Table of Content

    Do you want to start Online Company business plan?

    If you are thinking of having an online store business, now is a great time to have one since the increased use of the internet during the pandemic has boosted online sales. Starting an online store business doesn’t require you to have a huge initial investment or a proper office to start from. You can start it at any scale and can expand or narrow down your offerings whenever you want. The most amazing thing about this business is that you can start an online store in whatever niche you like. Be it a grocery, clothing, or tech gadgets.

    Although setting up this venture is relatively easier, it is still essential to follow the proper procedure of starting a business. First, you will have to make a business plan for online store. To learn how to write a business plan for online store, you can take help from this sample. Here we’ve provided a detailed online retail store business plan developed for ‘Technojar’.

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    Executive Summary

    2.1 The Business

    Technojar will be an online tech store owned by Simon Stalin. The business will provide technical products and gadgets to various consumer groups across Queens and Brooklyn. A wide range of products will be offered from smartphones and tablets to laptops and PCs. Hence, Simon will be using a diverse business plan online retail store for Technojar.

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    2.2 Management of Online Company

    To ensure that all aspects of the business are coherent, you must prepare unique retail business plans for the services that you offer. In your online retailer business plan you should evaluate the technical, financial, and human resources you have at your disposal. And then construct a way to utilize and manage these resources in the best way possible.

    Here, you will find guidance on how to make a business plan for an online store. We are providing a business plan for online store pdf acquired by Technojar to help you in devising an online retailer business plan for your startup.

    2.3 Customers of Online Company

    Our customers will work in different sectors and belong to different social groups since technology is used by everyone these days and hence, everyone requires technological assistance. From IT specialists to healthcare workers, Technojar carters to everybody using different kinds of software. However, our potential and recurring customers are identified as follows:

    • Individual Consumers
    • Banks & Schools
    • Commercial Businesses
    • Institutions & Organizations

    This business plan sample online store devised for Technojar helps address the demands for all of the above consumer groups.

    2.4 Business Target

    Our target is to become the most trustworthy and reliable choice for our target customers whenever they need assistance with any technological problem, that too with the ease of reaching us online.

    You must have a comprehensive business plan for investors to make your business financially sustainable. Our financial targets to meet for the first three years of our launch are demonstrated below:

    Online Store Business Plans-3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    3.1 Company Owner

    Simon Stalin will be the owner of Technojar. Simon has completed his Bachelor’s in Software Engineering from Arizona State University a few years back. After his stellar academic career, he worked as a software engineer at Microsoft for two years. However, he left his job to pursue his dream of running his own business. This online store business plan pdf will help you set up a business in case you have a vision like that of Simons’.

    3.2 Why the Online Company is being started

    Simon noticed that the there are simpy not many online tech stores in the US. In addition to that, the process of buying tech gadgets is unnecessarily complicated in some of the existing online stores. Simon realized that he could bring innovation in existing modes through his intellect and management knowledge. Therefore, he decided to start his own online tech store to fully implement the ideas he possessed.

    3.3 How the Online Company will be started

    Step1: Plan Everything

    The first step before starting an online business is to come up with a business plan online store. To help you in creating a business plan we’re providing an online store business plan template. Simon decided to offer software solutions for various sectors and applications. Hence, you can have an idea of how a SaaS business plan package for various applications.

    Step2: Define the Brand

    The next step is to get recognized by defining your business’ services and values. During this time, you will have to develop and brand your policies so that your customers can identify your unique selling point and choose you over your competitors. For that, you will have to have a unique online store business plan sample.

    Step3: Establish Your Corporate Office

    Simon decided to rent an office in Brooklyn. Computers, a stable internet connection, and a team of web developers and engineers are what that’s needed at the office.

    Step4: Establish a Web Presence

    Provided that it is an online business store, Simon made sure that his start-up has a website with an interesting interface that is user friendly. He decided to promote his business through different social media platforms.

    Step5: Promote and Market

    The last step is to develop and execute a marketing plan to promote your services. Efficient marketing and promotion can help you position your business in the marketplace in a successful manner. This business plan template for online store will guide you on how to market your business efficiently.

    Online Store Business Plans-Startup Cost

    Start-up Expenses  
    Legal $100,400
    Consultants $0
    Insurance $23,000
    Rent $15,000
    Research and Development $10,000
    Expensed Equipment $56,000
    Signs $3,400
    TOTAL START-UP EXPENSES $207,800
    Start-up Assets $126,000
    Cash Required $119,000
    Start-up Inventory $39,000
    Other Current Assets $120,000
    Long-term Assets $127,000
    TOTAL ASSETS $531,000
    Total Requirements $738,800
    START-UP FUNDING
    Start-up Expenses to Fund $207,800
    Start-up Assets to Fund $531,000
    TOTAL FUNDING REQUIRED $738,800
    Assets
    Non-cash Assets from Start-up $696,000
    Cash Requirements from Start-up $102,000
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $883,000
    Liabilities and Capital
    Liabilities $18,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $58,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $76,000
    Capital
    Planned Investment $738,800
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $738,800
    Loss at Start-up (Start-up Expenses) $68,200
    TOTAL CAPITAL $807,000
    TOTAL CAPITAL AND LIABILITIES $883,000
    Total Funding $738,800

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    Services

    Before starting any business, you must decide what services you want to provide your customers. The same goes for your online store. The business plan of online store for tech gadgets will be different than a business plan for a video game company because both require different expertise.

