Question

Business Plan for fully online business.

HassleFreeReturn online 3rd party business.

Business plan for HassleFreeReturn fully online business. We are going to be a 3rd party vendor. We are going to be a nationwide online business for store like Macy's, JcPhenny, Kohls, The Northface, Burlington, Finish Line, Foot Locker. We are going to be contract with Fedex or UPS for returning the sold item. I need help with how we are going to make money from the stores. I need help with financial benefits from the store. I'm considering 3% from the sales or something. I need help with finding out how are we going to make money out of the vendor.

* Benefits to Merchants

* Business Financial Plan

Thank you in advance.

I will have financial manager and business analyst etc. I am trying to find out how am I going to make money out of the store. I am doing a project about online business plan. BOOK- IS Project and Risk Management

Answer 1

Benefits to Merchants

1) Easy expansion - One “Online Shop” Serves All

Typical brick & mortar stores are limited by the geographical area they serve. If you want to expand your business, opening new store is the only viable way. It is costly considering the rental, renovation, headcount and more!! With an e-commerce storefront, there is no boundary! You can serve and acquire virtually any customers from all corners from the country, or even over the world.

2) Extra Channel to Reach Out to the Customers

Does PURE Play of online business really work? Not always, as it really depends on what you are trying to sell. The harsh reality is, you need a lot of marketing dollars just to penetrate through the trust barriers of the potential customers, let alone letting people know you are there out of millions of website around the world.

However, online store is a perfect complement for a Brick & Mortar stores. By combining offline and online store, merchants can work out a multi-channel strategy which will impact their bottom line. Online store is a 24/7 channel that never sleeps. It lets you reach out to your current or potential customer, or vice versa all the time. It helps you to expand your business into younger user group. The basic idea is to get them to reach you to BUY via multiple ways, from phone, fax and drop-in or even order online!! You are definitely going to SELL MORE!

So, how do you get started from here? As long as you been in business for quite some time, any brick & mortar retailers will have a pool of loyal customers. It's 80/20 rules (we might generalize stuff a bit) – 20% of your customers represent 80% of your revenue. You can start with the 20% with your online efforts, by offering them the latest product news, exclusive promotions etc to get the momentum going.

3) Stock Clearance

Old stocks are every retailer's nightmare. Let's face it, consumers taste nowadays is changing too fast to be predictable. You might have some merchandise which is wildly popular elsewhere but it just can't sell. So, clearing these old stocks can be a matter of profit or loss.

With an online storefront, you can easily publish it out in newsletter to reach all your existing or potential customers. Value of goods vary and is largely determined by their geographical area. You wouldn't know someone else from the other part of the world might just be interested in what you sell and pay a premium for it!

Business Financial Plan

Let us consider first Risk Planning.

Even the most carefully planned project can run into trouble. No matter how well you plan, your project can always encounter unexpected problems. Team members get sick or quit, resources that you were depending on turn out to be unavailable, even the weather can throw you for a loop (e.g., a snowstorm). So does that mean that you’re helpless against unknown problems? No! You can use risk planning to identify potential problems that could cause trouble for your project, analyze how likely they are to occur, take action to prevent the risks you can avoid, and minimize the ones that you can’t.

A risk is any uncertain event or condition that might affect your project. Not all risks are negative. Some events (like finding an easier way to do an activity) or conditions (like lower prices for certain materials) can help your project. When this happens, we call it an opportunity; but it’s still handled just like a risk.

Now, I am providing you Brief Explanation about Financial Business Plan.

The financial section of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea. The financial section is composed of three financial statements: the income statement, the cash flow projection and the balance sheet and a brief explanation/analysis of these three statements.

you must gather the financial data you will need including all of your expenses.

Taking Stock of Expenses

All the costs of getting your business up and running should be considered start-up expenses. These expenses may include:

• Business registration fees
• Business licensing and permits