The Cost of Running Small Businesses Online

This is a simple diagram known as a Business Object Model. (Photo credit: Wikipedia)

Online business has come to stay and will only get better. It is not a hidden enterprise anymore; many governments are catching up with this “gold mine”. Many big companies are realising that the online business model can no longer be ignored or despised. Many of them actually have eBay stores.

It is however unfortunate that many people who are starting up their business with online business model are still having negative complexes. I have read extensive articles that put smear on online businesses; according to the writers the process is slow and profits are far in between. There are family members and friends who keep wondering why you have chosen to do business especially online instead of getting a job and working for someone else. Well, if you are acquainted with business ventures, you must have been aware that no business is a walk-over when you are starting out. It is only in a dream that success takes place before work; and it is only bogus business-promoters that tell you that you don’t have to do anything but sit in an easy-chair on a beach, with your car packed on top of the sea waves – if you believe that then, frustration will soon become your sleeping partner.

Online business may cost less in setting up but it is actually all involving in managing, promotion and sustenance. It takes time and money to promote your online website and if you use other people’s platform, you pay listing fee and a sales-percentage after your item is sold; and it can sum to something substantial. All these are still relatively small when compared with offline stores; besides your reach is wider and your audience unlimited.  The cost of running online business model comes in bits, so it is less burdensome. You can equally shop around to use cost effective ways of doing your business.

Using the outsourcing services can be of big help.  There are a lot to do in setting up online business; these include building websites and hosting it, advertisement, e-commerce, record-keeping among others. Initially you may not bother with most of the things you need to do but you must note that if you really want to keep your business and grow it, you will need to think and work on the essential things. You may find the book “How much is your business worth?” helpful. You can also find Elance, an outsourcing site useful. Elance is safe and you are in charge of who to hire to do your job. You don’t have to retain the experts; they are there when you need them.

When promoting your business you need to be very careful about who does it for you. I had experiences with companies that promised so much but delivered very little. Most of the people who speak for them are sales persons who knew little about what they are selling. It is important to make notes of your discussions with them so that you can refer to it if there is any need to. Most of the time, you may be required to agree to a 6 months contract; be careful about this.

Pay per click is a good way to promote your business however, make sure you have great products that can bring return on investment (ROI), if you don’t, you will lose money for nothing – most of them are faster than you think. Many people who click are not interested in buying anything; they belong to “get paid to click” groups and get a percentage of the cut. In other words they are induced to click for reward. Google Adwords is notable pay-per-click venture. Their exposure and integrity are much better and you are not tied to any rubbish that you can’t get away from. You must take time to understand how it works else, your campaign can be stopped and your site banned.

You need patience and doggedness to succeed in business whether offline or online. Be confident of yourself and be proud of what you are doing. Work hard and you will reap a good profit sooner or later.

 This article is also published in http://www.funfreelancewriting.com

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