    Since Simon decided to offer a wide range of services, the business plan developed for his business can be adopted for various online store business plan. You can take help from this business plan online store pdf for your online store business.

    • Gadgets

    Technojar’s primary products will be technological gadgets, including laptops, PCs, tablets, and smartphones. Besides that, the startup will allow its customers to buy any kind of smart device including fit bits and smart home components as well.

    • Embedded Devices

    Embedded computers and devices are used by various institutions including hospitals. The unique software, used in these computers, helps doctors with getting clearer images, with the option of getting them in 3D. The following are the features of the computers:

    • An audio interface
    • Clear, coloured imaging
    • 3D figures
    • Computer Parts

    Today, computers are used by all institutions and businesses to host the databases of customer accounts and extensive data. Due to excessive comuter usage, computer parts are always in demand. That’s why we’ll be offering them on our online tech store.

    • Gaming Equipment

    Technojar will also sell all kinds of gaming equipment as well as all their components. As these are popular among children and enthusiastic adults alike, it is expected to regularly be in demand.

    Technojar will offer free return services to its customer if any of its products are faulty in any way.

    Marketing Analysis of Online Store Business

    You must have an in-depth knowledge of your target market before starting a business. The ideal way of knowing your customers and competitors is to do the market analysis in your business plans for online store. The market analysis should also study the previous, existing, and forecasted market trends.

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    If you don’t know the components of detailed marketing analysis, you can take help from this online store business plan sample pdf free of cost.

    5.1 Market Trends

    According to Statista, retail e-commerce sales produce about $4.28 trillion yearly. In general, the demand for online store businesses, especially for those about technological devices, has been growing exponentially. The ongoing pandemic has shifted most of the business activities to operate virtually, and hence e-commerce store market has the potential to grow further.

    5.2 Marketing Segmentation

    As per this business plan for online store pdf, Technojar will have the following groups of potential customers:

    Online Store Business Plans-Marketing Segmentation

    Business Plan for Investors

    5.2.1 Individual Consumers

    Our biggest customer group will be the individual consumers including kids, teens, and adults, who will be buying smaprthones, latpops, PCs, tablets, and gaming equipment from our online store. They’d form the major chunk of our sales.

    5.2.2 Banks & Schools

    Our second target customer will be banks and schools who require a variety of technical gadgets and systems for day-to-day functioning.

    5.2.3 Commercial Businesses

    This will be our third target group of customers. Whether they are a developing business or an established one, we will help provide them with the technology they need to make their products and services available to all of their customers easily.

    5.2.4 Institutions & Organizations

    All kinds of institutions and organizations, including hospitals and research labs, require technology to build their technical and data infrastructure. As technology is changing every day, we expect them to be our regular customer.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Individual Consumers 42% 30,000 36,000 43,200 51,840 62,208 10.00%
    Banks & Schools 18% 20,100 24,120 28,944 34,733 41,679 10.00%
    Commercial Businesses 21% 20,700 24,840 29,808 35,770 42,924 10.00%
    Institutions & Organizations 19% 10,500 12,600 15,120 18,144 21,773 11.00%
    Total 100% 81,300 97,560 117,072 140,486 168,584 10%

    If you have a business model similar to that of Technojar, this online store business plan template pdf will help you identify your potential customers.

    5.3 Business Target

    • To become the number one technology solution provider in Brooklyn and Queens
    • To expand our services in the Bronx
    • To earn a net profit margin of 10% in the upcoming fiscal year
    • To achieve and maintain a CSAT score above 90%

    5.4 Product Pricing

    Our prices are similar to what our competitors offer. However, as per our sample online store business plan discounts are offered to new customers to establish customer loyalty.

    Marketing Strategy

    To become prominent amidst a huge competition, you need to come up with a distinguished unique selling point. Moreover, you also need to develop a strong marketing strategy so that more and more people recognize you.

    In this online store business plan sample pdf we’re providing the sales strategy of Technojar. You can learn a lot from this free online store business plan. This sample business plan for online store adopted by Technojor will adopt the following strategies:

    6.1 Competitive Analysis

    • We have excellent customer care service. We’ll record customers’ feedbacks to provide them improved services every time they make an order from us.
    • We will have return policies that are less complicated and efficient.
    • Discounts will be offered to new customers, which will help acquire a greater market share.

    6.2 Sales Strategy

    • We will advertise our services through Google Local ads service and social media.
    • We’ll offer a 30% discount on new businesses to promote the use of technology in startups.
    • Introductory packages and incentives will be provided to small-scale IT businesses.

