Thursday, 22 April 2010

Advantages and disadvantages of online businesses

Very often, many people jump into the online business, because from 'someone' they heard that on the Internet is 'lot of money', and without the necessary knowledge, resources, concepts, etc. think that huge amount of money will come to them, and then after some time, they see that is not all like that.

I present some advantages and disadvantages of the Internet business.

Advantages:
1. Wind run business.
2. Relatively low costs of starting businesses, compared to other industries.
3. Ease of entry to certain markets.
4. The possibility of a quick return on investment and making a profit.
5. The profit rate is much higher than the standard profit rate

Disadvantages:
1. The possibility of rapid deterioration
2. Competition is just a click, window, tab away
3. As you entered the market, so the competition can occur unnoticed and surprise you.
4. Requires high level of knowledge, because knowledge and ability determines success.
5. 80% of the costs are marketing, and in that is 'catch'- if it is bad marketing it is a cost, if it is a good it is an investment

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