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E-commerce Start-up Business Plan

Business Model and Structure

The company plans to locate its headquarters in a metropolitan area that can provide access to a large pool of high-tech labor force, current e-commerce intelligence, and sources of financial capital. The location should ensure the best logistics when reaching existing and potential clientele, as well as strategic partners. Operations in which the company cannot develop core competencies should be outsourced. A close proximity to outsourcing companies should be maintained. The headquarters will initially host the entire executive team, sales force, and staff. As company progresses through its growth stages, sales regions will be assigned for various parts of the U.S. and either in-field sales representatives be placed or distributors assigned. Presently, is headquartered in Bala Cynwyd, Pennsylvania.

The company will initially be a privately-held corporation. The state of incorporation will mainly depend on the location of corporate headquarters. The company plans to raise two rounds of venture capital financing before going public.

9.1 Organizational Structure

Those activities that are not crucial to the corporate success (i.e. payroll) will be outsourced or subcontracted. Below are brief summaries of major responsibilities for corporate officers.

  • Board of Directors: oversees the overall strategic direction and progress of the company. Specific areas include operational soundness, financial stability, and long-term well-being of the corporation.
  • President: responsibilities include strategic guidance of the enterprise, exploration of expansion opportunities, and strategic alliance facilitation and management.
  • Chief Executive Officer: the main responsibility is to maintain a strategic fit between the corporate resources and external factors. Responsibilities include running of the overall day-to-day operations, technological and operational soundness, and financial stability.
  • Director of Finance and Operations: responsibilities include financial oversight, safeguarding of assets, and human resources management.
  • Director of Information Technology: responsibilities include overall technological efficiency, software development, and information control.
  • Director of Sales and Marketing: responsibilities include sales generation, marketing programs development, and public relations.
Personnel Plan
Year 1 Year 2 Year 3
All Departments $200,000 $1,960,000 $4,105,000
Other $0 $0 $0
Total People 5 40 80
Total Payroll $200,000 $1,960,000 $4,105,000

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