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ENTREPRENEURSHIP . Lecture No: 21 Resource Person: Malik Jawad Saboor Assistant Professor Department of Management Sciences COMSATS Institute of Information Technology Islamabad. Previous Lecture Review.

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Entrepreneurship

ENTREPRENEURSHIP

Lecture No: 21

Resource Person:

Malik JawadSaboor

Assistant Professor

Department of Management Sciences

COMSATS Institute of Information Technology

Islamabad.


Previous lecture review

Previous Lecture Review

  • Explain the differences in the three types of capital small businesses require: fixed, working, and growth.

  • Describe the differences in equity capital and debt capital and the advantages and disadvantages of each.

  • Describe the various sources of equity capital available to entrepreneurs, including personal savings, friends and relatives, angels, partners, corporations, venture capital, and public stock offerings.

  • Describe the various sources of debt capital and the advantages and disadvantages of each.

  • Discuss valuable methods of financing growth and expansion internally.


Objectives

  • Describe the benefits of selling on the World Wide Web.

  • Understand the factors an entrepreneur should consider before launching into e-commerce.

  • Explain the twelve myths of e-commerce and how to avoid falling victim to them.

  • Learn the techniques of designing a killer Web site.

  • Entrepreneurs in Action – Bill Gates

OBJECTIVES


The internet changing the face of business

The Internet: Changing the Face of Business

  • The most successful companies embrace the Internet as a mechanism for transforming their companies and for changing everything about the way they do business.

  • Business basics still apply online just as much as they do in brick-and-mortar businesses.

  • In the world of e-commerce, size matters less than speed and flexibility.


Benefits of selling on the web

Benefits of Selling on the Web

  • Opportunity to increase revenues and profits

    • Study: 72 percent of small online companies report increased sales, and 65 percent report higher profits.

  • Ability to expand into global markets

  • Ability to remain open 24 hours a day, seven days a week

  • Capacity to use the Web’s interactive nature to enhance customer service

  • Power to educate and inform


Benefits of selling on the web1

Benefits of Selling on the Web

  • Ability to lower the cost of doing business

    • Study: 73 percent of online small companies experienced savings because of lower administrative costs.

  • Ability to spot new business opportunities and capitalize on them

  • Ability to grow faster

  • Power to track sales results

    • Conversion rate – the percentage of customers to a Web site who actually make a purchase.


E commerce

E-Commerce

  • 70 percent of small businesses in the U.S. have a Web presence.

  • Of those small business owners who do not have Web sites:

    • 77 percent say their products and services are not suitable for selling online.

    • 37 percent say they do not see any benefits of selling online.

  • Barriers:

    • Not knowing how or where to start

    • Cost and time concerns


Factors to consider before launching into e commerce

Factors to Consider Before Launching into E-Commerce

  • How a company exploits the Web’s interconnectivity and the opportunities it creates to transform relationships with suppliers, customers, and others is crucial to its success.

  • Web success requires a company to develop a plan for integrating the Web into its overall strategy.


Factors to consider before launching into e commerce1

Factors to Consider Before Launching into E-Commerce

  • Developing a deep, lasting relationship with customers takes on even greater importance on the Web.

  • Creating a meaningful presence on the Web requires an ongoing investment of resources – time, money, energy, and talent.

  • Measuring the success of a Web-based sales effort is essential to remaining relevant to customers whose tastes, needs, and preferences constantly change.


Assessing your company s online potential

Assessing Your Company’s Online Potential

  • Does your product have broad appeal to customers everywhere?

  • Do you want to sell your product to customers outside of your immediate geographic area?

  • Can the product you sell be delivered conveniently and economically?

  • Can your company realize significant cost advantages by going online?

  • Can you draw customers to your company’s Web site with a reasonable investment?


12 myths of e commerce

12 Myths of E-Commerce

Myth 1: Setting up a business on the Web is easy and inexpensive.


Follow up investments

Follow-up Investments

Setting up a Web site is only the first investment:

  • Redesign Web site

  • Buy more computer hardware

  • Automate or expand warehouse to meet customer demand

  • Integrate Web site into inventory control system

  • Increase customer call-center capacity

    Lesson: Focus on your company’s core competencies and outsource all other aspects of doing business online.


12 myths of e commerce1

12 Myths of E-Commerce

Myth 2: If I launch a site, customers will flock to it.


Promotion is the key

Promotion Is the Key!

