E-Business Workbook: Essentials to Starting an e-Business

H O W - T O E S S E N T I A L S T O S T A R T I N G A N E - B U S I N E S S

E-Business Workbook

Copyright 2009, 2007 © Debora Hawkins

Copyright 2009, 2007 © Debora Hawkins. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording, scanning or otherwise, except with the prior written permission of the author. Requests to the author for permission should be addressed to Debora Hawkins, PO Box 172, Rye, New York 10580. LC Control No.: 2007930009LCCN


Introduction The purpose of this How-To E-Business Workbook is to acquaint entrepreneurs with the essentials of starting an e-business. This workbook consists of steps on how to conduct your research, organize, plan, and work towards developing a successful internet-based business. This workbook is also based on the critical analysis of the Internet, work experience within the technology sector, online business experience, many conversations with experts and small business owners, as well as, other sources. The E-Business Workbook should act as a component towards developing your E-Business Plan and continuous process of researching external factors such as the industry, consumers and the competition. The suggested information is flexible and should also work in conjunction with other researching and planning resources including on and offline market research (materials), education, work & industry experience, business planning manuals, as well as advice from professionals and experts who understand your industry. For your convenience, techniques, exercises, worksheets, and mini e-business readiness test have been included in this workbook. These tools can be duplicated for the purpose of completing the assigned exercises, worksheets and developing your E-Business Plan but, cannot be used for any commercial purpose without written permission.

The knowledge you acquire from this experience will steer you in the right direction to developing a plan to start and maintain your e-business.


Table of Contents Introduction i

C H A P T E R 1

E-Business Focus: Your Idea 1

Explore your Idea 2

C H A P T E R 2

Marketing 8

Market Research 9

Industry 15

Customers 22

Products or Services 30

Pricing 37

Distribution Channels 40

Competition 43

E-Marketing Opportunities 50

E-Marketing Strategy 60

C H A P T E R 3

Web Site Development Essentials 71

Naming your E-Business 72

Web site Type 77

Web Site Design/Layout 79

Web Content 81

Web Site Development Options 83

C H A P T E R 4

Ecommerce 95

Ecommerce Components 96

Business Bank Account 96

Payment Interface (Shopping Cart) 96

Payment Gateway 98

Technology 102

ISP & E-mail 102

Web Developer 103

Web Hosting Provider 103

C H A P T E R 5

Management Focus: Managing your E-

business 113

Define your Customers 114

Employee Management 115

Web site Management 117

E-Communication Management 121

Supplier Management 125

Promotion 127

C H A P T E R 6

Action Plan 129

Action Plan Components 130

E-Business Readiness Test 141

E - B U S I N E S S W O R K B O O K

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E-Business Focus: Your Idea Although your idea to start an e-business is exciting; it requires knowledge, motivation, dedication, hard work, time and money.

etermining if your new idea is worth developing can be a daunting task. Many e-business owners fail because they do not understood that an idea must be explored to determine its viability. In contrast, business owners who have gone the extra mile to investigate whether or not their idea is

worth the financial investment probably are still in business.

As a new e-business owner, you should take this time and opportunity to explore your idea. By thoroughly investigating your idea and using common techniques, such as market research and strategic planning, you may discover opportunities that have never been discovered. Remember, your idea is one of the most important aspects of planning your e-business. It is your opportunity to turn

your idea into an e-business that not only satisfies the needs of consumers in different geographic areas, but also an avenue to turn your idea into generated revenue.

This chapter focuses on the tools needed to explore your idea. Samples and a practical framework for developing your idea are provided. The process of creating a description of your idea and evaluating your idea is discussed, as well.

After studying this chapter you should be able to do the following:

• Explore your idea • Describe your idea and it’s benefits • Evaluate your idea • Determine the pros and cons of your idea

Chapter

1

I C O N K E Y

Valuable information

Test your knowledge

Internet exercise

Workbook review

D

2

Explore your Idea! To begin this process you must have a basic idea of what you would like to achieve in this new venture. And this can be accomplished by exploring your idea.

There are six elements that should be determined prior to developing a description of your idea. You must have a notion of the: • trade and industry you will enter • type of products or services you will sell on and offline • pricing structure (discounted, competitively priced, or high-priced) • suppliers • e-business model (Table 1.1) that fits your ideal e-business • distribution channels to reach targeted consumers

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TABLE 1.1

An E-Business Model determines how a company plans to earn money. As indicated in Table 1.1, there are several models which are utilized in the market today.

Model Name

Target Group

Model Groups

Business Sample

Merchant Model B2C Click and mortar1 Barnes & Noble www.bn.com

(books, clothing, computers, etc.)

Manufacturing (Direct) Model

B2C Click and mortar (build to order or custom products)

Dell Computer www.dell.com

Service Model B2C or B2B

Subscription-based access

Real Simple Magazine www.realsimple.com

"

B2C or B2B

Pre-Paid Access Association (Member fees)

Broker Model B2B, B2C, or

C2C

Auction eBay www.eBay.com

Affiliate Model B2C Commissioned based

Various

Advertiser Model B2C or B2B

User registration based New York Times Digital

"

B2C or B2B

Target Advertising sites/portals

DoubleClick www.doubleclick.com

Community Model C2C, B2C, B2B

Forums, social networking groups, etc.

www.ning.com

Model Name Source: Ius mentis: Law and technology explained. www.iusmentis.com/business/ecommerce/businessmodels/ Note: (B2B) Business-to-Business, (B2C) Business-to-Consumers, (C2C) Consumer -to-Consumer.

1 Click and Mortar - Click-and-mortar describes a store that exists online and in the physical world. (Source: http://www.webopedia.com/TERM/C/click-and-mortar.html)

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Techniques, Tools & Tips Techniques: There are several steps one should take when exploring ideas to start an e-business:

Step 1: Take a few minutes to think about three e-business ideas that you believe will work in today’s market.

Prioritize*

Step 2: Write those ideas in the space provided below. Once you have made your list show the priority of each idea in the right column with the following rating system: (1 = Excellent; 2 = Good; 3 = Fair; 4 = Poor)

Examples

Your Idea

1 Discount Designer Shoe Internet Retailer

Prioritize*

Your Idea

• The trade (retail, manufacturing, service)

Step 3: Begin developing your idea by writing the idea on a separate sheet of paper.

The ‘Your Idea’ description should consist of the following:

• The Industry (apparel, travel, health, real estate) • What type of products or services you will sell • Idea of your product or service pricing structure • Who will supply your products or services • The E-Business Model • Distributions Channels (Internet, store, direct sales)

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Sample Only – Do not copy in detail

Once you have confirmed the final draft of ‘Your Idea’, write it in the space provided below.

Example: The XYZ Company is a start-up Internet retailer that markets high-quality designer women’s shoes and accessories sold at discounts of up to 75% off of retail value. The XYZ Company’s primary product offering includes a full range of women’s career, casual and evening shoes and accessories, manufactured by third-party suppliers. XYZ’s products are sold direct-to-consumers (B2C) through online, retail and direct sales distribution channels.

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Step 4: Benefits:

Describe the benefits of your idea?

Step 5: Idea Evaluation:

Identify 1-2 individuals within your targeted audience and ask them for an honest evaluation of your idea and its marketability.

Step 6: Pros and Cons:

Describe the pros and cons of your e-business idea? Explain?

E-Business Workbook: Essentials to Starting an e-Business

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