How do you start a dotcom business? Why, just like any other business, selling a product like software or providing some services like movie download services. So why do some online business crash after burning through millions of dollars?
One main reason is because they were started by technological whiz kid who has no idea what business is about, nor how to run one properly. Of course the internet bubble burst, and people are much wiser nowadays.
The scary thing is, with a new techno-jargon, Web 2.0, the whole internet bubble thing may be coming back. I therefore feels obliged to remind those aspiring dotcom entrepreneurs what and how to start a dotcom business.
“What is business?”
Business has always stayed the same; buy and sell, buy and sell. Customers buy, and you sell. The money used to buy the goods are called cost, the money gained from selling them are called revenue, and the difference between revenue and cost are your profits.
“How to start an online business?”
The simple precept of making making a profit is the most basic of all principle to business. After finding a product or a service you can sell, all you need to do is find a webhost, build a website to showcase your product or services, add a snazzy online purchasing module, and you’re halfway done.
The next thing to do is marketing, and this is where it vastly differ from brick and mortar business. The techniques of acquiring customers or colloquially called marketing are varied. Some are insidious like Multi Level Marketing while others are targetted for growth speed like Viral Marketing.
The advantage that an online business has in terms of marketing is that its market covers the whole world. The potential to convert traffic to customer is much, much greater than opening a shop and waiting for people to come in and buy stuffs.
The biggest problem though is pitching your sales to potential customers. Web surfers are a fickle lot, and any sales pitch that takes more than 15 seconds will make them lose interest.
And there you have it, the gist of online business. Always remember, an online business needs to make Profit, and Profit = Revenue – Cost.