Internet business plan development and implementation

Internet Business Plan

What does the 'Internet' mean? The Internet is nothing but a global connection comprising of more than millions of computers, linking more than 100 countries from all over the world into a network of a sharing and an exchange of data and information and news and opinions and many other things. There is an important difference between 'online services' and the Internet, the difference being, primarily that of online services being a business that provides its subscribers with a large amount and variety of data that is transmitted over lines of telecommunications. Online services, in effect, provide their users with a basic infrastructure wherein they can form a communication network with each other through the system of 'conferencing', or by communicating on an individual level with the system of sending e-mails. (Online Services: webopedia.com)

Wherein online services are controlled centrally, the Internet is basically a 'de-centrally' designed structure. Each Internet computer, or what is known as a 'host' is one single entity, and is completely independent of any others. The operators will be able to generally choose, independently, the particular Internet service that they would prefer to use, and also the particular local services that they may make available to the global Internet community. There are quite a few ways and means in which to gain access to the Internet, and one of them is to gain access through an Internet Service Provider or an ISP, or through any online services, like for example, the America Online. (Internet: webopedia.com)

When one wants to start a small business on the Internet, it is advisable to gain a thorough knowledge of the various advantages and disadvantages and other facts involved in this particular field before venturing into it. To begin with, an analysis of the advantages can be discussed. It is a fact that most Internet service providers do offer interest-free financing for those individuals who want to start a small business on the Internet. One such company is the JNS Internet, which is a full-service web designing and hosting company, offers its web service user interest-free financing so that they may be able to use it in their development of small businesses on the Internet. (JNS Internet offers small businesses large opportunities)

Another advantage that the Internet offers to small businesses is the fact that it is infinitely easier to 'trade' while using the Internet services. Almost all bigger firms have been suing this factor to their immense advantage, and now, it is the turn of smaller businesses and firms to take advantage of this fact. The truth is that e-commerce has regained the popularity that it used to enjoy at one point of time, and many businesses on the Internet, big and small, are scrambling to make full use of this to their advantage. It is thought that SMEs can virtually transform their businesses with the revenue and the transactions that would take place when they use the Internet for trading.

Richard Veal, the co-founder and the Director of the Liverpool New Media Company, New Mind, states that the Internet will provide the SMEs with an excellently cost-effective means by which they could hope to achieve their target market, but it would also allow for better flexibility and also greater control over their long-term strategies for the improvement of the small businesses over the Internet. One example of a business on the Internet that has demonstrated an unprecedented growth over the past few years because of trading, is the Ormskirk-based cycle shop called ' www.cyclexpress.co.uk.'this small company that started off as a traditional retail shop that was selling spare bicycle parts and other bicycle accessories to a wide range of customers from all walks of life, like weekend riders of cycles to riding champions, felt that their business must pick up and grow more and therefore sell more and more bicycles. This prompted the owners of the outlet, Matthew and Joanna Middleton, to look at the Internet and at e-commerce as a possibility to improve the existing sales. E-commerce became their primary business strategy, and a business plan was soon created and developed, wherein they would sell the bicycles and other accessories and spare parts on the Internet through the system of selling using e-commerce.

This decision made by the couple led to an astonishing growth of the small business, and e-commerce accounts for more than 70% of the total revenue of the business, and these figures are still growing; the figure from the previous December shows a growth rate of 80% this year, thanks to an improvement strategy planned and implemented by the New Mind group. The benefits and advantages of using the Internet for a small business can be summarized thus: for those companies that sell products whose details are most important to the final sale of the product, the Internet would be able to provide an ideal platform for achieving this. This is because of the fact that the Internet would be able to offer more flexibility al a fraction of the cost that would be needed for the level of details that would be needed in order to sell the product.

In addition, the specifications of a product, which have the disadvantage of becoming outdated rather quickly, can be updated and also published as and when necessary, without the need for expert intervention or technical advice from experts. E-tailers would be able to offer free advice and thereby add value to the product. This can be done in the form of case studies and examples or in the form of online guides whenever requested by the customer, a factor that is not possible in retail outlets and shops. The so-called 'time to start marketing' is another important factor that the small business trying to use the Internet for its betterment and for more profits must remember, and this is also an advantage that the Internet would be able to offer its user.

