Important Considerations When Setting Up Your eCommerce Business

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ENTREPRENEURSHIP LIFE

• Important Considerations When Setting Up Your
  eCommerce Business

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Important Considerations When Setting Up Your
eCommerce Business

• So youre about to take the plunge into
  business entrepreneurship for the first time, and
  as I am sure you have realized, there are ever
  changing considerations that need to be taken
  into account. For an eCommerce business
  (electronic commerce) in particular, where you
  have the opportunity to open 24/7 with no need
  for a physical store presence, you will find that
  there are many benefits to running this type of
  business.
• One of the most desirable benefits for those
  interested in starting an online business is the
  low expense compared to the usual costs of
  starting a business. Due to this affordability
  aspect, however, many people rush into eCommerce
  without careful consideration which means that
  their businesses tend to flag as the hard work
  kicks in. In fact, over 90 of internet start-ups
  fail within the first three months. To avoid
  being part of this shocking statistic, here are
  some vital elements to consider when setting up
  your eCommerce business.

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The Idea
This needs to be refined, even in the
initial stages of thinking that you may wish to
start your own business. Firstly, decide
what it is you want to sell. Although this may
seem fairly simple at first, this decision will
determine everything about your
business, so give it some serious thought.
For instance, if you choose to sell furniture or
hardware, you will need an entirely different
storage space, audience focus and delivery option
than if you were to sell organic food or
stickers. Currently, the market is dominated
by global department stores such as Amazon which
have billions of products to suit every need and
more. Unless you think you stand a chance
competing against the likes of Amazon, which is
forecast to earn an incredible 90 billion in
2014 alone, it may be better for you to try and
carve out a niche at first.At the other end of
the spectrum you have more room to focus solely
on one thing, whether this be wallpaper,
groceries or light bulbs, you will be able to
excel in a niche before expanding, if you choose
to do so later on.
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The Idea

• Once you have your business plan set, the
  next step is to choose your new business domain
  name. For an eCommerce business especially, your
  domain name will be part of your brands
  identity, plus they are not particularly easy to
  change so it is vital to pick one you intend to
  keep. Your domain name will be one of the first
  things that a customer sees in relation to your
  website so you need to ensure that it is
• Memorable if people cannot remember your domain
  name they will not be able to find you online
• Easy to type if it is too long or too difficult
  to spell people may be deterred when they dont
  get the result theyd expected. They will
  probably type in Amazon to get what they need
  there instead
• Related to your brands ethos if you have a
  serious and reputable brand, having a silly
  domain name simply wont fit and your audience
  wont take you seriously, you dont see
  wackojackos.com for specialist heritage riding
  clothes do you?

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Essentials Insurance

• Essentials
• So now that you have the perfect idea and the
  wheels are finally getting in motion, there are
  several necessities to take on board when setting
  up your business
• Insurance
• Any business, whether online or on the high
  street needs to have the correct business
  insurance for its purpose by law. It is a legal
  requirement for any business to have employers
  liability insurance if you employ any individual,
  even if it is only for work experience.
  Similarly, a minimum of third party motor
  insurance is legally required if your company
  will be using a car. However, there are also
  other insurance options that are voluntary but
  incredibly valuable to the success of your
  business should anything go wrong. Policies such
  as protection against risk of compensation claims
  and legal action provide a lifeline if, for any
  reason, someone claims compensation for an
  incident which is out of your control. You can
  even get specialist insurance to provide cover if
  you or any other vital member of staff becomes
  ill and unable to work.

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Financial Security

• All companies are heavily reliant on the smooth
  running of their finances, so it is integral to
  your business survival that you keep your
  accounts in order from day one. This means
  keeping all transactions and receipts together in
  an organised fashion, and also working out your
  liabilities to tax and all essential outgoing
  payments such as wages. Depending on how
  competent you are at this, you can opt to manage
  your finances yourself which can save accountancy
  costs, especially if you can take advantage of
  specialist cloud accounting software.
  Alternatively, if accounting is not your forte I
  would strongly recommend employing a bookkeeper
  or accountant to handle this responsibility on
  your behalf, even if it is merely to check your
  accounts quarterly to see that you are on top of
  things before it gets too late.

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Security

• Due to the internet being largely unregulated and
  unmanaged, there are many risks and threats to
  eCommerce sites from hackers that could seriously
  impact your business. Aside from accessing vital
  information, hackers could alter your website and
  potentially use viruses to corrupt data which
  could lead to financial loss and a damaged
  reputation. More seriously, criminal charges can
  be pressed if certain legalities such as the Data
  Protection Act are found to have been
  breached.iii
• As well as online security you need to be sure
  that your stock is protected, and in fact this is
  usually necessary for many insurance policies.
  Insuring your stock is also essential, even if
  you think your site is secure there are
  inevitably the dangers of fire, flooding and so
  on. In many cases using specialist door hardware
  can be an effective deterrent for thieves, but it
  could also be worth investing in specialist
  security such as CCTV or remote alarm systems to
  ensure that your products are as safe as possible.

