online and offline business

Extremely Low Startup Cost
We believe that one of the most attractive aspects of business on the web is the extremely low startup cost. If you were to consider a normal offline business, we’d be talking about some sort of office space or shop space, one or two employees at the very least, some kind of inventory, maybe renovations, and lots of other smaller expenses. Even if you were to work on a very low budget, you may need at least $50,000 to run for a year.
And a lot of businesses, I mean a lot, do not show a profit in the first year.
Do you have $50,000 to spare? And that’s just for the first year! …???? We don’t think so.
The Internet, on the other hand, actually allows you to start a business at ZERO cost. There are lots of free stuff on the net. You can use those resources to start a business at no cost.
Of course, it is highly advisable for you to pay for certain things, like a domain name, web hosting and one or two services that will help automate your business. Your business will run more smoothly and gain more credibility, and be more profitable in the long run.
Remember what they say about free things, “You get what you pay for.”
For a start, let’s talk about $50 to $100 a month. You can afford that, right? Bet that’s less than, you spend on petty things.
Global
In the offline business world, even if you have a product that appeals across borders, you are going to have a massive organizational nightmare in figuring out how to expand regionally, not to mention globally. And that’s assuming you have the financial muscle to even consider it.
In an online business, a global reach is the norm rather the exception. Every online company is effectively a global company, with the potential to sell globally.
But if you want to sell to any Tom, Dick and Harry on the web, you must choose your products or services carefully. Granny’s Heavenly Cookies will probably sell to almost anybody on the web but if you are selling real estate in
Florida, you are going to have a very select and localized audience.You Can Work Part Time For most offline businesses, working part time is not an option - at least during the starting stages. Every day that your business is running is costing you money - money for the utilities, money for the rent, money to pay your employees, etc. You are going to have to quit your job and work on your business fulltime to make sure it turns a profit - before you run out of money.
For an online business, you can keep your day job. Your monthly expenses will be very low as compared to offline businesses and so there is no need to be profitable as soon as possible.
Only when you find that your business is starting to generate a serious income, and you are having problems coping with its demands, do you have to consider quitting your day job.
First Impression Counts
The street location of a business, or the building it is in, will give the visitor the first impression of the size of the business. In many cases, this first impression will be the determining factor as to whether the business makes a sale.
When you are online, however big or small your company is, you will still occupy one screen of your visitor’s monitor. As a small business, with a well-designed site, you will have a much greater chance of impressing your customers and stealing them from your bigger competitors.
Types of Online Businesses
Although the Internet has been around for quite some years, it has evolved to the net as we know it less than 10 years ago. And in that short time, it has truly become indispensable, featuring prominently in our work and play.
And, as is inevitable in any medium in widespread use, the Internet has also become commercialized. And that is why you are here now, exploring the possibility of utilizing the net for your own monetary gain.
Before we look further into a business on the web, it will be good to know about the different types of online businesses found on the web:
Extension of an Offline Business. A large established company may find that it is necessary to have a web presence. In many cases, this online venture will not be a business in itself, but merely serves as an extension of its marketing department. In some cases, this web presence may not be directly related to marketing or selling. The company may use its online presence for market research or information distribution. Online forums may be set up to gather feedback, or the company may make their catalogues and product specifications available online for their customers’ convenience.
Large Online Business. This type of company will start with an entrepreneur with a brilliant idea. He will solicit funds from venture capitalists, or even start with his own funds. A company is born and it will start hiring MBAs, programmers, systems analysts, graphic designers - whatever it takes to be online in 6 months time.
I would not put my money in such a company. The professionals hired, while undoubtedly competent in their own line of work, may not do such a good job in the online environment.
Take, as an example, the graphic designer. She would probably design a very impressive flash presentation for the home page of the site. It will tell of the merits of the company and it will no doubt be well received by all in the company.
But a web surfer is not going to be at all happy with the presentation. Firstly, it takes forever to download even on broadband, and a lot of us are still on 56k dialup. Secondly, it takes over the computer’s speakers, which will not be well received by those that are listening to music, or on the phone, or watching television. Thirdly, there will probably be no option to skip the presentation, if one so desires. And lastly, the presentation talks only about the company, not about how the company can benefit the surfer.
However, things are changing. Professionals hired during the dot com craze at the turn of the century have learnt that the net is a different kettle of fish altogether and they are adjusting.
Testament to this is the turnaround of Amazon.com. In 2001, they reported a loss of $567 million. But 3 short years later, in 2004, they were in the black by $588 million.
Small Online Business. A single individual typically starts this. This guy may already have a small part time business of his own and is looking to the net to expand his sales. Or, he may be attracted by spam he got in his email promising large sums of money for little or no work.
After a few months most would have given up in disgust. They would have tried out the so-called business opportunities offered, many of which are outright scams and all of which would have failed to live up to their claims.
A select few will remain. They would have developed a discerning eye and seen through the get-rich-quick schemes for what they really are - get-rich-quick schemes for the starters of the schemes. They will ferret out the more legitimate opportunities, or start one of their own, and go into business for themselves.