One example of this 'right timing' is that of New Mind's e-commerce customer, ' www.creatinestore.co.uk',which desired to create a brand new brand identity and also a completely functional e-commerce webs site at the time of a major launch of its products at an event in London. This task was accomplished with a great amount of success, and the company is now one of the leading names in sports goods manufacturing and selling, with certain special features like search functionality and a credit card verification that would be very useful. (Advantages of Internet Trading)

Erin Greer, a horticulturist by profession has this to say about the advantages of using the Internet for the starting and the development of a small business. He says that almost everybody in the world today who owns a computer uses the Internet to either buy a product or to sell it. They also use the Internet to find information about the product and compare prices, and so on. Some people even us certain auction sites such as E-bay in order to buy or sell certain products. He says that as a horticulturist, the area of horticulture has benefited greatly from the use of the Internet. This is because of the fact that more and more people are selling different products on the Internet, and this makes such a wide range of products available, like it had never been before at any time, before the advent and the popularity of the Internet as a means of conducting business.

The basic advantage of using the Internet for the conduct of business, Erin Greer says, is that the Internet is never closed. Anyone who has the Internet connection at home or at office is free to shop at any time of the day or night. All they would have to do is switch on the computer, log in, and start shopping. Another advantage is the fact that the Internet makes such a wide range of customers available to the seller of a product that he may be flooded with offers on the very first day itself. A customer may be from any corner of the globe, and he would be able to sell to him. Another major advantage of using the Internet for business is the fact that the advertising for the business would be very limited, and this would bring down, considerably, the cost of advertising.

In addition, the advertisement that has been put up will remain online for as long as the customer wants, in comparison to the fact that a newspaper or a TV ad would last for just a day or so. Graphics can be added to the advertisement on the Internet, animation can be added, and it can, in some case, even be an interactive site where the customer can get in touch with the seller directly. Therefore, it can b seen that it would be through the Internet that small as well as large businesses would be bale to reach many more people than they would have if the business was retail one conducted in a shop, in any one or two locations. (Horticulture and the advantages of using the Internet Technology)

What are the disadvantages of conducting business, large or small, on the Internet? They may be many. However, the most important disadvantages are: it can actually create a feeling of isolation; the businessman may feel that he has become isolated. This means that he may get the feeling that the World Wide Web is faceless and emotionless, and thus the business too is isolated and inhuman, devoid of contact with the real world and other human beings. After all, humans are social creatures, and such isolation would most often lead to the development of a feeling of depression. Another disadvantage is that since the World Wide Web is such a large area to work in; it encompasses in some cases the entire globe, and there is such a large amount of information generated on the web, it becomes very difficult to be able to tell the innate difference between the truths and lies.

In addition, it is difficult to tell if the person is lying or telling the truth, because of the simple fact that it is not possible to see the person's face and body language on the Internet. Another major disadvantage of using the Internet for a business is that of the real threat of an overload of information. This information can be either good or bad, and the fact is that even if the information is all good, it becomes very difficult for the businessman to assimilate all the information and make a judgment based on the information, because of the simple fact that it is an overload that is not really required. The final result would only be that of confusion, whereby the individual does not know what to take and what to reject. However, what must be stressed at this point is that the good more than outweighs the bad; there are more advantages than disadvantages in working a business on the Internet, and therefore, if one has any plans of using the Internet and the World Wide Web for conducting or even improving his business, then he must do it. (Advantages, Disadvantages of Internet Marketing, the Good the Bad and the Ugly)

How does one go about setting up the intended business on the Internet? An 'e-marketer' report shows why small as well as medium sized businesses on the World Wide Web have been projected as paving the way towards increasing the communications and the information technology sector by spending more amounts than ever before on them. The relevant figures demonstrate the fact clearly: while it was less than 6% before, it has now increased to more than 6% and up to 8% today. This is because of the fact that small and medium business ventures represent a very important and useful and a significant business opportunity to those who would want to take advantage of it. These businesses have only of late started to invest in IT systems and also in Voice Data systems and networks, and this leads to the inevitable fact that the small and medium business market will become very important for those vendors of technology and for IT service providers over the next few years or so. It is generally predicted that the number of these small and medium businesses all over the world will show a dramatic increase of 87.0 million companies from a 77.4 million from the years 2003 to 2008.

