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An Internet Business Allows You To Earn More!

An Internet business allows you to earn more, work less, and enjoy the internet lifestyle. You will also have more time for family and manage your life better. Internet has served as a blessing for businesses that are able to reach millions of people worldwide totally free of cost. No more calls and fax expenses simply build a website and start earning! The traditional brick-and-mortar businesses face a lot of problems and moving to an online set up is always beneficial.

If you look at Internet business as a business model it is indeed phenomenal due to its location independence and the global reach. The modern Web 2.0 technologies make it easier to collaborate with prospects in the market with the use of social networking platforms. Google PPC and Facebook PPC campaigns allow businesses to reach a focused audience in a cost effective manner. Online businesses are so profitable that many companies now build several businesses just for resale purposes.

While choosing an online business there are certain aspects that you will need to look into, such as the demand in the market and your cost of putting the business online.

First-time buyers are at a risk of buying the wrong online business and overpaying for it. It is good to make a thorough research before spending money. Spend time locating good brokers and evaluate the business model. Consult your family and friends and they will help you screen the business for viability.

Most online businesses are faced with the following problems:

No Sale For 3 Months: If your products do not sell in three months, look for something new. At the most, wait for six months before you make a transition to a new product line.

Cyber Fraud: The people you buy the business from may not be reliable. Always check their licensing before buying. Scam artists run huge campaigns and make millions of dollars cheating people online. So, be careful!

Drop Shipments: A typical case with businesses is that when you get the goods drop shipped to your buyers they get to know you are a secondary entity in the sale process. Both your principal and the buyer may get you out of the way and deal directly with each other. Your principal will also save your customer data for marketing purposes and you will be at a risk of losing a buyer.

Obsolete Online Marketing Strategy: Many companies market their products by adding too much glamour. The proper way is to communicate features and benefits of the product or service and let prospects decide in their own time. Bulk mails are considered “push” marketing and are most hated and obsolete. The use of social media platforms allows companies to use “pull” marketing that has proven to be most effective.

Tips for success:

· Remove data gathering forms from the website. Customers do not feel safe giving email ID’s and personal contact details online.

· Use special offers each week. These offers help attract repeat customers and build branding.

· Add success stories and testimonials. Consumers feel more connected to other buyers and encouraged to take action after reading positive input from the market.

Mitigating Risk

Choose products with few suppliers so you can share the market with them without spending a lot of marketing dollars. Keep your full time job and do not invest more than 8% of your money in one go. Grow your ideas slowly but steadily while keeping multiple streams of income. Keep a little stock of goods and learn more about the refund policy of the principal company. Get a partner for some motivation and sharing business risk. Always price your products with the applicable taxes and shipping cost.

Do not fall a victim to spammy affiliate programs. If you want to sell other people’s products choose ClickBank and eJunkie. These are great for selling digital products and all you will need is good online marketing to boost sales. Never respond to fake business opportunities in your email boxes, and never pay to work from home. Check the business programs with The Better Business Bureau, The Federal Trade Commission, National Fraud Information Center and Scambusters.org to ensure they are not spam.

Planning and the Entrepreneur

Planning and the Entrepreneur

So, what do we mean by ‘planning’ in the business sense. Well we can define four separate aspects of the business planning process.

  1. The business plan itself, a process, usually formalised, considering all aspects of your proposed business and designed to:
    • Clarify your own objectives;
    • Impress would-be investors or funders
    • Focus the minds of the principals as an on-going process.
  2. The marketing plan, establishing that a market exists for your products, that it is accessible and deep enough to keep your business afloat.
  3. A budget and cash flow forecast showing that the business can be profitable, and predicting the depth and duration of the inevitable cash-flow hole as your business rises off the launch pad
  4. A project plan showing
    • The sequence and duration of the activities associated with your start up
    • Predicting the dates at which the various milestones in the start-up process will be achieved
    • Identifying the ‘critical path’ activities where your activity and resources need to be focussed.

    You note that we talk of the business planning process rather than the business plan as a document.

    It is inevitably better to have a document to refer to, and your bankers and backers will want to see documents, but it is the process that is important to you.

Though we talk of the four plans as if they are separate things, they are in fact inter-dependent. Your marketing plan could almost be considered as a chapter in your business plan and your project plan will be key to your cash flow projections.

Think of them as four stones cast in a square pattern into a still pond. As the waves radiate out from the spots where the stones hit, the water will only be disturbed by the ripples from the nearest. At this point each plan is separate and distinct, but soon as the ripples spread, the water will be disturbed by two, then three, then eventually four sets of ripples merge.

As you start your plans you will soon find that each needs input from one, then two and eventually all of the others.

Here lies both the strength and the danger of the process.

The interaction between the plans means that each plan is improved by the existence of the others, whilst the temptation to constantly revisit each plan can lead to paralysis.

There is a truism about medical record keeping, it can often tell us why the patient died rather than how to keep the patient alive.

So how much time should an entrepreneur invest in the planning process?

