If you are thinking of starting an online business, then it is important to understand the benefits of an E Business model and how it is different from other business models. Online businesses have a number of advantages over traditional business models. For example, there is very little or no inventory, there is very little in the way of investment and most importantly there are very low or no taxes payable to the government. Online business owners can save on their overheads by not having to pay for office space, electricity, payroll, rent or any other costs associated with running a traditional business. These savings can be particularly apparent when an online business is started on a shoestring. Also, by being based online, E Business owners don’t need to deal with the hassles of paying income tax, which can eat into your profits very quickly.
An online business is also less complex to manage than its traditional counterpart, due to the lack of inventory and the ease of provisioning products and services. Another of the attractions of an E Business model is that the business model can be adapted to suit whatever the individual entrepreneur wishes. A business model is therefore a flexible option which allows the business owner significant flexibility to change their approach and business model as required. Although this may sound like a good thing, this also means that any changes or innovations which result from the adoption of an E Business model will require significant modification to the original business model.
- One of the main disadvantages of starting an online business is the ease with which the business owner will become isolated from the rest of the world.
- E Businesses rely on customers who can access the company’s website.
- Internet users who may not be interested in what the business has to offer will have no means of accessing it.
- However, there are a number of steps which can be taken to mitigate this isolation.
The best approach when starting an e business model is to seek advice from experienced business people. Someone with knowledge of how to best adopt an E Business model will be able to provide advice that will give the entrepreneur greater confidence. There are a number of companies that offer their expertise through training courses. These courses are designed to give the entrepreneur an insight into the technical side of E Business and the business side of running an E Business.
The other main disadvantage of starting an e business model is that the business will be relatively small and isolated. This will mean that there will be very few if any competitors. This can be a great hindrance to the growth of the business, since there will be less chance of finding new clients. Furthermore, the entrepreneur may find it difficult to attract investors or acquire office space since the potential client base will be limited. In addition, most businesses have a defined set of products which limits the range of possible products that they can offer.
This may be one of the disadvantages of starting an e business model but it is also the greatest advantage. The Internet offers an extensive number of opportunities for an entrepreneur to market their business. Additionally, the Internet is home to numerous E Business models that cater to different niches. The Internet is by far the most convenient and easiest way to promote a business model and an E Business model since it allows easy communication between the company and potential clients. As long as these disadvantages are taken care of, it is clear that starting an e business model is advantageous for those who want to venture into a business that caters to a specific niche and is not readily found in the traditional market.