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Internet Business—The Opportunity of Our Lifetime
Communicating with customers and other businesses has changed dramatically
over the past century. It started with print, then radio, television, phone,
and fax, and now all of us are operating in the fastest medium yet—the Internet.
The future is bright for businesses that utilize the Net as a primary medium
of communication and sales.
The number of Internet users and the amount of business done online around
the world is growing at a staggering rate. The world’s population currently
holds well over 1 billion Internet users, and the majority of these web-savvy
humans have online access at home. They research, study, e-mail, chat, download
podcasts, and shop online.
Why question the amazing rate at which the average business is moving
onto the Net? It makes too much sense to deny the obvious answer. Having a
business online is the opportunity of our lifetime. Besides the greatly expanded
market reach afforded by the Net, there is also the reduced cost of doing business
online. Look at all the time, money, trees, and travel costs that are spared
from the average business’s operating budget due to this new medium. The
collective business world realizes the bounty of opportunity to be seized in
cyberspace.
All businesses that have a Web presence are seeing the advantages of selling
online. They are committing more and more of their marketing dollars to online
activities, where they are seeing a greater return on investment.
Expansion of the Internet into all business and personal communications is
inevitable. What was once considered a trend is becoming the norm. Overall
familiarity and trust in online transactions and consumer relationships improve
each month as new security-based technologies are developed. New media support
groups hasten the learning curve of the average Internet user, a factor that
earlier had hindered the speed at which consumers feel confident enough in
their own understanding of the Web to make money-related decisions based on
their own online research. The time is now for everyone to get online. In our
lifetime, “newbies” will cease to exist.
Introduction xiii
The future is really bright, so put on your shades and a thinking cap! Hot
items are software, music, books, electronics, and travel. Broadening the gamut
of goods sold online will happen quickly.
The opportunity is there for you to create a dynamite business online if you
do it right. It’s not a matter of throwing a Web site together, putting it online,
and having the world beat a path to your door. You have to choose the right
business, develop the right Web site for your target market, and build substantial
traffic to your Web site. The online customer is extremely demanding, with
expectations that exceed those of the offline buyer in many ways. Online buyers
want what they want, how they want it, when they want it, at the right
price. The product and service must be exactly what they ordered, delivered
immediately to the correct place and for the lowest price they can find. Competition
is fierce, so you have to create a professional and secure online presence
for your business, target the demographic of Internet users with an affinity for
your product or service, and work diligently to attract traffic. Serious marketing
research is required to successfully access and captivate these eyeballs.
It’s a challenge, but the opportunity is substantial. Many who have gone
before you are reaping the benefits today. This book will provide you with a
myriad of online business ideas for your consideration.
Defining What’s Important to You
“What are the benefits of this new age?” you ask. Today and in the future,
personal lifestyle plays a significant part in career choice. Perhaps you have no
inclination to commute in traffic each working day. Maybe you want more
time with your family. If your dream is to be self-employed, this is your era!
Run a successful global business from an island in the Caribbean or from
the comfort of your living room. Hours are flexible, and the business is operational
24 hours a day, all year round. No matter how small your business is, if
you set it up correctly, you can compete with the big boys.
Before embarking on an e-business venture, it is very important that you
very clearly define your objectives. Take your time—brainstorm with family
and friends. Find out what’s really important to you, and then find a business
that you can build that will help you achieve those objectives. Starting a business,
online or offline, is serious business. Without adequate preparation in
defining your objectives, researching for the best business for you, and then
developing an adequate business plan, you are asking for problems.
When you are defining your objectives, you will have to ask yourself a
series of pertinent questions. What type of time commitment do you foresee?
xiv 101 Internet Businesses You Can Start From Home
Do you want this to be a full-time or a part-time endeavor? The options are
wide open. Many online businesses are ideal for extra income to leverage your
regular salary and make the budget of daily life easier to manage. The beauty of
working online is that it’s sustainable without having to quit your regular job if
you don’t want to. The point is that you should allocate in your business plan
how much time you are willing to spend on the venture, and then you can
decide which online businesses fit with the time you are willing to invest.
