Do You Need A Business Plan? (For An Online Business)

Online Marketing appears to be attractive to a large segment of the population today. No doubt, the current economic climate is driving a lot of this interest.  

Many folks currently employed and unemployed find the opportunity to work from home extremely attractive and would like to get rid of the 9 to 5 grind if possible. Besides, getting started does not require a large investment of capital.  

However, as attractive as Online Marketing may be,there are many hurdles to clear just to get started. If not initiated properly success will be difficult to obtain. There are a host of people who have made the effort to establish themselves online just to fall by the wayside.  

Why do so many fail? There are many reasons but probably the most outstanding would be the lack of a comprehensive Business Plan. Remember, an Online Business is no different than starting any other business.  

I believe one of the major factors contributing to this fault is the lack of a need for large capital investment which makes it necessary to borrow money from a bank that will require a Business Plan. This is a requirement.. 

Since an Online Business doesn’t require a large investment no one is demanding a Business Plan resulting in a major oversight. 

That being said I now assume anyone considering an Online Business will sit down and put together a good Business Plan that any Banker would approve.  

Now, what do we need to put together a good plan? Following is a brief outline of what is expected to be included in any acceptable plan that will lead to success. 

Remember, the Business Plan is not something you put together than put on the shelf to gether dust. No! the Business Plan will be an ever changing document keeping abreast of how your business needs are developing and changing. It will always in most cases require revisions. 

Let us Begin:(Remember this is an outline) 

1.The Industry/Niche…..Identify the Industry/Segment or Niche that you plan to fill and how your product will fit in or somehow be unique to the segment chosen. 

2. Target Market..….Who is your Target Market? What are their needs? How can you meet those needs? 

3. Competition..…..Who is your competition? What can you do different to be competitive? Is it pricing, service, product etc. 

4.Marketing..…..How are you going to market your product? This includes pricing, advertising, promotion, service, etc 

5. Management.…..Who’s in charge? Make sure this is definitive.  

6.Financial..…..How much investment will it take? What is the source? How long can you support the effort? When do you expect to start generating income? 

7. Operational.…..What equipment do you need. Are you selling a physical or digital product, will you need inventory, will you be drop shipping, how and who will make it work.
 
So there you go, this should give you a pretty good outline of what is needed to put together a good business plan. Remember, you can go into much more detail as you desire and this will be your plan to meet your established goals. 

Good Luck with whatever Venture you choose.

P.S Yes! You Do Need A Business Plan