Are you looking for more tips on starting a internet business or advice on developing an internet business plan? Call 877-BIZ-PLAN to learn how Growthink can help you build your internet business.
Starting a web-based business is no longer as inexpensive as it used to be, as the web has become crowded with competitors providing content, e-commerce, and other services. It takes investment in marketing and skilled website development to overcome the built-in advantages of existing competitors. However, certain aspects of starting a web-only business should be less expensive than starting a bricks-and-mortar business with a physical location, so be sure to take advantage of the cost-savings you can.
Facilities
If you are thinking of building out an office for your web-based business stop and ask yourself “why?” If the business depends on courting strategic partners or suppliers and you see no way to impress them without bringing them back to an official-looking office space, then that is a valid reason.
However, if client meetings aren’t needed, your primary need for an office location is just to provide desks for your workers and a table around which your staff can meet. Do you even need this? Many small and internet-based companies use meeting and office space on demand from “virtual office” providers. Think hard about how virtual a company you can create, because avoiding rent, utilities, renovations, and all of the additional costs that come with having a dedicated facility can amount to a significant difference in how much initial funding you have to raise and to your long-term profitability.
Zero-Inventory Models
It has been written that Wal-Mart, the world’s largest retailer, doesn’t want to hold inventory at all. They would prefer to hold all of their products in their stores on consignment until they are sold, reducing their costs associated with dealing with products that do not sell, for example, to zero. Many web-based businesses, like Ebay, seek the same model, never coming into ownership of the items they sell, but instead acting as a value-added broker between buyers and suppliers.
If you designed your business to purchase products, house them in a dedicated warehouse (or even in your basement), and then sell them when they are ordered, you are likely losing money at each step of this process. It is easy to find fulfillment houses and distributors who will manage these processes at a lower cost than you can, passing on some of the savings to you. If a zero-inventory model is good enough for Wal-Mart, it should be good enough for your startup.
- Related Videos
- Related Articles
- Ask / Related Q&A
- How to open the web hosting business
- Open Source Solutions Small Business Problems
- LimeDomains—A New Entrant in Domain & Web Hosting Business
- How To Own A Reseller Web Hosting Business
- How to Keep the Doors Open to your Small Business
- How To Run A Successful Hosting Business
- Web Development with Power of Open Source
- Free Video Conference Software for Your Business or School
Business Trends - Understanding Your Government Customer 2009
By: Bharat Book Bureau | 21/12/2009Bharatbook.com added a new report on "Business Trends: Understanding Your Government Customer 2009 (Customer Focus)" which focus on Web 2.0 adoption, BPO and IT outsourcing and business dynamics.
A Guide for Interesting Wedding Favor Ideas
By: Vikram Kumar | 21/12/2009Are you planning your wedding and hoping to find something a little more unique than the standard favors everyone uses?
Proposed Changes to the New Zealand Tax System
By: Paul Easton | 21/12/2009All about the Changes to the New Zealand Tax System
No. 1 Rule for Working with Subcontractors: Put It in Writing
By: Jim Cochran | 21/12/2009Many growing IT companies find that working with subcontractors a great way to keep clients happy and overhead in check. Without having to bring on a full-time employee, IT companies can hire independent contractors on a per-project basis, extending their company’s scope and geographical reach, while giving clients part- or full-time support for a defined period of time.
What You Need To Know About The Most Expensive Coffee In The World
By: Vikram kuamr | 21/12/2009If you are complaining about the price of your favorite cup of coffee, you might quit when you consider the cost of the most expensive coffee in the world.
Some Tips for Selecting the Finest Silver Jewelry Rings
By: staje harry | 21/12/2009The silver jewelry rings lifts one's personality. When one decides to buy this as a dowry for that someone special in his life then this is considered to be the finest alternative because this symbolizes friendship, nurture, love and commitment. With such a broad span of the silver jewelry rings free it is entirely demanding to take the finest one for your loved ones. If one takes in account or considers the below scheduled points then it's sure that he or she would end getting a great silver pe
Changes Coming to New Zealand's Tax System
By: Paul Easton | 21/12/2009All about the tax system changes
Best quality clergy shirts online at affordable rates
By: Anirban Bhattacharya | 21/12/2009Suppliers selling anything merchandise online do not need to maintain a storefront. They do not have to pay the large electricity bills incurred by display lighting. They do not have to pay the salaries of the sales persons. This saves them a considerable amount of money, which they would have otherwise spent on the maintenance of the stores.
Daycare Marketing Plan - A 6 Step Outline
By: Eric Powers | 17/12/2009 | BusinessYour day care marketing plan is a section of your business plan which offers readers with a description of how you will communicate your services to prospects and convert them into real customers, as well as what you will be communicating. A marketing plan includes the 4 Ps (Product/Services, Promotion, Place, and Price) as well as key partnerships and a customer retention plan. Use this outline to provide needed structure to your marketing plan.
Real Estate Marketing Plan: Selling to Two Targets
By: Eric Powers | 17/12/2009 | BusinessWhen looking at the marketing plan of a real estate brokerage business plan, funders want to see an understanding of how you will reach both of your key target groups: sellers and buyers. You need a strategy for both, and, if possible, these strategies should share as many elements as possible to keep marketing costs low.
Cleaning Business Plans: Are You Experienced?
By: Eric Powers | 17/12/2009 | BusinessThe business plan is your first opportunity to show potential funders that you have the experience needed to launch your cleaning business. But what kind of experience are they looking for?
Start a Hair Salon
By: Eric Powers | 17/12/2009 | BusinessWhen opening your hair salon, you probably already have ideas about the services your customers will want from what other salons are doing. However, simply basing your services on competitors can make you into an imitation and ignore opportunities to look deeper. Here are some ways to back up your intuition with research that readers of your business plan will pay attention to.
How to Write Business Plans: Make Your Mistakes
By: Eric Powers | 17/12/2009 | BusinessOne of the greatest benefits of a business plan is the opportunity it presents for you to make key mistakes on paper rather than in dollars and cents. The type of thorough research and strategy that a business plan requires for funders requires should also make it the type of internal planning document which will be a great tool for you to manage with going forward.
Business Plan Questionnaire: Seven Questions To Ask Yourself
By: Eric Powers | 17/12/2009 | BusinessOnce you present a business plan to an investor or lender, questions may begin to fly at you. If this happens, do not be alarmed! It is evidence that they are truly interested in your business. You can prepare for these questions by running through potential questions, like these seven, ahead of time.
Starting a Daycare Business - 3 Mistakes to Avoid
By: Eric Powers | 17/12/2009 | BusinessWhen starting a day care business pay attention to the challenges that others have faced. Not paying enough attention to legal or insurance issues can be disastrous mistakes. Failing to review your pricing when you are not attracting enough children can lead to losses over time as well.
Music Store Business Plan: Fighting Your Online Competitors
By: Eric Powers | 17/12/2009 | BusinessTo succeed in the launch of a new “brick and mortar” music store, you must not merely create competitive advantage relative to other music stores in the vicinity, including big chains like Wal-Mart and BestBuy, but fight online competition from iTunes, Rhapsody, Pandora, and more. Don’t forget to detail your strategy for staking our your market share against these sellers in the competitive analysis of your business plan.