Time, hard work and thorough research are essential in the initial stages to determine the

feasibility of your idea. It is important to ask yourself the following questions:

Is your idea viable?

Do you have adequate capital to finance the venture?

Is there a market for your idea/product/service?

How will your e-business compete with competitors, if any?

For small business owners with limited capital and resources, it may be best to focus on a niche
market. This involves targeting and catering to a small, specialty group of consumers. E-business
tends to facilitate niche markets very well as opposed to traditional business, as the accessible
nature of the internet allows customers all around the world to easily locate your niche business.
Thus, you are better able to reach your target market.
Focusing on a niche market also enables you to avoid competing with larger, more established
businesses that cater for a wide range of customers. By targeting a niche market, your e-business
will be better able to provide products and services that are more specialised and not as easily
obtained on the market. Further, you may be able to provide higher quality customer service and
specialist knowledge and information. However, this will require you to be an expert in the
market, having in-depth knowledge of the products and services that you will offer.
When developing your idea and deciding on your niche market, it is very important to have a
sound understanding of this market and its customers. It is important to understand the market's
demographics, preferences, as well as your customers' wants and needs. This will enable you to
gain an understanding of whether there is a potential market for your idea, and how you can best
serve their requirements.
It is also essential to consider the existing competition in the market, as well as potential
competitors in the future, given the rapidly increasing number of new e-business ventures. This
is essential to determine how your e-business will compete; generally by identifying a
competitive advantage. This may include offering cheaper prices, higher quality, faster and more
efficient services or delivery, and so forth.
When developing your idea, it is a thought to start with asking your family and friends of their
thoughts and opinions. You may then begin to ask and observe industry experts, existing
businesses and potential customers. You may also conduct a SWOT Analysis (add link to SWOT
section), to assess your idea's strengths, weaknesses, opportunities and threats. Finally, if results
suggest that your idea is in fact a viable venture, then it is essential to conduct detailed primary
and secondary market research (add link to market research) to improve the chances of your idea
becoming a successful e-business venture.
As the internet can expose your e-business and customers to various risks, it is essential to ensure
that adequate consideration is made in relation to the security of your computer system and
online activities, in order to protect your business' assets, reputation, ability to generate an
income, as well as your customers' privacy and your relationships with your customers.

As the nature of e-business requires sending information between your business and customers, it
is essential that ample protection is provided, as your business and customers may be exposed to
risks such as theft, fraud, hackers, viruses, and denial of service, to name a few. By protecting
and securing online activities, the risk of such threats adversely affecting your e-business is
considerably reduced.
It is important to ensure that electronic transfers of information and transactions are secure, as
the information runs the risk of being intercepted and stolen by hackers, who maliciously and
intentionally access data in order to steal information or cause harm and disruption to business
operations. Identity theft and fraudulent conduct may occur through unsecure e-business
activities.
A virus is a malicious programming code that is usually received through email attachments,
which causes harm to your computer, its programs and data. The effects of viruses can cause
significant harm to the operations of your business, and can very easily go undetected before the
harm is already done. Anti-virus software can help protect your computer system from viruses
and malicious software.
Another potential risk that your business may face is what is referred to as a denial of service.
This occurs when there is an intentional overload of your network to disrupt operations and
ultimately crash your server. Customers will not be able to access your website, thus loss of
revenue may result.
E-businessguide.gov.au has identified their Top 10 Internet Security Tips to protect your business
and customers from the risks outlined above.
1. Develop a 'culture of security'
Businesses need to have Internet security measures in place and make sure staff are aware of, and
follow, Internet security practices.
2. Install anti-virus software and keep it updated
Anti-virus software scans and removes known viruses your computer may have contracted. It
will help protect your computer against viruses, worms and trojans.
3. Install a firewall to stop unauthorised access to your computer
Firewalls work like a security guard to protect your computer from intruders.
4. Protect yourself from harmful emails
Be cautious about opening emails from unknown or questionable sources.
5. Minimise spam
While it is not possible to completely stop spam from entering your email box, you can take
steps to reduce the amount.

6. Back-up your data

Creating a copy of back-up of data is a sensible way to ensure that you can recover all of your
business information from your computer or website quickly and easily.
7. Develop a system for secure passwords
Creating effective passwords can provide an additional means of protecting the information on
your computer.
8. Keep your software up-to-date
If your software is out of date, you are more vulnerable.
9. Make sure your online banking is secure
If you bank online you should follow security advice provided by your financial institution.
10. Develop and maintain a security policy
You need to monitor and test security policies.

