Developing Your Internet Business Plan

Transcription

1 Introduction What is a Business Plan Although the typical business plan is often written to secure financing, a solid business plan can serve as a road map for the development. A good business plan requires too much work to be shelved after it is read by bankers and investors. What is an Internet Business Plan In some respects an Internet business plan is similar to a traditional one. Both focus on achievable and measurable goals, analyze market potential, describe the management team and staffing needs, project expenses and revenues, and suggest marketing strategies. The Internet business plan is not a replacement for a traditional one; it is a supplement. More attention is paid to marketing and the odd little expenses that are part of doing business online. The typical executive summary is missing, because this is an operations manual. The following pages suggest some of the things that might make up part of your Internet business plan. Change them to meet your own business needs. Recommended resources Resources for developing Internet business plans are hard to find. With a little imagination, many of the guidelines for traditional business plans can be applied to Internet plans. Sample business plans are available on the sites listed below. Traditional Business Plans: Writing an Effective Business Plan from Deloitte &Touché Business Plan Outline from the Small Business Administration Business Plan Components: Sample Plans from Quicken CCH Business Owner's Toolkit Guidebook: Planning Your Business BizPlanit.Com features the Virtual Business Plan an excellent resource Software: Scotiabusiness Plan Writer a free Windows program highly recommended Business PlanPro from Palo Alto Software ($99.95) PlanWrite Expert Edition from Business Resource Software ($229.95) Technology Audit A technology audit is an inventory of an organization's technological base (hardware, software, and human resources). It provides a benchmark for where the business is now. The audit can help identify strengths and weaknesses. It's really a snapshot of the organization's technology infrastructure. Keep in mind that this worksheet is just a starting point. Note any resources that need updating. Copyright 2003 Regents of the University of Minnesota. All rights reserved. 82

2 Available Resources Written Plans Organization technology plan Notes Business plan Website plan Written Policies Covering use Web surfing Software copying Software installation Hardware Internet connection type: Dial up, DSL, Cable, Other Local Area Network (LAN) Servers: file, , website Computers: number, type, OS, age Copyright 2003 Regents of the University of Minnesota. All rights reserved. 83

3 Peripherals: printers, scanners, cameras, etc. Software Office system: examples MS Office, Open Office, Works Financial: examples QuickBooks, tax software Web design: html editor, graphics software Firewall and virus checker Volunteer and/or donor management application License for all users of various software packages up to date Staff Connected to the Internet Trained to use the Internet: web searching and Formal training on office software Responsible for obtaining and installing software updates especially security updates Copyright 2003 Regents of the University of Minnesota. All rights reserved. 84

4 Check Out the Competition Checking out the competition is an important element of many marketing plans. See earlier section on competitive intelligence for more suggestions. Use this form for each major competitor. MAJOR ONLINE COMPETITORS Company: Address: Primary business: Estimated market share: Domain: Use Network Solutions Whois to find this information. Initial Review Latest Review 1. Is the domain name the same as their company name? 2. How many other domains do they use? Website: Use Network Solutions Whois to find the technical contact. The technical contact usually works for a web hosting service. Visit the service to obtain fee information. 1. Do they use a local web hosting service? 2. What are they paying for web hosting? Audience: 1. Identify the primary audience. 2. How does the website encourage repeat visits? Site type: 1. Customer service 2. Marketing/branding 3. Mall or storefront 4. Content provider 5. Corporate/Investor Relation 6. Other Website design: 1. How easy is it to navigate? 2. Does it have an index? 3. What interactive features does it have? E commerce features: Copyright 2003 Regents of the University of Minnesota. All rights reserved. 85

5 1. Do they sell products online? How? 2. Do they accept credit card purchases online? 3. Do they have an online catalog? 4. Do they use shopping cart software? Price strategy: 1. Are their prices the same online? 2. Do they offer Internet specials? Visibility: Use siteowner.com for this section. 1. How easy is the website to find? 2. Which search engines/directories list it? 3. How many external pages link to it? Overall evaluation: 1. Strengths: 2. Weaknesses: What we can do better: Attach printouts of homepage, site index, and other important pages. Set Goals The emphasis here is on specific achievable goals. Add your own goals to the list below. Website preparation: 1. Determine website role 2. Decide on website features 3. Create draft version 4. Assemble Internet team Website milestones: 1. Domain name registered 2. Find web hosting service 3. Website opens Website revenues: 1. Sell products 2. Add new customers 3. Website breaks even. Target Date Achieved Copyright 2003 Regents of the University of Minnesota. All rights reserved. 86

