you to promote your business actively and not procrastinate on your marketing efforts. Second, it provides a blueprint that describes your company effectively: the market, the products and the steps you need for effective marketing. This serves to guide your business through the months ahead.

Business plans normally comprise of five sections:

1) The Objectives.
This section will describe the objectives for the venture, and the mission statement that defines the online business. It states both the financial and strategic objectives and is normally about one page long. There should be a concise description of the Drop Ship business at the start. A brief example:

Magical Stores Online is an internet company that provides quality tools and resources for magic tricks. We aim to consistently provide magicians with reliable tools for conducting magic tricks, and also accurate information and guides on how to properly perform the magic tricks with our tools. In our first year online, our target is to have U.S. $400,000 in revenues and $100,000 in profits. This can be achieved by attracting an average of about 5000 visitors to our website every month through effective internet marketing. Our strategy is to attract recurring traffic to our website by continually updating the useful resources and information on our website. Magicians will constantly return for more useful tips on magic tricks. This cuts our marketing costs drastically and adds to our profit margin.

2) The Executive summary. The executive summary should contain a few important details. It should outline the basic model of the company, how the business functions, the market environment, and also the business opportunity in the market.

*Note that in a real Business Plans, the business owner should aim to provide a more detailed version than the examples given above. The examples here only serve to illustrate an overview of what the basic Business Plans should encompass.

3) Marketing Strategies. In this section, you will describe the steps you intend to take in order to market your business effectively on the internet. To differentiate an online Drop Ship business, it is more viable to provide a reliable service from your website. This usually means providing a wealth of tips, articles and information for your visitors. This will attract them to continuously return to your website for the latest tips and resources that will benefit them. Fast response to their email queries and also fast shipping are also good services you can provide.

4) Competitive Analysis. In this section, you have to analyze the strengths and weaknesses of your competitors, and the factors that will differentiate your products or services from your competitors. You have to analyze your competitors and record what makes them so successful, and also the weaknesses you can capitalize on to get an edge in the market.

5) The financial projection section. In this section you can project the profit-loss statements and the cash flow statements for your business. The profit-loss statement records the monthly profit/loss realized over the months, while the cash flow statement records the difference between revenue and expenditure over the months. The costs for an online Drop Ship business will include:

- One-time costs for software like shopping cart software, email marketing software, and also search engine optimization software.

- Recurring costs for the wholesale price of the products, web hosting fees, a proportion of revenue paid to your third party credit card merchant to process your payments, and also internet marketing costs.

This section will be useful for you to gauge how your Drop Ship business performs according to your expectations.

In conclusion, Business Plans do not only apply to real-world businesses, but are equally critical to online businesses as well. They serve as blueprints of the companies and also as strong calls to action for the aspiring internet entrepreneurs to achieve their success in ecommerce.

This article is a portion of article 'The Ecommerce Business Plans ' written by Ray Yee



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About the Author: Ray Yee is the founder and president of Dropshipperscentral, a website which provides a wealth of informative articles, tips and resources on everything you'll ever need to know about setting up a Drop Ship Business and marketing it. Click here for the Wholesale Drop Ship Directory from http://www.dropshipperscentral.com

To know more about ecommerce business plans visit # eCommerce Marketing Plans