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Online business Advantages and Disadvantages



http://www.q-zai.com/ - Increasingly, lots more people own or are growing their businesses online with varying examples of success. It's important for web marketers to be aware of the pros and cons of doing business online as this knowledge will empower them to make a good decisions and implement the correct strategies when they do just take up a business on the web. Here are the main pros and cons of running an internet business.

Advantages

Start-up costs are relatively less expensive than bricks and mortar businesses. Some business-in-a-box programs cost as little as $400, some even cheaper. In case you are setting up your personal website together with your business plan you might only have to purchase your own domain name and website hosting which may run you under $100. Even for the priciest opportunities, they're still more cost effective than other companies. The top scale start up costs for web business might be $20k, that might seem expensive however when compared with businesses such as the MacDonald's franchise which cost over a quarter of your million dollars, then it puts things into better perspective. Operational costs and administrative expenses will also be relatively below other companies with little or no staff required. Many internet marketers work from home which means that expenses like lighting and heating and office expenses which would normally be incurred in a office block, are saved. In operation online gives great flexibility. It is because the company can be run everywhere you look. A business person might be about the beach on holiday with her family and 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 most productive hours. Online businesses can reap the rewards of free and cheap advertising, through videos, article marketing and internet promotion. Even with more costly advertising options like pay-per-click, because of the variety of Internet users, to potential to improve your company is quite high specifically if you can effectively drive traffic to your internet site.

Disadvantages

Levels of competition are high as increasingly people are becoming fired up towards the benefits of running an internet business and in addition more technology savvy and therefore are growing their businesses. The number of people starting a business online is increasing at high levels plus they are all competing for traffic that makes it harder to break through. The web is an extremely dynamic marketplace. Consumer tastes vary widely and alter frequently. Therefore, by focusing on one business idea or income stream, the entrepreneur risks being left out by new items and services as consumers chase the next best product or service. Even when the entrepreneur has a winning business model, competitors can certainly copy it and therefore impact negatively on profits. Coming to grips with technology to sustain competitive advantage can be quite a limiting factor particularly if the entrepreneur depends on himself and hires no staff. This disadvantage could be overcome by either outsourcing or employing staff full time or on contract basis. It may take here we are at the business enterprise to obtain off the floor because the entrepreneur builds his online presence and when the business just isn't run properly cash flow problems may hinder the achievements the company. It is crucial that the marketing and other cost is cautiously budgeted for more than a period of time to take into consideration the possibility that profits might take some time to materialise. Running an internet business is empowering and is profitable. Many of these businesses fail because entrepreneurs are not conscious of the pros and cons and also have not planned accordingly. Though it may be relatively easier and cheaper to start and also be a web business than the usual traditional bricks and mortar business, that advantage may also be an edge as competitors enjoy the same benefits.