Why Complete a Financial Analysis of Your Internet Business? Part 5 of 9

January 7, 2009 by Carl Tambeau
Filed under: Internet Business Plan, Online Coaching

You want an Internet Business to run successfully and bring you a ton of sales. Great!

For argument sake how about we assume you have your entire plan mapped out:

Audience Analysis
Marketing Strategy
Product and Service Plan in place
Idea of how your website will look

What are we missing?

How will you afford the initial costs?

It is very rare for you to be able to get credit for an online business without an Internet Business Plan and one that has a financial analysis included.

You might ask why?

First of all if you are asking why, you may want to consider reviewing your business again.

How will your business work without capital?

Where will the money come from initially to pay expenses – start up costs?

How much do you need to make to break even, to make a profit?

Establishing and maintaining an Internet presence doesn’t come without a price. Some costs vary while other fees are set without change. You need to analyze your companies website to ensure your company will benefit financially in your chosen niche. Other than costs related to your website, there are other financial information needed for analyzing your company.

Are there any content licensing fees required to be paid?
Do you require a Merchant account for credit card processing?
Will your business require a shopping cart for the products/services being sold?
What is your ongoing Marketing budget?
How many hours are you working at your business daily and have you determined an hourly value for your time?
What about Travel expenses?
Equipment purchases?
Office Rental space for the offline portion of your business, if applicable.

These are just some of the expenses you need to analyze, depending on the type of business you are running. Every business has the basic expenses however some expenses are unique to individual niches. Make sure you complete your financial anlaysis as quickly as possible but at the same time be honest with yourself and efficient in processing of the information.

Carl Tambeau
Founder – Pro Marketing Resource