Now that you have committed to opening your own business on eBay (or basically any other business) it is time to get to work. What we are providing is a modified version of a feasibility plan which is designed to outline your business and objectives and determine the contingencies of moving forward. This plan is by no means comprehensive, but is simply designed to get you to document your business and objectives and make you aware of the various aspects that need to be considered. Also remember, if you plan on seeking bank financing, you will need to be very comprehensive and complete.
For your convenience, we have compiled a list of resources here.
OK, now let's get started.
What you will need - make sure to include the actual costs in your worksheet, or the one we will provide. We have indicated items with a red check that are essential.
Computer with the following:
Internet Connection - Preferably 56K or higher. Avoid the frustration of a slow connection.
Internet Service Provider - If you are reading this you probably already have one. If not, select one that is reliable.
Word Processing, Spreadsheet, email program - Not to give Bill Gates a plug, Microsoft Office includes Word, Excel, Outlook, etc. is a great integrated program that plays well with others. Except for the email program, the same thing can be accomplished with a calculator and paper.
Accounting Software - Any software will do, you can even use a spreadsheet. Quicken is popular and QuickBooks is great because eBay integrates with it. Again, a calculator and paper would suffice here.
HTML Editing Program - Again, this is not essential, especially if you know HTML, but your listings will stand out better if you use more than just plain text.
eBay Account - If you don't already have one, choose a user name that reflects the type of business you will be going into. For example - if you will be selling computer related items you can use computer_goods" or something similar.
eBay Store - Again the name of this is critical to what you are selling. Using the Computer related items you can use Computer Resources. You probably want to personalize it like John Doe's Computer Resources. Open an eBay Store.
PayPal Account - You don't have to use PayPal, but a lot of other people do and from what I have found the fees are comparable to other credit card acceptance companies.
Thesaurus - Extremely helpful when writing the plan to avoid being redundant.
As noted, having all the above items is not essential but being able to document and calculate is essential.
Ok, let's get down to the Nuts and Bolts -
1. Introduction - Consider this what you would say to someone when they walk through the door of your store. You can expand these as much as you want, but often it's best to start simple. Remember, this is an initial approach and can be expanded upon later.
Example - Using the Computer Related Items store.
We are in the business of selling quality brand name computer products to the general public that include hardware peripherals and software. Our products include manufacture's warranty and are guaranteed by us."
What does this tell us about your store -
a. You sell brand name products - this is important because buyers, especially those over the internet, want to know that the items they purchase sight unseen have a reliable reputation. This will differentiate you from sellers that sell no-name brands at lesser prices.
b. You sell to the general public - there are no pre-qualifiers or memberships to buy from you.
c. You sell hardware peripherals and software - this defines what your customers will find as they go through your store. Obviously if they are looking for porcelain or china they won't bother coming to you, but then again, that is a good thing.
d. Your products have a manufacturers warranty and you guarantee what you sell - your customers now know that if they are not satisfied or if they're product doesn't work you or the manufacturer will take care of them.
As you can see, the introduction doesn't have to be long, but it should say who you are and what you do. Remember, this is a simple guide, you can be as elaborate as you want, but it is a good idea to be focused.
Other examples -
We sell a variety of pre-owned products that are accurately described, functional and operational. Our items are guaranteed to meet the specifications we describe.
or
We sell junk at cheap prices. No guarantee expressed or implied.
Do you think any potential customer would have any doubts about what you do online?
If you have an introductory statement you would like us to review, simply send it to us and we will give you our honest impression of what we think you are trying to accomplish. This Introductory Statement will be used by you in many areas such as your store intro, marketing, advertising and even recruiting when you need to hire personnel.
2. Mission Statement - this is designed to be a working creed for you and those that run your business.
Example
We strive to be the premier provider of goods and services to our customers ensuring quality, reliability and complete service satisfaction at competitive prices.
This statement will be the basis on which you make decisions so be careful to what you commit. If you don't plan on following through with any aspect of your Mission Statement, don't state it. This is you and your employee's commitment to your business.
3. Statement of Purpose - this is why you are getting into business.
Example
I am starting this business to generate a full time income and fully intend to devote at least as much time as I would to full time secular employment.
or
I am starting this business as a hobby to sell items on an occasional basis to supplement my current income and plan to devote as much time as I deem necessary to provide the service it deserves.
or
I am starting this business on a lark and only intend to spend time when I feel like it.
It's your choice.
