How to Create an Online Business Plan: 3 Tips for Effective Fundraising

According to Google statistics, tens of thousands of searches are conducted in Vietnam each month regarding how to create an online business plan, what to prepare for online business, or writing a simple business plan. This shows that many people want to start selling products or services online but… don't know where to begin.

In reality, whether you plan to borrow from a bank, seek investment, or simply run a small online business from home, a clear business plan is essential. It's not a cumbersome formality, but rather a "map" to help you define your direction, goals, and how to achieve sustainable growth. This article will help you understand why you need an online business plan and how to build one that is simple, practical, and easy to apply, even if you are a complete beginner.

Tip 1: How to Effectively Outline an Online Business Plan

Step 1: Executive Summary in the Online Business Plan

Understanding the Executive Summary Correctly

• This is the first part of the online business plan, but it should be written last.

• The goal is to concisely and persuasively summarize the entire business model.

Why the Executive Summary is Crucial

• Helps investors or banks quickly understand what your business is and its potential.

• It's the "first touchpoint" that determines whether they continue reading the plan.

• Even without seeking funding, this section helps you clearly see your online business direction and goals.

How to Write an Effective Executive Summary

• Write after completing the entire online business plan.

• Present key points concisely:

  • What you sell, to whom, through which online channel

  • How you differ from competitors

  • Revenue goals or development direction

• Avoid verbose details; focus on core value.

Practical Notes for Beginners

• No need to be overly academic or complex.

• Prioritize clarity, easy understanding, and being on-point.

• Consider this an important first step when learning how to create a professional online business plan.

Step 2: Business Introduction and Current Status

Tell the Story of Your Business Formation

• This is where you share the context of your online business idea's origin.

• Focus on why you started, the problem you saw in the market, and how you came up with a solution.

• If you have a realistic, relatable story (from your own or others' real needs), tell it briefly to build credibility.

Clarify Current Business Status

• What stage is the business in: idea, testing, or already generating revenue?

• What products or services are currently sold online, and what is the initial customer feedback?

Present Important Foundational Information

• Legal form:

  • Individual business

  • Registered business (household business, LLC, etc.)

• Operating location:

  • Where your business is registered

  • Primary operating area

Why This Information Cannot Be Skipped

• Directly impacts:

  • Ability to obtain loans or investment

  • Legal regulations to comply with

  • Tax obligations for online business

• Helps make your online business plan clear, realistic, and highly regarded.

Step 3: Online Business Product and Service Description

Clearly State What You Are Selling

• Describe your product or service in simple, easy-to-understand language.

• Avoid jargon; if essential, explain it briefly.

• Help readers immediately understand: what value do you offer to online customers?

Define Market and Competitors

• Briefly state the market you are entering:

  • Who are your target customers?

  • What are their main needs?

• List key competitors selling similar products or services online.

Highlight Competitive Differentiation

• Clearly state the problem customers are facing.

• Explain how your product/service solves that problem.

• If there are many sellers similar to you, state clearly:

  • How are you better?

  • Or how do you differ in quality, experience, or value provided?

Include Product Improvement Plan

• If you are researching product or service upgrades, state:

  • What improvements do you plan?

  • Reasons for improvement

  • Estimated costs

• This shows that your online business plan has a long-term and realistic direction.

Step 4: Product Marketing in Online Business

Identify the Right Target Customers

• The target customer is the one who makes the purchase decision, not necessarily the end-user.

• Clarify:

  • Who they are (age, gender, needs)

  • Why they need your product or service

Plan Customer Outreach

• Describe the channels you use for online sales:

  • Social media (Facebook, TikTok, Instagram)

  • Website, e-commerce platforms

• Explain why these channels are suitable for your target customers.

How to Persuade Customers to Buy

• State the main message you want to convey:

  • Key benefits of the product

  • Problems solved for customers

• Present how you build trust:

  • Content sharing

  • Reviews, feedback from buyers

Examples of Specific Marketing Activities

• If running online ads, state clearly:

  • Ad format (posts, videos, images)

  • Audience targeted by ads

• This makes the online business plan clear and its feasibility easily assessed.

Step 5: Daily Operations in Online Business

Describe Key Tasks

• List daily activities:

  • Receiving, processing orders

  • Producing or preparing products

  • Customer service

• Clearly define who is responsible for each task (you or a helper).

