Why Your Ecommerce Store Needs a Business Plan (and How to Write One)

Why Your Ecommerce Store Needs a Business Plan (and How to Write One)


If your first thought when hearing the words "business plan" is "yuck", then you're not alone.

For most people, the thought of writing a business plan brings up painful memories of past homework assignments and many online store owners view them as something only "real world" businesses and Silicon Valley startups need.

And lets face it, there's all that fun marketing stuff you could be doing like taking product photos, writing blog posts and opening social media accounts.

But the truth is, the fun stuff will only be meaningful if you build your business on a strong foundation.

And that's where writing a simple business plan comes in.

Why You Need a Business Plan

Even if you don't actually need funding for your business or need to submit a business plan to anyone, there are still some compelling reasons you should consider writing one for yourself.

For example, let's say that you're just starting out. You've created an online store, you may even be making some sales. Creating a business plan at this stage could help you see the bigger picture and chart a strategic course for future growth.

Or maybe you're five years into running your business and you're starting to feel stuck and things are beginning to plateau. Creating a business plan at this stage could help you think outside of the day-to-day grind of running of your business and discover new ways to market it or new products you could be selling to boost revenue.

On the flip side, maybe your business is trending downward. Creating a business plan in this scenario could potentially help you either change the way your business works as a whole or cut your losses before you're in deeper trouble.

The point is, if you haven't written a business plan, you should take the time to do so, no matter what point in your business's lifecycle you're in.

And the best part? It's not that hard.

Let's look at how you can do it.

Components of a Good Business Plan

Remember, if you're just doing this for yourself, there's no need to go overboard and turn this into a major project that holds you back from launching and making some initial sales. Think of it as something designed to help open up some ideas for your business and shed light on some angles that maybe you haven't thought of yet.

In the future, if you actually need to submit a formal business plan to someone, you could always use this one as a starting point and spruce it up as opposed to having to start from scratch.

The key areas of a business plan include the following. Find out how defining each can help your business.

Executive Summary - While it's the last thing you will write, it's the first part of the business plan. This part summarizes the main highlights of the rest of the sections.

Company Description - This is a high level overview of your company, products or services, types of consumers, and competitive advantages. Ultimately, think of it like what you would tell someone in an elevator ride about your business if you wanted them to invest in it. Also known as an extended elevator pitch.

Market Analysis - This is your research about your industry and target market. If you haven't formally defined your target customer, this will help you do so.

Operational Plan - This covers the day to day operations of your business, from location and hours to inventory and accounting. As you go through this, you can make sure that each of the vital processes in your business are running as smoothly and efficiently as possible.

Organization & Management - This tells people about the main players in your business - who owns it, who manages it, etc. It will help you define all parties involved with the foundation of your business so everyone has a clear understanding of where they fit and who does what.

Products & Services - This is where you describe the products and services offered by your business. You should think about them from your customer's perspective. It will help you to better sell your products and services once you've defined them using this approach.

Marketing & Sales - This is where you layout how you will reach your target market, identify prospects, and sell your products and services. While composing this section, creative marketing and sales strategies might emerge.

Financial Projections - This is where you really dig in and figure out how much your business will make over the next five years. As an established business, you will include historical data and be able to make your predictions based off of that. Coming up with these numbers could be a huge motivation boost and keep you working towards a specific goal as opposed to just seeing what happens.

Funding Request - This is the part of the plan where you define your outside funding needs and exactly how you plan on using those funds as well as pay them back. Even if you're just investing your own money into your business, this can help you really focus your spending so it is all allocated and documented properly.

As you can see, creating a business plan can be a huge eye-opener for your business, no matter what stage you're at.

Business Plan Templates & Resources

Fortunately, there are a lot of great resources on the web that you can use to make the business plan writing easier. Best of all, many of them are free. Here are just a few.

If you want more samples, you can try this (really long) Google search for industry business plan filetype:pdf -template -sample -checklist -outline -format. Just replace industry with your own to find sample PDF business plans.

