90% of e-commerces fail 4 months after their launch. Far from discouraging you, this statistic reminds you of the need to create a solid business plan before launching your online business. Use tools like bulk url opener to increase your site visibility in browser.
Before you start choosing the platform to create your e-commerce site , find out if your project will be profitable. Also think that the choice of CMS can have an influence on the success of your project.
As a reminder, the business plan allows:
A better understanding of your businessIdentification of the resources necessary for your operationDefining a roadmap for the futureA better analysis of the competitionIdentifying threats and opportunitiesWhat is a business plan?
The business plan is an essential document when creating a business , resuming activity or modifying activity. It is also the preferred tool for successful fundraising.
The purposes of the business plan are:
reassure you about the viability of your e-commerce projecthelp you get a bank loanconvince future partners and investors to trust yoube able to make forecasts of your future activityThe business plan has several targets:
the project leader, who is the main recipientbanking institutionsInvestorsfuture partnersWhat are the specificities of a business plan for an e-commerce site?
The business plan linked to the creation of an e-commerce site will deal much more with the themes of digital and communication than a classic business plan. The primary goal of an e-commerce site is to attract customers to buy on the site.
Are you going to make your site yourself or do you need a web developer? Are you going to do paid referencing to improve visibility quickly? And many others.
Another specificity of the e-commerce business plan is that the financial part will not use the same financial data as a physical company. Here, we will talk about the number of site visitors, the e-commerce conversion rate, average basket, cost per click, etc.
The e-commerce business plan is also differentiated by the additional costs generated by the site: the online payment solution, the creation and hosting of the site, the emailing solution, the AdWords advertising campaigns, the use of an agency SEO or a web editor, the production of professional photos and videos, the cost of sending packages, etc.
How to make an e-commerce business plan?
The e-commerce business plan is a written file which is generally several dozen pages and which is built up in several parts.
1) The presentation of the business project
This first part is also called the executive summary. This part is written on two pages maximum and must outline the main lines of the project. The summary should introduce the business, company values, team members, etc.
The executive summary is the first part of the e-commerce business plan, yet it must be written last.
2) Market research
This second part aims to describe the market in which the company will evolve. The goal is to show how the products or services offered by your company will meet a demand.
First, put as much information as possible on the profile of future customers (age group, socio-professional categories, purchasing behavior), then establish a marketing persona.
Then make a SWOT matrix to identify the strengths, weaknesses, opportunities and threats of your e-commerce site. The SWOT is a must, it will help you make an internal and external diagnosis of your e-commerce business. This will be your fulcrum for the rest of the business plan.
The market study then includes a study of the competition. To do this, you will need to answer a number of questions about your competitors. What is your competitive environment? What are your competitors selling? Through which channels? At what prices?
Next, write a section on your competitive advantages that set you apart from the competition. To do this, think about the strengths of your e-commerce business compared to others: innovation, lower prices than competitors, exclusive products, multilingual website, unique packaging, etc.
3) Defining your strategy
In this part, you will have to outline your long-term strategy and talk about the decisions to be put in place to encourage Internet users to buy your products or services.
To see more clearly in the construction of your strategy, we recommend that you write your marketing mix, also called the 4P method.
Product
Define your products or services, their added values, their functionalities, their points of differentiation, etc. Ask yourself how your products or services set you apart from the competition and are part of your company's identity.
Price (price)
Think about the prices you want to offer and your pricing strategy: price below the competition, match or price higher. Ask yourself if you are going to do discounts, dynamic pricing. You may also have determined the acceptability price of your products in advance, thanks to a panel of consumers or via questionnaires.
Place (distribution)
Ask yourself about your distribution channels: website, marketplace, dropshipping, etc. As well as your distribution strategy: intensive, selective or exclusive distribution. Also explain if you are going to stock products in advance or do “just in time”.
Promotion (communication)
In this part, ask yourself about the graphic charter of your company, your commercial speech and the packaging of your products. Indicate the means of promotion that you are going to put in place: social networks, press relations, AdWords advertisements, YouTube videos, etc.
All the elements of the marketing mix, as well as the rest of the business plan, will allow you to develop your strategy in a clear and comprehensive manner. Write a text explaining your strategy, to be accompanied by graphic and visual elements, for a more impactful e-commerce business plan.
4) Financial forecasts
For this financial part, you will have to build financial tables to quantify your project.
Table of forecast turnover: number of sales, average basket, conversion rate, etc.Tables on the costs of creating and operating the company: projected expenses, projected balance sheet, cash budget.Table on the financing plan: self-financing capacity and external financing.If necessary, the business plan may include other additional financial tables: calculation of working capital, detail of personnel costs, detail of taxes and duties, table of investments, etc.Here are 5 tips to help you create the best business plan for your business!
1. Use Google Trends to Determine Market Demand
One of the first steps in a business plan is figuring out which products to market on your online store. Even if you already have your idea on the subject, it is important to determine if the consumers are on the same wavelength as you. To find out, use Google Trends ! This tool helps you identify trends in your niche.
Moreover, it calculates the popularity of a keyphrase during a specific period. Its data can be classified according to your geographical area. Thus, you can determine if your products are in demand by consumers. It can also help you find a value proposition to set yourself apart from the competition.
Additionally, Google Trendsallows you to compare multiple search expressions. This will allow you to define your SEO strategy, for later.
2. Analyze the competition with Google Shopping
The easiest and fastest way to analyze the competition is to use Google Shopping . Search for the product you have chosen and you can discover all the e-commerce sites that sell it.
Check out their stores and map out the competition to know where exactly you want to position yourself. Go to their social networks and blogs to identify their marketing strategy. You can also search for their suppliers.
After this analysis, you can determine your window of opportunity to enter the market. You are ready to find the supplier or a manufacturer for your products, but also to set your pricing policy.
3. Define the tools to create and manage your store
The next step in your business plan is defining the tools that will help you convert visitors into consumers, and buyers into loyal customers.
For this, you must list the software to manage:
Fortunately, there are CMS (Content Management System) and CRM (Customer Relationship Management) tools to help you. These tools sometimes offer several solutions in one.
The idea is therefore to take a tour of the market to find the tools that meet your needs and your budget. Do not hesitate to call on a freelancer to help you choose the platforms adapted to your technical expectations.
Your business plan must contain the chosen solutions, as well as the inherent costs.
4. Assign a cost to your traffic sources
SEO, SEA, social networks, influencer marketing, blogging, emailing, marketplace , affiliation, forums… Traffic to your e-commerce (and sales!) will come from various sources. Some are organic, others paid, but they all require an investment!
You will therefore have to set your objectives, get to know your consumers, to determine a digital action plan. Your e-commerce business plan should contain the detailed plan, as well as the costs necessary to develop each traffic channel.
5. Estimate the turnover of your e-commerce
In addition to the price of your marketing strategy, there are several recurring costs in running an e-commerce.
Among these expenses, we find the cost of acquiring your products, your subscription to the tools, the logistics service (like Amazon FBA for storing and sending your packages, for example) and the fixed costs. You will also need to plan for contingencies related to late deliveries or product returns.
In addition, it is important to calculate the number of potential buyers (depending on the size of your market and the campaigns implemented), as well as the average shopping basket.
This will allow you to estimate a forecast turnover for your e-commerce and to define the viability of your project.
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