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A Simplified Business Plan for an Internet Startup


by Marv Trott,

The best way to start a new business is to create a Business Plan. Another way to look at a Business Plan is to consider it a story about what you expect to happen during the first year of business. The story has to include how you will acquire customers (or clients), how much money you expect to collect and spend each month, how much profit you expect to make during the first year, and last but not least how many hours these efforts will take.

Here are three of the many web sites that have outlines of Business Plans to help you get started:

I would suggest that you start with the Projected Monthly Cash Flow Analysis in the plan. By starting here it will make you aware of all of the potential income and expense items you might encounter. After you have completed the Cash Flow you should prepare the Projected First Year Profit and Loss Statement.

As you try to determine the projected monthly income you will be faced with the major question: "How can I project how many customers I will sign up that month?. This will expose you to the real world of starting and running any business. That is, "How do I make customers aware of my services, how do I get them to purchase these products or services, and how do I get more customers?".

A web site alone will not create customers. However you can direct the potential customer to go to your web site for more information or to purchase your products or services. To accomplish this you need to develop a marketing and sales promotion plan. This might include presentations to selected groups, running advertisement in selected publications and distributing printed advertising material.

With this information you will be well on your way to understanding what might happen in your new business during the first year.

Although the Analysis may not be what actually happens during the first twelve months, it is far less expense to face the problems on paper then to find out about them after the "doors are opened" in your new business.

If you need a further explanation of anything I have suggested, please don't hesitate to ask for help.

Good luck.


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