Introduction
In the development of any business, it is necessary to take into account factors that can negatively affect the development of the company. One of these essential concepts is the business gap, thus, the aspect in which the business of one cannot function (Hague, 2019). In other words, these are certain territories or areas where one’s occupation cannot bring profit due to certain aspects and its characteristics. According to another definition, it also includes the gap in offering services according to specific customer requirements (Hague, 2019). Accordingly, in order to close this gap, it is necessary to analyze the missing aspects of the product offer and launch the production to close the gap.
Market research
Market research is an effective method for identifying and closing potential business gaps and for a company’s development in general. In this case, the analysis of the international e-commerce market showed that more and more countries are involved in this type of business (Hoque et al., 2020). It formulates the relevance and the possibility of increasing the potential target territories for the company’s performance. Besides, 80% of products are purchased online from countries such as China, Germany, and the USA (Hoque et al., 2020). It shows the most attractive areas for investment and launching an e-commerce site.
Moreover, it will help in closing a potential business gap, which in this case may consist of the incorrect distribution of priorities for territorial development. Despite the fact that the legislation may be more favorable in some countries, the insufficient development of digital technologies makes them unprofitable (Hoque et al., 2020). In addition, today, more and more businesses are starting to use cryptocurrencies and to pay for services and goods. It may formulate another business gap for «PERFICIENT», and an effective way to close it would be to implement cryptocurrencies in the future. Implementation will generate additional income and attract more potential customers through a wide range of transaction tools.
Financial Analysis
Financial analysis is an essential part of starting a new business, including e-commerce. It allows one to evaluate possible investments, the level of return on investment, and identify financial opportunities. In this case, the financial analysis will be based on data on the potential opportunities in this area, namely the development of e-commerce. In this regard, a high level of return on investment is expected due to the high levels of e-commerce implementation throughout developing countries (Bass, 2018). As already indicated, the financial costs will include those that will cover the initial and operational costs. Thus, financial transactions will include an investment in the initial stage and a return on investment in the development stage.
Furthermore, the financial analysis should include consideration of possible risks associated with the implementation of the business. In this case, considering the pace of development of the sphere, the risks will be based on high levels of competition (Metawa et al., 2019). Usually, the main financial risk for a company is an insufficient inflow of clients or failure to close significant business gaps. However, given that more and more countries are implementing e-commerce development strategies, financial risks, in this case, will not be based on these factors. The development of this area will be characterized by the development of companies providing services or based on e-commerce.
In this regard, a high level of competition articulates the underlying financial risks in the chosen area. One of the main functions of financial analysis is the consideration and implementation of strategies for leveling risks (Bass. 2018). Thereby, a suitable method for dealing with the financial risk associated with competition is the competitive offer. It is formulated not only by high-quality services and prices below the market average but also by unique offers. In other words, one should analyze the special functions of competitive companies. After this, based on this analysis, one would be able to develop one’s own unique offers for customers. In the case of «PERFICIENT», it can be formulated by the implementation of cryptocurrency, thus, giving the possibility of paying with electronic currency. Finally, high-quality and straightforward functionality could distinguish this company from others.
Risk Assessment
For the successful launch and operation of a company or business, one has to take into account possible barriers to its running. Risk assessment allows one to identify, analyze and develop strategies for leveling potential risks (Ostrom & Wilhelmsen, 2019). Additionally, risk assessment was defined as an effort to look for potential negative incidents that would harm the company in any possible way (Ostrom & Wilhelmsen, 2019). In this case, as already indicated, the main risk is associated with the competition. However, it is part of the external risks, but the launch and development of a business are characterized by a number of internal risks as well. In this regard, it is necessary to apply a special technique to find and evaluate possible risks.
This model can be conditionally divided into several stages. The first preparatory stage is formulated by studying the literature to analyze the possible risks of C2C and B2C e-commerce models (Kahraman et al., 2019). In other words, this part is the theoretical aspect, which in the future will become the basis for the practical one. The second stage is an in-depth interview, and it is articulated by discussing pre-defined risks and developing the final list (Kahraman et al., 2019). After this, one should evaluate each risk by assessing how to relate to it and identify the root cause of the risk (Kahraman et al., 2019). The final stage is articulated by analyzing the results of this model’ applying and developing the strategies to deal with risks.
Exit Strategy
After the risks have been assessed and strategies for dealing with them developed, one should elaborate the exit strategy. It includes developing strategies to get out of the current negative situation in case of insufficient consideration of risks or failed implementation strategies (Goossens & Murata, 2019). It is also defined as a clear plan of action aimed at the maximum advantageous option of selling a company or business to investors or another company (Goossens & Murata, 2019). In other words, it is a plan that will allow one to get the maximum benefit in the event of a situation that would lead to loss of profit or business closure. Usually, with a successful deal to sell a business or company, the owner can get a significant amount of money.
However, there are situations in which one does not have the opportunity to profit from the sale of a business. In this case, the exit strategy implies the most harmless outcome, thus, the maximum limiting of losses (Sasongko & Bawono, 2021). In other words, this plan is characterized by the development of a strategy to minimize the financial losses in the sale or liquidation of the company. In the case of a «PERFICIENT» company, it would be formulated by keeping the maximum profitability of the company until the moment of sale. It will consist in acquiring and retaining the maximum number of customers with the help of profitable offers that would attract an audience from the competitive sector.
Methodology
The methodology of this business plan includes strategic planning, which can be divided into several parts. The first part includes setting goals and sorting them into the highest priorities. Further, it is necessary to develop a plan for the implementation of the set goals, taking into account the priority of the objectives. In addition, strategic planning includes the identification and analysis of possible risks. After identifying risks, one needs to develop steps to mitigate them. On the basis of the above factors, one can determine everyday decisions, which is also part of strategic planning. Finally, based on the developed strategic planning, one will be able to implement all the business development stages.
Conclusion
To conclude, it is worth mentioning that given the above factors, the project is potentially profitable and attractive for investment. Primarily, it is articulated by the favorable economic climate and the development of this area and the growing number of companies that would use e-commerce. Further, the success of the project is connected to a developed approach to clients and a wide range of services. For example, the separation of C2C and B2C departments, which will allow the efficient evolution of each sector and the implementation of successful development strategies.
Moreover, one should mention that the chosen area has extensive opportunities for further development. The possibility of implementing cryptocurrency is important in terms of technology development. Possible risks include a high level of competition, which can be offset by unique offerings. In addition, an effective model for identifying and working with potential risks is proposed. Further, the financial analysis showed that the degree of development of this area is high and allowed to determine the most attractive areas for the extension. Finally, an effective exit strategy was also identified, which would minimize losses in the event of an unsuccessful launch of the company or difficulties in activity.
Reference List
Hague, P. (2019) The business models handbook: Templates, theory and case studies. Kogan Page Publishers.
Hoque, M., Rakibul, B. and Edward, R. (Eds.) (2020) Cross-border e-commerce marketing and management. IGI Global.
Bass, K. (2019) E-commerce and mobile commerce technologies. Scientific e-Resources.
Metawa, N. et al. (2019) Expert systems in finance: Smart financial applications in big data environments. Routledge.
Ostrom, L. T. and Wilhelmsen, C. A. (2019) Risk assessment: Tools, techniques, and their applications. John Wiley & Sons.
Kahraman, C. et al. (2019) Intelligent and fuzzy techniques in big data analytics and decision making. Springer.
Goossens, R. and Murata, A. (2019) Advances in social and occupational ergonomics. Springer.
Sasongko, B. and Bawono, S. (2021) Financial management: For future entrepreneur. BookRix.