The previous article in this series listed several important questions to be addressed even before deciding what type of Internet marketing business you might launch. That article discussed how to define your business needs and goals. With that list now in hand, you are better equipped to answer the next question.
Do you want to own a business?
A successful business is one way of working toward your financial and time flexibility goals. But it's not the only one. You may decide that you don't want to take on the risk of it not succeeding, or the responsibilities that come with owning your own business (hiring and firing, the tax and legal issues). Maybe you'll decide instead to look for a better paying job, or an additional job, or cut back on your expenses. There is no one answer for everyone. YOU have to decide what you feel comfortable with.
If you've decided that your income target can only be achieved by opening a business, then you're faced with the question of today's article.
Can an Internet business help fulfill your needs and goals?
One way of deciding whether an internet business is for you is to think about your product.
* Is your mind the product? That is, are you selling your ideas, writings, information, lectures or software?
* Do you plan to be a matchmaker, for instance connecting suppliers with customers, or even guys and gals?
* Do you plan to manufacture something physical?
* Are you providing a service as a professional, tradesperson or craftsperson ?
* Do you want to open a store?
Your product may fall into another category but you get the idea. The first two types of products easily lend themselves to be run as online businesses, whereas the latter three do not.
It's important to distinguish between an Internet business and internet marketing, between owning a business that is run solely online from using the internet to market your service or product. It's the difference between running a business that provides online website services, or running a restaurant and advertising the menus on the Internet. Almost any business can (and probably should) use Internet marketing as part of the overall advertising plan, but in this series of discussions you'll need to decide whether you want to/can run your whole business online.
The Pros and Cons
There are unique advantages and disadvantages to running an Internet business. Here is a list for you to consider.
What's good about an internet business
Your business is always open, which is very beneficial as your customers can visit your store when it's convenient for them, without you having to pay night, weekend or holiday staff rates.
Lower running costs. The basic expenses include a computer and a link to the internet. But there may well be other costs like software, website design, video equipment or outsourcing but these usually dwarf the outlay needed to run a brick and mortar business.
Fast, global exposure. Your website is available to potential customers all around the globe.This can translate into a huge increase in potential revenues.
Cheaper advertising and promotion of you and your product. You can reach a far greater audience usually for a fraction of the cost of an offline ad campaign. Sometimes it's even free.
Easy, cheap and repetitive communication with your customer base.
Flexible working conditions. You can work from anywhere there is an internet connection, even wireless. You choose when and how long to work.
Once you're business is running, many routine functions can be automated, allowing tasks to be performed while you are asleep, or on vacation. This significantly increases your return on investment.
What's not so good about an Internet business
Although trends are changing, figures suggest that most people still prefer to shop in person.
There are a lot of scam offers, so customers are wary. Because there is no face to face interaction, potential customers need verification that you are legitimate and that your website is secure before giving over their credit card details.
There is already an information overload and for beginners, it's difficult to figure out what training to follow. It can be very confusing. This can effect your learning curve and time to profitability.
There may already be a lot of competition for your product. Potential customers can simultaneously compare your products, prices, customer service and other information with your competitors. You will need to offer your customers something special like an easily navigatable website, useful content, better service, or allow for user participation etc.
You will probably be working in isolation, at least in the beginning. Unless you frequent industry or trade events or work with a partner, it's more difficult to share ideas, brainstorm and socialize face to face.
Because of the apparent time freedom, you must discipline yourself to stick to an efficient work plan, otherwise you'll be tied to the computer all day long.
Newcomers to the internet industry are more susceptible to 'get rich quick' schemes. You must research Internet business opportunities carefully.
Other factors relevant to any business start up
The learning curve. Depending on your past experience, you may have to learn about the internet business itself as well as some technical issues as well. Spend the time (and money if necessary) to do this. It's very important. But don't take too much time. Keep testing the waters as you go along and gain practical experience.
The need to outsource. While it's good to have some knowledge in the different aspects of internet business, spend most of your time doing what you do best and outsource the routine tasks. In the long run, the benefits and profits far out way the costs.
It takes time to build credibility and a loyal customer base. Patience and consistency are key components of building any successful business. Believe in yourself, your goals and in what you're. doing.
So, what's the decision? Are you ready to take the plunge and start an Internet business?
Before deciding what type of business model to use on the internet, it's a good idea to take a look at YOU and check out your skills, likes and dislikes.
That's the topic of the next article in the series.
Catch you then.
To your success,
Mike Firer
NimdX admin