Business Plan Competitions

Did you know that there are actually business plan competitions annually?

The winners of these competitions get funding for their small business. And the ones that don't still get good publicity and recognition by the organizations they submit them to.

Here are a few examples of the latest business plan competitions for 2013 to give you an idea of the kinds that are out there.

You can also search for business plan competitions on Google to find ones that are specific to your region or your industry. If you do need funding and have an awesome business plan, this could be a good way to go about getting it.

Have you created a business plan for your business? What did you learn from it?

Business Plan Competitions

The Ultimate Guide to Business Plans

This free, step by step guide will show you exactly how to write a business plan and set yourself up for success.

Read the Ultimate Guide to Business Plans now.


  • Adeel Vanthaliwala
    Adeel Vanthaliwala
    July 18 2013, 12:27PM

    Thanks for the post Mark. This seems to be a really painful part of business for many entrepreneurs and many avoid it all together.

    However, writing a business plan is the single best exercise you can go through to really think about your business.

    It’s okay if you have little data or your projections are not founded in assumptions, the fact is that you’ll learn so much about your business from this exercise, that you’ll definitely come out a much better and perceptive business owner.

  • Jonathan Wilhelm
    Jonathan Wilhelm
    July 18 2013, 03:52PM

    Ha! I would love to hear Richard Branson tear this new one. Also, what did Bill Gates, Steve Jobs, Michael Dell, and Mark Zuckerberg all have in common? They didn’t use a business plan because they understood that time is money and action is a million time more profitable.

    We should keep business plans in the early 20th century where they belong.

  • @Shopify Mark Macdonald
    Mark Macdonald
    July 18 2013, 04:24PM

    Taking some time to understand your market, how to position your business in that market and how to present your business’ value proposition to your customers is never a bad thing. Should you worry about getting this perfect to the point where it gets in the way of shipping? Absolutely not.

    This doesn’t have to be major time drain. Buffer got $500k in funding with 7 slides:


  • Mark Dunkley
    Mark Dunkley
    July 18 2013, 04:37PM

    Just don’t spend a week writing it. I keep an evernote including keywords to rank for (market analysis), revenues goals (financial analysis), the next product ideas (products and services).

    Branson was famous for his notepad and recording this data, of course he had a business plan.

  • Wes Coughlin
    Wes Coughlin
    July 19 2013, 01:06AM

    I would recommend reading “Rework” by the folks at 37 Signals before thinking about writing a business plan. Basically “Rework” taught me more about running a business then my undergraduate in business.

  • Suzanne Grant
    Suzanne Grant
    July 19 2013, 09:13AM

    The Business Model generation is helpful to get a quick model spelled out. A traditional “plan” may be cumbersome, however, the thinking process is useful. Also a good tool to get buy in from your co-founders etc.

    Recommend keeping it point form.

  • Jonathan Wilhelm
    Jonathan Wilhelm
    July 19 2013, 11:27AM

    I agree with Wes Coughlin, I read Jason Fried’s article in Inc. each month and they really have a strong understanding of how to make things work for you and more importantly how to shut down or pass on things that aren’t working or don’t work.

  • Mary
    September 04 2013, 06:35PM

    I recently decided to start a business. I had in mind a website, e-commerce site, where I will sell high end gifts. In researching website building and all the companies that will help you do this a friend suggested Shopify and I believe that is the company I will go with eventually. In the meantime that same friend has made me more aware of the business world and I do feel, for me, a business plan will be helpful in getting started and will keep me on a strong and healthy business path. So after our conversation I typed into the Google search bar “How to write a business plan to open an e-commerce website” and your article came up. Serendipity? Perhaps. This article has been really helpful and I plan on doing more research to help build a strong and successful business. This has been a great starting point for me. Fingers are crossed! Thanks for the info!

  • Matthew
    September 10 2013, 01:08PM

    Good article. I like the layout.

