It’s no secret that the explosion of the internet has irrevocably changed the face of business. Although it can seem like the internet is the be-all and end-all of business activities, it is always best to take into account the needs of your business and to weigh the advantages and disadvantages of including the internet in your business model.
Advantage: Potential Access to a Global Market
The internet is an excellent tool for increasing the visibility of your business. The internet overlooks physical borders, thereby giving your products and services heightened exposure to a global audience. This can lead to increased sales, as your business offer reaches new markets that would otherwise be beyond your physical reach, especially if you are a small business owner.
Advantage: Reduced Marketing Costs
With the rise of the internet, there has been a huge increase in various social media platforms. These platforms that are designed to connect people with one another become powerful, relatively low-cost marketing channels that can be utilized by both large and small enterprises. The internet means that you can put your products and services right in front of your target market without using the help of a formal marketing agency to do it for you, but at a much greater cost.
Advantages: Reduced Building Overhead
Many jobs and business functions can be performed online. This means that incorporating the internet into your business functions could open up an opportunity to have remote staff who can work from home, thereby reducing the cost of having an office building.
Advantage: Automated Systems and Resource Sharing
The internet has enabled a million and one ways you can make your life easier as a business owner. You can do your bookkeeping and customer service care online, and get bespoke solutions that automate how customers purchase your goods and services. In short, it can streamline processes while saving valuable work hours from performing tedious tasks.
In addition, the internet enables you to share knowledge and information quickly and easily. Whether you are sharing documents or best business practices, emails, apps, webinars and everything in between, sharing resources has become easy and efficient.
Disadvantage: Potentially Lower Profit Margins
The internet has upped the market for many different types of businesses. Although this has made it easier for customers to access your products and services, the internet has also made it easy for customers to access the products and services of your competitors, as well. To be at the forefront of customers' minds, businesses have resorted to slashing prices drastically, which has also drastically reduced profit margins. If you conduct your business on the internet, prepare to lose sales if customers can find the same product on the market at a lower cost.
Disadvantage: Reduced Physical Interactions
Some of the most creative ideas are borne out of the face-to-face interactions that people have with one another. While the internet has succeeded in connecting people to one another in a superficial way, it cannot adequately replicate the human interactions of interacting face-to-face with colleagues and customers.
Disadvantage: Negative Reviews
People now take to social media to voice their concerns and their viewpoints about a business. People are more likely to complain than they are to compliment a business, and this can damage the reputation of a company. Plenty of examples can be found of complaints that have gone ‘viral’ and that have forced businesses to change their strategies or change their products, resulting in a loss of revenue.
The internet is a powerful tool not only for businesses but also for consumers. Handle it with care and in accordance with the needs and model of your business, so that the advantages are maximized and that the disadvantages can be mitigated.