    6.3 Sales Monthly

    Online Store Business Plans-Sales Monthly

    6.4 Sales Yearly

    Online Store Business Plans-Sales Yearly

    6.5 Sales Forecast

    Online Store Business Plans-Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Gadgets (Laptops, Mobiles, etc) 950 1,007 1,067
    Computer Parts 850 901 955
    Gaming Equipment 650 689 730
    Embedded Devices 300 318 337
    TOTAL UNIT SALES 2,750 2,915 3,090
    Unit Prices Year 1 Year 2 Year 3
    Gadgets (Laptops, Mobiles, etc) $650.00 $754.00 $874.64
    Computer Parts $450.00 $522.00 $605.52
    Gaming Equipment $500.00 $580.00 $672.80
    Embedded Devices $750.00 $870.00 $1,009.20
    Sales
    Gadgets (Laptops, Mobiles, etc) $617,500.00 $759,278.00 $933,608.23
    Computer Parts $382,500.00 $470,322.00 $578,307.93
    Gaming Equipment $325,000.00 $399,620.00 $491,372.75
    Embedded Devices $225,000.00 $276,660.00 $340,181.14
    TOTAL SALES $1,550,000.00 $1,905,880.00 $2,343,470.05
    Direct Unit Costs Year 1 Year 2 Year 3
    Gadgets (Laptops, Mobiles, etc) $300.00 $330.00 $346.50
    Computer Parts $200.00 $220.00 $231.00
    Gaming Equipment $200.00 $220.00 $231.00
    Embedded Devices $450.00 $495.00 $519.75
    Direct Cost of Sales
    Gadgets (Laptops, Mobiles, etc) $285,000.00 $332,310.00 $369,861.03
    Computer Parts $170,000.00 $198,220.00 $220,618.86
    Gaming Equipment $130,000.00 $151,580.00 $168,708.54
    Embedded Devices $135,000.00 $157,410.00 $175,197.33
    Subtotal Direct Cost of Sales $720,000.00 $839,520.00 $934,385.76

    Personnel plan

    The online store business depends heavily on efficiency, technological expertise, and time management. Simon knew the importance of hiring collaborative and skilled employees. Therefore, he created a list of required employees along with selection criteria as he wrote the online store startup business plan.

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    7.1 Company Staff

    As per this sample business plan online store, Technojar will employ for the positions:

    • 1 General Manager
    • 1 Customer service manager
    • 5 Customer Support Individuals
    • 2 Supply Chain Executives
    • 1 Accountant
    • 1 Digital Marketer
    • 2 Web Developers

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    General Manager $52,500 $57,750 $63,525
    Cusomer Service Manager $42,500 $46,750 $51,425
    Cusomer Support $182,000 $200,200 $220,220
    Supply Chain Executives $50,000 $55,000 $60,500
    Accountant $23,000 $25,300 $27,830
    Digital Marketer $28,800 $31,680 $34,848
    Web Developers $50,000 $55,000 $60,500
    Total Salaries $428,800 $471,680 $518,848

    Financial Plan

    A sole focus on increasing sales does not ensure that your business has become successful and is yielding profits. To earn profits, it is essential to manage your operations timely and efficiently. To make sure that your business is not going into a loss, you must carry out a detailed financial analysis while you design your online store business plan doc.

    In your financial plan, you must identify when and how you’ll be able to cover your investment amount with the earned profits. Moreover, you should also analyze your yearly expenses to find out the possibilities of reaching an economy of scale.

    Here we’re providing an online store business plan example designed for Technojar. It is quite elaborate, hence will suffice for in-depth guidance.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Online Store Business Plans-Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $1,550,000 $1,905,880 $2,343,470
    Direct Cost of Sales $720,000 $839,520 $934,386
    Other $0 $0 $0
    TOTAL COST OF SALES $720,000 $839,520 $934,386
    Gross Margin $830,000 $1,066,360 $1,409,084
    Gross Margin % 53.55% 55.95% 60.13%
    Expenses
    Payroll $428,800 $471,680 $518,848
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $608,000 $655,130 $712,748
    Profit Before Interest and Taxes $222,000 $411,230 $696,336
    EBITDA $222,000 $411,230 $696,336
    Interest Expense $0 $0 $0
    Taxes Incurred $44,400 $82,246 $139,267
    Net Profit $177,600 $328,984 $557,069
    Net Profit/Sales 11.46% 17.26% 23.77%
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    8.3.1 Profit Monthly

    Online Store Business Plans-Profit Monthly

    8.3.2 Profit Yearly

    Online Store Business Plans-Profit Yearly

    8.3.3 Gross Margin Monthly

    Online Store Business Plans-Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Online Store Business Plans-Gross Margin Yearly

    8.4 Projected Cash Flow

    Online Store Business Plans-Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    1. How do I write an online business plan?

    You can learn how to write a business plan for online store by following this template. It has all the necessary details you need to draft your sample.

    1. How do you plan an online store?

    The first step to planning any business is to read a business plan example for online store to use as a reference.

    1. How do I write a business plan for e-commerce?

    You can write a business plan for e-commerce by looking at a free business plan for online store for guidance.

    1. How do you write a successful business plan for an online startup?

    Writing a successful business plan can be hard when you are just starting but you can find business plan online store sample which you can then follow to develop a strong business plan for your company.

    Download Online Store Business Plan Sample in pdf