Business Location Requirements

• If working from home:

  • No special requirements, but need suitable space for storage, packaging.

• If planning expansion:

  • Anticipate moving to a warehouse or separate location as orders increase.

Shipping and Delivery

• Clearly state the delivery method:

  • Shipping carrier used

  • Estimated delivery cost

• Explain how you control shipping costs and delivery times.

Processing Time and Commitment to Deadlines

• Define order fulfillment time:

  • In-stock orders

  • Custom orders

• Helps customers know when they will receive products, while also demonstrating that your online business has clear and reliable processes.

Step 6: Management Structure in Online Business

Identify key personnel

• Clearly state who runs the business, even if it's just you.

• Briefly summarize:

  • Relevant experience

  • Skills relevant to online business (sales, marketing, operations)

Clarify roles and strengths

• For each person on the management team (if any), state:

  • Key roles

  • Specialized strengths that add value to the business

• Help readers understand why this team can operate and develop successfully.

Note on lack of management experience

• If you have no prior business management experience, this is acceptable when:

  • You are not seeking funding or bank loans

  • The online business model is still small

• However, it is advisable to plan early for collaboration with experts like accountants as you expand.

Recruitment plan

• Determine when to recruit:

  • When a certain revenue level is reached

  • When the workload exceeds current capacity

• State basic requirements:

  • Required skills

  • Minimum qualifications or experience

Step 7: Startup Costs for Online Business

List initial expenses

• Clearly state the necessary costs to start an online business, including:

  • Business registration fees (if any)

  • Domain name purchase, hosting, website design

  • Ad account setup, initial marketing costs

• This can include expenses you have already incurred.

Distinguish long-term investment costs

• These are long-term assets used for operation:

  • Computers, phones, software

  • Production tools, work equipment

• Whether already purchased or not, these should be clearly listed to accurately reflect the scale of investment.

Costs for launch day

• If there is a plan for a specific launch date, state:

  • Promotion budget for launch

  • Initial costs for product preparation, packaging, and shipping

• This helps readers assess the readiness of the online business plan.

Step 8: Financial Forecast for Online Business Plan

Purpose of financial forecast

• Demonstrates that the online business model has the potential to generate revenue and profit.

• Especially important if you are seeking bank loans or investors, as they rely primarily on this section to assess risk.

How to build a realistic financial forecast

• Based on:

  • Market research

  • Selling price, costs, customer demand

• Estimate basic figures:

  • Projected revenue

  • Operating costs

  • Profit by stage

• Avoid overly optimistic figures; prioritize feasibility.

If no funding is needed

• A financial forecast is not mandatory, but still recommended.

• Helps you envision:

  • How your online business can grow

  • When you will start to make a profit

Present with charts and tables

• Use tables and charts to:

  • Help readers quickly grasp the financial situation

  • Increase the likelihood of consideration when working with banks or investors

If funding is needed

• Clearly state:

  • Amount of capital needed

  • Purpose of funds (marketing, inventory, operations)

• Show that you control cash flow and have a clear plan for using the funds.

Tip 2: Appendix in Online Business Plan

Step 1: Appendix in Online Business Plan

When to include an appendix

• An appendix is especially important if you are:

  • Seeking bank loans

  • Seeking investment from investors

• This is where you gather the documents they often request for due diligence.

If preparing a plan for personal use

• It is not mandatory to prepare a complete appendix.

• However, you should still include important documents for future reference.

Documents to include in the appendix

• Legal documents:

  • Bank account statements

  • Tax identification number

  • Business registration certificate (if any)

• Supporting documents for the plan:

  • Quotes, sample contracts

  • Market research data

Practical benefits of an appendix

• Helps you organize documents neatly, in one place.

• Saves time when dealing with banks, partners, or tax authorities.

Step 2: How to Organize the Business Plan Appendix

Organize the appendix by section

• Each section of the online business plan should have its own appendix.

• The order of the appendices should exactly match the order of the sections in the main plan.

Remove sections without documentation

• If a section has no supplementary documents, its appendix can be omitted.

• Avoid adding appendices just for the sake of quantity; prioritize accuracy and necessity.

Understand the appropriate length of the appendix

• The appendix is often longer than the main business plan content.

