Keys to Starting Successful ECommerce Businesses
Starting Successful Ecommerce Businesses
Electronic commerce is nearly ubiquitous. Online retail sales have been increasing substantially every year, reaching nearly $200 billion this year. This has inspired many people to starting successful ecommerce businesses of their own. While nearly all of the major retail companies have an online presence, there is still plenty of room for creative entrepreneurs to ensure that their goods and services reach the market. However, before you enter the e-commerce market there are a few things to consider including, market research, securing funding, and obtaining a good technology lawyer. Creating and following a solid business plan are the fundamental keys to success in any venture.
When conducting market research, there are many important factors to consider. Before anything, you must be sure that a market exists for your good or service. Once you determine whether a market exists, whether broad or niche, you must make be sure that you can make the product and have it delivered in a timely and cost-effective fashion. Going broke in order to produce something that will net you minimal or even negative return on your investment is a bad business strategy.
The next thing potential electronic commerce entrepreneurs must do is secure funding. The amount of start-up money you will need depends on the size of your business and your long-term goals for expansion. There are many ways to obtain funding. Many businesses use their own money and reinvest any profits they make back into the business. Others obtain SBA bank loans or receive other types of financing through either community bank branches or the much larger national ones. Utilizing a venture capital firm is another way to obtain financing, although the venture capital firm becomes a part owner of the business and often has stringent stipulations regarding their investment returns. Regardless of which vehicle you used to get financed, it is imperative that you have a well developed business plan that lays out your short-term and long-term goals.
Obtaining a lawyer well versed in technology will help you navigate the tricky minefield of international technology law. As you business grows and prospers and as the Internet, including e-commerce, because more regulated, a good lawyer or international e-commerce firm can help you with everything from patent law to non-disclosure agreements. It is one of the crucial steps in starting successful ecommerce businesses, let along running an organized, profitable business. Following these steps will not ensure success, but they will provide a basic path, coupled with some inspiration and hard work, that will put you on path to profitability.