You’re ready to turn your dream into reality and start an online business. However, you need a place to start. This is where an online business plan comes in to help.
An online business plan shows the steps and goals you have for your online business. While online business plans have different elements, many of them cover areas like financing, marketing, inventory, and management.
In this post, we’ll talk about the benefits of running an online business, including how to optimize your business plan for long-term success.
Benefits of Running an Online Business
Running an online business can come with many challenges, but you can reap amazing benefits. Here are some reasons why starting an online business is a great idea:
Flexible Schedule
Have you ever wanted to set your own hours? Building an online business makes this possible. Starting an online business usually means you’ll make money at various times of the day. You won’t have a normal storefront with regular business hours. That said, you can work when it’s most convenient for you. Starting your own online business means you can work on your terms.
Low Startup Costs
If you have a regular storefront, you’ll be faced with several costs, such as rent, parking, etc. With an online business, you won’t have any of these extra costs. This means you keep more money in your pocket.
Adjustable for Your Needs
Another great thing about an online business is that you can work at your own pace. If you want to start small and have this business as a part-time job, that’s very possible. If you want to go all in and work day after day in the business, that can work too. Building an online business gives you tons of flexibility. Also, after starting your business, you can make adjustments as you go. For example, if you sell computer gaming equipment, you could start off by only selling controllers before moving up to selling headsets.
Why Make a Business Plan?
Even if you have a clear idea and vision for your online business, it’s important to design a plan. Starting an online business is a serious objective that will take time, money, energy, and many tough decisions.
Developing a business plan helps you document your progress and keep track of your goals, challenges, and opportunities involving your business. Your business plan will be the backbone of the entire business concept and idea. While some elements might sound pointless, everything will set you up for success later.
Your business plan will provide details on everything that needs to be done to accomplish your goal and grow your business. This plan may also include revenue projections, specific timelines, and even special drawings and sketches. A business plan creates a structure for your business and helps to create clear, concise steps to accomplish your goals.
How to Make an Online Business Plan
First things first, think about who will be using or reading this business plan. If you’re going to hand it out to investors, your document must clearly illustrate why your business is an excellent investment opportunity. If you’ll only be using the plan internally, you can use more casual language and focus less on selling the idea.
Here’s how to design a traditional online business plan:
Write an Executive Summary
This is the first area of your business plan, so it should spark some excitement. However, make sure it also establishes a clear vision for your online business. This summary should get the reader engaged and interested in learning more.
An executive summary should give some basic facts about your vision and business. You can talk about the industry, revenue growth, and what problems your business will solve. All in all, make sure this section is well-written, clear, concise, and attention-grabbing.
Design a Company Description
This area should include a brief overview of your organization. Here, you can list your background, strengths, and what makes you a great business owner. Many business owners will include a compelling story of why they got into the industry.
Your company description may also include the following:
- SWOT analysis
- Mission and vision statement
- Unique attributes of your company
- Location, industry, or niche
After reading your company description, readers should have a clear understanding of why you started the business and what the business is all about.
Conduct a Market Analysis
A market analysis looks at industry research to determine where your business fits in the industry. This section will describe the target market and the competition that currently exists.
Build Management and Organizational Structure
Next, you want to explain how your business will be structured. For example, you’ll need to determine if your organization is an LLC, sole proprietorship, S corporation, partnership, or something else. You should get a good idea of who is in charge of what. This sets clear expectations from the start and keeps everyone on the same page.
List your Products and Services
This area of the business plan should give more details on your offerings. You’ll want to describe all of your products, if possible. However, make sure to explain these products rather than simply giving a list. It needs to be very clear as to what you’re selling.
Create a Sales and Marketing Strategy
Sales and marketing can make or break your business. So, depending on the products you sell, make sure this section is clear and professional. This area of the document should explain how people will find your business and what avenues you plan to use for marketing. Readers should understand how you plan to launch and grow your business.
Make financial projections
If you’re writing to investors, they need to feel confident that they’re money is going somewhere. You want them to feel comfortable investing in your company. That said, design clear and easy-to-understand financial projections. List out realistic financial projections for your expected growth, including any anticipated profits and losses. Make sure to make projections for the next five years.
Add funding request (if applicable)
This section is only needed if the plan is going to investors. You want to summarize your business in this area and explain the benefits of investing in your organization. You also clarify the schedule for your funding request. Write down if you’re looking for a one-time payment, recurring payments, or something else.
Whether you sell an online ad blocker or scented candles, building an online business plan is essential to your long-term success. By following the tips above, you can build the business of your dreams.
Guest Post Written By: Ashley Nielsen
Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer who loves to share knowledge about general business, marketing, lifestyle, wellness, and financial tips. During her free time, she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.
