Today I will answer a few questions that have been brought up:
Why are large firms so slow to change? Think about the reward systems in place in such firms, as well as organizational issues.
This is a common question that I have asked in the past to many large businesses that still do things very old school and do invest in updating their technology or restructuring their workflow. One of the recent examples I can refer to is the new Bank I am currently employed at. They are a 106-year-old bank that is still managed by it’s founding family, and till this day the current CEO and President are brothers, both the 4th generation running the bank. It has its pros and cons of having to be part of this organization. I have always been used to being part of a very techy oriented bank therefore getting used to an old school bank has been a challenge. However I find how much respect is given and to the bank by the community and by its clients, and also how much of a great reputation the bank has held throughout the many years. Although they have become a large bank with over 20 branches in the local area, they still are prudent and slow to change. They don’t make sudden changes to its paperwork processing, when I know there are faster and more efficient ways of processing things, the technology is quite not there yet. It is however gradually changing which is a plus for many of us that are coming from larger banks who already have updated technology, however it is also a plus because we are able to give our input of how they can improve with their current selection of technology.
What are the pros and cons of doing business entirely online without a physical storefront or presence? Consider this question from the perspective of selling a tangible product.
The e-commerce business is one of the fastest booming industries in the world. Today a lot of the biggest businesses run strictly online, a few examples are amazon, eBay, justfab, fab, zazzle, to name a few. All of these websites are either marketplace for other sellers or actually online storefront for other products. A lot of time what many of these stores are doing is called drop shipping. They are taking orders on their website, to later go and buy the product from one of their vendors therefore never having to carry inventory or overhead cost and relying strictly on the purchase of shoppers of their website in return making profit from the difference of the upsell price they imposed on their website. This isn’t an uncommon practice as the e-commerce business begins to become a worldwide booming industry, many businesses are beginning to jump on board and get a piece of the pie. It really depends on the type of business you would prefer to carry. As a e-commerce business you don’t get to ever see your customers or consumers therefore it does miss the physical interaction aspect of it. If you prefer to have your customers shop face to face than you would rather open a shop or store vs. only opening an online business. Now a lot of time there are many businesses that not only operate via online but also do have their storefront shops in order to supply the local market and have the availability of their product. In the end it comes down to be a question of asking yourself, which one you prefer to take on and make sure to stick to your decision. There are great tools found online that will help you start your own business, the best tool I have found that I currently use to sell products online is shopify. They offer you a great full service platform. Check them out!