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Home » Business And Finance Articles » Ecommerce Business Proceed With Caution

E-Commerce Business – Proceed With Caution

There is an epidemic in the United States. An epidemic that is so overlooked, if gone unchecked any longer, could cripple the economic strata of the U.S. An epidemic that could be responsible for the genocide of millions of businesses. Curious what it is? I am referring to the gross mismanagement of e-commerce businesses. Okay, perhaps the phrases "cripple the economic strata" and "genocide of millions of businesses" was stretching a bit too far, however, it is a fact that the bulk of e-commerce businesses are not built on an infrastructure that embodies stability. I am referring to a lack of customer service support in the umbrella of businesses designating themselves "e-commerce" or "virtual businesses".

It is true that the lure of starting the e-commerce business is powerful. An endeavor as such usually requires little or no capital investment, a credit card processing account, and rudimentary knowledge of HTML coding. These three elements compose the basic formula for starting an e-commerce business. There is a marked difference in the formula for starting a business and the formula for maintaining a business. To expound on the latter, what truly makes a business thrive is proper customer relationship management and immediate telephone / live voice account support. This is the key component that is missing from most on-line or "virtual" businesses.

Take, for instance, the internet based company Netflix. If you are unfamiliar with the company, they are a relatively young e-commerce business specializing in mail order DVD rental. The minds behind the ingenious idea that is the basis of Netflix failed to create telephone support for their product. There is no doubt this decision was a calculated one as they most likely weighed the cost of maintaining an in-house call center vs. integrating purely e-mail based support. Without looking at the numbers side of the argument, imagine the frustrated consumer having problems with their order and having to rely on a 24 hour lagged e-mail response system to rectify their account issues. Based on this plausible conjecture, I believe lack of live operator support will be the ruin of the Netflix organization and the downfall of all e-commerce businesses that follow the same train of thought. What these businesses do not realize is that it is possible and extremely cost effective to outsource your call center needs to an established advanced call center facility. This solution has a two fold benefit. It serves to establish a solid foundation of customer relationship management and opens businesses up to benefit from word of mouth advertising.

I believe even a small internet business can greatly benefit from utilizing a call center to manage their customer service or sales calls. The initial investment is usually zero (excluding research time to find the appropriate facility) and most call centers charge on a per call basis (meaning you only get charged for the calls they actually receive). If looking at business from the customer's perspective as opposed to looking at it from an initial profit standpoint, it behooves all e-commerce businesses to initially setup a live call center to manage all of their calls. If the infrastructure is not initially setup correctly, your business may fail before it has even begun.

And here is another random article you might be interested in...

Do You Have What It Takes To Be An Entrepreneur?

Q: I am interested in starting my own business. I have a business degree and lots of experience in my chosen field, but I don't know if I have the necessary skills to really make it on my own. Any advice?
Marie C.

A: You've hit the nail on the head, Marie, because when you're an entrepreneur it's truly up to you to make it on your own. Sure, you may have investors and advisors and employees and friends and family helping you climb the ladder, but in the end you're the one who walks the high wire alone.

There are a variety of skills you'll need to succeed as an entrepreneur and chances are do not possess them all. One of the great things about being an entrepreneur is that if you lack certain skills you can always hire people with those skills to help round out your company skill set.

Here are a few of the skills you'll need starting out and others you can build upon later. Different stages of business require different skills.

People Skills

Every budding entrepreneur should have good people skills. The ability to walk into a room and befriend everyone there is often more important to your business than an investor with deep pockets. The more you can make people like you, the more they will want to do business with you.

Networking Skills

Networking is one of the best ways to build partnerships and find new clients. Networking simply means that you go to functions that attract the people you need to know. A successful entrepreneur is also a successful schmoozer. It's the entrepreneurial equivalent of "kissing babies and shaking hands." Whether it's the weekly Rotary luncheon or a Chamber function, show up with a pocketful of business cards and meet as many people as you can.

Leadership Skills

To be an entrepreneur is to be a leader. Even if you are a company of one, you must have the skills to take charge and to lead. It's much easier to learn leadership skills when you only have yourself to manage. These skills will come in very handy as you add employees and your business grows.

Management Skills

Management skills encompass a wide variety of tasks, including managing the daily operation, growth, employees, customer relations, investor relations, and so on. Poor managers make for poor entrepreneurs.

Employee Relation Skills

Your employees are one of the most important assets your business has and it is important that as the boss, you develop a professional relationship with your employees. It is important that your employees feel appreciated and you show it financially and professionally.

Team Building Skills

As your organization grows you must have the ability to build a team that can take your business to the next level. Your team not only includes employees, but also partners, your accountant, your attorney, and investors. Anyone who has the ability to impact your bottom line and growth should be part of your team.

Marketing and Sales Skills

Until you grow your business to the point that you can justify adding a marketing person, it will be up to you to think up ways to market your business. As I've said before, marketing is one of the most critical areas of business as getting the word out to customers is the first step in generating revenue.

Like marketing, selling is vital to the success of your business. Starting out you will probably be the one making sales calls and closing deals for your business. You must have the ability to sit in front of a prospective client and sell them on your service or product. Many entrepreneurs find this difficult to do as sales is more art than skill. This is also why one of your first hires when able should be a good sales person.

Time Management Skills

Unfortunately, there are only so many hours in the day and for entrepreneurs that means we must manage our time well or inevitably some things won't get done. I find that it helps to plan your day the night before. I know before I ever get to the office what I have to do that day. I know the order I will do things in. Of course, something always comes up to throw a monkey wrench in my plan. When the unexpected happens I try to add it to the next day's schedule. If that's not possible, I deal with it and then try to get back on track. That's not always possible, but having a plan certainly helps.

Do you currently have all these skills? Probably not. Very few people possess them all even after years in business. Does a lack of these skills mean that you shouldn't start your own business? Of course not. Entrepreneurial skills can be learned and improved over time.