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Online businesses Benefits and drawbacks



http://www.q-zai.com/ - Increasingly, more people own or are growing their businesses online with varying levels of success. It's important for web marketers to understand the advantages and disadvantages of doing online businesses as this knowledge will empower them to make the right decisions and implement the correct strategies when they do go ahead and start a business on the net. Below are the primary pros and cons of running an internet business.

Advantages

Start-up cost is relatively cheaper than bricks and mortar businesses. Some business-in-a-box programs cost less than $400, in which cheaper. If you're setting up your own personal website with your business plan you might only need to pay for your own domain name and web hosting which would run you lower than $100. For even the costliest opportunities, they're still way cheaper than other companies. The most notable scale start up costs for online business might be $20k, which might seem expensive however when in contrast to businesses such as the MacDonald's franchise which cost on the quarter of your million dollars, this puts things into better perspective. Operational costs and administrative expenses may also be relatively less than other businesses with little or no staff required. Many web marketers work at home which means that expenses like lighting and heating and office expenses which may normally be incurred in an office block, are saved. Running a business online gives great flexibility. It is because the business enterprise can be run everywhere you look. A business owner could be on the beach on holiday with her family and still be running her business normally. This flexibility helps the entrepreneur does as she pleases together with her time. She may decide to work between 12 midnight and 6 am if that's her most efficient hours. Internet sites can reap the rewards of free and cheap advertising, through videos, article marketing and internet promotion. Even with higher priced advertising options like pay-per-click, due to the quantity of Online users, to possibility to increase your company is high specifically if you can effectively drive traffic towards your website.

Disadvantages

Competition is high as increasingly people are becoming fired up to the benefits of running an online business and in addition more technology savvy and therefore are growing their businesses. The number of people starting a business on the internet is increasing at high levels and they are all competing for traffic that makes it harder to break through. The net is a very dynamic marketplace. Consumer tastes vary widely modify 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 best product or service. Even when the entrepreneur includes a winning business design, competitors can easily copy it and thus impact negatively on profits. Getting to grips with technology to sustain competitive advantage can be a limiting factor especially if the entrepreneur is dependent upon himself and hires no staff. This disadvantage can be overcome by either outsourcing or employing staff regular or on contract basis. It may take time for the business to acquire off the floor since the entrepreneur builds his presence online and if the company is not run properly income problems may hinder the success of the business enterprise. It is important that the marketing and other pricing is cautiously budgeted for over a period of time to take into account the possibility that profits usually takes a while to materialise. Running an internet business is empowering and can be profitable. Many of these businesses fail because entrepreneurs are not conscious of the advantages and disadvantages and also have not planned accordingly. Though it may be relatively easier and cheaper to begin and grow an internet business than a traditional bricks and mortar business, that advantage can be an edge as competitors enjoy the same benefits.