Newbie Internet Business Series Part 1: the Pro and Cons of Home Based Internet Business

The home based internet business becomes more and more popular either as an alternative occupation or a source of extra income. This newbie internet business series is dedicated to those who just start or those who are considering to start their home based internet business. By reading the series, you will have a better understanding what it is about, avoid the mistakes and take the right path to excel.

The Advantages (the Pro)

• Flexible working hours.

If you have your day job, young children, household to take care of or study to work at, you are still able to do your home based internet business at your convenient time.

• Small capital requirement.

Compared to offline business that requires a lot of money to set up, the home based internet business needs only a small capital to start up.

• Unlimited income potential.

Working for others limit your potential to earn money but home based internet business has unlimited income potential. Many people become millionaires in the internet.

• “Low-cost” labor.

You start your home based internet business by yourself and when it gets bigger, you can seek help from your spouse, teenage children or relatives whom you do not need to pay much.

• Hassle free business.

Many things you need in the internet are done autopilot such as your websites and auto-responders. Some products even allow you to have 6 automated income streams within 24 hours.

• Low overhead expenses.

The home based internet business allows you to work by yourself from the comfort of your own home, you save lots of money from office rental, employee’ salary and travelling costs. Beside computer and internet connection, you hardly need any other machines.

• No face-to-face interaction.

For those who are shy to meet people or have physical challenges are still able to have their own business. People only communicate with your words without facing you personally. You can be in your pyjama or t-shirts and nobody knows. Furthermore, there is no age limitation; you can run the home based internet business at any age.

• Immediate start.

Compare to offline businesses that require a few months to start, the home based internet business allows you to jump in immediately.

• No company requirement.

You do not need to have a company to start your own home based internet business.

• Flexible place to work.

You are mobile when you are in the home based internet business. You can work wherever you desire as long as you bring your laptop and there is an internet connection.

The Disadvantages (the Cons)

• Reliance on high speed internet connection.

When you don’t have high speed computer and internet connection then you waste so much time in front of the computer waiting for your pages to be displayed. Some remote places still face this kind of problem.

• Addiction to work.

Since you work from home, you can be workaholic. Nobody is going to stop you from working 24/7. There is no working time framework. You could neglect your family or household works because you are too consumed with your online business.

• Loneliness.

The home based internet business is a lonely place because you do not interact with people face-to-face.

• No immediate result.

It can be very frustrating because you do not see the money immediately. If you follow the wrong coach or program, you even waste time and money.

• Risks.

You do not know who you are dealing with since you do not face him/her so there is a possibility you could be cheated. Many scams happen in the internet.

• Hard work.

It is a hard work. You need to be willing to spend hours to learn about your products, marketing and customers care.

• Dependence on strong self-drive.

Home based internet business requires high self-discipline and self-motivation. Since you have nobody telling you what to achieve daily you need to create your own agenda and target. If you do not have a strong “why,” you will end up joining the 90% of the people who fail in this business.

Before you embark into a home based internet business, you need to consider these advantages and disadvantages and make the firm decision why you want to get into it. There are consequences you have to pay just like every decision you make. Are you willing to pay the price? Do you have what it takes to succeed in the home based internet business? Find out more.

By : Tessie Setiabudi
Starting Home Based Internet Business

Free Website Builder & Wealth Report

www.TessieSetiabudi.com

Internet Business: How To Get Your Business On The Internet And Make Money

You want to start an Internet business. You either already have a great business idea, or you have no clue what you want to do to make money on the Internet. To make matters worse, you know little to nothing about computers, nothing about the Internet, nothing at all about how to build a website, html, keywords, or what to do to get started.

So, what's standing in your way of making money in your own Internet business is your lack of knowledge about how to get your business online, and not having access to all the tools you need to get your business on the Internet.

Whether you're a beginner, or you have some knowledge about business, the key to getting your business on the Internet and making money boils down to understanding how the Internet works, and having all the right tools at your disposal.

Getting your business on the Internet will require you to possess some skills that are different from a "real world" business. That's because your business will be in cyberspace.

For example, with an offline business, you come up with a business idea, get your product, and then market it via classified ads, radio, television, mail order, catalogs, postcards, flyers/circulars, etc.