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    June 02 2014, 08:32AM

    please keep it up.

  • Andrea
    September 03 2014, 07:16PM

    Thanks for this exhaustive article. Business plans are still important in the 21th century, not only to convince investors but also to anticipate and mature one strategic vision.

    I’m working on my first ecommerce business plan. The major difficulty is to define hypotheses. I found a very useful Excel template, but it is in french, it is not really suited to the US market. If anyone has something to propose, it would be very helpful.


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    September 22 2015, 02:56AM

    Hi, excellent post, business plan are the basic and most important part any business. Its truly said “fail to plan is, plan to fail”. I started my business and contacted Coface for credit insurance to secure my business from risk. Check the website, it may help you: http://www.coface.se/

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    February 14 2017, 09:31PM

    Hey Serena, The blog is very informative yet I need to know some stuffs more. Like suppose I am just new in shopify just created my account. At this moment, do i need to register my business as soon as I start or I can register gradually when I make sale?

    My Second question is how much is the minimum amount of finance I need to have in order to start the business?

    And lastly, If I have just began then How do I order goods from online from Alibaba as I have known from different sources that before approving any order Ali baba do check the shopify account.

    I would really appreciate if my dear readers also can help me with my questions.
    Regards to all..

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    May 24 2017, 03:24AM

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    September 07 2017, 04:00AM

    For a successful business, a good business plan is a must. Maybe your business is not doing well and so making a business plan can definitely assist your business whichever change the method your business works as entire losses before you’re in huge trouble. A business plan can be written by following the below points

    • Executive Summary
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    • Marketing & Sales
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    Kreditní služba je k dispozici zdarma a bez zajištění. Jsem osoba, která nabízí mezinárodní půjčky. S kapitálem používaným k poskytování krátkodobých a dlouhodobých půjček v rozmezí od 5 000 do 95 000 000 EUR pro všechny vážné lidi, kteří splňují skutečné potřeby, je úroková míra v průběhu času nad 2%. Nabízím finanční půjčky v následujících oblastech: Hypotéka, Investiční úvěr, Autopůjčovna, Osobní půjčky, Vypořádání dluhů, Firemní nadace, Zdravotnické potřeby Více … Mám profesionální spokojenost všech uchazečů do maximálně 72 hodin nebo dokonce 3 dny po obdržení Aplikace. Vážné lidi, pošlete e-mailem. E-mail: mehmethakan117@gmail.com

  • Mr David Damian
    Mr David Damian
    October 09 2018, 01:05PM

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  • Andy James
    Andy James
    October 16 2018, 07:53AM

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    October 20 2018, 10:56AM


    Are you a business man or woman? Do you need funds to start up your own business? Do you need loan to settle your debt or pay off your bills or start a nice business? Do you need funds to finance your project? E-mail: ( larryellisonfinance@gmail.com ) We Offers guaranteed loan services of any amount and to any part of the world for (Individuals, Companies, Realtor and Corporate Bodies) at our superb interest rate of 2%. For application and more information send replies to the following E-mail address: larryellisonfinance@gmail.com

  • Larry Lofton
    Larry Lofton
    October 25 2018, 02:23PM

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    October 25 2018, 09:45PM

    Good day ladies and gentle men am Mr. Michael a God fearing and honest loan lender who can change your life from bad to Good i want you to understand the fact that i give my loans out in a low interest rate of 2%. Bad credit acceptable,The Terms and Conditions are very simple and considerate.You will never regret in this loan transaction because i will make you smile through out this transaction, because you where not born to be a loser my terms and conditions are very simple what are you waiting for asap why don’t you try Mr. Michael loan company and be free from debts, contact me Asap via Email:(michaelfirminvestor@gmail.com) for further proceeds.

