Monday, January 26, 2009

Growing Your Small Business Earnings Online


The Information Age is here with us. And just as civilization has gone through revolutions such as the Agrarian and Industrial Revolutions, the Information revolution is unfolding right before our very own eyes. With its emergence, vast commercial frontiers have been unlocked for not just the big corporations but small enterprise too. Today's global economy runs on the wheels of real-time online technology, and with it comes the money.

The conventional sole proprietor runs an office or shop from which goods are sold and services rendered. Every inquiry and order will be made from this focal point. This is the address to which communication more often than not must be directed. Customers buy these products in person, or can phone or email to get responses to inquiries. This takes time, money and effort. The biggest challenge to the sole proprietor's success is his inability to churn the numbers.

For such a business, the Internet provides an incredible opportunity for making plenty of money online. Proprietors usually want to grow their businesses. But the cost of doing business using long-established methods can reduce profit margins substantially. Worse still, their market share might not necessarily be on the ascent. How then can a small business enterprise make money online?

The first step in this direction is for the small business to have a good website. It instantly expands market reach and establishes a global market presence. Against this backdrop, the business is transformed into a 24 hour operation. The website constantly sells the enterprise whether the proprietor is at work or asleep and therefore offers considerable added value.

All the goods as well as services can be sold online. E-commerce is an option available in online transacting. Small businesses can co-opt a merchant system within their websites to accept credit card payments. If this option is not possible, third party payment systems can be incorporated to offer secure real-time financial transaction processing. These systems will take care of the customer service, shopping cart, credit card support, and billing inquiries at a small fee.

A major consideration for making money online is increasing staff size. Considering that there will be no significant overheads, the proprietor can reflect on the need to bring the business closer to the people who may not personally buy online. Sales staff will then execute order placement online. This negates the need to have both the customers going to a physical shop as well as salesmen operating from one physical location.

No doubt, there is a tone of money to be made online. Small business entrepreneurs should consider the huge profits that can be raked in with online transactions. Besides, the financial sector is pressing for credit card penetration into the market thus providing a ready market for such transactions. The benefits far outweigh costs.

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