The Perfect Time to Change Your Livelihood : Web Based Ecommerce is it For You ?

The Perfect Time to Change Your Livelihood : Web Based Ecommerce is it For You ?

So you want to go into business for yourself. I don't blame you. Working for you is the most rewarding way I can think of to make a living. When you run your own business, you alone are responsible for the success you create. You make all the decisions and chart your own path. By virtue of your own hard work, you take the credit—and the profit—for your success.
But working for you is not always a bed of roses. Just as you reap the credit for success, you're also responsible if the business fails.
Self-employment also has some inherent risks, the biggest of which is what makes it attractive in the first place—you're on your own. In addition, the hours can be grueling and irregular, making family life and personal relationships difficult. It often doesn't have the benefits and "perks" that come with corporate employment. And the risk of financial disaster is always just around the corner
Still, most business owners will tell you it's the only way to fly.
Small businesses have characteristics that will always make them attractive. From a consumer's point of view, they're usually more pleasant to deal with than large businesses. For one thing, they can offer personalized service of the highest quality.
Don't you enjoy walking into a store where the people know you by name? It means you have a special relationship with the owner and the employees and can count on being treated special. It also means you'll keep coming back.
As an example, look at the small family-owned grocery store in your neighborhood. Most likely it is run by the son of the founder, and several family members work there part-time. You can pass it every time you go out and stop there at least once a day to pick up the papers or buy milk or bread or some other item you need.
You probably discovered the store when you first moved into the area and began to stop in regularly. Within a short period of time the owner and the employees all knew my name and began treating me like an old friend. Now when you go in I know you will end up hanging around, talking about one thing or another. If you forget my wallet you can often put your purchases on a tab. There's a sign on the counter—No Checks Accepted. However you can write checks. They may even give your child a part-time job while in high school. It all seems like such insignificant stuff, but it really makes a difference about how you feel about that business.
Small businesses are also more flexible and quicker to adapt to change than large businesses are. When market or consumer trends require a quick adjustment, a small business can turn on a dime to react. By contrast, a large corporation will turn the corner with all the speed and agility of the a large aircraft carrier .
In this era, small businesses are being created at a pace not seen for decades. Women and minorities are starting businesses at a record rate. This is no accident. Working for yourself makes especially good sense these days. Let's examine some of the reasons for the resurgence of the small business and some of the options open to the 21st Century entrepreneur.
1) CORPORATIONS ARE DOWNSIZING
One of the biggest reasons that small businesses are growing is the downsizing of America's corporations. When many parents of the baby boom generation entered the workforce, they could go to work for a big company and almost always count on spending the rest of their lives working there, if they chose. There was a sense of loyalty to the company, and that sense of loyalty was returned; companies went out of their way to take care of their people. America's economy was thriving, our big corporations were growing by leaps and bounds, their workers' jobs were secure, and the future showed nothing but promise.
But those days are over. Over the last number of years, foreign competition and cheap overseas labor have smacked American companies square in the face and awakened us to the fact that our seemingly untouchable corporate Goliaths are indeed vulnerable to these overseas Davids. "Made in Japan," a tag that consumers laughed at in the sixties, now elicits consumer confidence
. And Products from China although not there are beginning in some ways to attract the same respect if nothing else for their low prices. ..
One of the industries most severely affected by foreign competition was the automobile industry. Even GM the monolith American car company, sagging under a deluge of Japanese imports that are considered affordable, well-built, and fun to drive and even better value.
Our clothing industry suffered when many of its jobs moved to Asia, with its lure of cheap labor.
The steel industry watched in dismay as its foundries fell silent, brought to their knees by foreign competition.
The electronics industry is also very hard hit
. Today it is impossible to buy a television that has been manufactured by an American-owned company.
To compete in the new world economy, corporations throughout the United States have had to tighten their belts to avoid drowning in a sea of red ink. Their goal is to become lean and mean and keep profits—and the price of their stock—as high as possible. As a result, they're lying off employees faster than ever before and outsourcing manufacturing and even now service jobs as rapidly as possible;
Companies also are merging with one another in an effort to boost profits. . When the mergers are complete many former employees will have lost their jobs in the process. The most unfortunate of them will find themselves in late career with salary needs that make them unattractive to most potential employers.
It's not surprising; therefore, that many of these corporate casualties are starting web based ecommerce businesses. Some are staying in the same fields they were in during their corporate lives, starting consulting firms (if they can find clients) or service firms in accounting, payroll management, human resources, and other areas.
There are good opportunities for them. The rash of corporate downsizing has created an industry in that that companies hire outside firms to take care of some of the tasks their employees used to do. Outsourcing frees the companies of employee-associated costs such as FICA, health insurance, pension plans, and the like. In many cases, former employees have gone right back to work for the companies who laid them off, only this time as independent contractors rather than as employees. And this time, the former employee, not the corporation, is responsible for his taxes and insurance.
