Develop a Business Plan Before You Buy a Website :: Sell Websites Buy Websites

Develop a Business Plan Before You misdirect a WebsiteReprinted with permission of VotanWeb.comIn recent years, Ive written a yield of railway line plans based on ideas Ive had for various websites. Most of these ideas were small, but I learned a great deal just writing the plans. I didnt proceed with those websites because either the market or cash flow wouldnt sponsor them. However, the only way for me to know this was by writing the plans. Completing the sign plan for my current website was time-consuming. I spent about 40 hours over a three-week period researching and writing it. Its a living document, since I retool it every month or two. Free Web resources, plus word-processing and go by spreadsheet software, allowed me to create a unique plan. The resources I used included VotanWeb and the pocket-sized Business Administrations site. The business-planning software programs that provide templates to insert your information exitmed cookie attendant and formulaic to me. They didnt seem to offer anything that wasnt free on the Web. The first half(prenominal) of a business plan is geared towards developing and supporting a business strategy. A website can face serious competition if the business concept is not creative. I critically examined my market, industry, customers and competitors. I reviewed the benefits of my current production and tied them to customer needs. I visited my competitors websites to evaluate their strengths and weaknesses and align opportunities they were neglecting. I asked myself Is there a niche that allows me to compete less instanter against similar websites? Can I use different sales or marketing pitches? Is there a secondary market that can admirer us grow? Can I position my websites in sunrise(prenominal) ways that offer customers additional benefits?The Financial PictureA residual sheet describes a websites net worth and is prepared once annually. In my business plan, I also included a personal counterpoise s heet that showed my personal financial commitment by documenting my own assets and liabilities.A cash-flow statement shows how much cash result be needed and when and where it will be generated. It examines cash and revenue sources, minus the businesss expenses and capital requirements (a cash-flow statement differs from a profit-and-loss statement because it doesnt include when the revenue is collected or expenses paid). I show my cash flow going forward on a 12-month basis. This allows me to see when my cash flow might not be adequate to make for expenses and pull back on spending until it builds up again.