Making A Business Plan For An E-company
Starting a business online is one of the best paths to a semblance of financial freedom. This rings especially true if you have some experience in corporate America. There’ve been ground-floor retail salespeople who’ve leveraged their knowledge of the employer’s business to open their own successful venture.
So what does it take to start an e-company? If you’re starting from scratch, then you should do an internet search for pre-existing businesses to give yourself ideas. For example, the Georgia Secretary of State Corporation and Business Entity Search is a free-to-the-public search engine that is actually extensible to any state. Once you have an industry, you can follow these steps to success.
Research And Planning
The research phase began with the above; are you going into a tech space or retail? You’ll need a different business plan for either, and you’ll discover what you’re up against in the validation process that follows.
The basics question is: what problem does your business solve? What need does it fill in the eyes of the general public - or in the eyes of a company, if you intend to go B2B (business to business). Answering these questions will lead you to the next part: discerning the competition. Understanding how your business might fit into the equation will reveal its cost-effectiveness.
Your business plan or model is how you’ll go about establishing it. There are several methods here; but if you plan on seeking help from an angel investor, peer lending or other outside lending institution, you’ll need to go the traditional route - which entails a comprehensive written report. Otherwise, if you’ve got personal funding already lined up, then all you really need is a short note keeping track of your expected expenditures, acquisitions, deals, etc.
The Problem Of Funding
If you don’t have enough money, there are plenty of resources to help you. There are small business grants from the federal government, there’s online-based crowdfunding campaigns and other outside sources. Generally-speaking, it’s quite difficult to obtain a bank loan from a major institution if you don’t have sales reports denoting the current success of your business, as well as possible future projections.
What Type Of Business Are You Looking To Start?
The way you incorporate is important. Do you want your business structure to be a limited liability corporation, corporation, sole proprietorship or partnership? Your choice matters for tax purposes and other important business factors, and it’s best to understand the particulars of each type before you choose.
To facilitate the process, consult an attorney or CPA who can advise you on what’s best for your business and goals. Always remember your business structure is not set in stone; you can always alter it.
Keep in mind that some business require more in the set-up phase than others. For example, if you’re looking to set up an entity that stores consumer data, then you’re responsible for the security of that data and can be held liable in the event of a breach. If you accept credit card data of any kind, then there are certain levels of PCI compliance you must adhere to - the exact details are dependent on your annual transaction volume. Want to know what is PCI compliance? Consult this site for more information .
Getting Off The Ground
Finally, most of what is left consists of employee hiring - if you plan on being more than a one-person operation, that is. A business location is mostly necessary if you’re not e-company; however, having a location even if you are based online can help with Google Places placement and search engine recognition.