There are various legal considerations associated with starting and operating an e-business.
Issues such as intellectual property, privacy, SPAM and trade practices, should be carefully
addressed, so as to assure adherence to any laws and social expectations, as well as to avoid any
legal ramifications or customer dissatisfaction.
Intellectual property (IP) results from the application of someone's mind or intellect to create
something new or original. Some examples of IP within an e-business include website designs
and layouts, information provided on web pages, business names and logos etc. Protecting IP
such as copyrights and trademarks is essential, as they are valuable assets to your e-business, as
the exclusive use of such IP provides your business with a point of difference from competitors.
It is also very important to avoid infringing on another party's intellectual property, as the legal
ramifications of such actions may jeopardise not only your business, but yourself, as well as any
other parties that have an interest in the business.
For more information on intellectual property visit the Small Business Toolkit and IP Australia.
Privacy laws in Australia [Privacy Act 1988 (Cth)] stipulate the requirements that must be met by
organisations when handling personal information. Personal information should be protected and
secured, and should not be used or disclosed for purposes other than the original purpose of
collection.
Besides laws that govern privacy, it is still important to pay close attention to the protection of
information that is provided to you by your customers. Especially in recent times with frequent
occurrences of identity theft and fraud through disclosure of personal information, many
customers may be hesitant to provide such information for fear of being intercepted or stolen
online. It is in your business' best interest to have a clear privacy policy regarding the collection

and protection of information, as well as implementing necessary security requirements to ensure

the integrity and safety of such delicate information
For more information regarding the privacy of your customers' information, visit privacy.gov.au.
SPAM is a term referring to electronic junk mail or unsolicited electronic messages. The Spam
Act 2003, an anti-spamming legislation, outlines requirements that must be complied with my
businesses when sending commercial e-mails, in order to ensure that spamming does not occur.
Commercial emails should only be sent to those who have indicated that they have consented to
accept and receive such mail. The details and information provided in the email should be
accurate and unambiguous, and should allow for clear identification of your business. Further,
recipients should be provided with an option to refuse further emails, via an unsubscribe'
function.
For further information regarding SPAM, see Australian Communications and Media
Authority (ACMA).
Trade Practices refers to fair trade and consumer protection. The Trade Practices Act governs the
conduct of businesses to protect the rights of consumers, businesses and the community. The Act
prohibits conduct that:

Is misleading or deceptive, or is likely to mislead or deceive

Involves providing inaccurate information or false representations

It is important to adhere to the requirements of trade practices in order to avoid legal

ramifications and customer dissatisfaction. It may also be advisable to provide clear policies in
relation to purchases and transactions that may occur online, so as to ensure that your customers
are well informed regarding the rights, duties and obligations of all parties involved.
For more information on trade practices, visit the Australian Competition and Consumer
Commission (ACCC).
It is essential to identify all of the potential start-up and ongoing costs of your e-business venture
in order to estimate, as accurately as possible, the amount of capital that you will require. Once
you have prepared a detailed budget, you can then begin to consider your options for obtaining
finance.
Start-up costs are one-off outlays that occur when initially setting up the business. Some
examples of start-up costs for an e-business may include computer hardware and software, office
supplies, and business registrations. Ongoing costs are continual and recurring payments
necessary to run and maintain the business throughout its life. Examples of ongoing costs include
wages, electricity and internet expenses, domain name expenses, and repairs and maintenance of
computer equipment. When budgeting for your capital requirements, you will also need to factor
in a float for the initial stages where your business may not generate enough revenue to cover
your expenses.

There are a number of financing options available when obtaining capital for your e-business.
Each option has its own associated advantages and disadvantages, depending on the particular
circumstances. Some of the most common sources of finance include:

Personal savings - probably the most common source of finance as it is cheap and easy to
obtain, however, the high level of risk associated with personal investment needs careful
consideration
Credit cards - relatively quick and easy to obtain, however, significantly high interest
rates may be a hindrance

Friends and relatives - generally an informal, cheap and flexible option of finance,
however, bear in mind that this investment may complicate and interfere with your
relationships

Angel investors - individuals who are interested in investing money and time into a startup business, however, seeking a share in the business in return for their investment may
result in some loss of control and decision-making power

Leases - financiers will purchase the equipment that you require and lease it to you
through regular payments

Bank loans - may be difficult to obtain, especially with start-up ventures

Consideration and evaluation of each option is essential in order to determine which option best
suits your individual situation.
For more information on financing your e-business, refer to the Finance Module.

