Introduction
What is a Business PlanAlthough 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
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Business Plan Outline from the Small Business Administration
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Business Plan Components: Sample Plans from Quicken
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CCH Business Owner's Toolkit Guidebook: Planning Your Business
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BizPlanit.Com features the Virtual Business Plan−−an excellent resource
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Software:
Scotiabusiness® Plan Writer a free Windows program−−highly recommended
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Business PlanPro from Palo Alto Software ($99.95)
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PlanWrite Expert Edition from Business Resource Software ($229.95)
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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.
Available Resources Notes Written Plans
Organization technology plan
Business plan
Website plan
Written Policies
Covering email use
Web surfing
Software copying
Software installation
Hardware
Internet connection type: Dial up, DSL, Cable, Other
Local Area Network (LAN)
Servers: file, email, website
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 email
Formal training on office software
Responsible for obtaining and installing software updates −− especially security updates
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 Initial
Review Latest Review Company: Address: Primary business: Estimated market share: Domain:
Use Network Solutions Whois to find this information.
Is the domain name the same as their company name? 1.
How many other domains do they use? 2.
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.
Do they use a local web hosting service? 1.
What are they paying for web hosting? 2.
Audience:
Identify the primary audience. 1.
How does the website encourage repeat visits? 2. Site type: Customer service 1. Marketing/branding 2. Mall or storefront 3. Content provider 4. Corporate/Investor Relation 5. Other 6. Website design:
How easy is it to navigate? 1.
Does it have an index? 2.
What interactive features does it have? 3.
Do they sell products online? How? 1.
Do they accept credit card purchases online? 2.
Do they have an online catalog? 3.
Do they use shopping cart software? 4.
Price strategy:
Are their prices the same online? 1.
Do they offer Internet specials? 2.
Visibility: Use siteowner.com for this section.
How easy is the website to find? 1.
Which search engines/directories list it? 2.
How many external pages link to it? 3. Overall evaluation: Strengths: 1. Weaknesses: 2.
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.
Target Date Achieved Website preparation:
Determine website role 1.
Decide on website features 2.
Create draft version 3.
Assemble Internet team 4.
5. 6.
Website milestones:
Domain name registered 1.
Find web hosting service 2. Website opens 3. 4. 5. Website revenues: Sell ____ products 1.
Add ____ new customers 2.
Website breaks even. 3.
Website turns a profit. 4.
5. 6.
Website promotion:
Web and email address added to business cards. 1.
Website listed by major search engines/directories.
2.
Website reviewed by media. 3.
Website wins first award. 4.
5. 6.
Website pull:
Attracts ____ new distributors 1.
Attracts ____ new suppliers 2.
Attract ____ new employees 3.
4. 5.
Newsletter
Email newsletter established. 1.
Newsletter reaches ____ subscribers. 2. 3. 4. Other 1. 2. 3. 4. 5.
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 email; 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:
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
Content Coding (HTML) Catalog/Database development Transactions (E−payments) Graphics Website testing Website maintenance Handling email Email 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
similar worksheet for this project.
Estimated Expenses Start−up Monthly Annual
Fixed Expenses
Domain registration fees 1.
Web hosting fees 2.
ISP fees 3.
Additional phone lines 4.
Insurance 5.
Credit card & banking processing fees 6.
Miscellaneous 7.
Total fixed expenses Controllable Expenses
Additional salaries/wages
Increased cost of handling email, credit card processing, web design, and maintenance 1.
Outsourcing expenses
Web, database, and graphics design 2.
Internet software Browser, email, contact 3.
Website development software
HTML editor, graphics program, clip art collections
4.
Website maintenance software Log analysis program, shopping cart, autoresponder, email lists
5.
Hardware
Additional PCs, scanner, digital camera, modems, fax machines, backup systems 6.
Updating promotional materials Adding email and www addresses 7.
Internet Advertising costs Classifieds, banner ads 8.
Subscriptions to Net business publications 9.
Miscellaneous 10.
Total controllable expenses Total expenses
Locate Resources
Identify the tools and resources available for developing your organization's online presence.
Equipment Type Location
Computers 1. Scanners 2. Digital Camera 3. Printers 4. Modems 5. Other 6. Software Programs Wordprocessor 1. Desktop publishing 2. Graphics 3. Web browser 4. Other 5.
Company Information Format Location
Promotional Business cards 1. Logos 2. Brochures 3. Catalogs 4.
Direct marketing letters 5. Flyers 6. Newsletters 7. Press releases 8. Annual report 9. Other 10.
External Sources Format Location
Media reports
Newspaper articles 1.
Magazine articles 2.
Other media coverage 3. Customer feedback Testimonials 1. Customers Surveys 2. Other 3. Other sources Industry reports 1. Industry surveys 2. Demographic studies 3. Business research 4. Other 5.
Use a Website Planning Checklist
Requirements Date Required Date Completed Select Web TeamManager: 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
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 (www.altavista.com) ________ 3. Register with Google (www.google.com) free ________ 4. Register with Hotbot (hotbot.lycos.com) ________ 5. Register with Lycos (www.lycos.com) ________ 6. Register with MSN Search (search.msn.com) ________ 7. Register with Teoma (www.teoma.com) ________ 8. Register with WiseNut (www.wisenut.com)
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 (www.looksmart.com) ________ 2. Register with Open Directory (dmoz.org) free ________ 3. Register with Yahoo (www.yahoo.com) ________ 4. Register with Zeal (www.zeal.com) 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 ________
2. ________
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 & email address to business cards and other print items
________
2. Create email signature ________ 3. Set−up autoresponder and message ________ 4. Create an email 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.
Write a short but information packed press release that will draw folks to your website and, perhaps, generate free publicity.
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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.
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Obtain email 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.
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Email or fax press release.
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Follow−up with a personal call to the most important outlets.
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Be aware that press release "spam" is just as irritating as any other kind. Many editors have set−up email 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 email. You will just waste your time.
Whatever you do, don't purchase or use any of the email 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 ________ ________ ____________________________
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
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
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Webpage style guidelines
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Webpage template
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List of webpages, graphics, and other files used online
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Copies of print materials converted for online use
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Copies of various email signatures
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Sample email responses (boiler plate)
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Website FAQ for order desk, customer support staff, receptionist
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Press kit: listing contacts, important bios, bit of history
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Copies of press releases
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List of backup procedures
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Contracts with Internet/Web service providers, web developers, graphics designer
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List regulations, laws, ordinances affecting the website or it's contents
