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…

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The Feasibility Study to Start Internet Business

After setting up an objective it is imperative to conduct a feasibility study. Feasibility study is an important tool to analyze the effectiveness of a proposed business plan; it is a safeguard against the wastage of investment or resources. The feasibility is conducted before the commencement of the new business plan or business expansion. Conducting a feasibility study to start new business online or to extend your existing business online is the one of the good decisions because you are analyzing its viability to ensure that you have taken the right decision at the right time. The feasibility study will assist you to know your strength and will also help you to analyze the possibilities of extending and marketing your business online.

What Factors should I consider to conduct a feasibility study?

The business feasibility study will identify the hurdles and the roadblocks in the proposed business concept and will also determine the effectiveness of business concept. The following are the factors one should consider in feasibility study.

Market Viability

Technical Viability

Business Model Viability

Financial Viability

Management Model Viability

The above are the important dimensions of the feasibility study. Based on these viabilities one has to go further in making the right decision. All the above factors must prove feasible for the proposed business.

Business Feasibility Study Outline:

1. The Executive Summary: Prepare the executive summary about who you are and what do you do? This is usually prepared at the end of the study but it is presented first.

2. Introduction: Here you have to introduce yourself and your company in detail. Your goals and objectives of why do you want to extend your business online. And where you would like to see yourself after few years. This section will also include the vision and the mission of your company.

3. Product or Service: Here you have to tell about your product or service which you are going to market online and offline as well. Also tell your product mix, if you have any. OR if you are going to market other's product tell more about that product and its popularity in internet marketspace. Also describe, how your customers will use this product, what benefits you are going to deliver to them, if you sell it through online. Who are your target customers etc.

4. Technology: Technology has already driven businesses to the horizon. Study about the existing technology. Analyze your technological strength and try to figure out what the existing technology is?
   

5. Online Market Environment and Competition: Be clear about your target market(s). Try to find out who are your online customers and end users. Why should they buy product from you? What is the distribution system available through online market? How your product or service will benefit your end users. What is the market trend of your product or services? Who are your online competitors? How do they distribute the product through online?
   

6. Business Model: Describe how your business will generate revenue
7. Marketing and Sales Strategy (Both Offline and Online): Layout the basic marketing plan. Differentiate your offline and online marketing plans or mix it up as a single marketing plan. Also list out what are the e-tools you are going to use to market your product through online. What is the online selling strategy you are going to adopt?

8. Production and Operation Requirements (not required if you are marketing merchants product): Describe the complexity of your production system. This study is not required if you are marketing merchants product/service.

9. Management and Personnel: list down your company staffs details and their role also list down who will be managing online operations and marketing etc

10. Critical Risk Factors: Try to study the risk you’ll face in the entire business system if you extend your business online.

11. Financial Projections: This section will include Balance Sheet, Income Statement Projections, Cash-Flow, Break Even Analysis, and Capital Requirements. All the financial terms and expenditures you had spent and also the ROI.

12. Findings and Recommendations of the study

Do you have anything to say about this? feel free to add if i have missed out anything.

Internet Business Models and Objective

“Starting up an internet business with smart strategies will make me rich”. This is not a myth. Today, Let us see the different internet business models available. The traditional business community has faced a great impact due to the advent of the technology and the internet.

What are business models?

Business model is nothing but a method of conducting business by which a company generates revenue. It is all about how a company creates revenue and position itself in the entire business community by confronting all the competitions and rivals within the industry.

Internet has given a new rise to the business community, and business experts have come-up with the sure fire business models and more models are expected in future.

The following are the 9 Internet business models…

Manufacturer Model

Advertising Model

Brokerage Model

Affiliate Model

Community Model

Infomediary Model

Subscription Model

Utility Model

For more details on these models visit http://digitalenterprise.org/models/models.html

You might have created your own vision and mission. These vision and mission need not be changed instead you can redefine it or you can make it little more clear.

Before Going Online, ask yourself why you want to go online? It is not fully advised to stop your offline operations (it is highly impossible for certain businesses). You must have to have a unique objective to go online.

Keep in mind, Internet is not a strategy for your business it will serve as a successful tool to create winning strategies.

DEFINE YOUR OBJECTIVE:

Why do you want to use internet as a Successful business tool?

Set SMART objectives based on 5S of Internet Marketing

Sell, Speak, Serve, Save and Sizzle

Objective 1: Internet as a Selling Tool

Objective 2: Internet as a Speaking Tool

Objective 3: Internet as a Serving Tool for your customer

Objective 4: Internet as a Cost Saving tool

Objective 5: Internet as a Sizzling tool

E-Commerce and E-business – What is the difference?

How to Start an ebusiness is one of the basic questions every wanna be ebusiness man asks to himself. But before starting it try to understand the terminologies and the similarities in it. The term e-commerce and e-business may sound same but technically they are different.

In both the cases the letter ‘e’ indicates electronic which includes internet and EDI (electronic data interchange) to improve business processes.

Ecommerce is narrower than ebusiness. It is a subset of ebusiness. Whereas Ebusiness is very broader, it refers to using of the internet technologies to conduct business which in return provides the great impact in the overall business process.

Ecommerce refers to the using of internet for Online Shopping i.e. to buy a product or service. For Example: Ecommerce occurs when a customer orders a ticket or book or gifts or any tangible or intangible product through internet. It occurs when an organization or individual pay money to another organization or individual via internet.

The term Ebusiness is covers all the areas of business. Ebusiness occurs when a company or individual communicate with their clients or customers or suppliers through email. Marketing done through Internet, Sell Products or Services through internet, Use internet to conduct market research, use internet to hire people, use internet for product or service promotion etc.

Lastly i'd like to conclude be it E-commerce or E-business the word 'e' will eventually disappear and in future ebusines will have great competition, accomodate your self in the right place before the crowd falls in.

Recommended Reading:
eBusiness & eCommerce: Management der digitalen Wertschöpfungskette

e-Business Intelligence: Turning Information into Knowledge into Profit