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    October 29 2018, 08:27AM

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  • Dr Steve Farrugia
    Dr Steve Farrugia
    November 10 2018, 01:43PM

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  • Mrs. Elizabeth Betty Anna
    Mrs. Elizabeth Betty Anna
    November 20 2018, 02:59AM

    (Julianhoffman.finance@gmail.com) Hello everyone, I am Mrs. Elizabeth Betty Anna From Los Angeles, I quickly want to use this medium to shake the testimony of how God directed me to a legitimate and real lender who has changed my life from grass to grace, from being poor to a rich woman who can now boast of a healthy and rich life without stress or financial difficulty. After so many months when I was trying to get credit online and I was cheated, the amount of $ 6,200 dollar became so desperate that I got a loan from a legitimate creditor online that would not add to my pain, I decided to contact a friend of mine, who recently received an online loan, we discussed the issue, and to our conclusion, she told me about a person named David Thompson, who is the executive director of the limited liability company David. That is why I applied for a low interest rate of $ 720,000.00 dollar at a rate of 2%, so that the loan was easily approved without stress and all the preparations made in respect of the credit transfer and for less than two (2) days the loan was deposited in my bank, so I want advice to anyone who needs a loan to quickly connect it through: (julianhoffman.finance@gmail.com) he does not know that I’m doing this, I can bless him for the good he did in my life

  • Dorothy Carol Paul
    Dorothy Carol Paul
    November 20 2018, 03:01AM

    HOW TO RECEIVE MY LOAN BY Mrs. Julian Hoffman.Finance. I’m from Denver. and my name is Dorothy Carol Paul, I’m facing some financial difficulty in my business for now, I’m a lone mother with children to look after. A few weeks ago, I was browsing the Internet looking for possible means to secure a loan because my bank and the other credit union I was visiting all denied me access to a loan due to bad credit. I met a testimony sought by a woman about how she managed to secure a loan from Julian Hoffman. Financial email: – julianhoffman.finance@gmail.com on her testimony she advises anyone looking for a loan to contact them, saying that they can help in lending, even in bad loans, I contacted her to be sure, and she advised me to try her because they also helped her by giving her leave desperate for her poor credit. So I sent a letter of inquiry to the mail and explained to them the financial situation they led me through the loan process and with the help of Mrs. Julian Hoffman, who was the director, I received a $ 78,000 dollar loan with a 2% interest rate today my business is fully rebuilt and all my children are doing fine, All thanks to Julian Hoffman, who finances me to help restore my dying business. I never stop thank you enough for your help. Everyone who is there If you need to contact any lender of a loan you need with a better repayment schedule, contact Julian Hoffman, Financial Email: – julianhoffman.finance@gmail.com

  • Mr Dylan Philip
    Mr Dylan Philip
    November 20 2018, 03:02AM

    Hello, my name is Mr Dylan Philip I want to thank Mrs Julian Hoffman for helping me with my credit worth $ 170 000 dollar . If you are interested in a loan, please contact her so that it can also help you borrow a loan that does not take much time for 24 hours when my loan is in my account, anyone who needs urgent and trusted credit, you need to contact her now, she is God sent and a good guy her e-mail is.julianhoffman.finance@gmail.com I am happy to write this here because there are many peopel out there who need this help too. if you really need help without delay because I was late before it was the right loan company to contact immediately: Email: julianhoffman.finance@gmail.com

  • Virginia Kyle
    Virginia Kyle
    November 20 2018, 03:03AM

    How could I buy my own house? My name is Virginia Kyle, from Portland, Canada, Ontario, and I would like to express my sincere thanks to Julian Hoffman for helping me with a $ 73,000 dollar loan to buy my own house with a low interest rate of 2% on 6 November 2018 after being rejected by my bank and other financial agencies I visited. I also want to get in touch with the general public as I recommend that everyone who needs financial help to contact this company in others so as not to fall into unfair hands while looking for a responsible loan through an email address: julianhoffman.finance@gmail.com

