Want to Start an Online Business? Here’s Why You Need a Business Plan
You’re ready to start your online business, but where do you begin?
Without a clear roadmap, you might struggle with pricing, marketing, or choosing the right products. A business plan is essential—it gives you direction, helps secure funding (if needed), and sets you up for success.
But don’t worry; writing a business plan doesn’t have to be overwhelming. In this post, I’ll walk you through a simple step-by-step process to create a business plan for your online business.
Step 1: Write an Executive Summary
Think of this as your business elevator pitch.
- What does your business do?
- Who is your target audience?
- What products or services are you selling?
- What is your unique value proposition (why should customers buy from you)?
Example:
“EcoTrend Tees is an online store selling eco-friendly T-shirts for women, combining sustainable fashion with trendy designs. We aim to make sustainable clothing stylish and affordable for conscious consumers.”
Keep it short and precise. This is the first thing investors or partners will read.
Step 2: Define Your Business Goals
Where do you see your business in six months, one year, or five years?
Set SMART goals:
- Specific: “Grow my email list to 5,000 subscribers in six months.”
- Measurable: “Generate $10,000 in revenue by the first quarter.”
- Achievable: “Launch my first product and get 100 sales in the first 60 days.”
- Relevant: “Sell products that align with sustainability trends.”
- Time-bound: “Expand to international shipping within 12 months.”
Step 3: Identify Your Target Market
Who is your ideal customer?
To figure this out, answer:
- Who are they? (Age, gender, interests, location)
- What are their problems? (What pain points does your business solve?)
- Where do they hang out? (Instagram, Facebook, YouTube, Pinterest?)
Example:
“Our ideal customer is a 25- to 40-year-old woman who loves stylish, sustainable fashion. She shops online, follows eco-conscious influencers, and cares about ethical brands.”
Knowing your audience helps with branding, marketing, and pricing.
Here you can download a free Customer Profile Template
Step 4: Research Your Competition
Find three to five competitors and analyze them:
- Their website and branding
- What products do they sell
- Their pricing strategy
- How they market (ads, social media, SEO)
- Customer reviews (what customers love and what they complain about)
Use tools like Google Trends, SEMrush, or Ubersuggest to analyze competitors’ traffic and keywords.
To learn how to conduct market research and competion analysis: Check out Marketing Research and Competation Analyis workbooks, available inside — The Ultimate Business Starter Bundle.
Step 5: Choose Your Business Model
Decide how you’ll make money:
- Dropshipping (No inventory, suppliers ship for you)
- Print-on-Demand (Custom products made only when ordered)
- Handmade or Custom Products (Jewelry, art, planners, etc.)
- Wholesale & Reselling (Buying in bulk and selling at a profit)
- Subscription Boxes (Monthly recurring revenue)
Each model has pros and cons—choose one that fits your budget and skills.
To learn more about which business model is best for you, Checkout — Ecommerce Success Blueprint
Step 6: Outline Your Products and Pricing Strategy
Now, list:
- Your core products (What will you sell first?)
- Pricing strategy (What will you charge?)
- Cost of goods sold (COGS) (How much does it cost to make?)
- Profit margins (Your price – COGS = profit)
Example:
- Eco-Friendly T-shirt
- Cost to make: $10
- Selling price: $30
- Profit margin: $20 per T-shirt
Shopify has a built-in profit calculator to help you price your products.
To learn how to price your product with profitably, check out – Price to Profit
Step 7: Create a Marketing Plan
How will you attract customers and get sales?
- Social Media Marketing – Instagram, TikTok, Pinterest
- Email Marketing – Build an email list with lead magnets
- SEO (Search Engine Optimization) – Rank on Google for free traffic
- Paid Ads – Facebook and Instagram ads to drive sales
- Influencer Marketing – Partner with influencers in your niche
Your marketing plan should outline what platforms to focus on and how you’ll reach potential customers.
Marketing is key aspect of any business. Without marketing no one knows your business. To learn more about different types of marketing and which one is best for your business checkout — Ecommerce Success Blueprint
Step 8: Plan Your Startup Costs and Budget
Even if you’re starting small, estimate your startup costs:
Fixed Costs:
- Shopify ($1 trial, then $39 per month)
- Domain name ($10–$15 per year)
- Logo and branding ($0–$100 if DIY, more if hiring a designer)
- Initial inventory (if not dropshipping)
Ongoing Costs:
- Marketing and ads
- Website maintenance
- Packaging and shipping
Shopify makes it easy to track expenses with built-in reports.
Pro Tip: Shopify makes it easy to track expenses with built-in reports.
If you wish to learn, how much money you need to get started for your online business, checkout — Ecommerce Success Blueprint
Step 9: Choose the Right E-commerce Platform
Now that you have your plan, where will you sell?
We always recommend Shopify.
Why Shopify?
- Easy to use (No coding or tech skills required)
- All-in-one platform (Payments, inventory, website builder)
- One-dollar trial so you can start affordably
- SEO-friendly (Better chance of ranking on Google)
- 24/7 support
Bonus: Sign up for Shopify here for just $1 and start your online business today!
If you wish to learn, various platforms where you can sell your products based on your business goals, checkout — Ecommerce Success Blueprint
Final Step: Take Action and Launch Your Business
Your business plan is now ready. Here’s what to do next:
- Sign up for Shopify for $1 – here
- Choose your business model
- List your first product
- Set up your website
- Start marketing and get sales
You do not need a perfect plan—you just need to start.
Bonus:
Ready to take action? Click here to launch your Shopify store for just $1!
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