4. Unique Features - what makes your business different from others selling the same things.
Here it is a good idea to scope out the competition if you haven't already. Find out what they sell and how they sell it. A simple eBay search in eBay Stores on the keywords for your business will assist with this. If you specialize in hard to find items or one of a kind. For example, in our store we have a special section for Original Artists" which are paintings by the artists not mass produced. Think about this because it can be the difference between getting lost in the crowd or differentiating yourself. Later when we get to writing copy, it will be important to highlight these distinctions.
5. Marketing and Business Development Objective - It is now time to determine how you intend on making your business known and how to attract your customers.
Jot down ideas on where would be best to focus your marketing efforts. Naturally, submission to search engines is important, but you can also create manual flyers, do newspaper advertising, etc. If you plan on off the internet advertising, it is a good idea to have a website separate to eBay that cross sells your store. Make the name catchy and easy to remember. We cross sell our store on a website that we have had for years - http://www.gifts-online-for-less.com also make sure you have an email address that includes your store name such as paulandchar@gifts-online-for-less.com. This associates your store with your email. Also, make sure you put a link to your store in your email signature. Any way that you can promote your site is important. Note that our eBay Store - Gifts Online for Less is the same as our site. Unfortunately, we started selling on eBay before we built a store so our eBay user id of char08 does not reflect our store. We may change this in the future, but it means losing feedback ratings which are important.
6. Expected Accomplishments - knowing what you expect to get out of this venture is very important.
Back in item 3 - Statement of Purpose - we mentioned three different types of objectives. Using those plan on the following:
Replace full time job - you expect to replace your current income. If you make $60,000 a year it would be $60,000 plus replacement of benefits. Calculate the cost of medical insurance, life insurance, etc. as well as 401K and retirement plan replacement. Typically to replace an income of $60,000 annually will require a net of over $60,000. Net is after expenses and taxes.
Provide part time income or as a hobby - determine what kind of extra income would compensate you for your effort. Remember to deduct costs associated with running the business which will be addressed in item 7.
7. Required Capital and Ongoing Expenses - it is now time to determine what you will have to spend on this venture.
Here it is a good idea to build a spreadsheet with the following Topics. Obviously add more or delete as you see fit.
Expense
Monthly
Quarterly
Annually
One Time Expense
Hardware
Software
Licensing
Accountant
Incorporation
eBay Store
Website
Advertising
Marketing
Other
8. Description of the Business - Here you will want to go in depth as to how you plan on acquiring products, your pricing strategy, how you plan on accepting payment, method of shipping, etc. Basically the nuts and bolts from order to delivery on how you plan on processing information.
9. History of the Business - If you business has any history, describe it here. If it doesn't, start from what you are doing now and project forward.
10. Founder of the Business - put your resume in this section. What qualifies you to run this business.
11. Management and Operations - this is a who will do what section. Build job descriptions with names. Naturally, if you are a one man operation your name will appear in every box.
Example - using our business these are our job designations.
Manager - Char
Product Acquisition - Paul and Char
Pricing - Paul and Char
Maintains Store - Paul
Maintains Listings - Paul
Maintains Website - Paul
Promotion - Char and Paul
Billing - Char
Shipping - Char
Customer Service - Char
Accounting & Regulations - Paul
Although in a small operation it is not critical, you should have a job description for each function. At worst a list of tasks associate with each assignment.
Manager - Responsible for all decisions associated with the business.
Product Acquisition - Responsible for acquiring products and determining where they will be listed.
Pricing - Determines what price an item should be listed, duration and format.
Maintains Store - Responsible for store design, categories, etc.
Maintains Listings - Takes copy and formats for listings, includes graphics, etc.
Maintains Website - Responsible for putting products, links and basic website design and maintenance.
Promotion - Marketing and advertising.
Billing - Responsible for customer billing as well as refunds as needed. Determines shipping costs.
Shipping - Prepares items for shipping, including labeling, thank you notes, etc.
Customer Service - Deals with issues related to customer inquiry and problem resolution.
Accounting & Regulations - Takes in the money, pays the bills and prepares reports.
Naturally these should be more comprehensive, but this is just to give you and idea on what to expect.
12. Regulations and Licensing - determine licensing requirements.
Example -
We are incorporated and licensed in the State of Florida and Lake County. We also have a Florida Tax ID. Most dropshippers require a Tax ID.
13. Description of Services - list any additional services you have not described above.
Look for Part II - Marketing, Advertising and Business Development coming soon.
As I mentioned, this is a simple overview to get you started. The next installment will get more involved in Marketing, Market Research and Sales. Please email us if you have any questions at paulandchar@gifts-online-for-less.com.
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
Internet Connection - Preferably 56K or higher. Avoid the frustration of a slow connection.
