Should you include e-commerce in your business startup plan?

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E-Commerce is the sale of products and services over the Internet. While this is the fastest growing segment of economy, it may not be a good place for your business. It is important that you look at your business start up plan carefully to determine if e-commerce should be included, and how big of a role it should play in your business plan.

E-commerce is a great option as it allows even the smallest business to reach a global audience, and can do so at a low cost. There are millions of people that use the Internet, and most of them fit within a demographic that would make them ideal customers for any business. However, just because e-commerce is immensely successful, and a low cost way to reach many, it may not be worth your time and effort right off the bat.

So how can you know if is e-commerce right for you? The answer is that depending on the nature of your business it is probably a good idea. Some businesses will simply not do well, so spending time and effort to take them online is a poor idea, but others will do exceptionally well. One thing to realize about taking your business online is that it is not always about making sales online, but can be about exposure, and a central place for customers to get information. A bookstore, for example, would do very poorly online as the major book sellers like Amazon and Barnes and Noble have a pretty firm grip on the market, however, this does not mean that a website for the store would be a complete waste. You could use it to post announcements, and inform customers of author visits, sales, promotions, etc.

When determining if you should include ecommerce as a part of your business plan it is wise to ask yourself what purpose you want it to fulfill. It can be your main way of selling products, a good resource for customers, a supplemental source of sales, etc. Depending on what your answer is, will determine if it is wise for you or not. If you want something unrealistic, then it is best to not spend time and money on creating a website. For example, a restaurant would not want to spend all of their advertising money online, as people cannot order food and eat over the internet, however, having a site with menu, locations, pricing, contact information, etc. could make them more accessible to customers.

A website is usually a great idea for anyone who is looking to supplement sales of your already established retail store. It opens your product up to a world wide audience, and allows people access to ordering when normal business hours are not in operation. It can also provide local customers with information about your business, not matter when they are looking.

A website is always a good idea if for no other reason than it is a way for potential and current customers to get information 24 hours a day, seven days a week. However, how big of a part of your business plan it is should be determined by the feasibility, and realistic-ness of how much you can sell, and how big of an impact your specific business can make online. A plumber for example would not need a complicated website, because they can't sell their products online, but they can advertise there, post rates, and information.
While e-commerce is relatively inexpensive, issues such as taxes, security, cost and reliability will need to be considered, so make sure you know how beneficial, or not beneficial e-commerce could be for your business.

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