Creating an Online Business System - A Snapshot

Creating a successful online business system would not be a big task when you are focused with your goals and a have proper plan.

Before reading this article, choose from the following option to understand where you fit in.

• Option A - You are looking for an online business system to take your existing offline business online?
• Option B - You are an entrepreneur looking for a system/steps to start online business?
• Option C - You are looking for an online business system that could generate more traffic or money to your existing online business

For those who fall under Option A

For Offline Business Owners, who already have an offline business, and would like to increase sales via online (internet),

To establish an online presence, it’s imperative to have an eCommerce Website.

You can sell tangible goods (physical products which you may have in your offline store like apparel, books, shoes, electrical and electronic goods, etc) or intangible goods (especially services) over internet. To accept online transaction/payment, you need to setup an ecommerce website.

To understand more about eCommerce read the following article eCommerce or eBusiness - The Big Difference

Imaginary eCommerce Business System:

Mike owns three successfully running off line electronic stores, where he sells digital camera, television and other electronic household equipments. Mike is looking forward to expand his business, he had two options left...

1. He can set up another physical store in another location
2. He can set up a retail ecommerce website and sell products via internet.
   
   

But we all know setting up an offline store would probably cost him more because he has to pay his rents or own a shop, expense to set up retail shop, store management and operations, appoint a sales guy, shelf allocation, and other nitty-gritty operational works which require setting up physical store.

Mike chose to set up a retail ecommerce website despite of its consistent management, but it looked promising in terms of cost cutting and more store visibility outside his area or city.

How the entire Website system will work?

Here is the overall Online Business System...

Before designing or developing a website have the conceptual part of the website as a visual prototype that could actually help you create good website.

Requirements to set up eCommerce Business System:

Products to Sell >>Website design and development>> eCommerce Shopping Cart

>>Hosting Solutions >> Internet Marketing Strategy and Website Promotion >>

Order fulfillment (outsource or in-house) >> Customer service

To execute the system you require a system plan and resources to execute the plan.

Now,

Mike will have a new website up and running. The online shopper will visit his website by any means of search engine or direct visit or email, etc. Online shoppers will navigate and look through the website to find products available in the website.

To buy the product the customers have to click the shopping cart button.

Sign up>> Signing up will get the details about customer. (After signing up if he (online shopper) is skeptical and plans to log out, No worries you got a good lead. You can remind this shopper by sending an email that you have missed this product or send any other promotional emails such as discounted products, free shipping offers, etc...)

Payment >> Give different payment options. Credit cards or paypal or some other online payment services. Also provide an option to buy the product in store. Make your own privacy policy.

Delivery Options >> Give different delivery options, which ever suits your budget and ROI. Courier service, or your own delivery service or In-Store Collection.

Behind the Scene:

Pack the products

Deliver it to your courier company or your own delivery team

Make sure the product gets delivered on-time.

Customer Service:

Make sure that customers reach you even after the product is sold. If they have any problem with the product provide any of the following ways to get in touch with you…

Telephone
Email
Contact form

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eBusiness - The Generic Term

This article is for a newbie and/or small business owners who want to extend business online or would like to add electronic medium to the business. Before making a start it is always good to understand what ebusiness is.

E-business is a way of conducting business through electronic medium, that is influencing technology like EDI (electronic data interchange), E-commerce, electronic funds transfer.

All website applications and e-buying and selling are few example of e-business, to be precise, these applications are a part of ebusiness. All successful online business system requires e-business applications and website is one such application.

A business can be said as ebusiness, if any business processes that runs through an Automated Information System (a website or web based applications)

We all know that business has several different functions and process like marketing and sales, finance, human resources, Operations and Supply chain etc. Any of these functions or process if automated by means of electronic technologies can be labeled as e business.

Having a successful online business system or extending business through electronic medium like internet requires village, it is not a one man's job and effort.

Examples of e-Business

Customer relationship management
Enterprise resource planning
Document management systems
Human resource management
VOIP – Voice Over Internet Protocol
Email
web conferencing
Content management system
Online Retail Shop
e-Marketing
Supply chain Management

This will blog be focused more on how to market your products or services through internet (one way of conducting e business). It means you are conducting marketing and sales through internet.

