Category Archives: Starting A Business

Blindly choosing business model

Choosing an Ecommerce Business Model

We listed out the various Business Models in the previous post. Today we talk about how to choose which is a good Ecommerce Business Model for you…

For the most part, people go into businesses like the image below, with their eyes shut tight.  As a result, the rate of success in startups is abysmal – as low as 5%.Blindly Choosing A business model

 

Here are a few aspects of  various Ecommerce business models that you need to consider.
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Ecommerce Business Models - Greater Profits

Lets talk Ecommerce Business Models

Starting today, I am planning a series on Ecommerce.  This has come out of my interaction with scores of entrepreneurs who come to our training events in  Mumbai.  We will go through various basic subjects as well as subjects that are quite abstract and only known to people who have a few years experience in Ecommerce.  Our first post today is about Ecommerce Business Models. Let’s dive right in!

Ecommerce Business ModelsThere are basically 4 different models that are universally acknowledged.

B2B – Business to Business ( you create a website that sells to businesses)

B2C – Business To Consumer( a website that sells to end users.)

C2B – Consumerto Business ( a website that aggregates other services for the use of the Consumer)

C2C – Consumer to Consumer ( a website that allows peer to peer business such as OLX, Quikr)

 

Some also consider these formats as business models:

G2B – Government to Business

G2C – Government to Citizen

B2G – Business to Government

When you have started off setting up your business on these models, you can always consider a mix of models. So if you are already selling to Business or Government, you must consider selling to consumers at a different level.

Or when you are selling to the end user, you must always keep the option open of selling to Businesses and Government.

 

Coming Soon: How to choose a business model ?

 

Author Bio:

Deep Janardhanan is the founder and CEO at International School of Success – a startup training and advisory firm set up in Mumbai, India. He has vast experience of creating and managing startup companies as well as projects for multi-nationals. His one day classes for entrepreneurs are a hit with startup founders who want to get going in a hurry – while minimizing risk of loss and failure.Want to start doing SEO for your website? Go to Deep’s website at http://ischoolofsuccess.com and download the Basic Search Engine Optimization e-book for Free!

Starting a new Niche Business

One of my clients is in talks with another business to buy a niche operation. He is very optimistic about this niche which is completely new for his business. So, as advisors (aren’t we marketers always playing advisors?) it is our job to do some deep digging and either encourage him or caution him with solid numbers. Hence this post.

If you are planning on starting your business, or entering a new niche, there is some basic homework that you need to do to ensure that the market will yield the appropriate returns to justify your investment.

There are 4 basic things you need to look at.
1) Demand
2) Profitability
3) Competition
4) Traffic

All these can easily be ascertained by spending some quality time with your favorite keyword tool.

Demand: By analysing search traffic in different creative ways, you can ascertain if there are customers in your niche, thereby confirming demand for your product.

Profitability is a little bit more tricky since it depends on your ability to source low and sell high. You also need to see if there are enough other products in the market that may be comparative. Also, you need to make sure that the market is needy and that they are willing to pay for your product.
Caution: I know of enough software startups that went nowhere because developers are accustomed to opensource.

Competition: Every keyword tool worth the name will provide you withe enough information regarding your competition. Basically what you need to do is to study what they do correctly and then replicate it properly.

Traffic : More appropriately, repeat traffic. Please ascertain that there is a possibility of repeat traffic in the new niche. For example, lets consider “sewer cleaning”. People may search for it once to get someone to fix a broken pipe, but it is difficult to get them to subscribe to your newsletter. Without repeat traffic, you are swimming against the tide.

Having generated our reports, it quickly became obvious that our client should focus on a niche that was slightly broader than the one he was considering. You can use these generic tips too when you are ready to start your own business.

Free Management Training

Starting your own business;  But dont know if you would be good at it?

Here is how you can be sure. Volunteer for a not-for-profit.

If you can get other volunteers to do what you want them to do for the organization, then you know that you are a person who can manage  employees in a business.

Volunteering also gives you the ability to understand many areas that you previously had no experience in.  You can learn about marketing, financial accounting, managing resources, customer service as well as fundraising. All very important aspects of running a business.

That your effort will help someone in need, just the cherry on the pie!