Creating a Business Plan

Benefits of creating a business plan
The benefits of creating a business plan are to:

force a clear definition of the outcomes that the business is seeking to achieve
understand different ways of realising the outcomes
define the levels of effort, cost and time frames,
provide a basis for evaluating different approaches to deliver the outcomes
gain an insight as to the likely consequences for the outcomes and whether they can: o deliver on time and within a realistic budget o define the initial levels of investment o project when a break-even position is reached o identify when the business will have reached a point where it is sustainable and likely to succeed
create a scenario in which there are “no surprises” i.e. critical issues that might impact the viability of the business
make sure that you can communicate your ideas to others, get the appropriate advice from the right people, at the right time and empower the business owners to work out which is good advice and which is not and
obtain an merchant account from one of the banks Approach to on-line business planning

We have assumed that you are being pragmatic about the business plan. The standard approach for a business plan is to define the market, how the business addresses or will address the market, competition, risks and opportunities, operational plan, financial plan. This outline is different in that many of the people who Infomedia has worked with already know what they want to do, but just need to work things through beforehand.

Many internet businesses are started and operate while the principal(s) are in other jobs and only become a full time occupation when there is sufficient profit to support the principal’s requirements. The Infomedia approach is to propose, what is seen as a more logical approach and outlines a plan which:

describes the products or services sold, or to be sold;
describes the market and its growth potential;
discusses the competitors;
outlines the business’s approach to its target market sector and target customers;
checks on the risks;
outlines how the business will operate;
details the financial plan and then
considers a Dilution or exit strategy, in other words under what terms and conditions do you intend to involve others in the ownership of the business.

The appendices include a number of checklists for each of the aspects or stages for the description or development of the business. Remember:

A business plan is not a static document. It needs to be changed to reflect your experience and aspirations for the business.
The Business Plan is a document which can be given to the Bank Manager, a prospective partner or someone joining the company, it shows the business is organised.
The Plan is the way in which the owner keeps track of how the business is performing in relation to what was expected and is a way of identifying that things are not going to plan, or are changing direction.
It is also a document in which ideas for future development, or reminders about things to change, are kept.

Describing Products and Services
Compelling, well written product copy is essential for successful e-commerce - and the reason is obvious: four of the five senses go offline when a customer goes online. Product descriptions should create a tangible image in your customer's mind and concisely explain the virtues and benefits of your product or service - even if you are including a product photo. That's because what's in a customer's imagination is far more powerful than a mere image on a screen. It's your text - not the picture. It also pays to conduct a little competitive research by visiting some commerce retailers dealing in merchandise similar to your own. Branding on the internet “look and feel” So what exactly is branding? Isn’t that just big ad agency stuff? There is a terrible misconception that branding is about the creative side of business. About the logo, advertising, copy or "look and feel." This is true. However, branding is, quite simply the entire user experience - the "relationship" between the company and the customer. How a company makes a customer feel. This applies to all companies, great and small. In both online and offline branding, it's about:

how the customer is treated at the door (Your home page)
How your product is packaged, what it looks like and how it's positioned on a shelf (Web site)
how the sales process and staff treat the customer (navigation, online support, online orders)
how the company handles complaints (returns, ease of contact)
how a company positions itself as "trustful" and "credible" (a combination of the above, media treatment, etc.)

In the Internet world, if you can make your product different from a commodity you can get the pricing differentiation. Branding should therefore be a key aspect of every business Web site. Without the differentiation for the product you are selling they can be viewed as homogenous by the consumer, thus a commodity and consumers will be driven solely on the price factor. By offering a differentiated product you will create pricing power even over the transparency of the Internet. This is also very much part of your USP. By employing a direct branding strategy from your website, you will be able to get out in front of the profit siphoning discount websites and make a pitch directly to people viewing websites for information on your product or geographic region and offering them the information, differentiation and comparisons necessary to influence their purchasing decisions. Every form of contact that a company has with a customer is part of branding.

Because the Web is a more "user-driven" experience it poses some interesting branding challenges and opportunities. It has the potential to deliver the company's identity, products, service - the whole box and dice - in the space of a few screens and within seconds. Your Web site is where the entire experience comes together for the user - or maybe not. Make no mistake: the number of consumers who make purchasing decisions online is growing exponentially, and the launch of so many free internet service providers will only fertilise that growth. If you provide a positive experience for these users, they'll talk. And that language translates into dollars.