Apr 2021, 19

Preparing a Business Plan

Feyza Uzun
| Blog
Preparing a Business Plan

The business plan is the documents that reveal the objectives and the methods and techniques that an enterprise will apply to reach the targets while entering the e-commerce sector, as well as the time period in which the targets are planned to be achieved. Detailed business plan preparation, which is one of the most effective methods of achieving success in a new investment sector, is also a must for businesses planning to receive investor support. Investors want to know that the money they risk will return. The way to predict this is through examining the business plan. Let's summarize the 10 steps you need to go through while preparing the business plan, which is such an important document ...

1. Preparing an introductory text

You need to prepare an introduction to your business plan, which can be counted as a report. The information you can provide in this section is as follows:

  • Recipient's address

  • History

  • Your address

  • Name of the contact. Here, a start as Mr.… would be appropriate.

  • In a few paragraphs, you can talk about the purpose of the preparation of this document, the data about your company and what will be in the file.

  • Don't forget to add a section with your contact information stating that you're waiting for news from them to ensure you can move on to the next step.

Now that you have successfully created the introduction section, it's time to express yourself and touch the right points while creating the first impression. In this section, we recommend that you provide only but clear information about the company that will be the implementer of the business plan. Texts prepared in the style of a marketer with an excessive word crowd may be a reason for investors to take a step back. Always keep the simple and clear words in your mind… In this section, you can also present the following data to the reader:

  • Company logo,

  • Company name,

  • Make sure to include the word business plan on the cover.

  • History

2. Business Management Summary

One of the most important parts to keep the investor's interest on the information you provide to him is the section where you provide information about your business management. Although it will take place in the first parts of the presentation, you may want to prepare this section later, as it should be written by a calm and well-thought mind. You need to tell the person who reads the plan all the details about your company in this section. The topics you will include in this section are:

  • Business concept. (Briefly write what you are doing)

  • Your business goals and vision. (What do you want to do)

  • Description of your product and its difference from other products

  • Your target audience

  • Your marketing plan

  • Your current financial situation. (Your current profit)

  • Your targeted profitability situation in the future

  • How much would you like to invest

  • Your team

3.Summary about the company

How long have you had a company that has been operating? What are your features that distinguish you from others? Which of your products do you think will show high performance in sales? How many people does your team consist of and how long have you been working together? Here is the part where you can resolve many question marks in the minds of the investors. You can create this section by deriving and answering questions similar to the questions we have generated.

4. Market research and competitors

We have mentioned before that the researches made for the business plan should be used. You should benefit from the market research and competitor analysis conducted in this section. You should include evidence supporting the market volume, demographic structure, forecasts and forecasts for the future of the market, your company's sales history and of course a detailed competitor analysis.

5. Marketing and sales strategy

In this section, you should include the strategies you plan while bringing your products to the customer. Try to explain in a clear language whether the strategy you will implement while including the price, quality and after-sales services of your products and services is used and used by other companies in the market, why the consumer will choose you.

While detailing your strategy, we strongly recommend that you include the following:

  • Your Google Adwords plan and budget

  • How will you do SEO work and how much will you budget?

  • What will your social media marketing strategy be like?

  • Will you benefit from banner ads?

  • Are you going to do advertisements on offline channels? If you do, how much budget will you allocate?

  • Will you receive PR support?

  • What will your e-mail marketing strategy be like?

6. Team and Team Management

A business like e-commerce makes a strong team essential. In this context, the information you need to include in team and team management in the business plan is as follows:

  • How many people is your team?

  • How many people in the founding team? How many partners does the company have?

  • What are the strengths and weaknesses of your team?

  • What are the past experiences and background information of your team? How relevant are these experiences to your current job?

  • Do you know other people in the same industry and doing the same job? Can you ask for advice or mentorship from these people?

7. Operation

Although you are not expected to explain the whole operation step by step in the business plan, it is recommended that you provide information within certain limits. To make a short list;

  • Do you have a website? Do you have software and payment infrastructure that will allow you to sell on your website?

  • Do you have enough security measures for a platform where sensitive information such as e-commerce will be shared?

  • Do you need warehouse and logistics?

  • What are the machinery and technological infrastructure that your company needs in process management?

  • Does your team have enough knowledge and experience to manage these operations?

8.Sales Report

If your company is a new company, you do not need this section, but if your company is already selling its products and services, this section is the section most considered by investors. For this reason, you should try to give clear, exaggerated and simple information. We can summarize what this information should be as follows:

  • Have you started selling your products?

  • Are your products ready for sale or do they need to be built from scratch or supplied? How soon can these products be ready for sale?

  • How do you reach or aim to reach your potential customers?

  • What are the average prices of your products in different categories?

  • Which of your products do you think will be sold and how often. (Some products can be repurchased soon, some products may be used for several years, so you should specify which products you will sell more often.)

  • Can your products be marketed and sold over the internet in a short time? Or does the shopping habits of consumers need to change?

9. Financial Insights

In this section, you should clearly state the current financial situation of your company and the point it plans / foresee to be in the future. The topics you can focus on are:

  • Your lowest and highest income estimate,

  • Cash flow status and volume,

  • How much is your company's revolving fund and how will this capital be managed in the worst case scenario?

  • What is the amount you will keep after promotional activities, sales and administrative costs, and will the remaining amount be sufficient for the continuation of your company activities?

  • Your profit and loss estimates.

In this section, it is also useful to provide information about the amount of support your company will request from outside.

  • How much cash support does your company need? Do you request this amount at once or in installments?

  • What will the investment support be used for?

  • Answers to questions such as how and when about reimbursement.

10. Risks

There are risks in all areas of trade and investors want to be informed about the risks in advance. For this reason, in this section, you can convey to the investor what the risks are and your plans on how to deal with it when any risk becomes a reality.

In this article, while talking about the business plan, we tried to give you small tips on how to prepare a strong business plan in 10 stages. You have the chance to meet many of the requirements mentioned here with Comwize, Turkey's first and only e-commerce erp software. Please contact us to access modules and services that will meet all the needs of companies in e-commerce.