Entrepreneurs who are interested to start an online company.
What Is It About:
This tutorial tackles the advantages of e-commerce as well as the obligations that an entrepreneur must comply when he opts to start an online business. Provided also are some solutions to consider, especially when you are still starting your business.
Where Can Resources Be Found:
Recommended resource is provided in this tutorial.
When Is The Best Time:
Before deciding to start an online business, the entrepreneur must first know the nature of the business, the risks that it entails and most especially the obligations attached to it. This will help the entrepreneur support his decision on whether to take his business online or not.
How To Do It:
Going online has been made as one of the many options for businessmen to place their businesses. In doing so, one has to make an educated decision by knowing not only the opportunities for online businesses but also the obligations that needs to be complied. This tutorial may help you be acquainted with the rules for online businesses.
Doing business online can open to new opportunities. With the growing trends in the online industry, placing your business online may now be considered as a good option. Along with this privilege are the obligations that you need to comply to validly do business online. This tutorial lays the things down that you need to consider before opting to go online. This will guide you in your quest for new opportunities in a different medium.
Benefits of Doing Business Online
With the growing number of internet users, making your business available online will surely benefit from the large number of possible customers for your business. Statistics will say that there are more than 1.8 billion internet users in 2009 and grew to 2 billion in 2010.
Source: International Telecommunications Union
With such huge increase in numbers in a year’s time, we can now project that e-commerce (or doing business online) is a good strategy in selling because of the rapid growth of customers which are using the internet. The more customers you have, the greater is your chance of selling.
Risks Involved in Doing Business Online
One major concern in doing business is the security of your products, your company and your strategies. But entrepreneurs tend to explore new available media for expanding the business and explore new opportunities to gain more profits. By making your business available online entails risks such as copyright or trademark infringement, copyright ownership, libel, breach of confidentiality or slander. These are just some concerns when you make use of the internet as your medium for your business.
Obligations of Entrepreneurs on Online Business
Attached in opting to do business online is the liability on your part to comply with the rules set forth by the Federal Government to regulate, specifically, the US Market. Some of the things that you need to consider are:
- The rules on advertising and all other rules set by the Federal Government to regulate the US Market. A separate tutorial for this topic is available in this site.
- The rules of or your State, if any, which is supplementary to the rules of the Federal State.
- Other rules which are not primarily set for business purposes but may likewise be applied in your act of conducting business online. (e.g. rule on privacy, copyright and laws on digital rights)
- Rules on Taxation. Businesses are not required to pay taxes, specifically local tax, unless there is a physical presence in the State. Note however that not all States levy local taxes. Further, some States provide tax exemptions for certain goods. Thus, this rule varies depending on the rules imposed within your state.
Remedies for Entrepreneurs
- To be able to keep up with the requirements set to regulate the US Market, it is advisable that you familiarize them before you actually run your business. This way, you can find out that all your strategies and your business plan is within the context of the law.
- Update yourself with the latest trends to make sure security within your business in terms of conducting business online. There are many available tools today to safeguard your business interests. (e.g. provide your own Terms and Conditions on your online sites to protect your site from being too exposed to the risks in doing business online)
In fine, knowing the advantages and disadvantages of doing business online is a must. Likewise, prepare plans or remedies to counter the downside of choosing the internet as your medium for your business. This way, you can be ready for whatever complications that you may face as you start your business.