What Is Online Business?
The business activity which is done with the help of the internet is known as Online Business. It generally works on the internet platform.
In the modern world online business is considered as a business of the new generation which is very similar to traditional business.
Steps Of Online Business
For the sake of clarification various steps of online business are discussed below:
Plan the business:
The first step of starting an online business is to plan the business. It is concerned with analysis of strength, weakness, opportunity and threats of business in order to plan online business.
Write the business plan:
The next step of online business after planning is to express it in a written form. It is a formal statement of business goals, reasons and plans for reaching them.
Register domain name:
The 3rd step of online business is to register the name of the company or business domain name before undertaking business activities. After the registration the investor will proceed to set up a business website to provide E-commerce platforms.
Make it legal:
After the registration of the domain name the entrepreneur is interested in making it legal. Therefore an entrepreneur must fulfil minimum legal requirements in order to confirm his/her business as a legal one. It includes:
- Company Registration
- Working Bank Account
- Export, Import License
- Toll-free Phone Number
- Email Services
Types Of Online Business
An E-commerce Site
The most direct form of online business where companies sell their goods and services directly to customers through a particular site is known as an E-commerce Site.
An ETSY Store
The peer-to-peer e-commerce website that focuses on selling handmade or vintage items to the customers is called an ETSY Store Online Business.
An eBay Store
The online store that provides a comprehensive E-commerce solution for millions of buyers worldwide to shop there is known as eBay Store.
A site no physical goods
An online business where a company doesn’t sell any physical goods but accepts payment via a website is known as a site with no physical goods sold through online business.
Planning Of Online Business
The planning of online business is very similar to the planning of any other form of business. It’s various components are:
Business plan is a written document that identifies a company’s goal and outlines how the company intends to achieve it at what cost. It is very important for a new business unit in order to recruit senior management and convince business partners to make a commitment for betterment of business.
The business case
Business case is a document which is used to justify the investment of organisational resources in a specific project. It includes new E-procurement, e-learning or participation in a social network. So a business case for a large resource intensive e-commerce project remembers a business plan.
A high level business case template
A high level business case template shows the utilisation for the expenditure of resources on a specific online project. It requires a number of business, plans for the initiative of new business its components are:
Goals: The finishing point of what a business wants to achieve through online business.
Cost Saving: The reduction of transaction cost to the minimum through online business.
New Revenue: Another component of high level of business is the creation of new revenue sources.
Extra Benefits: The additional benefits associated with the project is known as extra benefit.
Recommendation: It refers to the summarised decision recommended through business analysis.
Funding a new Online Business
The launching of a new online business is more expensive. So it requires the investment of personal funds even his domestic house for its successful running. Therefore it is possible in the case of a brave entrepreneur willing to do so and can arrange sufficient long term funds for online business. Such funding is of 3 types:
- First Round or Initial Funding
- Second Round Financing
- Additional Funding