• Common practice:

  • Each plan section is only 1–2 pages

  • The appendix can contain 5–10 pages of related documents

Benefits of systematic organization

• Helps investors or banks to:

  • Quickly find documents of interest

  • More easily evaluate the online business plan

• Demonstrates that you operate systematically, clearly, and professionally.

Step 3: Legal Documents in the Business Plan Appendix

Include important legal documents

• Include documents related to:

  • Taxes

  • Business licenses

  • Other legal records of the business

• These documents help prove the status and legality of the online business operations.

Why this section is crucial

• Banks and investors often require these documents for due diligence.

• Including them in the appendix makes the business plan more complete and professional.

Brand and Intellectual Property

• Can include:

  • Logo, brand identity kit

• Mandatory:

  • Registered trademark certificate

  • Documents related to copyrights, patents (if any)

• Demonstrate that the business has clear and protected intellectual property assets.

Individual or Partnership Business

• If you are an individual business owner or partner:

  • May need to include personal tax records

  • Or related financial information as required by the lender

Step 4: Research materials supporting marketing decisions

Include important reports

• Print or attach research documents and analytical data that directly influenced marketing decisions.

• The goal is to help the reader understand why you arrived at the conclusions in your online business plan.

Be selective, not exhaustive

• No need to include all research data.

• Only select:

  • Reports cited in the plan

  • Analyses with a clear impact on marketing strategy

Practical Benefits

• Increases the credibility of the plan.

• Helps investors or banks quickly verify arguments without reading lengthy content.

Step 5: Operational diagrams in the business plan appendix

When to add diagrams

• For purely online businesses, this section may not be mandatory.

• However, it should be added if the business:

  • Has a warehouse

  • Has a fixed office

  • Uses multiple spaces for operations

Types of diagrams to include

• Warehouse layout:

  • Required area

  • Layout of storage, packing, and shipping areas

• Office layout:

  • Seating arrangements for staff

  • Common work areas, functional zones

Benefits of illustrating with diagrams

• Helps readers quickly visualize how the business operates in reality.

• Increases clarity, reduces lengthy explanations in the online business plan.

Step 6: Attach CVs of key personnel

Why include CVs in the appendix

• Supplements the management structure section of the online business plan.

• Helps readers quickly understand the capabilities and experience of key personnel.

When to prioritize attaching CVs

• When introducing new personnel that investors or banks are not yet familiar with.

• When the management team is a key factor in providing a competitive advantage for the business.

Effective presentation method

• To keep the main content of the plan concise:

  • Only state key roles and strengths

  • Refer to the detailed CVs in the appendix

• CVs should be clear and directly relevant to the online business operations.

Practical Benefits

• Increases the credibility of the plan.

• Helps readers quickly assess the quality of the team without having to read lengthy content.

Step 7: Product and Company Introduction Documents

Supplement sales publications

• Attach materials you use to introduce your products or services:

  • Brochures, catalogs

  • Advertisements, mock-ups of sales content

• Helps readers clearly visualize how you approach target customers.

Demonstrate market access strategy

• These publications show:

  • The message you want to convey

  • How you persuade customers to buy online

• Especially useful for investors when evaluating sales potential.

Customer service documents

• Should supplement:

  • Customer support process

  • Return, exchange, and warranty policy

  • Usage instructions or after-sales care content

• Helps readers understand how you retain customers and build long-term relationships.

Step 8: Supplementary financial reports in the appendix

Purpose of detailed financial reports

• The financial section of the online business plan only provides an overview.

• Reports in the appendix help readers understand:

  • Where the numbers are derived from

  • Data and assumptions used to make forecasts

Documents to attach

• Detailed revenue and expense reports

• Cash flow and profit statements

• Explanatory notes on how financial indicators are calculated

Increase credibility with practical experience

• If you or a partner has successfully operated an online business:

  • You can attach financial reports from previous projects

• This helps investors or banks highly evaluate the team's capabilities and experience.

Tip 3: Complete a professional online business plan

Step 1: Review the business plan for errors

Why a thorough check is necessary

• Spelling or grammar errors reduce credibility.

• For loan applications or investment pitches, even a few small errors can be perceived as unprofessional.

Effective checking methods

• Reread the entire content slowly, focusing on:

  • Spelling errors

  • Confusing or illogical sentences

• Print it out or change the format to easily spot errors.

