Business plan online store with calculations

Approximate dаta:
Monthly income-450 000 euros.
Net profit-98 600 euros.
Initial costs - 333 800 euros.
Payback-from 4 months.

Note: this business plan, like all others in the Business plans section, contains calculations of average prices, which in your case may differ. Therefore, we recommend you to make calculations for your business individually.

In this article we will make a detailed business plan of the online store on the example of clothes with calculations. But remember that this business plan can be applied to absolutely any online store, simply replacing the product. You can also read the articles in the section on how to open an online store.

Service description
In this business plan, the possibility and relevance of opening your own online clothing store. In this" virtual " point of sale will be sold goods for women. Below will be justified the choice of a certain direction.

The following business plan can be applied to other online stores. The difference will be only in the amount of costs and financial indicators. Channels of product promotion, in fact, will be the same.

Market analysis
Today, talk about the relevance of opening your own online store is not necessary. If you look at the chart below, you can see that the growth rate of online retail is significant. This once again confirms the increased demand of Russians for goods in online stores.

business plan online store with calculations

In just 2 years, sales grew by more than 75%.

This type of business will seem especially relevant to those who have small initial investments. It should be noted that the costs here are somewhat different from the costs in a regular store. The room should be small and in any part of the city, commercial equipment is not required. In short, online stores are often called preparation for opening your own store offline. Although, some organizations specialize exclusively in online trading.

business plan online clothing store

I would like to note separately the prospects of such business in the regions, as we will consider the business plan in the context of the fact that at first it works in a separate city/region, and only then goes to a wider area.

So, as you can see from the graph, in almost all regions, more than 90% of online shoppers make purchases in Russian online stores. But the popularity of foreign stores is not so great that gives the right to say that the main competitors are the Russian online retail.

business plan online store example

As for the niche, the trade in clothes and shoes is considered to be a win-win. This segment accounts for 26% of the total market, which is quite significant. At the same time, electronics and bit technology came in 2nd place with 12%, which is more than 2 times lower in terms of sales.

That is why today many entrepreneurs are engaged in the sale of clothing. In addition, the demand for this product is constant. And if the store sells clothes for different seasons, then seasonality in this case is excluded with the correct marketing policy.

It should be noted that the range should include underwear items, as they are in high demand among women. But to buy expensive clothes of famous brands people prefer offline or reliable well-known stores that are official dealers.

SWOT analysis for an online store is somewhat different from SWOT analysis for a regular clothing store.

There are a number of factors that can form both strengths and weaknesses of the online store. We will not refer them to a specific category, as each entrepreneur has his own input data (breadth of the range, availability of special offers, prices). We will list all these factors together, the main thing to remember is that they are external. These include:

A wide or narrow range of products.
The presence of goods in high demand among buyers, or their absence.
Special price offers or promotions.
The simplicity and accessibility of management website (you can navigate to the user or to the website difficult to navigate?).
The appearance of the site and the supply of goods in the catalog (the presence of descriptions, photos).
Comfort of working with the site (payment methods, availability of the basket, feedback).
Possibility to make an order by phone.
The presence of developed loyalty programs (discounts on purchase, products as a gift).
Speed of service and delivery of goods.
A variety of delivery methods (meaning delivery services with which the entrepreneur cooperates).
Payment methods (card, virtual wallets, online banking systems).
Availability of packaging for the goods.
Warranty service or after-sales service (this applies more to the stores of household appliances and other goods with high cost and technical orientation).
The level of promotion, the quality of advertising.
The level of customer confidence in the store and represented in the range of brands.
Any online store can use the following features (they relate to internal factors):

Increase in turnover.
Output work not only in the Internet space, but also on a stationary outlet.
Expansion of the range, and the inclusion of new products.
Increase in the price of the check (by increasing the activity of sales, the introduction of special offers and other tools).
The ability to reduce costs through the most profitable relationships with delivery services, wholesalers.
The ability to reduce the amount of tax (choosing the right tax system, receiving allowances).
In addition to opportunities, there are also threats that can cause serious damage to the store. They are also considered internal factors. These include:

Changing taste preferences, fashion trends.
A sharp drop in the level of income of regular customers, which entails a sharp decline in purchasing power and income.
Decrease in actual income (inflation, increase in the burden on the state or increase in the number of loans and other liabilities).
The growth of funds necessary for the development and promotion of your own store, which does not give a large increase in income.
The growth of wholesale prices for goods sold in the online store.
Possible changes in legal or tax documents relating to the operation of the online store.
The growth in the number of competitors engaged in the sale of similar products or those whose cost is lower than in our online store.
Assessing opportunities
Our online store will take orders around the clock, but the Manager will consider them daily from 9:00 to 17:00.

We will consider the store, working at first on the territory of one city. If you have a small city, the boundaries can be expanded to cover several settlements. Once the store is untwisted, you can go to a more serious scale.