  • Print URL on everything related to your business

  • Web-based newsletters

  • Write articles that link to your company’s Web site

  • Host a customer chat room

  • Sponsor online contests

  • Establish a blog


12 myths of e commerce2

12 Myths of E-Commerce

Myth 3: Making money on the Web is easy.

Study: Web retailers invest 65 percent of revenue in marketing and advertising, compared to just 4 percent for their off-line counterparts.

Myth 4: Privacy is not an important issue on the Web.


Privacy online

Privacy Online

  • Study: 80 percent of Internet users say that privacy of their personal information is either important or very important.

  • Estimate: If online companies were able to alleviate customers’ online privacy and security issues, online retail sales would be 24 percent higher!


12 myths of e commerce3

12 Myths of E-Commerce

Myth 5: The most important part of any e-commerce effort is technology.

Myth 6: Strategy? I don’t need a strategy to sell on the Web! Just give me a Web site and the rest will take care of itself.

Myth 7: On the Web, customer service is not as important as it is in a traditional retail store.


The importance of service on the web

The Importance of Serviceon the Web

  • Study: 57 percent of Web shoppers who fill their online shopping carts become frustrated and leave the site before checking out.

  • Result: For every $1 they spend online, customers leave behind $4.51 in abandoned shopping carts.

  • Reasons:

    • Shipping and handling charges too high

    • Delivery times too long

    • Checkout process too lengthy

    • Insufficient product information available


12 myths of e commerce4

12 Myths of E-Commerce

Myth 8: Flash makes a Web site better.

Lesson: Simplicity rules!

Myth 9: It’s what’s up front that counts.

Myth 10: E-commerce will cause brick-and-mortar retail stores to disappear.

Myth 11: The greatest opportunity for e-commerce lies in the retail sector.

Myth 12: It’s too late to get on the Web.


Strategies for e success

Strategies for E-Success

  • Focus on a market niche.

  • Develop a community.

  • Attract visitors by giving away “freebies.”

  • Make creative use of e-mail, but avoid becoming a “spammer.”


Strategies for e success1

Strategies for E-Success

  • Make sure your Web site says “credibility.”

  • Consider forming strategic alliances.

  • Make the most of the Web’s global reach.

  • Promote your site online and offline.

  • Develop an effective search engine optimization strategy.


Designing a killer web site

Designing a Killer Web Site

  • Understand your target customer.

  • Give customers what they want.

  • Select a domain name that is consistent with the image you want to create for your company and register it.

    • Short

    • Memorable

    • Indicative of a company’s business

    • Easy to spell


Designing a killer web site1

Designing a Killer Web Site

  • Make your Web site easy to navigate.

  • Create a gift idea center.

  • Build loyalty by giving online customers a reason to return to your Web site.

  • Establish hyperlinks with other businesses, preferably those selling complementary products.


Designing a killer web site2

Designing a Killer Web Site

  • Include an e-mail option and a telephone number in your site.

  • Give shoppers the ability to track their orders online.

  • Offer Web shoppers a special all their own.

  • Follow a simple design.

  • Create a fast, simple checkout process.


Designing a killer web site3

Designing a Killer Web Site

  • Assure customers that their online transactions are secure.

  • Post shipping and handling charges up front.

  • Confirm transactions.

  • Keep your site updated.

  • Test your site often.

  • Consider hiring a professional to design your site.


Entrepreneur in action

Entrepreneur in Action

  • Bill Gates


What he said

What he said:

  • Life is not fair – get to use it!

  • The world won´t care about your self-esteem. The world will expect you to accomplish something before you feel good about yourself.

  • You will not make $60,0000 a year right out of high school and you won´t be a vice president with a car-phone until you earn these things.


What he said1

What he said:

  • If you think your teacher is tough, wait till you get a boss.

  • Flipping burgers is not beneath your dignity.Your grandparents had a different word for burger-flipping: they called it opportunity.

  • If you mess up, it´s not your parents´fault, so don´t whine about your mistakes, learn from them.


What he said2

What he said:

  • Life is not divided into semesters. You don´t get summers off, and very few employers are interested in helping you find yourself. Do that on your own time.

  • Television is not real life. In real life, people actually have to leave the coffee shop and go to jobs.


Lecture review

  • Describe the benefits of selling on the World Wide Web.

  • Understand the factors an entrepreneur should consider before launching into e-commerce.

  • Explain the twelve myths of e-commerce and how to avoid falling victim to them.

  • Learn the techniques of designing a killer Web site.

  • Entrepreneurs in Action – Bill Gates

Lecture Review


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