Just like every other business, online businesses require a business plan to grow and become profitable. Similar to a road map, a business plan gives directions on successfully running a company from the ground up.

Banks and investors use business plans to determine how well a business is likely to perform and whether or not it is a worthwhile investment.

The following steps are essential for a successful business plan:

 1. Company Description

When describing the business, give detailed information about the following:

• The company's target audience 
  
• The problem that the company intends to solve
• Whether the company will serve consumers or other businesses
• The business’s competitive advantages

2. Marketing Plan

What marketing strategies do you have for the target audience who you identified? Explain how you will attract potential customers to the business.

You can look toward similar companies for examples that will work for your online business.

3. Company Goals

Set goals for the online business. What do you intend to achieve from the business in one year? How about five years? 

Explain the strategies you will use to accomplish these goals, and how you will measure the progress of the business.

4. Location

Where do you want your online business to operate? You should also indicate any locations that you might want to cover in the future.

Make it clear if you intend to have a small business that operates locally or if you want to expand to various regions and countries. 

You might find the need to open up offices if your online business operates in several areas.

5. Financial Plan

Most investors and banks will not lend money for business unless the business plan is convincing. They need to understand how you intend to use the money, leaving no doubt that the business will be able to pay it back.

Investors and bankers will look for the following in your financial plan:

• The amount of money needed
  
•  Plan for the money
•  Repayment plan

6. Employment Details

Do you intend to hire any employees or do you want to run the online business on your own? If you wish to hire employees, how many do you want to hire within the first year?

What kind of employment do you wish to create: full time, part time or on a contract basis?

State the roles employees will play in the company. Also, mention the duties that you as an employer will be carrying out in the business.

7. Business Operations

How will your business operate? Offer detailed information about the day-to-day routines of your business. How will you work with the vendors and the suppliers?

What online platform are you planning to use to display and market your products or services? Provide details of how your company will be transporting products from one point to another.

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