6 4. Website turns a profit Website promotion: 1. Web and address added to business cards. 2. Website listed by major search engines/directories. 3. Website reviewed by media. 4. Website wins first award Website pull: 1. Attracts new distributors 2. Attracts new suppliers 3. Attract new employees Newsletter 1. newsletter established. 2. Newsletter reaches subscribers Other Identify the Audience The primary audience for your website is most likely your customers. The more you know about your customers the better you can serve them. Encourage online feedback and ; you will learn a lot from it. If your primary Internet audience is not your customers, use a similar form to identify their needs and interests. Match your online efforts to the audience you are trying to reach. Note differences, if any, between online and offline audiences. Characteristics Online Other Demographic characteristics: Age, sex, income, education, etc. Copyright 2003 Regents of the University of Minnesota. All rights reserved. 87

7 Geographical location: Internet Access: Home or work, dial up, DSL, cable, WebTV Significant Life Events: Related to family, housing, jobs, health Special interests: Product preferences: Buying patterns: Frequency, size of sale Response to marketing: Coupons, special offers, surveys, etc. Payment methods: Cash, checks, credit card, purchase order, COD, etc. Build a Team Use this form to note team needs and requirements. Even if most of the work is done in house, this form can help identify tasks that need to be done. Include specific tasks and the person responsible for each one. Roles and Tasks Staff Consultant Other Website manager Website hosting Initial design Copyright 2003 Regents of the University of Minnesota. All rights reserved. 88

8 Content Coding (HTML) Catalog/Database development Transactions (E payments) Graphics Website testing Website maintenance Handling newsletter Other Create a Budget This budget sheet focuses on the initial expenses for website and other Internet marketing. Use the section on revenue and profit projections from your main business plan as a model for creating a Copyright 2003 Regents of the University of Minnesota. All rights reserved. 89

9 similar worksheet for this project. Fixed Expenses Estimated Expenses Start up Monthly Annual 1. Domain registration fees 2. Web hosting fees 3. ISP fees 4. Additional phone lines 5. Insurance 6. Credit card & banking processing fees 7. Miscellaneous Total fixed expenses Controllable Expenses 1. Additional salaries/wages Increased cost of handling , credit card processing, web design, and maintenance 2. Outsourcing expenses Web, database, and graphics design 3. Internet software Browser, , contact 4. Website development software HTML editor, graphics program, clip art collections 5. Website maintenance software Log analysis program, shopping cart, autoresponder, lists 6. Hardware Additional PCs, scanner, digital camera, modems, fax machines, backup systems 7. Updating promotional materials Adding and www addresses 8. Internet Advertising costs Classifieds, banner ads 9. Subscriptions to Net business publications 10. Miscellaneous Total controllable expenses Total expenses Locate Resources Identify the tools and resources available for developing your organization's online presence. Equipment Type Location Hardware Copyright 2003 Regents of the University of Minnesota. All rights reserved. 90

10 1. Computers 2. Scanners 3. Digital Camera 4. Printers 5. Modems 6. Other Software Programs 1. Wordprocessor 2. Desktop publishing 3. Graphics 4. Web browser 5. Other Company Information Format Location Promotional 1. Business cards 2. Logos 3. Brochures 4. Catalogs 5. Direct marketing letters 6. Flyers 7. Newsletters 8. Press releases 9. Annual report 10. Other External Sources Format Location Media reports 1. Newspaper articles 2. Magazine articles 3. Other media coverage Customer feedback 1. Testimonials 2. Customers Surveys 3. Other Other sources 1. Industry reports 2. Industry surveys 3. Demographic studies 4. Business research 5. Other Hint: Jot down the location of both print and digital materials. Copyright 2003 Regents of the University of Minnesota. All rights reserved. 91

11 Use a Website Planning Checklist Requirements Select Web Team Manager: Date Required Date Completed Content: Graphics: Webmaster: Proofreader: Tester: Technical Details Hire web hosting service(s) Register domain name Obtain necessary hardware and software unless you are outsourcing everything Gather Content Review current brochures & reports Rewrite and repackage material for WWW Use storyboard to place content and graphics on specific pages Prepare Graphics Decide on an overall site design style Outsource some or all graphic designs Digitize (scan) organization logo Gather and scan other images & photos Create Initial Website Create and test webpages Spellcheck and proofread each page Test Entire Website View with different browsers Access at various times on different days Test site navigation for glitches Make sure that each form works properly Spellcheck and proofread each page again Maintain Site Respond to visitor comments and questions promptly Copyright 2003 Regents of the University of Minnesota. All rights reserved. 92