In addition, as the number of potential buyers increases, you can expand the range by adding shoes, jewelry, accessories or something else to the clothes. Another option is to create another site and promote it on your own behalf through affiliate programs between sites.

Payment will be made in cash at the time of delivery of the purchase, as well as through electronic systems, Bank cards of users. You can use and pay via mobile phones. Do not forget that they charge an impressive Commission.

Organizational and legal aspects
In fact, the online store is the same store, only without a outlet, which eliminates the need to rent retail space. The main parameters will look like this:

Is it possible to design a PI or LLC. It is worth noting that the registration of LLC in this case is impractical. Also read the article about the taxation of the online store. When registering, it is important to specify the codes for OKVED. In this type of activity it can be:
52.42.1 Retail sale of men's, women's and children's clothing;

52.42.2-Retail sale of underwear;

52.42.3 - retail trade of fur products;

52.42.4 — Retail trade of leather clothes;

52.42.5 — Retail trade of sports clothes;

52.42.6 — Retail trade of socks and legwear;

52.42.7 — Retail hats;

52.42.8 retail sale of clothing accessories (gloves, ties, scarves, belts, suspenders, etc.));

52.43-Retail sale of footwear and leather goods;

52.43.1 Retail sale of footwear;

52.43.2-Retail trade of leather goods and road accessories.

Pay attention! In your case, the codes may be more or some of the presented may be missing. Therefore, it is important to know exactly what you will be doing in your own store to reflect all the planned activities immediately, rather than making changes to the documents every time.

The entrepreneur may choose a simplified tax system. There are two options-USN "Income" 6% or USN "Income minus expenses" 6-15% (the rate is determined depending on the region).
It is necessary to have a certificate of entry into the General trade register. In our case, the store will be opened on the territory of the shopping center, which will determine the receipt of the necessary document.
Do not forget to fix the cash register in the tax.
We'll need the Goskomstat codes.
To accept payment on the website you need to open a current account.
We will consider ways to promote online store on the Internet. If the store specializes in working in a particular city, you should think about using advertising on local TV, radio, banners and so on. Also, we have already written about advertising online store. The main ways to promote a virtual store on the Internet include:

Be sure to use the following types of promotion:
Contextual advertising. All about it you will find in the "business Promotion".
Otimization of the website of the online store.
SEO of the online store.
Media-context banners (ICD).
Placement of information on specialized commodity platforms. The latter are usually used to search for specific products or compare them in different stores. In this case, only the target audience is covered. (Most often used in the sale / purchase of equipment and other expensive goods).
Advertising on thematic or regional resources. As for the latter type, it is particularly relevant for stores operating in a particular region, but do not have a real outlet. This allows you to appeal to the target audience, and to those who may be interested in the store due to the favorable price and the ability to quickly get the desired product.
Promotion in popular social networks. Today, a large number of people are absorbed by such popular networks as Vkontakte, Odnoklassniki, Facebook. And people use them not only to communicate, but also to obtain useful information. That is why this method of promotion will be particularly relevant. In this case, there are a number of varieties that can be used to advertise an online store:
Create your own group and inform users about promotions and new products through it.
Placement of advertisements in social networks. At the same time, you can set certain visibility parameters (by region, age, gender, etc.).
Placement of products on group sites. The fee is taken as a percentage of turnover. Such sites charge quite a significant Commission (20-50% of the turnover through its own resource). This method helps to significantly increase sales and build a customer base.
Affiliate program. The difficulty is that these very partners are needed, and the site should be more or less promoted.
E-mail newsletter. In this case, we do not mean the usual spam mailing, and specialized. It is necessary to collect base of target clients. For example, you can combine a newsletter with an offer for users of a portal to buy a product at a discount.
Calculation of projected revenues
The calculation will be based on the size of the average mark-up in the industry (100%). Let's take an average daily revenue in the amount of 15 000 euros. Monthly income is 450 000 euros. The cost of the purchase of goods and their delivery will be 225 000 euros.

As the store develops, the profit will increase.

Production plan
To work in the online store will require:

1 administrator (aka Manager), who will deal with the processing of requests and the formation of the order. As the number of orders increases, it will be necessary to hire 1, 2, 3 and so on managers.
1 courier. It is better to choose a person with a personal car. It will also carry out daily deliveries of goods during working hours. In this case, the transport costs are borne by the store.
The entrepreneur himself will help in order processing, work with suppliers and promote the site. If such skills are not available, you will have to hire an additional person. Accounting can also be conducted independently or use the services of third-party organizations (outsourcing).
The salary of workers can be fixed or depending on the sales volume. We will consider the first option. The administrator will receive 27 000 euros, the courier-33 000 euros. Total FOT-60 000 euros.

