Business plan of Internet Store
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Business plan of Internet Store

Business plan of internet storeToday in USA, the popularity of e-commerce has reached a fairly high rate. Thus, well-designed, promoted and constantly supported by an online store filled with popular products, can not only be an additional source of orders for the traditional of sale outlets, but is an independent profitable business.

Of course, the creation of an internet store — the enterprise is less costly than traditional organizing of the shop especially one of the regions with the high cost of commercial real estate.

Modern buyers are more likely to attend off-line sale outlets for the sole purpose to «feel» the product and finally decide on the selection, and then make an order in the internet store with delivery and a significant discount. Indeed, why pay for expensive advertising and rent?

In this article we look at the business plan for an Internet store created «from scratch» with the commodity assortment of 200-300 items.

Calculation of costs for Internet store

  • On-line costs:

—       Domain registration — $ 20;

—       Hosting on fast, reliable server — $ 100 a year;

—       Creation of “engine” of an Internet store (programming, design, development, placement on the Internet, filling goods) — in the range of $ 2 000-5 000.

  • Offline costs:

—       Organizational costs (business registration, opening a bank account, the minimum further capital) — $ 500-700;

—       Configure Software — $ 100;

—       Setting up equipment and installation LAN — $ 100-200;

—       Purchase of office equipment and computers – 1 500-2 000 dollars.

  • Monthly costs:

—       Advertising — 250-400 dollars;

—       Rental of premises (10 m2) — $ 300;

—       Accounting support — from $ 200;

—       Payment of Internet access, telephone lines, the extension of the rental of hosting and domain (in a year) — about $ 200;

—       Development and support of website- $ 100-200;

—       Office costs — $ 200.

In general, when you open the store the minimal costs can fluctuate within 5 000-8 000 dollars, and the cost of ongoing monthly — about $ 1 500.

Of course, this is an approximate estimate and calculating the business plan for an Internet store, you can encounter a few other figures.

Calculation of profits according to business plan

For example, in the store, the average price of one good — $ 100, profitability — 20%. To reach the level of payback, you need in a month to sell about 100-150 products. With the processing of the volume of orders is able to handle one manager.

To ensure 5-7 sales a day is enough expensive goods, requires a high attendance of the resource — every day at least 150 unique visitors. This can be achieved by paying contextual advertising, using modern methods of promotion, optimizing the store’s website by search engines.

Calculation of payback

In order to achieve the level of payback, an Internet store needs to bring a monthly net income the amount of which exceeds the sum of the monthly costs and covers the initial costs. It is also necessary to take into account the taxes and unforeseen expenses. For example, to enter the «zero» payback the monthly income should be at least 1.5 times exceed the costs. That is to the store to pay off each month is necessary make a profit of $ 2 000-3 000.

Conclusions. Compared with the opening of a conventional store, the organization of an Internet store has a lot of advantages — quick payback, quick start, a wide range of customers, less permanent and initial costs.

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