Starting an E-business

ByK ArathiCatherine SamJennifer ChrisildaMary PreethiDeepak Ramesh

What is e-business all about?

• It is more than having a website to operate your business.

It includes• Accessing the internet to gather information about

suppliers, products , industry etc.• Usage of electronic transactions e.g: Online banking.• Online communications e.g: email• Human resource management through intranet to

establish a common platform • CRM• Using software for management of various projects

E-business tools

• Mobile phones• Personal digital assistants• Electronic data interchange• File transfer• Facsimile• Video conferencing, internet, intranet and

extranet

Advantages• Quick, easy communications• Enhanced marketing capability• Increase in hours of operation e.g: A website

which is accessible 24 x 7.• Reducing labor and cost of doing business by

efficient methods .• Improved business models and profits.

Steps to start an e-business

Sources of Funding

Bootstrapping• Bootstrapping is funding the business

venture completely on their own• The advantage of bootstrapping is that the

business depends only on the funds of the creator

• Bootstrapping provides total control• At times finding the cash required for the

business might require longer time and hard work

Friends and Family

• Friends and Family of the entrepreneur are the people who want the best for him

• They generally provide the necessary funding and backing to launch the e-business

• They are the ideal funding resources• If payments are not made in time could lead

to mistrust causing a strain in the relationship

Bank Loans• Banks try to lure start-ups with a variety of

loans • Care should be taken before getting a loan if

its feasible for the venture to meet the eligibility required for the bank loan as well as to ensure repayments without defaults

• A detailed analysis needs to take place before deciding on the type of loan that is best suited for the venture

Network Funding• Build an online model of the e-business and

invite people or friends who might be interested in investing based on the private information available in the network

• An example of a Network Funding site is www.bolstr.com

• Network Funding keeps your potential investors and investors updated about the progress of the venture

Crowd Funding

• Entrepreneurs can project their business idea on sites and wait for interested investors to help them financially

• Crowd Funding helps the project owner raise a lot of money based on the central idea

• It also helps us to know the feedback about the business from the crowd through feedback

• Ex: www.zequs.com

Venture Capitalists

• Venture Capitalists represent a financial institution mostly

• Venture Capitalists prefer to invest not in the start up stage but for the next stage

• Venture Capitalists also push for a seat in the Board of the company and tend to have an influence in key decision making decisions

Angel Investors• Angel Investors are single investors who

invest large amount of money if they believe on an enterprise

• Angel Investors are willing to invest a large amount of money in the start up stage

• Do not request for a place in the board• Take the role of a mentor/advisor of the e-

business at times

Setting up a website

Setting up a website - HOW?

Building the idea – products, competitors

Building a brand name Purchasing the right domain name Selecting proper server Setting a secure payment method Adding a shopping cartAnd DONE!!!

Critical Issues

Organising products & managing inventory

Getting the proposition & pricing right

Content management system Customer relationship

management Security issues

Mistakes to avoid

Complicating the checkout process

No proper promotion Slow loading speed of the site Improper business plan Improper marketing strategy

E-marketing

E-marketing-What does it entail?

• Using digital technologies to garner popularity

• Marketing Products- Creation, distribution, promotion and pricing

• An e-business marketing plan that is effective

Electronic business Formula

Decoding the formula• Electronic Commerce (EC): Internet, bar code

scanners• Business Intelligence(BI): Info about

customers, suppliers, etc• Customer Relationship Management (CRM):

Strategies for customer retention • Supply Chain Management(SCM)• Enterprise Resource Planning(ERP)

How to attract customers?

• Cross marketing and cross selling

• Opening page and speed of the website

• Be a step ahead of your customers

• Offer multiple payment options

Ads that made a mark!

Tools for marketingBlog Links

Reciprocal Branding

Co-branding

Business Models

E-Commerce Industry

How does an online sale happen?

The Flipkart Success Story

Why Amazon clicked!

• Strategic business plan• Lowest prices• Free shipping• Online inventory• Economies of scale• Personalized shopping• Customer satisfaction• Support tools

The Zomato Success Story

Challenges

What are the hurdles?

References• http://www.theonlineseller.com/2012/04/30/10-ways-to-f

und-your-e-commerce-business/

• http://bizfinance.about.com/od/equityfinancing/qt/The-Differences-Between-Venture-Capital-And-Angel-Investing.htm

• http://www.thebusinessangel.org/difference-businessangel-venturecapital.html

• http://paulgraham.com/startupfunding.html• https://www.google.co.in/search?

newwindow=1&hl=en&biw=1366&bih=624&site=imghp&tbm=isch&sa=1&q=amazon+success+story&oq=amazon+success+story&gs_l=img.3...175238.182953.0.183411.23.22.0.1.1.0.393.4267.6j4j3j8.21.0....0...1c.1.36.img..16.7.1397.GnQHQWPtVEo

• http://forbesindia.com/printcontent/32382• http://www.letsintern.com/blog/zomato/• http://www.ebay.com/gds/8-steps-to-starting-your-

ebusiness-/10000000004503801/g.html• http://internet-for-beginners.yoexpert.com/start-your-

own-web-site/what-are-the-steps-to-starting-an-e-business-websi-718.html

• http://jasonmatthews.hubpages.com/hub/Six-Simple-Steps-to-Starting-an-e-Business

• http://searchcio.techtarget.com/definition/e-business

THANK YOU