  • Mrs. Julian Hoffman
    Mrs. Julian Hoffman
    November 20 2018, 03:04AM


    Are you a man or a business woman? Do you have a financial situation or do you need funds to start your own business? Do you need a loan to start a small and medium business? Do you have a low credit score and is it difficult to get a loan from local banks and other financial institutions? Interested candidates should contact us by email: julianhoffman.finance@gmail.com

    Our credits are well secured because maximum security is our priority. Our primary goal is to help you get the services you deserve. Our program is the fastest way to get what you need when the eye moves. Reduce your payments to reduce stress in your monthly costs. Get flexibility that you can use for any purpose, from holidays to unique purchases. Interested candidates should contact us by email: julianhoffman.finance@gmail.com

    We offer a wide range of financial services such as: commercial planning, commercial finance and development finance, mortgages and mortgages, debt consolidation loans, commercial loans, private loans, home loan refinancing with a 2.00% low interest rate, and business . legally. Get the best for your family and also your home dreams with our general loan plan. Interested candidates should contact us by email: julianhoffman.finance@gmail.com


    Please contact us for more information: julianhoffman.finance@gmail.com
    Please email us about credit information;
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    If you are interested in receiving a loan, please write to us about the loan requirements. Please contact us for more information: julianhoffman.finance@gmail.com
    For understanding,
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    We look forward to calling you as soon as possible

    Interested candidates should contact us by email: julianhoffman.finance@gmail.com

  • Mrs. Julian Hoffman
    Mrs. Julian Hoffman
    November 20 2018, 03:04AM

    Do you need a loan to start a business or pay your bills and corporate finance for real estate and any kind of business financing. (Mrs. Julian Hoffman) We also offer Loans to individuals, friends and legal entities with a 2% interest rate. We lend to seriously thinking people who are interested in a loan if interested, contact this email: julianhoffman.finance@gmail.com

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    November 25 2018, 08:46AM

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    Mr. Gerald Cruz

    December 10 2018, 06:24AM



    Good day everybody, This is my testimony on how i won 708.7 million dollars on power ball lottery. I want to use this opportunity to thank Dr PETER, for casting a winning spell for me to win the lottery of 708.7 million dollars, lottery ticket. I have been playing lotteries for the past 5 years now and i have never won any. Ever since then i have not been able to win any lotto and i was so upset and i needed help to win this power ball lottery. so i decided to go online and search for help, there i saw so many good testimony about this man called Dr PETER, of how he has cast lucky spell lotto for people to win lotteries. I contacted him also and told him i want to win the power ball lottery, he cast a spell for me which i use to play and won 708.7 million dollars in power ball lottery. I am so grateful to this man, just in-case you also need his help, to know more about this great man and to contact this great man just search on google magnificentspellcast and you will see all you need to know and how to contact this great man.

    and he will surely help you just the way he has helped me. i will forever be grateful to him and always testify the good work of him to the whole world.SO CONTACT HIM TODAY and he will surely help you to win any kind of lottery Best ZACHARY LOUIS

  • Khateeb Safi
    Khateeb Safi
    December 10 2018, 08:09AM

    I want to learn business plan

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    December 27 2018, 04:26PM

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  • Barbra Williams
    Barbra Williams
    January 07 2019, 07:28AM

    My name is Barbra Williams, and i live in Capetown and i am a happy man today, I told my self that any Loan lender that could change my Life and that of my family, i will refer any person that is looking for loan to Them. If you are in need of loan and you are 100% sure to pay back the loan please contact them and please tell them that Barbra Williams referred you to them. johnemoneyloannn@hotmail.com

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    Barbra Williams
    January 07 2019, 07:33AM

    My name is Barbra Williams, and i live in Capetown and i am a happy man today, I told my self that any Loan lender that could change my Life and that of my family, i will refer any person that is looking for loan to Them. If you are in need of loan and you are 100% sure to pay back the loan please contact them and please tell them that Barbra Williams referred you to them. johnemoneyloannn@hotmail.com

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