It is also a fact that most of this amazing growth would take place in the region of the Asia-Pacific and Eastern Europe, and in countries like India, China and Russia, the growth of these businesses would be the maximum, because of the fact that it is in these areas that the creation of such businesses is being encouraged unlike anywhere else. The small and medium businesses sector would have to be willing to make high levels of investments in sophisticated IT systems and networks and also in Voice-Data transmissions and this in turn would improve opportunities for the vendors of these items, though it will not be an easy task. It will be a tough job because of the fact that one size would not fit all, and this means that these businesses would require systems that have been specifically tailored to meet their own special needs, and the solutions offered by the vendors would have to meet these specific needs. However, when it is done, and done well, then the results would only be excellent, and the rewards would be great. (Small Businesses, Large Opportunities)

In writing a Business Plan, one would have to remember the following details: will the company be a business to business one or a business to consumer type of business, will the business be involved in the manufacture of a product or the delivery of the product or in the delivery of a service, or in the distribution of goods for sale, or in the business of brokering information and selling it, and so on. Then the next step would be that of deciding whether the business would sell one single product or a single service or a multitude of products and/or services. Another decision to be made is whether the business would have an office set up within the four walls of a room, or will it be strictly web based wherein there would be no need at all for an office premises. Finally, will the business be a large or a medium or a small sized one. All these factors play an important role in the entire operations of the business plan and its ultimate success. (E-business plan-operations)

When taken in several easy to follow steps, writing a business plan based on the earlier research on all the advantages and the disadvantages of using the world wide web for pursuing a business, and the statistical research on the success that a business on the Internet would enjoy if done well with a good plan of implementation, it is now time to learn how to write a business plan. The first step in writing this complicated document is to determine, at the very outset, who would read this business plan, and this is what would naturally shape the plan that is to be written. For example, if the business plan is for 'bank financing' or for 'investors', the plan would deal with either debt finance or with equity finance. Numerous facts and figures must be added to the business plan so that the various assumptions of the market would be revealed clearly to the reader.

The second step would be that of undertaking an in-depth analysis and research of several different important areas. Taken up-to-date, the research would have to include one's won experiences if any in the chosen field of business, and the data generated would have to be backed and supported well so that its authenticity is not doubted. All types of already published information can be made use of for the purpose of this research, and this information can be taken from books, the Internet, or from any other sources. The next and third step would be to create files for each section of the business plan to be written, into which all the experiences and information can be transferred. The files may be created on paper or on the computer or can be set up utilizing computer-based software for the writing of a business plan.

The fourth step generally involves the research or an overview of the industry or service for which the business plan is being written. This also means that the writer would have to have a basic understanding of that particular industry for which he is making the plan, and when armed with such knowledge, it would be easier to gather more information from experts on the subjects as part of the research process, so that the best and the most pertinent questions may be asked of them without fear of making a mistake or even embarrassment. It is only after the collection of the data that the actual planning can begin, and this is the fifth step of writing a business plan.

During the next and the sixth step, the write must be able to sit with an accountant and discuss the financial aspects and the practicality of the plan that he has undertaken to write. This is the only method in which realistic projections may be made to the client, or else overly optimistic plans would only give rise to disbelief and also in some cases, disappointment. The seventh step can now take place, and this is the writing of the executive summary of the entire plan, wherein all the various key points may be highlighted and the hoped for returns may be stated along with the payback requirements for the loan that has to be taken.

Review and editing is the last and final step in writing a business plan, and it must be remembered that it is a well written and well researched plan that would help to bring about the final expected for result, and when this important step is taken with care, then the plan would be a great success. The plan can be shown to others, at this stage, and they may be asked to give their feedback, and opinions. Editing must also be undertaken at this important juncture, and changes can be made. Proofreading is a definite must, as it is the truth that a well written document without simple and annoying spelling mistakes that will make a lasting impression on the client. (Critical Steps to writing a business plan.)

Business Plan is also referred to as a 'strategic plan' and also an investment plan or a financial plan, or a growth plan or a product plan, or a feasibility plan, etc. however, whatever it is called, the function of a business plan is the same, though a financial plan may match the financial part of the running of a business, and so on. The most basic and standard business plan is that called a 'start-up' plan, and this defines the various steps that new business venture must take in order to succeed. The normal and standard topics are covered under this plan, and these are the company, the product or the service that is being sold, the condition of the market, the forecast, the strategy, and so on. An internal plan, on the other hand, is not intended for the public or even to be revealed to an outsider of the company.