Would you prefer to work out of your home or have an outside office?
Where you work is important too. For many, a major benefit of having an
online business is the luxury of working from home. Another advantage is to
work while you travel or from remote areas. Not all online businesses guarantee
complete mobility and staying home, but you can decide on these critical
lifestyle options before choosing which specific online avenue to pursue. It’s all
up to you—for a change.
If you already have a physical “bricks-and-mortar” business location, do
you want to use the Web as a marketing outlet? There are many ways to run a
successful online business. Traditional storefronts and catalogues can be mirrored
on the Web site, which expands the sales capacity significantly, but you
must make sure that there is enough inventory and internal organization to
accept, fill, and deliver incoming orders. The other option if you have an existing
bricks-and-mortar setup is to use the Web site as a responsive marketing
force and information source for your business. The design and content should
urge customers to come to your location and return to your site.
What kind of start-up costs are you considering? Budget is everything. Research
the investment you will have to put into the Web site. Ask around to see
how much people are spending on their online presence, and remember that
you can grow gradually as funds and profits permit with an online business.
There is no rule saying you have to spend everything you’ve got in the beginning
to succeed in the long term.
Would you like to develop an idea and sell it, or sustain the management
and grow the business in the future?
Want to run your business from home but not have to be there 24/7 to
answer the phone? No problem! For every challenge there is an opportunity.
There are companies that will answer and screen your calls based on scripts
you provide, provide information to your callers, take your orders and messages,
and offer a whole myriad of professional and personal services; they can
even screen and respond to your e-mail and fax messages, do research for you,
and provide a ton of administrative services. One such company that I am affiliated
with is PatLive. I have arranged a special deal for any of my readers
who are interested in this service—go to http://www.patlive.com/signup/ssc for
this special offer if this is something you might be interested in.
Introduction xv
What is your risk comfort level? Trying anything new is slightly nervy. Just
remember that if you embark on the online journey now, you share a common
technology learning curve with those who remember what it was like before the
Internet existed. Soon this group will be extinct, so this is the time to go for it!
What are your revenue and profit expectations? (Fun question, isn’t it?)
How rich do you want to be? Seriously, there is huge potential for major profit
in online business. While picking the right virtual business for you, make sure
to factor in the start-up costs and continuing operating costs. Begin with a
modest revenue projection (to stay on the safe side), and if the result pleases
you, stick with it.
Do you want employees, or are you looking for a business you can start and
maintain on your own? If you are planning to have a staff to run your business,
how many are you comfortable with? Employees are an added responsibility. If
the online business you choose to enter requires employees, make sure you are
prepared. What do you know? What are you comfortable with? What do you
enjoy? If you are going to be spending lots of hours in your new e-business, it
might as well be doing something you enjoy.
Once these questions have been answered and you have done a lot of soulsearching
with regard to defining your objectives, it is time to take a closer look
at all the e-business opportunities that are available to you. The next chapter
offers this closer look.
Doing Business Online 1
1
Part 1
Doing Business Online
The term e-business means different things to different people. To some,
e-business is simply having a Web site and e-mail capability through which
customers can place an order, request a quote, or make a reservation. For other
people, e-business is having a Web site that enables customers to order and
submit their credit card information online, even though their orders may then
be processed manually just like a fax or telephone order. For others still,
e-business means being able to place a secure online order, having immediate
credit card verification, and having fully integrated back-end systems that are
dynamically updated and inform the customer of the latest prices and whether
or not an item is in stock. The point is, the appropriate e-business solution for
you will depend on the type of business you operate, the products and services
you intend to sell, your budget, your target market, what your competition is
doing, and so on.