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Appearance

• For an eCommerce business your website design is
  just as important as any shop window, and its
  structure must perform as well as any pristine
  aisle in a store. Your web design is the face of
  your brand on the internet and your only chance
  to show your customers what you are about. For
  this reason it is important to go to a web design
  company that understands your vision and knows
  what your brand is about. Take your time with
  your decision, meet with various website
  designers and view their portfolios. You can even
  take examples of what it is you are looking to
  have on your site to ensure that you are both on
  the same page.

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Must Haves

• Technology
• When running an eCommerce business you will be
  incredibly reliant on technology, especially
  computers, so it is essential that you know what
  youre doing with the software and hardware that
  you are using. If you are not entirely confident
  with this it is a good idea to outsource or
  employ IT support from professionals, as if
  anything goes wrong it will be your business that
  is at stake. Although this may be seen as an
  additional expense on a tight budget, the cost of
  IT downtime when running an online business can
  be far more devastating so it is better to be
  safe.
• With regards to what hardware to choose from,
  there is the ongoing debate of PC versus Mac, but
  at the end of the day it is what works best for
  you that matters most. Windows machines are
  cheaper which can be a bonus when starting up a
  business with limited funds, plus in some cases
  there are more programs developed for Windows
  PCs. However, if you prefer the smarter Apple
  hardware you can still get refurbished iMacs as
  an affordable alternative. Apple hardware is
  generally very robust and so getting one second
  hand does not necessarily compromise on quality.

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Must Haves

• There is now an abundance of eCommerce software
  for companies to choose from which means you are
  more likely to find one suitable to your
  preferences. Which one you prefer can be
  discussed with your website designers in the
  initial stages as they can outline the benefits
  of each one related to your sites needs.
• Marketing
• There are so many different ways to market any
  company, but as an eCommerce brand focusing on
  the internet and going to your target audience
  directly offers an excellent approach. Digital
  marketing techniques that include SEO (search
  engine optimisation), PPC (pay per click) and
  social media management are excellent for giving
  your brand an authoritative online voice.
  Generally speaking, PPC advertising is often seen
  as a quick win as you pay for each time a user
  clicks on your ad, while SEO is seen as a natural
  growth that slowly pushes your site up the search
  engine rankings, following the fact that more
  search engine users click on the highest search
  results first.

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Must Haves

• What is proving to be a great marketing source to
  start-ups is social media because of its
  affordability and the very personal nature of its
  reach. Although there are paid options, having a
  social media account on any of the main platforms
  is free for everyone. This gives you, the
  company, a chance to interact directly with
  existing and potential customers for nothing.
  Just as you would like to tell all the people
  walking past that you have some great offers in
  your store, you can create a social post to do
  the same and invite visitors directly to your
  site with a link.
• Aesthetics
• At the initial concept stage you should have
  decided whether your new business was to be
  entirely online or whether you would also have
  physical stores too. Or perhaps its the other
  way round and you have a physical space you work
  from but in expansion you have turned to
  eCommerce. Regardless of the reason for it, if
  you have any customer facing elements to your
  business these need to look as good as possible.
  Today it is easy to combine practicality with
  aesthetics thanks to the interior trends of
  mixing textures and materials. In particular,
  Industrial vintage furniture is great if your
  eCommerce business faces customers but does not
  focus on this element as it looks great but is
  also very sturdy and reliable.

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Environment

• One important consideration in running a business
  that is so easily overlooked when starting out is
  its long-term maintenance. This is not so much a
  problem for online stores and studios where
  appearance there isnt key, but you still need to
  look after this space to keep your business
  running smoothly. Recycling and energy efficiency
  are highly rewarded by local authorities, plus
  they naturally save you money so think of this
  wherever possible. Moreover, there are other
  tricks which will ease your carbon footprint,
  which in this day and age, could encourage
  customers to shop with you over your competition.
  Many recycling specialists are now able to create
  energy from waste which has a dramatic effect on
  minimizing landfill altogether.
• So here you go, some of the main considerations
  to make when you are setting up your own
  eCommerce business in order to have the best
  chance of success. First and foremost beyond all
  of these tips, however, should be the
  organization. If you and your business are
  organized effectively you will be fully aware of
  incomings and outgoings, meetings, important
  deadlines and areas of concern so that you can be
  prepared for any eventuality.
• http//www.chrisducker.com/internet-business-failu
  res/
• http//www.forbes.com/profile/jeff-bezos/

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