Essay Example an Start an E-Commerce Business: Shop Conveniently From Home

Introduction

The proposed business idea is starting an e-commerce business where I can sell a variety of physical products. These products include cosmetic and beauty products, clothes, footwear, and accessories like necklaces, watches, and bracelets. The business will provide a solution for busy businessmen and women. Home delivery of our products helps save time for the customers. Rather than visiting the physical shop, customers can shop at the convenience of their homes or offices and have their items delivered to their address. In the technology era, people spend more time on the Internet. The e-commerce business is ideal and convenient.

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Any e-commerce business aims at reaching millions of customers quickly. The primary goal for the company is to build a strong customer base and enhance the relevant traffic. This is easily achievable through excellent customer service and delivering quality products. Another business goal is providing a personalized experience for different customers based on their purchase history. This will keep them informed on the latest inventory. Other objectives include enhancing business efficiency through excellent customer experience, ensure that resources are used effectively, and operating with minimal errors in relation to all business aspects, that is, placing orders, product delivery, and making payments. These are the goals set for the next year, that is, build our customer base and focus on enhancing our services.

Over the next three to five years, we aim at increasing the products we offer. This includes reaching out to different businesses where customers can conveniently collect their items if they are not comfortable with home or office delivery. Other goals include ensuring quick delivery of products, increasing modes of payment, and hiring more people to deliver the orders.

The business provides a variety of products meant for both genders. The target age demographic is flexible. Flexible age and gender demographic increases the business's customer base, thus increasing our reach. In the technology era, more people are becoming reliant on the Internet, online platforms, and social media. Therefore, we would expect these people, especially those between the ages of 18 and above, to use our E-commerce business platform for the best deals and convenient shopping. Both men's and women's needs are taken care of in our business.

There are various competitors in the business, including Amazon and Alibaba. They have a competitive advantage, but each business starts from the ground. We intend to provide both local and global delivery services. Also, our integration with different payment modes other than cash payments to fit customer preferences in different countries will give us a competitive edge. The selling proposition is to focus more on providing quality products and excellent customer service. On that note, we will develop both a website and mobile application for increased user experience and convenience. The management team includes personnel with different specialties. As the CEO, I will be in charge of the daily business processes and keeping track of profit and expenses. We will also hire a technology expert as part of the management team to ensure that the website and mobile application is up to date and bug-free. An experienced financial manager will ensure to keep track of the finances. Lastly, the human resource manager will manage the packaging and delivery personnel.

The financial outlook is well analyzed and detailed in the business plan. There are financial statements for start-up expenses, and capital. Capital structure describes the use of combined equity and debt to assess the way the business will finance its assets. The capital structure indicates the expected returns for various investors and sources of capital. Stakeholders prefer either a low capital structure or a structure with the highest firm value. For this business idea, the predicted capital structure is as follows.

Capital Structure

Shares 20,000 Price per share 10 Equity value 200,000 Debt value 0 Asset value 200,000 The business has secured various investors to contribute to the start-up capital and expenses. The total capital required for the start-up is approximately $300,000. After personal contributions, shares from the investors, and various bank loans, we have come up with the necessary amount. Admittedly, there is a long list of expenses and essential investment for any business start-up, including inventory, equipment, furniture, contingency fund, and leasing requirements and buildings. The capital will cater to these expenses, not to mention the opening day expenses, which will either add on or save up the money dedicated to the start-up capital. We will ensure to maintain a minimal debt value for business profitability.

Conclusion

A financial plan is essential for keeping track of business finances. The business plan includes a detailed financial plan that includes profit and loss projections for the short and long term. It also includes financial statements for the cash flow projections and balance sheet. With a detailed insight into the financial aspect of the business and estimate the expected condition of the business at the end of each year. The business plan below outlines all these details of the business plan.

References

Alhabeeb, M. (2015). Entrepreneurial Finance: Fundamentals of Financial Planning and Management for Small Business. Hoboken, New Jersey: John Wiley & Sons, Inc.