But many other former corporate workers are venturing into fields that are entirely new to them. They're finally indulging their true interests, starting bookstores, cooking supply stores, art galleries, restaurants, golf shops, and all sorts of other businesses. Though few of them will make the kind of money they made in their previous jobs, most don't care. They've discovered that the pleasures of being your own boss and the freedom that comes with owning your own business are worth the sacrifices they may have to make because of a reduced income.
Another thing they're discovering (and something you and any other new entrepreneur will discover) is that running a small business is a lot more complicated than they thought. Rather than having the tidy set of responsibilities you have in corporate life, when you run your own business you wear every hat, from CEO to janitor. It keeps you on your toes and makes you learn quickly. Those who don't fail quickly.
WE'RE NOW A SERVICE ECONOMY
Because of the decline of corporate America, particularly in manufacturing, we're rapidly becoming a service-based economy. Business services, home and lawn services, catering, child-care, commercial cleaning, automobile services, home improvements—the list of potential businesses is virtually endless.
Economists predict nothing but future growth for service businesses. Over the years, as our economy has expanded, personal spending on services has soared. Today, more disposable dollars are spent on services than on durable goods. This trend should continue for the foreseeable future.
The reason for this is simple: Americans are busy people. Most come from two-income families with hectic schedules. They're willing to pay for services that provide them with the time to relax and enjoy their downtime. The market for leisure-time "experiences" is also growing. People pay a lot of money for classes, hobbies, vacations, and health clubs, in addition to having their lawns mowed and their homes cleaned.
Take a simple thing like eating. Obviously, the oldest service business related to eating is the restaurant. The next oldest is probably catering. But as society changed and people had even less time to cook other ways of servicing hungry Americans arose.
Now McDonald's, Wendy's, Burger King and other fast-food joints are an integral part of the American landscape. More and more restaurants offer delivery and takeout. . All you have to do after a hard day at work is come home and pop one in the microwave. The next day, there's usually enough left over for lunch.
The bottom line with service businesses is simple. If enough people don't want to do something and are willing to pay good money to have it done for them, you have a business opportunity before you.
Home is no longer just where the heart is; it's frequently where the job is as well. Quite a few people who have been cast adrift by big corporations have started consulting businesses or other services to take advantage of "outsourcing" opportunities. Many of them are working at home or at least using their home as a base of operations.
But they're not the only ones who have discovered the luxuries and benefits of the home office. Many people who still work for large corporations also now work at home, connected to the office and their clients by computers, cellular phones and other means of modern communication. It's a trend that's growing because corporations have found that, in most cases, employees are happier and more productive when they work at least part of the time at home. The elimination of the daily commute gives them more time at home and allows them to become more involved in family and community activities.
It also makes sense to the bottom line. Many companies are discovering that allowing their employees to work at home reduces the amount of office space they need to lease. Rather than providing each employee with his or her own desk, many are turning to what Becker calls the "non-territorial office." Under this system, as many as four or five employees will share a workstation, keeping their personal belongings and work materials in lockers and getting them out when they show up at the office. In the meantime, the office is becoming more of a base where people gather for meetings and to socialize.
For the budding entrepreneur, working at home merits serious consideration. Obviously, some businesses require a storefront or an office. But many others, particularly service businesses do not...
When you're thinking about starting a business, two big questions always loom above all others: What business do I want to be in? And how much money do I have to invest? In today's business world, there are many choices. Here are some of your options.
If you are an entrepreneur with big dreams and a modest budget, starting a service business is an excellent option. It allows you to put your talents to work by offering your customers a service you think you can provide at a profit. For example, you might start a home remodeling business, a painting business, or an automotive services business. If you have expertise in nutrition and exercise, you might become a personal trainer for fitness buffs. If you have a background in business, you might offer your talents as a consultant to other businesses or businesspeople.
Service businesses are inexpensive and easy to start up because you are the product. Therefore, you don't have to tie up a lot of money in inventory. Also, you may be providing the service at the customer's home or place of business. So rather than needing a storefront, your service business could be operated out of your home or from a car or van. You won't need to hire employees, either, at least not at the outset of your business. (If you need employees later, it's a good sign. It means your business is expanding.) The only real investment you might need to make is for equipment. Many service businesses can be started for less than ten thousand dollars. Some can be started for only a few hundred dollars.
There are downsides to service businesses, however. For one thing, they're extremely competitive, so you need to provide the best service you possibly can. You need to be a self-starter, organized, focused, and you need to make sure you either show up when you tell your customers you're going to be there or are there when they show up at your place. Service businesses aren't for procrastinators or people who have trouble motivating them.
Another problem with service businesses is that they often require you to work when everyone else is playing. Consider a catering business. Your customers are peopling throwing parties, weddings, business dinners, and other social gatherings. Most of them will be in the evening and on weekends. If you don't like working this type of schedule, you may be unhappy.
START A RETAIL BUSINESS
For those entrepreneurs with more capital, opening a retail store is a traditionally popular strategy. Retailing allows you to immerse yourself in the things you love—books, gourmet foods, sporting goods, clothing, and electronics—by selling them directly to the consumer. And if you enjoy customer contact and don't mind the long hours, it's a great way to make a living.