Years ago I worked in the Emirates. They had a Souk there selling counterfeit designer clothes. The advertisements over the stalls said ‘one size fits all’. I was, and am, of medium height and stocky buid: my companion over six foot three and slight.

One size most definitely does not fit all

Perhaps you are asking the wrong question. Why not try:

  • Did my last reworking result in significant changes to my start-up project?
  • Did it expose important issues I had not considered before
  • Will another reworking result in a significantly different plan?

If the answer to all three is ‘no’, then for you initial planning phase is finished.

Who Built My Business?

Pablo Picasso created great art. How much credit goes to his father, an art teacher who trained him? How much to his mother, who handed him his first pencil? How much to the companies that fabricated Picasso’s brushes and pigments?

Derek Jeter and Chipper Jones are future Hall of Fame infielders. Should their plaques at Cooperstown recognize the people who stitched their gloves and manufactured their bats?

Nearly 20 years ago, I unpacked a new computer, sat down and wrote a business plan for the company now known as Palisades Hudson Financial Group LLC. Today Palisades Hudson has around two dozen employees, more than $1 billion in assets that we manage for our clients, whom we also help with all sorts of tax and financial matters, and offices in New York, Florida and Georgia. Our first West Coast office, in Portland, Ore., is due to open shortly.

President Obama was speaking directly to people like me when he made his now-famous remark to entrepreneurs: “If you’ve got a business – you didn’t build that. Somebody else made that happen.” (1)

The president was not entirely wrong. I did not build my business alone. Where he went astray – where he showed how little he knows about being a business owner, having other families depend on checks you write and decisions you make, and having customers willingly give you money they could just as easily spend elsewhere – is in who deserves to share the credit.

“If you were successful, somebody along the line gave you some help,” Obama said at a July 13 campaign event in Roanoke, Va. “There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business – you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.” (1)

Before we get to his philosophy, let’s straighten the president’s bent facts.

Government research created the Internet (which grew out of the Defense Department’s Vietnam-era ARPAnet), but not “so that all the companies could make money off the Internet.” The defense contractors and academics who first linked their mainframes were not trying to create an infrastructure that Amazon could use to sell books or movies. British computer scientist Tim Berners-Lee developed the World Wide Web’s basic protocol while studying at CERN, the European Center for Nuclear Research. Marc Andreesen, an American software engineer and venture capitalist, laid the groundwork for Web commerce by building Mosaic, the first commercially successful web browser, and by launching Netscape Communications. Internet profits exist because profit-seeking entrepreneurs saw a potentially useful tool and put it to use.

Yes, I had some excellent teachers. So did everyone else who sat in my classes. We all drew upon the things they taught us in our own ways. Our teachers gave us the tools; what we made with them was up to us.

All of us in business owe a debt to our forebears, all the way back to the people who invented written language, double-entry accounting and the uniform commercial code. But this is a debt that runs from our generation to the ones that preceded us. It is a moral debt, not an economic one. The teachers who taught me were paid for their services at the time they were rendered.

The fact that I profit from what I learned does not create any obligation on my part to share those profits with those who sat next to me in class. They had the same opportunities I did, and my teachers understood that. If I studied hard and got a perfect score on a test, my teachers did not reassign some of my correct answers to less-studious classmates in the interest of fairness.

The president notes that a successful business uses public infrastructure such as roads and bridges. True, but irrelevant. Businesses and their owners pay for such infrastructure just like everyone else, in the taxes, tolls or other revenues that government collects. Businesses rent office space and pay for electricity, too, usually from private parties. This does not entitle those vendors to a share in the profits.

The president also credits “this unbelievable American system that allowed you to thrive.” That system is called capitalism, and it did not “allow” anyone to thrive; unlike other systems, it simply did not prevent us from thriving. Private profit was or is largely illegal in places like Cuba, North Korea and the old Soviet Union. These countries maintained atrocious living standards as a result. Prosperity is more heavily taxed or regulated away in many other places, including much of Europe, and these places experience chronically higher unemployment and lower economic growth as a result.

Obama is arguing that a society that “allows” success is therefore entitled to redistribute it. This would level the playing field with places like Europe through the simple expedient of making us behave more like Europeans.

But in my case, the success the president would redistribute according to his preferences is, as he says, not just my own. It belongs in large measure to the colleagues who have joined me in building a successful business. They share in that success, and to the extent the president believes we owe more to society, there is less for my co-workers – as well as me – to enjoy.

Then there are the future workers I might not hire, the offices I might not open, because the president would leave me less discretion about how to use the cash my growing business generates. He’ll take a bigger share of it out of my hands.

Obama finds it convenient to denigrate entrepreneurs because he is running against one, but I have no reason to think that he was not expressing his true feelings in that speech in Roanoke. I think Obama truly believes that those of us who build businesses are indebted to others who help us. I agree. We just part company on the question of who those people are.

Source:

1) The White House, Office of the Press Secretary, “Remarks by the President at a Campaign Event in Roanoke, Virginia”