An operation plan is similar to an internal plan, and may not be exposed to an outsider, whereas a strategic plan focuses more on the options and the priorities that the company must be ready to take. A growth plan, will, as the name suggest, focus on that particular part of the business that the focus needs to be on, that will help it to improve or grow. A feasibility plan will generally include the facts that the client can read that would help him make the decision of whether the plan is a good one or not, and whether the business is worth pursuing or not. This sort of plan will include a mission statement, a summary, and the key to the success of the business, including a market analysis, and so on. (The Different Types of Business Plans)

(a) Today, with the advent of the Internet and the popularity of the same, the computer has become a very good device that can be used for the purpose of communication across the globe, within seconds. Computer-based communication programs today can be either the simple e-mails that any one can send to another, or the complicated video-conferencing method. (Communicating) Whenever there is a surfeit of information, it goes without saying that there is an innate risk involved in it. Therefore, it can be said that the Internet and communication through the Internet does not come without a certain amount of risk. However, the advantages far outweigh the risks, and this means that the Internet is becoming more and more popular today, despite research that shows that free information on the World Wide Web comes with the associated risk of free accessibility, interactivity, and globalization.

The inevitable connectivity that is achieved through the usage of the Internet as a medium of communication has led to the lack of proper control over the information that is being shared freely over the net. But at the same time, there is an immediate advantage in communications over the Internet, and this is the fact that the Internet has been able to increase the opportunities to avail of and to secure information in a totally new manner that was not available until the advent of the Internet today. (Crisis Communication and the Internet, Risk and Trust in a Global Media)

Another opinion is that the new communications offered by the Internet brought about certain high expectations, and the resulting great deal of frustration to the entire business world. Most business managers were happy and excited at the prospect of better efficiency, better effectiveness, and also the better chances of implementing any innovations through the use of this interesting medium that would supposedly transcend all types of geographic boundaries and borders and also of time. However, all initial experiments led to failure and disappointment, and this led to bitterness among businessmen. This problem has today been sorted out and it no longer is a real problem. (Communications Systems on Supply Chain management) manager of a website comments that no other medium other than the Internet offers the user the amount of control that he gains form the Internet. (Are you flying blind?) Examples of sites that use the Internet for communications are: 'Make your site sell' maintained by Ken Envoy MD, the site URL is as follows:

http://myss.sitesell.com/,another example is that of the popular 'Host 4 Profit' which is a website that offers the visitor to the site a great many benefits, and sells many a product in this manner. The URL of the site is: http://www.host4profit.com/cgi-bin/home.cgi?12540.

2(b) How can the Internet be used as a marketing tool? It is a fact that many individuals dream of starting an Internet business where products and services may be marketed on the World Wide Web. Most of the time, however, there is a number of real as well as imaginary barriers to starting a small business on the Internet, and it is advisable to follow certain known steps to set up a business and use the Internet as a marketing tool. (Discover how you can build an online store with no computer experience)

Whatever be the business to be marketed on the Internet, it is best to start off with a checklist of the things to be done before the business can take off. Once this is completed, then the process can begin. The marketing strategy that has been devised for the business in the business plan would now come to be useful, as this is when the basic tenets of the plan can be implemented. Sometimes, however, it is best to literally 'copy' the marketing plan of the competitor, if it has been proved that the plan has in fact been successful and brought increased sales for that company. An in-depth analysis of the customer and his special or specific needs would have been done at this stage, and it is good to sit down and think about whether the customer wants quality or quantity or convenience or better pricing from the company to be launched on the Internet. In a traditional market, the hiring of employees would have to be done now.

However, the Internet is a tool that does not need too many people for the purpose of marketing, the product or service to be sold would be accessible on the World Wide Web 24 hours a day, whenever the customer wants to shop. Therefore, there would be no need of marketing personnel within the firm. The next step in using the Internet as a marketing tool; would be to decide what to buy and how much to buy and the speed at which the product would be delivered to the warehouse. The following list would help: buy only what can be sold, never buy anything without finding out the price and the terms specified, have backup sources, and so on. There is some very good marketing planning software available today, and these can be used to set up the business on the Internet. Such tools would help the entrepreneur in his search for customers, and also raise an awareness of the business that he has started, and, most importantly, help to increase sales. (Small Business Marketing and Opening)