12 Check often to see if site is up and running properly and contact web hosting service if it isn't Check internal and external links every couple months Backup all webpages and associated files at least once a month. Try a Website Promotion Checklist Task Completed Prepare meta tags 1. Write short description of your business products or services for both webpages & search engines 2. Select keywords describing business products and services 3. Add meta tags to your webpages Register website with major search engines 1. Register with AlltheWeb (alltheweb.com) free 2. Register with AltaVista ( 3. Register with Google ( free 4. Register with Hotbot (hotbot.lycos.com) 5. Register with Lycos ( 6. Register with MSN Search (search.msn.com) 7. Register with Teoma ( 8. Register with WiseNut ( Uses Zeal for non commercial registration. Note: AltaVista, Lycos, MSN, and Teoma charge for registration. AltaVista indexes 5 pages (URLs) for free. Register website with major directories 1. Register with Looksmart ( 2. Register with Open Directory (dmoz.org) free 3. Register with Yahoo ( 4. Register with Zeal ( free Membership required but free. Note: Looksmart and Yahoo charge for registration. Zeal entries are distributed to AltaVista, MSN, and various ISPs. Register website with regional search engines/directories 1. Register with State and regional directories free Register website with niche search engines/directories 1. Identify service related to your business Copyright 2003 Regents of the University of Minnesota. All rights reserved. 93

13 Arrange reciprocal links 1. Identify sites related to your business and ask for reciprocal link 2. Identify related business/professional association websites and ask for reciprocal link 3. Identify local and regional sites and ask for reciprocal links Track and evaluate website usage 1. Review website log reports 2. Identify popular products/webpages and add similar items 3. Identify unpopular products/webpages and rewrite copy 4. Fix bad links, missing pages/graphics Place online classified ads (optional) 1. Identify service related to your business 2. Set up free banner advertising (optional) 1. Decide if banner advertising meets your needs and suits your company's image 2. Review various banner advertising services 3. Select service, register, prepare banner ad Set up fee based banner advertising (optional) 1. Decide if fee based banner advertising meets your needs and suits your budget 2. Review various banner advertising services 3. Select service, register, prepare banner ad Update other promotional materials 1. Add web & address to business cards and other print items 2. Create signature 3. Set up autoresponder and message 4. Create an newsletter Send Press Releases See Press Release Tracking Form Send a Press Release Press releases can attract free publicity for your website and business products and services. The Internet News Bureau has an excellent annotated list of links related to press releases. Be sure to put Internet News Bureau Tips on Writing &Media Relations on your reading list. Copyright 2003 Regents of the University of Minnesota. All rights reserved. 94

14 Write a short but information packed press release that will draw folks to your website and, perhaps, generate free publicity. Create a targeted distribution list of local, regional, and national media sources. Make sure that they are likely to be interested in your product or service. Obtain addresses and/or fax numbers of editors, key authors, or organizations. Note: Press releases should be sent to a real person not just a mailbox. or fax press release. Follow up with a personal call to the most important outlets. Be aware that press release "spam" is just as irritating as any other kind. Many editors have set up filters to automatically delete any mail with the words "press release" or "news". If you normally would send out 100 press releases via snail mail or fax, then don't try to send out 1000 using . You will just waste your time. Whatever you do, don't purchase or use any of the spam programs. Use the following handy form to track your press releases. Press Release Tracking Form Date Sent Follow up Call Date Result Local Media 1. Newspapers 2. Television Stations 3. Radio Stations Regional Media 1. Newspapers 2. Television Stations 3. Radio Stations National Media 1. Newspapers 2. Television Stations 3. Radio Stations Professional/Business Associations 1. Associations 2. Newsletters 3. Magazines 4. Webmasters Copyright 2003 Regents of the University of Minnesota. All rights reserved. 95

15 Other 1. Identify source 2. Identify source Evaluate the Plan Your Internet business plan is an essential business tool, not something to complete and file away. It should be reviewed and updated every six months or so. The review will help identify potential trouble spots and help you allocate resources more effectively. PLAN EVALUATION 6 Months 12 Months GOALS Setting and meeting realistic goals Evaluation criteria Evaluation method AUDIENCE Identifying audience & meeting needs Evaluation criteria Evaluation method TEAM Building Internet team (including outsourcing) Evaluation criteria Evaluation method COMPETITION Keeping track of the competition Evaluation criteria Evaluation method BUDGET Staying within budget expectations Evaluation criteria Evaluation method Copyright 2003 Regents of the University of Minnesota. All rights reserved. 96

16 WEBSITE SCHEDULE Developing website for enonprofit Evaluation criteria Evaluation method PROMOTION SCHEDULE Implementing marketing plan Evaluation criteria Evaluation method APPENDICES Maintaining collateral materials Evaluation criteria Evaluation method Appendices The following items should be included: Complete printout of current website Webpage style guidelines Webpage template List of webpages, graphics, and other files used online Copies of print materials converted for online use Copies of various signatures Sample responses (boiler plate) Website FAQ for order desk, customer support staff, receptionist Press kit: listing contacts, important bios, bit of history Copies of press releases List of backup procedures Contracts with Internet/Web service providers, web developers, graphics designer List regulations, laws, ordinances affecting the website or it's contents Copyright 2003 Regents of the University of Minnesota. All rights reserved. 97