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Online Business v/s Conventional BusinessPractically there is no difference between the two - except for the fact that the former one uses technology and the latter does not.
As you have seen, there is no much difference between 'online' and 'conventional' businesses. But the fact is most people fail in their online business. Let's try to understand why! How people start a conventional business?Let us assume Mr.Smart wanted to start a small stationery shop. Mr.Smart spends about 3 months to find a suitable place, checks up the cost/rent of the premises. He then makes a list of materials to be stocked and finds reliable suppliers, who can also supply at competitive rates. Gets estimation of the total cost involved. Then analyzes the investment, the monthly expenses (including his monthly loan instalments, if any). He knows that there will be no profits during first few months. Probably, he will expect to break-even only after a year or two. Once he has planed the whole process, he arranges (or borrows) money and inaugurates the shop. Now that he has inaugurated the shop, he despirately wants customers to visit his shop and buy! But that does not happen. He then understands, that he has to promote his business! But, he knows nothing about marketing? The struggle starts now. However, he has invested lots of money. He has to break-even and then start earning profit. This is the point where the learning process starts! I challange, he will learn and promote his business successfully, bacause, he has invested lots of time and money! Moreover, if he fails, his life is at stake! How people start an online business
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We can assume that (and usually) people start an online business so that they can work part-time!
Let's say, Mr.Restless wanted to earn some extra money. He wanted to find out how. So he keeps browsing the Internet, checking websites and reading emails without any clue of how to earn money.
One fine day he stumbles upon a website that promises "even a 7 years old kid(!) can start earning $1000 per day, within 24 hours, if the secret is told". Carried away by the long sale letter with earning proof, Mr.Restless pays money to learn the secret!
So he decides to earn US $1000 per day i.e. $30000 per month - starting from the first day!!!
After buying, he learns "the secret". No doubt it is mind boggling, but he comes to know that he needs to invest some more money to start the business and he does that. And spends some more money in promoting it.
After struggling for about a week or 10 days, he discovers that the secret is good, but it is not possible to earn money without "another secret" (may be related to marketing!).
Then he jumps upon the second secret. By the time he almost got his hands on the second secret, he comes across another new idea which seems to be better than the first secret.
By now, (naturally!) the first secret is totally erased from his mind.
Such story may (not) be new to you! But this happens almost everyday with thousands of people around the world!
Compare the above two cases
| Mr.Smart's Stationery Business | Mr.Restless' Online Business |
| He knew he wanted to start a stationery shop. | He did not know what he was going to do! |
| Expected to earn a nominal amount to make the living from the 6th month. | Expected to earn $30,000 per month from the 1st month (without even knowing what he was going to do)! |
| He took pain to find a place, suppliers and to arrange money. | He just decided and started within a minute or so! |
| Investment was huge. So he decided to learn the business and stick to it, until he started making profit! | The money he spent was comparatively less (probably a fraction of his one month's income). So he decided to compensate the loss and started searching for a new method! |
What should you do to succeed in online business?
I believe, you already got the answer!
- Learn the business. Know and understand the business, before you invest your time and money.
- Start the business with a reasonable expectation.
- Expect to earn money after working for a reasonable amount of time.
- Anticipate that you will commit mistakes and might make some losses while learning.
- Set a budget for Startup cost, Working capital, Marketing expenses, and unexpected losses (don't worry it is not as much as a normal business!).
- Plan the business and set targets, before you put your hands on it.
- Be prepared to work hard. Working hard does not mean hard labour. It means that finishing your day-to-day tasks as per schedule.
- Overcome frustrations (there will certainly be!) and stick to the business until you start earning or until you achieve a target.
Sales Process Online
In case of Conventional Business, you will create your website with complete information about your products (or services). Incorporate an internet marketing mechanism (landing pages, sales pages and payment processing pages). Then you will promote your website though various methods, receive the orders and collect the payment online.
Once you receive the orders, you would verify the money received and deliver the products to the customers.
If the nature of your product is such that it can't be sold across the counter (expensive or involves technical aspects), you will create your website with online forms (or email address and phone numbers) to generate inquiry. When you receive inquiries, you will use conventional methods to effect the sale.
In case of Online Business, the whole process of selling is completely automated.
Initially, you will spend considerable amount of time to plan the whole process i.e. driving traffic to your website, funnelling the visitors through the sales process, collecting payment and finally delivering products.
Once you setup the whole mechanism, all you will need to do is:
drive traffic, track the results, monitor the mechanism constantly, fine tune it and enjoy the fruits!
Whether the business is conventional or online, the methods used to promote the website are the same. So just focus on how you can create a website for your business and most importantly on how to drive traffic to your website!
Next Article: Will be of more interest to you! Yup. It talks about earning money!
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