The Software brought out by Palo Alto gives the user a complete summary of the various steps to be taken when wanting to set up a business on the Internet. Several sample plans are included, and the user is taken through a number of easy to implement strategies that would help him to start the business as fast as possible. What with the ever-increasing popularity of the Internet and the World Wide Web, more and more people are turning to the web for improving their businesses. When the Internet is used as a logical and helpful tool for the purpose of marketing, then there will be a large amount of profit in it for the businessman. A few examples of businesses that have proved that much better profits are generated by the Internet when it is used as a marketing tool are: Preston Reuther's www.wire-sculpture.com, and Ken Kalhoun's www.daytradinguniversity.com.Both these people claim that the Internet has been a veritable boon in their lives and they now have to work less but earn more, leaving them with more time to enjoy doing activities that they would not have been able to do otherwise. (Make the Web work for your Business)

2- How can the Internet be used to enhance Customer Service? A report published by Biz Report states that almost two thirds of customer services communications in high tech industries are either done through e-mails or through online services, and another report by KANA states that about 27% of communications are conducted through methods like the telephone, the e-mail and the Internet in general. In a customer survey and feedback conducted by KANA, it was discovered that about 35% of these customers felt that online self-service groups based on the Internet seemed to be the fastest responders to any types of queries put up by the customers, and about 17% said that it was a combination of several different communication methods that generally worked the best. (High Tech Customers prefer online Services)

When the phenomenon of offering customer services on the Internet was initiated, it was a novel idea and a unique concept. However, today, such a thing is necessary for any business that operates with certain links on the Internet; it is today a matter of survival. If there were no customer service on the Internet for the customer of today, he would most probably just walk on to the firm's closest competitor, because communication today forms such an important part in the functioning of any company, and communications that use the Internet are the best and also the fastest. It is an undeniable fact that those companies that took up the initiative and the lead in setting up a network of communications for their customers managed to sort through the initial difficulties with ease, and this paved the way for others who took the lead in developing a similar network for their customers, if only for the very basic reason of not being outdone by the competition.

These companies took the lead by breaking through the traditional modes and means of communication, and managing to take a few steps beyond it, and this is what led to the starting of the communications with the customer through the Internet. What these companies demonstrated was a vision and an understanding of the future, and a better understanding of the need for client/server networking, and today, anyone who has access to the Internet and the World Wide Web and wishes to launch a small business on the Internet can avail of the experience gained by the practical examples of these companies, and reap the benefits. (Customer Service on the Internet: Building Relationships, Increasing Loyalty, and Staying Competitive)

The Primus Group that offers computer solutions on the Internet for their customers has this site for customer services:

https://esupport.primus.com/login.asp.A customer who wants anything to be explained or clarified would be able to go to this address for the information that he desires to acquire. The ATG Group of Solutions that has been engaged by the Primus Group offers the opinion that it is the customer that is the most important person in the chain of interactions with the company. They state that it is a must that the customer be made to feel important, and that they may avail of intelligent and seamless and relevant information from the customer service centers whenever they want to, and this is what gives the company an edge over the competition. When a customer's query is answered immediately through either e-mail or through online customer guidance facilities, then the customer would indeed be deeply satisfied. (Primus Knowledge Solutions has joined ATG) The U.S. Bank also offers its customers excellent customer services, and this is the address that they advertise on the Internet under 'Contact Us'

http://www.usbank.com/cgi_w/cfm/contact_us.cfm

3. How can the Internet be used for the purpose of providing general information for net-surfers? It is often said that one of the major problems that newcomers to the World Wide Web normally encounter is how to find the information that one wants from such a vast array of websites. However, if one follows certain steps, then it would be easier. The first step is to go to a 'site index', wherein one can find a good lot of information in a structured format, the basic structure having been designed by a human being. This means that human intervention would lead to better and more informative sites for the surfer and many popular index sites show a host of references under the same topic. One disadvantage that becomes apparent while surfing site indexes is that it is impossible for a human being to handle the constant changes that take place within the Internet and the World Wide Web, and this means that it lose its value as a font of information.

The popular http://www.yahoo.com/is one example of a site index, another being the 'Trade wave Galaxy' with URL

http://www.galaxy.com/.Another means in which to find information is through 'Search Engines'. These offer a great deal of information. Examples of popular search engines are: