Bo994

De BISAWiki

Business Online Benefits and drawbacks



http://www.q-zai.com/ - Increasingly, more people own or are growing their businesses online with varying degrees of success. It is necessary for web marketers to be familiar with the advantages and disadvantages of doing business online since this knowledge will empower them to make a good decisions and implement the proper strategies when they do go on and start a business on the internet. Below are the key advantages and disadvantages of running a web business.

Advantages

Start-up cost is relatively less than bricks and mortar businesses. Some business-in-a-box programs cost as little as $400, in which cheaper. If you're setting up your own website along with your strategic business plan you could only need to pay for your own domain name and internet hosting which would run you under $100. For the most expensive opportunities, they are still way cheaper than other businesses. The top scale start up costs for online business might be $20k, which could seem expensive however, if compared with businesses such as the MacDonald's franchise which cost more than a quarter of the million dollars, it puts things into better perspective. Operational costs and administrative expenses are also relatively below other manufacturers with minimum staff required. Many web marketers work at home meaning expenses like lighting and heating and office expenses which would normally be incurred within an office block, are saved. In operation online gives great flexibility. The reason being the business enterprise could be run everywhere. A business person could be around the beach on vacation together with her family yet still be running her business normally. This flexibility helps the entrepreneur does as she pleases with her time. She should work between 12 midnight and 6 am if that is her best hours. Online businesses can reap the rewards of free and cheap advertising, through videos, marketing with articles and network marketing. Even with more costly advertising options like pay per click, due to the variety of Internet surfers, to possibility to improve your company is quite high particularly if you can effectively drive traffic to your site.

Disadvantages

Competitors are high as increasingly individuals are becoming started up to the advantages of running an online business and also more technology savvy and so are growing their businesses. The quantity of people starting a small business on the web is increasing at high levels and they are all competing for traffic rendering it harder to interrupt through. The web is an extremely dynamic marketplace. Consumer tastes vary widely and alter frequently. Therefore, by emphasizing one business idea or income stream, the entrepreneur risks being left out by new services and services as consumers chase the next appropriate product or service. Even when the entrepreneur includes a winning business structure, competitors can simply copy it and for that reason impact negatively on profits. Getting to grips with technology to sustain competitive advantage can be quite a limiting factor particularly if the entrepreneur depends upon himself and hires no staff. This disadvantage may be overcome by either outsourcing or employing staff full-time or on contract basis. It may take time for the business to obtain off the floor since the entrepreneur builds his online presence of course, if the company isn't run properly income problems may hinder the prosperity of the business enterprise. It is important that the marketing and other pricing is cautiously budgeted for over a period to consider the possibility that profits may take a while to materialise. Running an internet business is empowering and can be profitable. A lot of these businesses fail because entrepreneurs aren't conscious of the advantages and disadvantages and have not planned accordingly. Even though it is relatively easier and cheaper to begin and also be an internet business than the usual traditional bricks and mortar business, that advantage can also be an advantage as competitors take pleasure in the same benefits.