Every business, no matter how small, needs a business and marketing plan. Online auction businesses are no exception. A business and marketing plan helps you establish your goals and markets and formalize the steps necessary to reach them. You can learn how to create this plan by reading some how-to books on setting up a small business or home-based enterprise.

For a kitchen-table business, the plan can be short and straightforward: “XYZ Auction Enterprises will sell almost any type of item, using eBay and PayPal only. No merchandise will be accepted on consignment, and no items will be purchased online for resale. All items to be auctioned will be gathered from personal belongings and local garage sales, yard sales, and estate sales. XYZ will gather, store, sell, and ship the items from its main location. XYZ will build and expand its reputation and customer base by (1) offering bidders a fair chance to obtain good items at low prices; (2) responding to bidders' questions in a timely manner; and (3) shipping items quickly in sturdy containers.”

Spelling out what you want your business to be can help you set realistic, attainable milestones. Creating a strategy for marketing your business can help you better understand who might and might not be interested in the merchandise you intend to sell.

Another key reason for creating a business and marketing plan is to help you get a business loan or attract investors or business partners, if you need them. Depending on the types of products you intend to auction and the amounts of space you will need to store and ship them, you may require a big sum of cash to begin your business. You may also need to incorporate your business or create a partnership or limited liability company (LLC). These are matters to discuss with a tax attorney before you launch your enterprise.