Why start an Internet Business ?
The short answer: It is easy with no risk
This was a question I asked a couple of years ago when I seriously decided to start a business and did not know what, or how.
Why even consider a BUSINESS in the first place, why not a job change, a different career?
It all started with a very serious accident where I was reminded of how fragile life can be. With time on my hands, I undertook to research into what I should do next.
How could I better use every hour in my day? Instead of working all day in a job. How could I free up my time?
I found my future lay in business ... and the RESULTS OF MY RESEARCH is definitely another story found here ...
The
wonders of a Business vs being an employee'
But I digress, having decided to go into business, Why start an Internet Business?
I watched the “Dot Com” boom and bust earlier this century, and thought there must be a better way than wasting all that money. The word “cash burn” was invented. Goodness me, burning cash ... if they only knew what I know.
I can now tell you that you do not need much cash to start a successful Internet business, nor do you have to risk anything. If you do it the SBS way, an SBS type of Internet business is very low risk (if no risk at all). But let's move on …
I have used the Internet since 1995 for MBA studies at Deakin University, Australia. Then for research every day since. It did not make sense that I couldn't create a business on the Internet.
The Internet seemed the equivalent to something like the “industrial revolution” to the world in the twenty-first century …
So I decided to methodically research what I thought was a monster business possibility.
Below is part of this research. Here are my notes, comparing the “bricks and mortar” business I was considering against an Internet Business. I was determined to understand the differences.
I found that …
Internet businesses are similar to 'Bricks and Mortar' offline businesses in that they “do business”, and yet ....
Internet businesses
are VERY different
and
VERY VERY flexible!
Even start one whilst working a day job -
like I did.
Unlike their offline counterparts.
Internet business is the perfect partner to an existing offline business, and the perfect FIRST business.
You can 'cut your teeth' in this very low risk, low cost environment.
Here is part of the analysis I did when looking for my first business to start - my first 'start-up business'.
COMPARISON OF
'Bricks & Mortar Business'
and
Internet Business
BELOW is a comparison of
Communication, Hours of operation, Customers, Office needs and Office location, Business Marketing, Business COST, RISK, and the degree of personal FREEDOM, Customer perceptions of the business, Business Flexibility, and a SUMMARY of this comparison
|
Bricks & Mortar Business |
Internet Business |
COMMUNICATION |
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How do you stay in touch with your customer? |
Snail Mail is expensive and slow with delivery to another country taking days and weeks. |
eMail is fast, efficient, reliable. The cost is almost zero and delivery is almost instantaneous. |
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OPENING HOURS |
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| When can you be open? |
Usually a 5 to 6 day business week opening from 8 to 5 pm |
Open for business 24 hours a day, 7 days a week, 365 days a year (24/7/365) WITHOUT your constant attendance. |
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CUSTOMERS |
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| Who could be my customers? |
Local customers - limited to my immediate geographical area which is shrinking as competition increases. |
Entire world can be my customers. "Unlimited" expanding customer base, as more people stream onto the Internet every day. Customers can be wealthy, and intelligent. |
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The OFFICE |
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Where can I work?
How can I dress?
Office Location
|
Dress up to go to the office or shop.
How you appear in person will influence any sale.
If using an office it is neatly furnished for clients.Operate from a fixed location - need an office or shop-front. |
Stay home in your pyjamas / bedclothes. Need only small room, an Internet connection and a laptop. Operate your office from any computer in the world, eg an Internet café in Sweden. I ran my business once from a Youth Hostel in Wales. |
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COMPARISON |
Bricks & Mortar Business |
Internet Business |
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MARKETING |
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How can I market to my customer? |
Mass marketing - I will need to advertise in newspapers, radio and flyers to name just a few - the traditional way. The customer is INTERRRUPTED by the marketing, eg Ads on television. You have to find the customer. |
Intimate one-on-one marketing using new exciting and stable technologies. Impulse buying with instant gratification is easily satisfied, eg a book can be delivered to a customer in one minute. The customer FINDS you and is eager to buy, giving permission to be marketed.The market is getting bigger as populations come 'online'. |
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BUSINESS COSTS |
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How expensive is it? |
High overheads High entry costs High cost of failure Need to be a big player with big money High barriers to entry |
Almost zero overhead. Low entry costs and level playing field. You are an equal with the "big boys".. Low cost of failure Can be anyone with little or no money No barriers to start.
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COMPARISON |
Bricks & Mortar Business |
Internet Business |
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RISK |
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How risky? |
High risk |
Very low risk. In fact an Internet business can have zero risk. The strategies and tools found here in Startup Business Services is almost zero risk. |
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Achieving FREEDOM from the business - getting away |
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| How easy is it to take time off? |
Involves developing expensive systems, and maybe franchising. Need to find a good manager, and train well in your system. This could take time and money. Costly to get the wrong manager. |
Easy to automate and develop systems straight away. My business ran itself whilst I was in Wales. Potential to franchise with exceptionally low costs (almost zero) Zero to very low costs to experiment.
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Business JUDGED and VALUED by ... |
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How do customers perceive the business? |
Judged on age, sex, money, appearance, and race. |
Judged on quality of your ideas and their presentation. For Retirees: a place to sell your hard-earned knowledge of a lifetime. |
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COMPARISON |
Bricks & Mortar Business |
Internet Business |
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FLEXIBILTY |
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Can change occur very easily?
Can I have a game of golf?
Could I travel? |
Not very flexible in terms of opening hours and attendance. Ability to work part-time as owner means developing systems and training managers. Adaptation to change is expensive.
Not family friendly.
|
Can operate the business anywhere and at any time. Easily undertake as Part-time business. I operate my businesses part-time. Adaptable to change. If a new trend appears, can easily adapt to an Internet business. Very family friendly - you can work all day, or choose to work in your most productive hours - flexible work hours.
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SUMMARY |
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| In a few words, here are the main differences ... |
Needs money to start, and ideally a very strong commitment…. This type of business needs a full-time commitment and you work full time. There is no opportunity to be part-time, as you would have to quit your job. Most likely buy someone else's business and pay them to use their systems. This could be expensive. Or undertake the arduous task of starting your own business, and creating your own systems.
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An SBS type Internet Business needs almost no money to start and is a great place to start and learn business. Ideal entry for a first business owner or SOHO. A good place to learn business basics.You can do it Part-time and NOT quit your job. The SBS type of Internet business can be automated from the beginning for FREE. Low risk and low cost area for Retirees, where retirement savings do not have to be placed at risk in a venture. It really is a place to use your skills from a lifetime of work.
Here is a place where you can get paid for what you know.
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Another major outcome has been a real
SURPRISE
to many Internet Business men and women. A
prize
that was totally unexpected ...