For instance, a software development company that sells a downloadable
software application (i.e., has no physical boxed version) has no inventory per
se. Therefore, they would not require a back-end inventory database to be integrated
with their e-business system. All they might need is an e-business system
that includes payment processing capability. On the other hand, if you have an
online business that intends to sell books and you want to become the next
Amazon.com, you will require a full-blown, full-featured e-business system to
compete with the Amazon.coms of the world. Otherwise, potential customers
will shop at Amazon.com because their e-business system is more convenient
and easier to use. In this chapter we discuss the features of e-business sites,
2 101 Internet Businesses You Can Start From Home
online storefront options, taking online payments, and selecting the right
e-business model for your online business.
Getting the Point Across
The consumer is king. This statement is especially true in the e-business realm.
For instance, if you were to visit an offline bookstore to do your holiday shopping,
you might browse through the aisles for a few hours, pick out a few books
you wanted to buy, and take them to the cashier to pay for them. If you asked
the cashier whether the bookstore offered gift-wrapping or shipping services,
the response from the vendor would probably be “no, we don’t provide those
services.” You would be satisfied with this and make the purchase anyway. You
would then take the gifts home, wrap them, and ship them to their various
destinations.
If you are making the same gift purchases in an online bookstore, you expect
to be able to have them gift-wrapped and delivered to any address you
desire. It defeats the purpose somewhat if you have to pay to have the books
delivered to your address, only to turn around and pay to ship them someplace
else. If you are purchasing the books as gifts, you want to have them gift-wrapped.
Again, it defeats the purpose if you have to have the books sent to your address
so that you can gift-wrap them and then reship.
Online it’s a whole different world. Consumers have higher expectations.
Often they shop online for the convenience and expect the online merchant to
meet all their needs. Consumers expect the online merchant to deliver what
they want, when they want it, and how they want it. If you don’t provide what
they want the way they want it, another vendor is just a click away.
Not all possible features of an e-business site are applicable to every business,
but if you intend to be competitive online, you must give your consumers
what they are looking for. You might have something they want, but if they
cannot conduct transactions easily on your site and competitors offer more
point-of-sale service, people will leave your site and shop at another site that is
easier to buy from. This section focuses on some possible e-business features
that you might want to include on your site. Decide which features are most
applicable to your business and implement them into your e-business system.
Storefront Development Options
Depending on your online objectives, your products and services, and your
budget, you might have to develop an electronic storefront for your business.
Doing Business Online 3
An electronic storefront is the interface that a customer sees when purchasing
goods on a Web site. The need for an electronic storefront varies with the level
of e-business that your company chooses to implement. The various levels of
e-business are discussed in more detail later in this chapter.
When developing a storefront for your business, you have three options
available. You can
• Use the ASP (Application Service Provider) model
• Purchase storefront development software
• Program and develop your own storefront.
Each option has its strengths and weaknesses, and some are more appropriate
than others, depending on your business’s budget and online marketing
objectives. In determining how to develop an electronic storefront for your
business, you should evaluate the following options and select the one that is
most appropriate for your business.
ASP Storefront Model
ASP stands for Application Service Provider. The ASP owns the storefront software
and operates its own e-commerce server. An ASP licenses out the use of its
software and e-commerce hosting services to clients that desire to sell products
and services online. The software is hosted on the ASP’s server, and as the client
you pay the ASP to use its software and server. This option is often much cheaper
than purchasing your own storefront software package.
When using the ASP’s storefront solution, a client can be quite confident in
the fact that the system will always be up to date. The ASP’s server handles all
system updates, back-ups, and technical support on a regular basis. There is no
need for a business to purchase any extra on-site equipment or software, and
the installation process is fast, straightforward, and affordable.
The ASP’s storefront solution can be integrated with your existing Web site.
The portion of the storefront that is hosted on the ASP’s server can be customized
to duplicate the appearance of your site. This adds to the level of professionalism
and maintains a sense of consistency across all pages of your site and
the purchase process.
The ASP’s storefront model is known for its high reliability, as well as an
unfailing online selling security system. A great benefit of using an ASP’s server
is that business owners are able to access their data from any place, at any time.
The only equipment needed is an Internet connection as well as your ASP server
ID and password.