It is not required that once you start marketing through products and services internet you should shutdown all your offline marketing activities or operations,

marketing through internet can also influence offline sales.

If you have business offline and would like to have an online presence or like to sell things through Internet then read this blog, I'll tell you simple steps to start e-business or internet business.

Read the following articles...
E-Business and E-Commerce - The Slight difference, yet meaningful
Strategic Plan to Start Internet Business
Internet Business Issues

Strategic Plan to Start an Internet Business

Below are the steps to start an internet business. There are two possibilities/scenarios to start an internet business

1. If a person has already got an offline business for him/her this would be like extending business online . (online presence)

2. If a person has no offline business, and probably looking for a one to start,

I have sprinkled my own ideas or strategic plan to start their internet business, which would help in both the cases/scenarios.

Please take a look at the below steps and let me know your suggestions/comments.

Internet business Objective and Analysis:

• Analysis of Offline Business model/Analysis of Internet business model
• Defining New Internet business Objectives – Redefine offline Goals, Vision and Mission / Defining New Internet business objective - Set new online goals, vision and mission.
• Correlate, Offline Business (if you already have an offline business) and Internet Business model – This has to go hand in hand
• Ebusiness Options Available – Depends on which internet Business model you choose.

Market Analysis:

• Online Product or Service Demand Analysis
• Online Survey and Analysis - Customer Analysis (Probably their preferences)
• Website Competition Analysis
• SWOT Analysis with respect to internet business

Strategic Planning:

• Defining Website Goals
• Marketing your business - Setting up Strategy to build your Unique Selling proposition
• Online Pricing Policy
• How offline promotion and online promotion will influence your business.
• Measuring the success (Deriving the success factors)
• Project Deadlines
• Project Roles
• Team Skills

Pre-Web design Analysis:

• Website Planning (WDLC)
• Schedule Planning
• Domain Name Registration
• Website Hosting plans
• Legal Issues
• Privacy and Trust
• Online Catalog Software (if you want to sell online)
• Web design/Develop software (If you want to develop in-house)
• Content Management Software (if your business requires frequent content updates)
• Online payment conceptualization (if you want to sell online)
• Physical Delivery System ( fulfilment process)
• Overall Cost analysis/Funding

Website Design and development:

• Website Conceptual Design /Prototype
• Basic Content Development/ Content Prototype
• Website Design
• Functionality Development
• Payment gateway software

Internet Marketing:

• Defining Website Promotion Strategy
• Marketing through Search Engine
• Marketing through Email - Affiliate
• Marketing through Affiliate program (Hiring Affiliates) – Affiliate (if you choose for affiliate channels include affiliate software)
• Marketing through Web 2.0 (Social Media Websites)
• Online Branding and advertising
• Blogs and Podcast to market the product
• Offline Marketing to drive traffic online
• Measuring Success – Web Analytics/Log file analysis

Develop a neat marketing strategy which should help you to achieve your objective.

Building Your Customer base and Legal issues:

• Gathering Information
• Returning policy (for ecommerce)
• Planning for Customer Support/ Online Customer Support
  
• Forming business ethics

You should also be interested in the following e-books

The Internet Strategic Plan

How to Write A .com Business Plan: The Internet Entrepreneur's Guide to Everything You Need to Know About Business Plans and Financing Options

Online Internet Business Model

Often you might have heard about the business models. Before understanding the clear picture on how to start online internet business. Let us first see what is a business model? Business model is a way of conducting business by which a company generates revenue. It is all about how the company is making the money. There are few ways where a company can make money through internet. If you want your ebusiness to be successful and if you want to increase revenue, ability to produce profit, expanding into new markets, etc then you must choose a business model from the following available options.

The following are the 9 Online Internet business models…

Internet Business Model:

Manufacturer Model, Advertising Model, Brokerage Model, Affiliate/Associate Model, Infomediary Model, Subscription Model, Utility Model…