Organizational plan
Registration IP 800 Euro
Buy domain and hosting for the year 3 000 euros
Website development 60 000 Euro
Computers and office equipment for personnel work 40 000 Euro
SOFTWARE and hardware setup 5 000 EUR
The is 25 000 EUR
Purchase of goods 200 000 Euro
Total: 333 800 euros
Financial plan
Rent 13 000 Euro
The is 25 000 EUR
Salary 60 000 Euro
Office expenses 2 000 Euro
Purchase of goods 225 000 euros
Transportation costs 9 000 Euro
Total: 334 000 Euro
Profit before tax will be: 450 000 – 334 000 = 116 000 euros.

Tax: (calculate the USN 15% of the difference between income and expenses) 116 000*0,15 = 17 400 euros.
Net profit: 116 000 – 17 400 = 98 600 euros.
Profitability: 98 600/450 000*100% = 21.91%
Payback period: 333 800/98 600 = 3, 38. Therefore, the project will pay for itself in 4 months.
The sphere of online trading has its own specific risks. For online stores have the following varieties:

Incorrect positioning
A person, opening his own online store, must understand who his competitors are, and how many of them may still appear in the first year of work. It is a mistake to think that you will enter the market and will be the sole ruler of the industry. Surely, in this area there are already established stores, which will not be easy to compete with. It is not necessary to think that buyers will go shopping to you, they will need to be attracted, and to do it actively.

Technical problem
Any mechanism is able to give a technical failure. Here it is necessary to distinguish between situations where the system itself has failed and when it was brought out of order by competitors. Special attention should be paid to the second case. To avoid these problems, follow these guidelines:

To work, you need to choose a hosting that will be protected from DDOS attacks (resistance to frequent calls to the server).
It is very important to take the time and attention to setting up the software platform and server directly. It is very important that they can work even with a large number of visitors to the site.
In no case do not skimp on the development of your own server group. The normal load on the server should not be higher than 50% of the capabilities of the used PACK.
Be sure to pay attention to the backup of information on the site. This will help you recover your data if it is lost.
The incompetence of the staff
Here we are talking mostly about technical specialists working on the site. It is very important to choose competent professionals who know their business. Professionals in IT industry get a lot, so choose a suitable candidate need special care. Remember that people do not always have the same knowledge and ambitions. It is necessary to carefully study the resume, ask for examples of work, learn about previous jobs and experience of the applicant. If necessary, you can contact a special Agency that will be able to pick up for your store qualified staff.

Payment problems
Despite the fact that today people are increasingly paying for purchases by Bank cards through Internet banking, to negotiate with service companies is not so easy. You will have to collect an impressive package of documents and allocate time for trial transactions (take several months).

When using payment methods, please note that transfers to the company's accounts may be delayed up to 1.5 months. That is, it will be necessary to build a proper accounting system. We should not forget that operators charge a significant amount of Commission, which can reduce all revenues to nothing.

Difficulties with delivery
Europe is a different country with great opportunities. There are a lot of delivery services here. Only now the most common today is the Post of Europe. True speed and level of service it leaves much to be desired. We must not forget that through the Mail of Europe today you can not send all the goods. Although, clothes are not affected. If you are going to open a business in some other sphere, you should get acquainted with the list of goods that are forbidden to be sent by Mail in Europe.

If the store specializes in sales in a particular city, then it is somewhat easier to arrange delivery – you only need to hire a responsible and honest courier who will be ready to deliver the goods on time and without deception. Of course, it is better to choose a person with personal transport, it will transport immediately a large number of orders, and quickly reach your destination.

Contractors-you can not get away from them
Indeed, suppliers of goods are one of the most important parts of the work. Especially in a store that sells online. To avoid problems, you should use the following rules in your work:

It is not necessary to work with one supplier. It is better to diversify them. This will significantly reduce the dependence on a single supplier.
Be sure to evaluate the capabilities of the selected contractors and analyze the quality of the goods supplied by them (this can be done by making a control purchase before signing the contract).
Do not forget that during the transportation of the goods from the supplier, part of the goods may deteriorate. The ideal option would be a situation where the counterparty will take risks for illiquid goods. Otherwise, another very significant item would have to be added to the item of expenditure.
Important: Remember that you can make your own business plan for your business. To do this, read the articles:

How to make a business plan yourself - detailed instructions;
The structure of the business plan and the main sections.
Please finally: We are all people and can make mistakes, something not to take into account, not judge strictly if this business plan or others in the business plans section seemed incomplete to you. If you have experience in this or that activity or you saw a defect and can Supplement the article, please let us know in the comments! The only way we together can make the business plans more comprehensive, detailed and up to date. Thank you for your attention!

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In this section, we try to write ready-made business plans for you, give examples and samples of business plans for small businesses with detailed calculations, based on real or approximate indicators of the types of business under consideration.