Risks that are Associated with e-Business
Variety of choices can be overwhelming
Some entrepreneurs work best when they have a limited set of choices which they can apply to the selection criteria which they are using at the time. The problem with e-business is that there are so many choices. A search for “cars” on Google will bring up millions of pages. Each of those websites has a unique perspective on the product. The idea that you have in mind may be so competitive that you virtually stand no chance of ever succeeding with it.You may not have the expertise that you need
The e-business sector might require certain technical skills which you simply do not possess. For example you might set up a website using a template but then find that your final pages are skewed. The corrective work requires skills and you may not have the money to hire an expert. It is tempting to ignore the problem if you do not have the skills to deal with it. However the business has to be promoted on a professional basis and you cannot afford to present shoddy work to the clients.
Market can collapse very easily
The credit crunch has taught us that the market is not made of gold or silver. Even the great economy of the USA is facing a credit rating reassessment. You could be caught up in a bubble when everything begins to collapse. Electronic businesses can wipe off billions off your net worth in a matter of seconds. If you are trading in foreign currency and suddenly your reserve currency begins to fall in price. It is at that point that other traders will completely refuse to pick up your reserves. That means that you will be facing financial ruin.
You can be engulfed by the big boys
If your business idea is taking off in a big way, it is possible that other major players will want to get involved. They can offer to buy you out or they may simple make the market impossible to manage. Affiliate marketing used to be a relatively safe form of e-business but these days there are major syndicates that are securing the majority of the contracts. It would be very difficult for you to continue with the business model unless you had the means through which you can develop the product. Likewise you need to consider whether the capital requirements of big business are really within your budget.
Business Resources :
- E-Business Requires Tender Loving Care
- Contracting Challenges in E-Business
- Marketing Mix for E-Business
- How to Improve Your E-Business Website
- Commercial Dynamics of E-Business
- Surviving the Pitfalls of e-Business
- Management of Virtual Relationships in E-Business
- Techniques for Establishing and E-Business
- Technology Can Bring Your Customers Closers to E-Business
- Small Business With Innovative Marketing Channel
- Effects of Technology on Marketing Management and Products…