Small Business - An Overview
A small business can be set-up by an individual or a
group of individuals. In the United States the Small Business Act states
that a small business concern is "one that is independently owned
and operated and which is not dominant in its field of operation."
[Source: US Small Business Administration http://www.sba.gov/size/]
On the Internet the term "small business" is often interchanged
with "home based business" because the business owner operates
from home or a small office. Generally, small business owners look for
revenue to supplement their other sources of income or they earn enough
to support their household with something to spare.
Many small business owners are able to earn substantially more while managing
their operations on small scale.
The growth of the Internet has provided tremendous scope for the growth
of small business. Every year tens of thousands of people are attracted
because it is extremely easy to start a business on the internet without
incurring much cost.
Some of the more common types of small business on the Internet are discussed
below. Although there is negligible cost in starting many of them, the
business owners end up spending considerable amounts trying to promote
their business. Statistics of the last several years show that very small
percentage of people involved in small business are able to earn a profit.
But small business provides opportunities to earn huge amounts and serious
players with the correct approach are able to take advantage of these
opportunities.
There are numerous ways in which a small business can be set up on the
internet. Some of the more common types are discussed below:
#1. Affiliate Programs & Network Marketing
They are by far the most common type of business preferred by small business
owners. The business owners earn commission by selling or facilitating
sales of products and services of other organizations. There are thousands
of affiliate programs available. On the Internet, it is very simple to
register with these programs. The registration is free for the majority
of the programs. Therefore people who want to earn extra money are easily
attracted by affiliate programs. After all there is hardly any risk involved
in becoming an affiliate.
All affiliate programs do not maintain the same standard of efficiency
and ethics. They vary in quality from excellent to extremely bad. Therefore
the small business owner has to be very careful in selecting the affiliate
programs he/she wants to be associated with (see Affiliate
Marketing and Network
Marketing).
#2. Displaying Ads on Web Pages
Google Adsense has made display of contextual ads a major source of revenue.
The business owner puts up ads such as Google Adsense on his/her web pages.
When a visitor clicks on the displayed ads the business owner earns a
commission. Normally the web pages will display not only ads but also
affiliate and other links providing multiple streams of earnings.
#3. Selling Your Own Products
Small business can be set up for selling the products prepared by the
owner. The product could be in digital form or it could be a physical
product. The business owner can also start an affiliate program to sell
his/her own products. In many cases the products are not really prepared
by the owner of the business. The products are made by someone else, but
the business owner buys the right to sell the products as his/her own.
This is particularly true of digital products.
#4. Online Jobs
Plenty of online jobs are available for those who wish to offer their
services. They get paid by number of jobs completed. There are many on-line
jobs (where the completed jobs are submitted on-line) such as mail order
jobs, typing jobs, transcription, writing articles as a ghost writer,
designing websites, preparing sales pages etc., to name just a few.
#5. Online Surveys
There are many organizations that conduct surveys for themselves or their
clients. The business owner can register with these organizations. He/she
can be invited to participate in the surveys when his/her profile is found
suitable.
Compensation for participation in surveys varies greatly. In many cases
cash awards are given to selected people and selection is done by draw
of lots. In some other cases all participants are paid by cash. Some organizations
compensate by giving gifts to the participants.
#6. Other Sources of Internet Income
There are many sources of revenue which are specific to the net. There
are programs that pay their members for reading letters, or only for opening
them. Auto surfing is another source of revenue in which payments are
made for viewing certain minimum number of pages. The auto surfing programs
do not guarantee payments. Therefore members can participate at their
own risk.
To summarise...
These are just some of the opportunities for small business on the Internet.
But success does not come automatically or instantly. It takes time to
build and grow a business, even the small business. But, if you are prepared
to put in persistent effort and you have the right mindset, you can expect
to make a fortune from your business.
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