But the difference between an offline business and an Internet business, is that you will need to have a location on the Internet -- an Internet address for your website for you to market your products and services to the world. And how most people will find your business will mainly be through the search engines using keywords that they put in the search engine box when searching for specific information.

That means, having an Internet business, and the ability to make money will depend on your success in driving targeted traffic to your website. It will require you to think like an information seeker, a person who is constantly looking for information on the Internet, and what words he would use when searching on particular topics.

So your ability to get your business on the Internet, will require you to know:

1) Some html to design or modify a website

2) How to find a hosting company to host your website or how to purchase web space)

3) How to upload files to your host server

4) How to find people who are interested in your product or service

5) How to market your product on the Internet

6) How to select and use keywords

7) How to setup and use autoresponders to build your business

8) How to build an e-mail list of repeat customers

9) How to create links, download links, and more

To get your business on the Internet and make money, you will need to be knowledgeable about these things, and how they fit into the success of your Internet business.

You need a comprehensive and detail guide to getting your business on the Internet and how to make money. Using the search engines can be time-consuming, as there are several tools you need to build an Internet business and make money.

Yes, it is very exciting to start an Internet business, but you must know how to use the tools you need to get your business on the Internet, as well as making money on the Internet.
By : Debra Davis

Internet And Business Online – The Act Of Interdependence
by: Scott Lindsay

The best role of business online is that of interdependency. We’ve all heard the old saying, “No man is an island.” When it comes to online business this is especially true.

If a business owner who takes their business into the online world determines they will be self reliant and never accept the help of anyone then that individual will not be in business long enough to change their minds.

It is accepted fact that the greatest tool for long-term exposure to your website is through Search Engine Optimization (SEO). Without it potential customers can’t find you. It is unreasonable to expect that you can adequately develop a website without optimizing your website for the best possible search engine ranking.

Search engines also place a high value on sites that have links placed on existing sites. These ‘backlinks’ demonstrate to search engines that others trust your site. By placing your link on their website these other businesses indicate a trust and recommendation for your site.

In effect the two strategies listed above rely exclusively on what others can do for you when it comes to your online business.

Shirley Temple once proclaimed in her movie Rebecca of Sunnybrook Farm, “I’m very self-reliant.” American westerns are filled with lines dealing with pulling yourself up by your bootstraps and holding down the fort. Many of us have grown up to believe if we want something done right we have to do it ourselves.

This thinking is in opposition to the rules associated with an online business.

The online world can only exist because people share. Individuals share technology, but the also share links, reviews, blogs, forums and a wide range of other marketing strategies that find a commingling of interdependency.

In online business you are as dependent on others as they may be on you. Unlike the word ‘dependent’, the term interdependent indicates a mutual dependency. In other words you are depending on others to help provide links back to your site while they are equally dependent on you (or others) for the success of their business.

Have you really taken a proactive approach to networking? It’s possible you are reading this today and you’ve never considered asking someone else to place a link to your site on his or her online business site.

It can feel awkward depending on others to achieve online success especially if you’ve been lead to believe reliance on others is also a sign of imposing on their otherwise brilliant generosity.

I suppose it could be a deep-seated sense of pride that makes it hard to consider the need to ask others for help. However, the truth is depending on others is really what has made the Internet possible. The growth of this online world is comprised of a link of computers, networks and servers that are connected in a way that provides the maximum benefit for all.

Building an online business can feel a bit like trying to build a house of cards. Without the ability to rely on the other ‘cards’ around you it is virtually impossible to build.

Interdependence. This is the essence of online business.

About The Author

Scott Lindsay is a web developer and entrepreneur. Make your own website in just 5 minutes with HighPowerSites at: http://www.highpowersites.com or Build A Website at: http://www.buildagreatsite.com. Start your own ebook business with BooksWealth at: http://www.bookswealth.com

How to Successfully Navigate Your Business through an Economic Downturn
by: Terry H Hill

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

You may reprint this article free of charge in your newsletter, magazine, or on your website, provided that the article is unedited, and that the copyright, author's bio, and contact information below appears with each article. Articles appearing on the web must provide a hyperlink to the author's web site, http://www.legacyai.com

Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

To download a copy of this article, click on this link: http://www.legacyai.com/Article_Downturn.html.