Internet and Small Business

Technology has played an imperative role in business operations. The advent of internet has given a new methodology to conduct business faster in a cost effective way in a limited time and space.

Internet is wrapped up with thousands of interconnected networks connected worldwide. The deployment of Internet in business has given rise to perform business worldwide to unlimited audience and it is one of the best methods for globalizing business. Internet is a powerful tool for winning a business strategy that assists companies to compete with their competitors and to improve customer satisfaction and hence internet business model has been formulated to assist companies to choose the right model at the right time.

Internet business is simply not designing websites to promote the products it has its unique process to automate. Internet business helps manufacturers to understand the customer’s wants and needs by understanding their behavior when they visit company websites or research any relevant information and this in-turn helps manufacturers and marketers to produce customize and personalize product.

Internet business has changed the marketing practices of company to the great extent and hence marketers need to be more and more proactive and creative to reach and convince their audience to buy products.

Today many companies have also set up extranets with their suppliers to facilitate information exchange, transactions and payments. Internet business has given birth to e-commerce which is more and more specific when compared to internet business or e-business. The term e-commerce encourages companies to sell their products or services through internet. To be more precise about internet business; it is simply performing business using internet for worldwide audience in order to globalize business.

Advantages of Internet Business – Internet Business has its unique advantages

There is no need of physical location and hence you don’t need to have your own or rent place for starting up business as how traditional business requires.

Of course you need location that is DOMAIN NAME for website registration and its very cheap you can get for about $5 to $25 with free web hosting service.

You need website for selling your product or service. If you know programming and designing you can always do it on your own or you can hire a web developer and/or designer based on your requirement or even you can become an affiliate of some site which needs no website since your merchant will provide you website.

You can advertise your products or services for free in most of the websites say free classified advertisement site.

Since internet works on the principle of 24×7 you can reach your customer at any time.

Internet business is not geographic specific and hence you can reach global audience.

Disadvantages of Internet Business -Of course, internet has major advantages but it has some disadvantages too.

Through internet it is very difficult for the user to recognize what is genuine and what is not because users will not have the ‘Touch and feel’ of some product before they buy.

Internet makes you feel isolate and hence it separates manufacturer and customer, and this ultimately end-up in lack of trust between two parties.

It is also difficult for the user to choose the product as there may be many products with different varieties advertise through internet.

Business Models:

Every Business needs model to run its business and operations. When it comes to internet it is not that companies have design or built their own models Most of the companies sustain with the following business models through internet.

Products

Professional Services

Information Business

Internet profession

E-Publishing

E-Advertising

Let’s understand the above six proven internet business model.

Products: This Internet business model includes stuffs like electronic goods, books, computer hardware and software, household, jewelry, etc. Companies may already use direct marketing to market its product.

Adopting this model is most inexpensive method to communicate universally, and consumers can look into the product through company’s website or online catalogue as it cost only the fraction of what printed catalogue cost and the duplication is achieved virtually. The vital part is to note that internet is not the business strategy. However, it helps business to formulate strategy more effectively and efficiently. These are none other than the Internet or Online retailer.

Professional/Specialized Services: This model includes Professional services such as accountants, consultants, architects etc. The use of technology has encouraged service business to devise innovative strategies to support the very nature of the business.

Service industry advertise its services electronically that is through internet and since internet reaches global audience by breaking the geographic barriers and hence today service sectors enjoy massive profit and growth since internet has out-performed the traditional advertising and it directly reaches its prospective audience.

Information business: This E-business model is for those who gather, create and sell knowledge. Internet has given a new room for this kind of business. Today people use internet for many reasons and information search through internet ranks top. Many netpreneur today adopted this business methodology and has created a success because there is lot of scope for business in this digital era and information business is one such businesses which grows with a full pace.

Internet Careers: Many people have started making careers in internet itself. This business model includes graphic artist, web designers and developers, software programmers, computer and software trainers through online, Internet marketing professionals etc. This is considered as fastest growing business and many people have started business model.

Electronic Publishing: Today people can find free news, magazines, and newsletters in the digital format. In this business model any factual written material can be published in digital format and uploaded in the website. Online or Electronic publishing is exploding since its too cost effective when compared to the printed version of newspapers, magazines, newsletters etc. There are many innovative ways that a company can generate revenue from this business model.

E-Advertising: Electronic advertising, the business model which grows constantly and is expected to out-perform the traditional advertising methods. From this business model companies can simply sell advertising space on the web which in turn generates a mutual understanding to both the parties (advertisers and publishers).

Advertisers get revenue by posting advertisement in their website and publishers gets traffic to his website and/or brand awareness of his (publishers) product through advertisement. This is really a big business and one can monetize his/her website (if available) by just selling the website space.

The above mentioned internet business model has been adopted by many companies and have created a history in this digital era. Thus internet has become the right source and a powerful tool for the businesses to create a new and innovative business strategy in order to sustain the market.

Different authors have defined Internet business models in a different manner but the actual proposition and meaning is same. To see the different internet business model terms have a look at this article. Read Here

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