One of the most effective methods for ensuring success in a new sector, preparing a detailed business plan is also essential for businesses planning to secure investor support. Investors want to know that the money they risk will be returned. The way to predict this is by reviewing the business plan. Let's summarize the 10 steps you should take when preparing this crucial document: a business plan.
1. Preparing an introductory text
You need to prepare an introduction for your business plan, which can be considered a kind of report. The information you can include in this section is as follows:
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Recipient's address
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History
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Your address
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The name of the relevant person. An introduction like "Dear Mr...." would be appropriate here.
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In a paragraph or two, you can explain the purpose of this document, information about your company, and what will be in the file.
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Don't forget to include a section with your contact information and a request to ensure they take the next step.
Now that you've successfully crafted the introduction, it's time to express yourself and hit the right notes to create a first impression. In this section, we recommend providing clear, yet concise, information about the company that will implement the business plan. Overly wordy, marketable text can be a reason for investors to back off. Always keep the words "simple" and "clear" in mind. In this section, you can also present the following information to the reader:
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Company logo,
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Company name,
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Be sure to include the word business plan on the cover.
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History
2. Business Executive Summary
One of the most important sections to keep investors engaged with the information you present is the section where you provide information about your business management. Although it will appear early in the presentation, you may want to prepare this section later, as it should be written by a calm and thoughtful mind. This section should provide the reader with all the possible details about your company. The topics you should include in this section include:
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Business concept. (Briefly describe what you do.)
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Your business goals and vision. (What you want to do)
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Description of your product and its difference from other products
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Your target audience
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Your marketing plan
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Your current financial situation. (Your current profit)
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Your target profitability in the future
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How much amount do you want to invest?
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Your team
3. Summary about the company
How long have you been operating a company? What distinguishes you from others? Which of your products do you believe will perform well in sales? How many people make up your team, and how long have you been working together? This is the section where you'll address many of the questions investors may have. You can create this section by generating and answering questions similar to the ones we've generated.
4. Market research and competitors
We previously mentioned the importance of leveraging research conducted for a business plan. This section should utilize the market research and competitor analysis. You should include market size, demographics, evidence supporting future market predictions and forecasts, your company's sales history, and, of course, a detailed competitor analysis.
5. Marketing and sales strategy
This section should include the strategies you've planned for bringing your products to customers. When discussing the price, quality, and after-sales service of your products and services, try to clearly explain whether your strategy is being used by other companies in the market and, if so, why consumers would choose you.
We strongly recommend that you include the following points when detailing your strategy:
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Your Google Adwords plan and budget
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How will you do SEO work and how much budget will you allocate?
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What will your social media marketing strategy be like?
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Will you utilize banner ads?
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Will you be advertising on offline channels? If so, how much budget will you allocate?
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Will you receive PR support?
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What will your email marketing strategy be like?
6. Team and Team Management
A business like e-commerce requires a strong team. In this context, the information you should include in your business plan regarding team and team management is as follows:
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How many people are in your team?
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How many people are in the founding team? How many partners does the company have?
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What are your team's strengths and weaknesses?
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What are your team's past experiences and backgrounds? How relevant are these experiences to your current work?
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Do you know anyone else in the same industry who does the same job? Could you ask them for advice or mentorship?
7. Operation
While you're not expected to explain the entire operation step by step in your business plan, it's recommended that you provide information within certain limits. To summarize:
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Do you have a website? Do you have the software and payment infrastructure to enable you to sell through your website?
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Do you have adequate security measures for a platform where sensitive information will be shared, such as e-commerce?
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Do you need warehouse and logistics?
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What machinery and technological infrastructure does your company need for process management?
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Does your team have sufficient knowledge and experience to manage these operations?
8. Sales Report
If your company is just starting out, you don't need this section. However, if your company already sells its products and services, this section is the most frequently considered by investors. Therefore, you should strive to provide clear, simple, and straightforward information. We can summarize what this information should include as follows:
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Have you started selling your products?
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Are your products ready for sale, or do they need to be produced or sourced from scratch? How quickly can they be ready for sale?
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How do you reach or aim to reach your potential customers?
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What are the average prices of your products in different categories?
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Which of your products do you plan to sell and how often? (Some products can be repurchased quickly, while others can be used for several years. Therefore, you should specify which products you will sell more frequently.)
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Can your products be marketed and sold online quickly? Or do consumers' shopping habits need to change?
9. Financial Projections
In this section, you should clearly state your company's current financial situation and its planned/anticipated future. Topics you can focus on include:
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Your lowest and highest income estimates,
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Cash flow status and volume,
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What is your company's working capital and how will it be managed in the worst-case scenario?
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What will you have left after promotional activities, sales and administrative expenses, and will the remaining amount be sufficient to sustain your company's operations?
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Your profit and loss estimates.
In this section, it would also be useful to provide information about the amount of external support your company will require.
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How much cash support does your company need? Will you be requesting this amount in one lump sum or in installments?
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What will the investment support be used for?
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Answers to questions such as how and when to repay.
10. Risks
Risks exist in every trading environment, and investors want to be informed about these risks in advance. Therefore, in this section, you can effectively explain to investors what the risks are and your plans for dealing with them if they become a reality.
In this article, we've discussed business planning and offered some quick tips on how to develop a strong business plan in 10 steps. You have the opportunity to meet many of the requirements we've outlined here with Comwize, Türkiye's first and only e-commerce ERP software. Please contact us to access modules and services that will meet all your e-commerce needs.
