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Thinking of Starting a New E-business?

Ecommerce

While we are entering into the festive season and not too many people are planning on launching any type of business at this time of year.  However many a baby inking about the upcoming year and giving us some thought to perhaps starting some type of online business.   Setting up e-business has some similarities to what a non-land business would, however there are also some significant differences.   It doesn’t matter what type of business is being set up it is the responsibility of the prospective business owner to do their homework and make sure that they plan from start to finish what their intentions are.

One of the biggest concerns about starting an e-business is just how profitable can it really be?   The answer to that question is all going to depend on many different circumstances.   It is going to depend on the type of business as a well as the running and operation of the business in its totality.

It all begins with understanding what e-business really is.   The definition of an e-business is the use of Internet technology in order to operate your business.   E-business is electronic business.   However, it is not just a matter of setting up a website and hoping to make an income from it.

It is a combination of not only having your website but using the technology that is available on the Internet to help you facilitate your business.   It is often referred to as e-commerce.   When looking at e-commerce this focuses around the buying and selling online, whereas e-business is a broader term that evolves around using many different types of electronic activities.

There are many different reasons why even on land companies will use e-business.   They will use this for internal communication and to keep their business organized.   It is also an exceptional way for marketing.   It is also a great way to interact with new and existing customers.   It can be used to find business information that will be supportive of the company.  It is also a resource for hiring and getting the necessary contractors.  It can be used for scheduling and tracking shipments and keeping track of inventory, and it can also be set up for banking online as well as accounting.   It also allows access to many different government programs and services.

Why would you want to consider a e-business rather than just starting an on-land business?

The answer to this is many.   It can enhance the services that you’re going to offer and give you the chance to access customers that you normally would not be able to do with your on land establishment.   You can market your business far more cost-effectively.   You can organize your business and streamline it more effectively as an e-business.   You are able to compare your products and prices and also be on par with your competitors who are already utilizing e-business sector.

You may also find that business transactions come in at a lower cost.   It will also allow you to enhance your visibility in that many of your customers are most likely used to going online to finding their needs.  You need to be able to be found if you want your business to be successful.

Keep in mind no matter whether you are running a e-commerce, e-business, or on land business you need to keep proper financial accounting records, and you should be relying on the resources of a quality and experienced accountant.

 

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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