Friday, 20 November 2009

Advantages and disadvantages of online business

Very often, there are many exaggerations in the online business, because there are people who heard from 'someone' that the in Internet is 'lot of money', and without the necessary knowledge, resources, etc they think that is truth and after some time they see it is not.
Some advantages and disadvantages of Internet business.

Advantages:
1. Fast-paced business.
2. Relatively low costs of starting a business, compared to other economic sectors.
3. The ease of entry into certain markets.
4. The possibility of a quick return on investment, and achieve profits.
5. Profit rate was much higher than the standard profit rate

Disadvantages:
1. The possibility of rapid deterioration
2. The competition is just a click, a window, a tab away.
3. As you are entering the markets, so and competition can come unnoticed and surprise you.
4. Requires high level of knowledge, because knowledge and skills determines success.
5. 80% of the costs are marketing, - if it is bad marketing it is a cost, if it is a good marketing it is an investment

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