Preparing a Business Plan

Business Plan

A business plan is a document that outlines a company's goals, the methods and techniques it will use to achieve these goals, and the time frame within which it plans to reach these objectives. Preparing a detailed business plan is one of the most effective ways to ensure success in a new industry and is also a necessity for businesses seeking investor support. Investors want to know that the money they are risking will be returned. The way to anticipate this is through the examination of the business plan. Let’s summarize the 10 steps you need to take to prepare such a crucial document:

1. Prepare an Introduction
   You need to create an introduction for your business plan, which is somewhat like a report. This section should include:

   • Recipient’s address
   • Date
   • Your address
   • Name of the relevant person (A formal greeting such as “Dear …” is appropriate)

   You can briefly explain the purpose of the document, provide data about your company, and outline what the file will contain. Include a section indicating that you are awaiting their response and provide your contact information.

   Once you have successfully created the introduction, it’s time to express yourself and ensure you touch on the right points to make a good first impression. This section should include only clear and precise information about the company that will be executing the business plan. Avoid overly wordy and marketing-style texts that might deter investors. Keep your language simple and clear. In this section, you might also present:

   • Company logo
   • Company name
   • Ensure the term "Business Plan" is on the cover
   • Date

2. Executive Summary
   One of the most important sections to keep the investor interested is the executive summary. Although it appears in the initial sections of the presentation, it’s a good idea to prepare this section last since it needs to be written by a calm and well-thought-out mind. You need to convey all possible details about your company in this section. Include the following headings:

   • Business concept (Briefly describe what you do)
   • Business goals and vision (What you aim to achieve)
   • Description of your product and how it differs from other products
   • Your target market
   • Marketing plan
   • Current financial status (Current profits)
   • Target profitability in the future
   • Amount of investment you are seeking
   • Your team

3. Company Overview
   How long has your company been in operation? What sets you apart from others? Which of your products are expected to perform well? How many people are on your team and how long have you been working together? This section addresses many questions investors might have. You can create and answer questions similar to the ones we've listed.

4. Market Research and Competitors
   You should leverage previous research conducted for the business plan. This section should include market research and competitor analysis. Provide information about the market size, demographic structure, future market forecasts, supporting evidence, your company's sales history, and a detailed competitor analysis.

5. Marketing and Sales Strategy
   Describe the strategies you plan to use to bring your products to customers. When detailing your pricing, quality, and after-sales services, explain whether these strategies are used by other firms in the market and why consumers would choose you if they are.

   When detailing your strategy, also cover:

   • Your Google Adwords plan and budget
   • How you will handle SEO and the allocated budget
   • Your social media marketing strategy
   • Whether you will use banner ads
   • Whether you will engage in offline advertising and the budget for it
   • Whether you will seek PR support
   • Your email marketing strategy

6. Team and Team Management
   An e-commerce business requires a strong team. Include the following information about your team and its management:

   • How many people are on your team?
   • How many are 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 backgrounds of your team members? How relevant are these experiences to your current business?
   • Do you know others in the same industry? Can you seek recommendations or mentorship from them?

7. Operations
   Although you are not expected to detail every operational step, it is advisable to provide information within certain limits. For instance:

   • Do you have a website? Do you have the necessary software and payment infrastructure to sell through your website?
   • Do you have adequate security measures for a platform that handles sensitive information like e-commerce?
   • Do you need warehousing and logistics?
   • What machinery and technological infrastructure does your company need for process management?
   • Does your team have the necessary knowledge and experience to manage these operations?

8. Sales Report
   If your company is new, this section may not be necessary. However, if your company is already selling products or services, this section is of great interest to investors. Therefore, provide clear, straightforward, and non-exaggerated information. Key points include:

   • Have you started selling your products?
   • Are your products ready for sale, or do they need to be produced or procured? How long will it take for them to be ready?
   • How do you reach or plan to reach potential customers?
   • What are the average prices of your products in different categories?
   • How frequently do you expect to sell each product? (Some products may be repurchased quickly, while others may be used for several years. Indicate which products will be sold more frequently.)
   • Can your products be marketed and sold quickly online, or do consumer shopping habits need to change?

9. Financial Projections
   Clearly state your company’s current financial status and its projected future position. Key points include:

   • Your lowest and highest revenue estimates
   • Cash flow status and volume
   • Your company’s working capital and how it will be managed in a worst-case scenario
   • The amount remaining after marketing, sales, and administrative expenses, and whether this amount is sufficient for continuing business activities
   • Profit and loss forecasts

   Also, provide information on the amount of external support your company will request:

   • How much financial support does your company need? Will you request this amount as a lump sum or in installments?
   • What will the investment support be used for?
   • Details on repayment, including how and when it will occur.

10. Risks
    Every business area involves risks, and investors want to be informed about these risks in advance. Therefore, explain the risks and your plans for managing them if they become a reality in this section.

This guide provides insights into preparing a strong business plan in 10 stages. Many of these requirements can be met with Comwize, Turkey’s first and only e-commerce ERP software. To access modules and services that meet all the needs of companies in e-commerce, please contact us.