A downside of retailing is the cost. You'll need more capital because you'll need a place to do business. That means buying or leasing a storefront or building. You'll need inventory, store fixtures, one or more computers, the appropriate software, and a wide variety of supplies. You'll probably need at least one employee and some money for advertising and promotion. It's also a pretty good idea to have a substantial financial cushion beneath you to help you weather the uncertainty of your first few years in business. For these reasons, setting up even the most modest retail business will usually cost anywhere from ten to twenty thousand dollars. Depending on the size of the business and the type of product you sell, you may need several hundred thousand dollars or even several million dollars.
Another negative of retailing is the long hours. You don't make money when the doors are locked, so most retail stores are open seven days a week and, except for Sunday, twelve or more hours a day.
This means that either you have to be there or you need to hire people to run the show while you get some time off.
Retailing also means constant contact with the public. Dealing with the public is not always a bucket of chuckles. Most of your customers will be delightful people who are a pleasure to work with. But, human nature being what it is, you'll also have some customers who are just miserable human beings. You have to be prepared to keep a smile on your face and treat them courteously when what you'd really like to do is throw them out the door. When you run a retail operation, the last thing you need is someone running around saying terrible things about you.
BUY AN EXISTING BUSINESS
Some entrepreneurs choose to buy an existing business. This has some advantages. The biggest plus is that the business has already established a track record. If it's been around for a number of years and shows a consistent history of profitability and growth, it's less likely to fail than a brand new business It has an established clientele, it's known in the community, and people know what they'll see when they walk through the doors. When you buy it, you hit the ground running.
The downside is you'll pay for the business's successful track record. It's called goodwill. In addition to assuming the costs associated with starting a brand-new business, you're paying the seller a premium for the success and longevity he achieved. Of course, if the business continues to perform well and grow under your ownership, you can probably recoup your investment when you sell it. If you've really done well, you might be able to get a lot more for it than you paid. Still, buying a business is expensive. If you don't have much capital, it's really not an option.
Some people pursue their dreams by buying a franchise. If they buy wisely, this gives them a head start on the person who starts a business from scratch or buys an existing business: when you buy a franchise, you're buying a tried and tested business system that gives you a product that's in demand and a successful method of marketing that product. The person who sells you the franchise—the franchisor—has created his business system through years of trial and error and is now reaping the rewards of his own hard work by selling you the secrets that made him successful.
There's no question that franchises are a very attractive option for the 21st Century entrepreneur. The industry has been growing by leaps and bounds for the last twenty years. .
One downside of buying a franchise is the cost. Not only do you have the same costs associated with starting a business from scratch or buying an existing business but you'll also have to pay the franchisor an initial fee for the franchise, as well as a certain percentage of your gross sales each month in royalties the entire time you own your franchise. Franchise fees can range from several thousand dollars to several hundred thousand dollars, depending on the size of the business, and royalty fees are usually from five to seven percent. Sometimes another percent or two is tacked on each month to cover advertising costs. That's a big chunk of change to be giving up each month.
Another problem with franchising is the fact that there are a lot of people trying to sell franchises who either aren't ready to act as responsible franchisors or who are just plain trying to rip people off. It's always been a fairly Looney industry, and although it's much more regulated today than ten or twenty years ago, you can still get taken if you're not careful.
This is not to say that there aren't good franchise opportunities available. There are several thousand very good companies out there. But for some reason, people think that if they buy a franchise they're buying a sure thing, and that's just not the way it works. Buying a franchise requires that you thoroughly investigate the franchisor and the company beforehand to make sure you're getting what you're paying for. Doing it right can take months, if not years.
Like franchising (and for many of the same reasons), ecommerce websites are one of the premier growth industries for the 21st Century, and it is one of the best bets for entrepreneurial success.
Like franchising (and for many of the same reasons), web based eCommerce is one of the premier growth industries for the 21st Century, and it is one of the best bets for entrepreneurial success.
The rapid proliferation of home computers and the growing interest in electronic communication is inspiring many others to set up "electronic storefronts" on the Internet.
ECommerce website based businesses run the gamut from mom-and-pop businesses operating out of their basements or garages to retailing giants like Dell Computers. Some are operated part-time by people who want to supplement their income from other jobs. Others are full-time endeavors that are experiencing healthy growth and profits. They sell everything imaginable and offer a full range of prices. Whether you want a $15,000 diamond-and-ruby necklace or a $15 zircon-and-glass knockoff, you can find it in a mail order catalog.
The reasons for the growth and popularity of web based e-commerce are a combination of demographics, societal changes, and technological breakthroughs. For consumers, the main attraction is the convenience. They can purchase a wide range of merchandise by simply spending a few minutes on the phone or, increasingly, the computer. A day or two later, their purchases arrive. It's quick and it's easy.
For you and other entrepreneurs, operating a web based ecommerce business combines the best of both retail and service with few of the hassles. You're operating a retail business, but one with little face-to-face customer contact. And you're operating a service business in the sense that you're providing a huge convenience to your consumers—saving them time and simplifying their lives.