Do Business Well

You will usually need a business license. This is a requirement of the city or county where the enterprise will be located. You will almost certainly need this license if you plan to operate out of a commercial facility such as a storefront, office building, or warehouse. You may not need a business license if you have a home-based business that provides professional services, such as a manufacturers’ representative or business consultant, or if you are part of a multilevel organization.

When you begin to research your location, you’ll see the major disparity in business climate from city to city or county to county. Some are very eager to have businesses of your type locate in their area. You may be bringing jobs for their citizens and additional tax revenues for their coffers. In these cities you may find that getting a license is a ten-minute exercise in filling out a form and paying a small (under one hundred dollars) fee. Continue Reading »

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4. You lose your location. You can insure your building against destruction through fire, flood, or earthquake. You can also purchase business-interruption insurance that is supposed to give you enough staying power to reopen in a new place. What if you don’t have that insurance? Or you have a month-to-month rental, and your landlord gives you notice? Maybe you miss a lease payment, and the building’s owner holds you to the letter of the lease and kicks youout?

For many businesses, this type of disaster in the early going isall but insurmountable. This is especially so where there has been a large investment in build-outs, signage, or fixtures that can’t be easily transferred to a new location. Here are some approaches thatmight save your bacon. Continue Reading »

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Disadvantages

Retailers have been slow to take up e-Retailing. This is to some extent under standable in the light of the many disadvantages and problems. Retailers, for example, may lack the technical know-how, the substantial investment required or the order fulfilment capabilities. Set-up costs start from around £20,000 fo a small site, up to £500,000 for a large operation. And set-up costs are only th start: Datamonitor estimates that high street retailers are spending more o ongoing costs than on setting up new sites.

DISADVANTAGES OF E-RETAILING FOR RETAILERS

* May lack know-how and technology

• Substantial set-up, investment and ongoing costs

* Complex logistics of fulfilment

• e-Selling less powerful than face-to-face — uptake slow for goods selected by taste or smell

* Fewer impulse purchases

* Legal problems

Less role for traditional high street retail expertise

• Pressure on margins and prices in-store

* After-sales care difficulties

There can be legal problems. For example, if purchaser and supplier are ni_l
different countries, there may be conflict between the laws of the two countries.’
A further disadvantage is that e-Selling is less powerful than face-to-face selling

(it is easier to say ‘no’ to a computer). This viewpoint is linked to a concern of raditional high street retailers that e-Retailing offers a diminished role for their expertise. For example, there are obvious difficulties with products sold by `atmosphere’ — touch, feel, smell — and with impulse purchases. In addition, consumers have a perception of lower prices online. This puts pressure on margins for e-Retailing, and can lead to shoppers expecting consistent low prices in store. Finally, after-care can be difficult, especially if the shopper is overseas.

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