Ask someone else to proofread

• An outsider can easily spot errors you've overlooked because you're too familiar with the content.

• Prioritize someone with business experience or writing skills.

Practical benefits

• A concise, clear, and easy-to-read online business plan.

• Increases the chances of gaining trust, whether for internal use or when working with banks and investors.

Step 2: Reread the plan from the reader's perspective

Take a break for an objective view

• Set the plan aside for 1-2 days before rereading it.

• Helps you detach from your familiar writing thoughts and see the content more clearly.

Put yourself in the target reader's shoes

• Ask yourself:

  • Does the reader immediately understand what you mean?

  • Are there any sections that are confusing when skimmed?

• Jot down areas that need clarification or rewriting.

Ask someone else to read it

• Choose someone with a perspective similar to your target reader.

• Listen to their questions or concerns to refine your plan.

Practical Benefits

• The business plan is easier to understand from the first read.

• Increased persuasiveness with investors, banks, or partners.

Step 3: Invest carefully in the executive summary

Why this section is the most important

• For banks and investors, the executive summary is often the only section they read thoroughly.

• The decision of whether to continue reviewing the plan is often made right here.

How to make the executive summary persuasive

• Write concisely but powerfully enough to "sell" the business idea.

• Use active, clear sentences to:

  • Show market potential

  • Highlight the strengths and success potential of the business

• Let confidence and enthusiasm for the business model shine through naturally in your writing.

Review with an investor's perspective

• Ask friends or colleagues to read only this section.

• Ask directly:

  • Would they be willing to invest?

  • What lingering questions do they have?

• Use their feedback to revise for conciseness and persuasiveness.

Step 4: Cover page and table of contents for the business plan

Create a clear cover page

• Include full details:

  • Business name

  • Address, phone number, contact email

• Present it neatly and professionally to create a good first impression.

Create an accurate table of contents

• Use the automatic table of contents function in your word processing software.

• Double-check:

  • The names of the sections

  • If the page numbers match the actual content

• The goal is to help readers quickly find the sections they are interested in.

Review the reader's experience

• Flip through the entire plan to ensure the table of contents leads to the correct pages.

• Assume the reader will use the table of contents instead of reading from beginning to end.

Note when sending electronic copies

• Set up page numbers in the table of contents as clickable links.

• This helps investors or partners quickly access the content they need with just one click.

Step 5: Check formatting and page breaks

Ensure consistent presentation

• Use one font and a single margin setting for the entire plan.

• Especially check if the plan is assembled from multiple sections or by multiple contributors.

Review charts and tables

• Preview the print version to ensure:

  • Charts and tables are not split across pages

  • Explanations are on the same page as the illustrations

• Avoid making the reader flip back and forth to understand the content.

Check page breaks and table of contents

• If you add or edit page breaks:

  • Go back and check the table of contents

  • Ensure page numbers still match exactly

• This helps readers quickly access the specific sections they need.

Practical Benefits

• The business plan is easy to read and professional.

• Reduces the risk of annoying investors and banks when they quickly review the document.

Step 6: Print and finalize the business plan

Prepare the official print version

• Even if you submit your business plan online via email or digital file, it's still advisable to have:

  • At least one formal printed copy

  • One internal copy for reference and notes

• A printed copy helps you stay prepared for any in-person meetings.

Print enough copies for presentations

• If meeting with banks or investors:

  • Print a separate set for each attendee

  • Even if they have already reviewed the digital version

• This demonstrates serious and professional preparation.

Invest in printing quality

• Use good quality paper, clear printing, and neat binding.

• Avoid shoddy printing because it:

  • Can give an impression of carelessness

  • Reduces the perceived value of the entire plan

Flexibility when building a business plan

Select appropriate sections

• A business plan follows a standard structure, but not every item is necessary.

• If a section is not relevant to your model, you can omit it to make the plan more concise and realistic.

Consult before writing

• Look for online business plan templates on the internet to get an idea of the presentation style.

• Utilize resources from local small business support organizations (plan templates, guides, checklists).

References

1. https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
2. https://www.startupdonut.co.uk/business-planning/
   write-a-business-plan/essential-guide-to-writing-a-business-plan
3. https://www.score.org/resource/business-plan-template-startup-business

Translator: Rowan Hudson Le.