10 Reasons why companies should start doing business online
By Nowshade Kabir ©Rusbiz.com
With the rapid down fall of world economy and dot-com companies in recent years
many brick-and-mortar companies and new start-ups ask themselves: To Be Online
or Not to Be Online?
Not long time ago, I read a comment of a well-known industry observer, where
he stated that companies that are not selling through Internet by 2007 will
probably become extinct. As dramatic as it might feel, although exaggerated,
but there are some truths in it.
Consider this: Although diminishing due to bad economy, average growth of e-commerce
is around 25 % per year. 81% of small businesses that have an online presence
during last year’s holiday season reached new customers, leading to an increase
in sales and profitability according to a survey conducted by Harris Interactive.
Thirty percent of small businesses with a web presence and fewer than 20 employees
now generate more than 25% of their revenue online claims Gartner research.
If this does not convince you to take your business online, below I pointed
out 10 more reasons why you should start doing business online right now.
1 New economy
Internet has created a new economy, which by its explosive growth and sheer
size already changed our perception of traditional way of doing business. Companies
like Amazon and Ebay have successfully created domination on areas, where just
few years ago traditional brick-and-mortar companies were kings. However, in
order to be successful on the net, you don’t have to be a giant like them. Many
small and mid-size companies managed to build online businesses quite profitably.
In fact, studies show small and mid-size companies will be the main growth force
of e-commerce in coming years.
2 Internet is a perfect venue for business
In order to make a sale you need visitors to come to your shop. On the Internet,
your shop could be only a click away from your prospective customers. With proper
marketing your Internet storefront can have more buyers than you ever can get
in a brick and mortar shop.
3 Company’s image
Whether you sell products or services online or not, in today’s world you have
to have a corporate presence on the Internet. Otherwise, as you must have noticed
that people simply don’t take your business seriously if you tell them that
your company does not have a website. A nice corporate site definitely increases
the image of a company especially if it has great product or service related
content to go with.
4 Provide better customer support
Customer accusation and retention is one of the key factors of business value
chain. Thanks to Internet technology, business can provide customer support
more effectively. This means better customer satisfaction and increase of profitability.
5 Make information more easily available to customers
Just a couple of years ago, companies used to require days to deliver products
or services update information to their customers. Things have changed since
then. Today you can add or make any changes to your company and product related
content virtually in a matter of couple of hours, publish on your site and share
with the whole world.
6 Cut costs
New technologies allow you to take virtually any part of your business online,
that include supply chain management, billing, shipping, procurement etc. Streamlining
these business processes through online systems will allow companies to cut
costs significantly in almost every sphere of any business. For example: companies
can reduce more than five percents of their maintenance, repair and operation
costs by adopting e-business solutions. This five percent savings can turn into
50% of a company’s net profit!
7 Ability to do business 24 hours
How else you can continue making sales, while your stuffs are sleeping! The
biggest advantages of online shops are that they are open 24 hours a day year
round. Thanks to Internet off time, when your shop is generally closed, sales
in some cases can be more than your regular business hours!
8 Low start up costs
Building a web site does not require big investments. There are many low cost
tools available today, which can help you create sites from very scratch. Many
business portals allow you to build web sites from templates. For less than
100$/month you can have a full-fledged corporate e-business site with all e-commerce
features!
9 Your physical presence could be in any location
The World Wide Web allows you to do business from any part of the world. Your
physical location, except for few cases is not that important since you conduct
your business online.
10 Go global
Thanks to Internet you can instantly become a global player. In fact, you don’t
have to invest large sums of money to do this. There are literally hundreds
of vertical and horizontal e-marketplaces available on the net. These marketplaces
allow you for a nominal fee to get access to a large audience of prospective
customers from all over the world. According to AMR Research more than 1,3$
trillion of good and services will flow through the B2B marketplaces. Who does
not want a piece of this pie!
The right determinant of e-business success is the same like any off line business.
You have to have a great idea, you have to have a business plan, there should
be a value proposition for prospective clients and you should have belief in
it and your ability!
Getting online is becoming cheaper and easier thanks to emergence of new technologies
but marketing on the Internet is becoming more expensive.
Take your business online now, before the marketing costs become way too expensive
for small companies.