A business plan is a detailed written document that describes all aspects of a proposed venture its planned activities, projected earnings and expenses, financing needs, management team,
marketing plan, even its location.[1]
Developing a plan for your e-business is essential as it is a tool that assists you in evaluating your
business idea, obtaining financing, outlining the goals of your business and putting them into
actionable objectives, as well as guiding you and any employees in operating the business once it
is established.
Whilst there are many variants to the elements of a business plan, the following sections are
usually included:
Executive Summary: an outline of what is contained in the full plan document, providing enough
information for readers to understand the key points, what is unique about the business and why
the business will be successful.

Business Profile: includes a description of your business, reasons for going into the venture, your
business structure, as well as registrations, licences, permits and insurance requirements.
Market Analysis: an analysis of the market in which your business will operate,
including research on your customers, competitors, and the industry.
Product or Service Description: an outline of the products and services that your business will
offer, as well as sales forecasts. Also included is information relating to suppliers and intellectual
property.
Strategy and Implementation: an explanation of the various strategies that have been identified
and implemented for your business. This includes marketing, pricing, distribution and
competitive strategies.
Operating Plan: a plan that identifies the operations of your business; including information on
staffing, systems and processes, equipment, facilities and general risk management.
Management Plan: a plan that identifies your management team's key roles, job descriptions, and
organisational structure.
Financial Plan: a plan that outlines the financing and budgeting aspects of your
business. Included are key financial statements, budgets, as well as sources of finance that will
utilised to obtain capital for the venture.
Action Plan: a plan of action that integrates all the identified strategies, designed to achieve the
mission and goals of the business.
It is important to evaluate the business' performance compared to objectives identified within the
business plan, as well as update and adjust the plan in relation to any necessary changes or
additions. This should be done periodically, so as to ensure that the business meets its targets as
well as to address any issues regarding the business' performance.
For an e-business plan template, visit digitalbusinessguide.gov.au.
For more information on how to develop a business plan, visit toolkit.smallbiz.nsw.gov.au.

Executive Summary
Business Profile
Market Analysis
Product or Service Description
Strategy & Implementation
Operating Plan
Management Team
Financial Planning
Action Plan

What is an Executive Summary?

Writing an Executive Summary
An executive summary is the first part of your business plan that people will read. Therefore it is
very important as it creates a first impression that will either encourage people to continue and
read the rest of the plan, or not bother looking any further.
The executive summary gives an outline of what is contained in the full plan document,
providing enough information for readers to understand the key points, what is unique about the
business and why the business will be successful.
The executive summary will usually contain a short description of the business, an overview of
your products and services, a general outline of the market, industry and competitors as well an
overview of key factors that will make the business a success.
The executive summary is generally written last after you have completed development and
writing of the full plan document. This ensures you allow the plan to evolve with full analysis of
all issues and don't pre-empt any areas with a premature summary that locks you into something
that has not been fully evaluated.
While you don't write the full executive summary until the end, it can be helpful before you
begin developing the full plan to first write a brief outline or draft of an executive summary. This
will give you a guideline to follow when creating the business plan to ensure that you don't leave
out any information.
After completing the rest of the business plan, go back to your original draft and finalise what
you are going to include in your executive summary. Keep in mind that the objective is to make
the reader believe that you have a business proposition that will be successful.
When writing the executive summary, focus on the main points that you would like to get across
to the reader. These points should highlight your unique selling proposition or what it is that will
make your business a success in the marketplace.

Remember to avoid going into too much detail in the executive summary as the rest of the
business plan is for the details. Depending on the length of your business plan, aim to keep the
executive summary to less than one page.
Continue to review and modify your executive summary until you feel that its meets its
objectives. It is also important to get other people to review the business plan and especially the
executive summary for clarity and professionalism, including grammar and spelling.

Build your Business Planning plan

Build your business plan by answering the questions below. A plan will automatically be
generated based on your responses. Avoid changing your answers offline as they will not be
saved to your profile.

Executive Summary
Q.1 Write a summary based on the contents of your business plan. It should briefly
outline each section of the business plan and contain some form of mission
statement. This should only be completed once you have finished the business plan.

Business Profile
This chapter helps you to develop the part of the business plan that builds a profile of your
business. It considers your reasons for going into business, determine what type of
business you have and what your aims are to achieve.
It also describes the legal requirements for setting up your business including business
structure, registration, licenses and permit obligations as well as insurance. You can use
this information to help you as you work through the development of your business plan.

Watch the video & Click on the links below to learn more
Why are you going into Business?
Mission Statement
Business Description
Business Structure
Business Registration

Licences & Permits

Insurance
http://www.bplans.com/clothing_e-ommerce_site_business_plan/management_summary_fc.php

http://www.sba.gov/category/navigation-structure/starting-managing-business/startingbusiness/how-write-business-plan