Gilad Krein shares that creating a business plan for an online business is instrumental for effective business planning and long-term business success.
Not only does it help you think through all aspects of your business and develop a strategy for success, but it also provides a roadmap to follow as the business grows.
But it can be difficult creating one from scratch: you might not know where to start or what information you need.
In this blog post, we’ll walk you through Gilad Krein’s process of creating a business plan for your online business and provide tips. Let’s get started!
What is a business plan, according to Gilad Krein?
A business plan is a formal document that outlines your business goals, objectives, and how you plan to achieve them.
It covers all aspects of your business — from target market analysis to your products, features, operational details, marketing, competitive analysis, and a financial plan.
Why do you need to write a business plan?
Creating a business plan is a crucial first step in starting a new business. A business plan helps you to think through all aspects of your business and develop a strategy for success.
A business plan is especially helpful to:
- Define your business goals and objectives
- Develop strategies for achieving those goals
- Identify potential risks and challenges
- Plan for long-term success
- Secure funding from investors or lenders
Even if you are not a new business, a business plan can still be a valuable tool to keep track of your goals or present it to investors in seeding rounds.
Although you can find numerous business plan templates online, creating a custom business plan always works best!
So, let’s dive into Gilad Krein’s process for creating a business plan.
Gilad Krein explains how to write a business plan for an online business
Gilad Krein is an internet entrepreneur and an online business coach. He shares a lot of useful information about online businesses and entrepreneurship in all around the internet and in business owners’ networks. He is also a digital nomad who runs a personal blog where he shares his business wisdom.
Here is Gilad Krein’s 9-step formula for drafting a well-written business plan:
9 Fundamentals of an in-depth business plan, according to Gilad Krein
Draft A Compelling Executive Summary
A well-written executive summary provides a high-level overview of your business plan that covers the key points, including:
Your business name, logo, and contact information
A brief description of your business
- Your target markets
- Your USP (unique selling proposition)
- Your business goals and objectives
- A summary of your marketing plan
- A summary of your financials
Although presented at the start, the executive summary is usually written at the last when the rest of the sections are complete.
Describe Your Company
This business plan section describes who you are and what you do (or plan to do).
Gilad Krein explains that it is an excellent opportunity to share your company’s story and to highlight your team’s experience, credentials, and achievements. It helps the reader familiarize with your company and understand what it does (or will do).
Besides the above, writing your mission and vision statements is also an excellent way to describe your company’s core values.
Perform A Comprehensive Market and Competitive Analysis
Next, says Gilad Krein, you need to include a thorough research report, called market and competitive analysis, on your industry and target market. This will help you understand the size of your potential market and how you could position yourself in it.
Some of the key questions you need to answer in this section are:
- Who is your target market?
- What needs does your target market have?
- What are the trends in your industry and target market?
- Who are your competitors, and what are their strengths and weaknesses?
Remember: determining your competitors and knowing how to conduct a competitive analysis is critical to your business success.
Outline Your Management & Organization Structures
Once you have summarized the market report, tell your readers about your business’ legal and management structure.
The legal structure will detail the type of business you’re starting, which can be anything from a sole proprietorship to a limited liability company (LLC).
On the other hand, the management structure will outline who’s in charge and how decision-making works within your organization.
Management structure generally includes a chart with management hierarchy followed by detailed roles and responsibilities of all team members.
List Your Products and Services
Now it’s time to delve into the details of your offer!
Whether it’s a product or service, write at length about what you’re offering to your customers. explain their prominent features and benefits and how they address your target market’s needs.
If it’s a product, attach pictures of the prototype or samples. If it’s a service, make a chart of the workflows and how things will operate, so any outsider can easily understand what you do.
Finally, you’ll want to include any pricing information and discounts or deals you offer.
Conduct SWOT Analysis
Once you are done listing your products and services, it’s time to carry out a SWOT analysis of your business.
This section should answer questions like:
- What are the most notable qualities of your company?
- What sets you apart from your competitors?
- What are the potential risks and threats your company faces?
- What weaknesses do you need to address?
It’s an excellent way to offer honest insight into your business — highlighting strengths and identifying improvement areas simultaneously for anyone interested in knowing about your business.
Present A Marketing Plan
Your marketing plan should explain how you’re going to reach your target market and promote your products or services. This means you should include detailed plans for all social media platforms where your target audience hangs out.
Also, don’t forget to include your budget and any metrics you’ll use to measure marketing effectiveness and present to stakeholders or potential investors.
Overall, this section should include a well-defined marketing strategy, your promotional mix (advertising, public relations, social media, etc.), and your sales strategy.
Create A Financial Plan
This section should include a detailed overview of your business’s finances, including:
- Income Statement highlighting projected expenses and revenues
- Balance Sheet showing your assets, liabilities, and equity
- Cash Flow Statement reflecting net cash flow over six months or a year
If you’re seeking funding, you’ll also need to include detailed financial projections for the next five or ten years.
Gilad Krein warns that This section can be tricky to write, so you may want to hire an accountant or financial advisor to help you out.
Attach Appendices
The appendices section is where you can include additional information that’s relevant to your business plan but doesn’t fit anywhere else.
This could include your business’ licenses and permits, resumes of key team members, market research data, patent information, or sample marketing materials.
Now that you know what needs to be included in your business plan, you can start writing it! Just remember to keep it clear, concise, and honest for the best results.
