As a businessman and entrepreneur you should be aware of all the factors that will play a role in your business. The stuff that they teach at school does come in handy sometimes and it is what gives those who are book smart an advantage over those who are street smart. It is not to say that those who are book smart will always win over those who are street smart, what I am indicating is merely that to be the best you need a bit from both worlds.
Today we take an in-depth look into the external factors that will affect your online business. To those who have a few degrees or masters certification to show in their resume, these external factors will not be something that is unfamiliar to them. However, for commoners who are looking into internet marketing and are learning the curves via the street smart way, this information that I will share with you today will certainly breathe a new light into your perspective on the internet marketing industry.
When it comes to external factors, many believe that it is very important to understand this so that we can try to adjust accordingly to help keep our business intact. This is because external factors are usually out of our hands and we do not have any control over them at all unlike internal factors. With that said, experts claim that all businesses, like it or not, are affected by external factors. Here are some of the external factors that you should know. If you wish to overcome these external factors that will affect your online business, then it will do you good to understand some of these external factors underlined beneath.
How do political changes affect your online business?
In the real world, we are governed by the laws and politics will run. Hence even a slight change in some of rules and regulations will definitely have an impact on your business. Take for example, if you are taking a loan from the bank to run your business, any changes that the government make to the rates of your loans will mean a huge impact directly on you and your business. Maybe you might have to try and get more sales, reduce costs or even jacking up your price for your products.
If the rules were changed to the amount you have to pay for your domains or if you need a special license to run a business from home, these will all play a huge part in your daily business. Government from different countries may have different rules for people who are doing business online within the country or for those who are outside the country. The taxes imposed on our online business also differ from one country to another. Therefore it is imperative that one should try their best to stay updated on the current news and updates on the politics, rules and regulations of one’s country about doing business online.
How do economic changes affect your online business?
In economics, it is usually well known that the supply and demand of the world depends is a big factor in any business be it an online or offline business. Hence, you need to keep an eye out for the demand and the trends that are ever changing within your niche. If the world economy plummets, you must be ready for a huge shift in the buying habits of the consumers. The material price will also change and thus this will affect your cost if you are manufacturing a product. If you are just selling digital products then you need to be sensitive to what is going on in the prices of the servers and how your online costs will affect your business.
It is important to take note that sometimes even if the economy of the world plummets, it might not always be a bad sign for those who are in the online business community. For example, the recent recession teaches us one thing and that is that the recession actually helped online businesses who teach others about online business grew. The simple reason here is because a lot of people lose their jobs during the recession and they were a growing demand for ways to earn money for a living. This then gave marketers a chance to target these people and get them to start their own online business that is easy to start and requires almost zero capital.
How do technological changes affect your online business?
Technology is an ever growing factor and in the online business world, technology grows at an unbelievable pace. Blink an eye and you might even miss out on a few ‘hot’ technology that whizzed by you. Old technologies are quickly replaced by new ones. A few months ago, it was not possible to create your own social site for less than $50. However today, you can do that easily with a new release that cleverly uses WordPress as a core to the evolution.
Now some marketers will argue that there is no point in chasing technology as the changes are dynamic and you will never be able to stay ahead of the game.
This is where most people are wrong however. While it is hard to stay ahead of the game or even become a pioneer in the advancement of technology you will still have to try your best to keep up because you want to be ahead of your competitors. If your competitors are lazy you will definitely take the advantage from them and it will be yours to keep. However, should you be lazy and refuse to make use of the latest technology, then you should not whine about it when you find your competitors making giant leaps ahead of you.