Internet and Small Business

Technology has played an imperative role in business operations. The advent of the internet has given a new methodology to conduct business faster in a cost-effective way in a limited time and space.

Internet is wrapped up with thousands of interconnected networks connected worldwide. The deployment of the Internet in business has given rise to performing business worldwide to an unlimited audience and it is one of the best methods for globalizing business. Internet is a powerful tool for winning a business strategy that assists companies to compete with their competitors and to improve customer satisfaction and hence internet business model has been formulated to assist companies to choose the right model at the right time.

Internet business is simply not designing websites to promote the products it has its unique process to automate. Internet business helps manufacturers to understand the customer’s wants and needs by understanding their behavior when they visit company websites or research any relevant information and this, in turn, helps manufacturers and marketers to produce customized and personalized products.

Internet business has changed the marketing practices of companies to the great extent and hence marketers need to be more and more proactive and creative to reach and convince their audience to buy products.

Today many companies have also set up extranets with their suppliers to facilitate information exchange, transactions, and payments. Internet business has given birth to e-commerce which is more and more specific when compared to internet business or e-business. The term e-commerce encourages companies to sell their products or services through the internet. To be more precise about internet business; it is simply performing business using the internet for a worldwide audience to globalize business.

Advantages of Internet Business – Internet Business has its unique advantages

There is no need for a physical location and hence you don’t need to have your own or rent a place for starting up a business as to how traditional business requires.

Of course, you need a location that is DOMAIN NAME for website registration, and it’s very cheap you can get it for about $5 to $25 with a free web hosting service.

You need a website for selling your product or service. If you know to program and designing you can always do it on your own or you can hire a web developer and/or designer based on your requirement or even you can become an affiliate of some site that needs no website since your merchant will provide you website.

You can advertise your products or services for free on most of the websites say free classified advertisement sites.

Since the internet works on the principle of 24×7 you can reach your customer at any time.

Internet business is not geographic specific and hence you can reach a global audience.

Disadvantages of Internet Business -Of course, the internet has major advantages but it has some disadvantages too.

Through the internet, it is very difficult for the user to recognize what is genuine and what is not because users will not have the ‘Touch and feel’ of some product before they buy.

The Internet makes you feel isolated and hence it separates manufacturer and customer, and this ultimately end-up in a lack of trust between two parties.

It is also difficult for the user to choose the product as there may be many products with different varieties advertised through the internet.

Business Models:

Every Business needs a model to run its business and operations. When it comes to the internet it is not that companies have designed or built their models Most of the companies sustain with the following business models through the internet.


Professional Services

Information Business

Internet profession



Let’s understand the above six proven internet business models.

Products: This Internet business model includes stuff like electronic goods, books, computer hardware and software, household, jewelry, etc. Companies may already use direct marketing to market its product.

Adopting this model is the most inexpensive method to communicate universally, and consumers can look into the product through the company’s website or online catalog as it cost only a fraction of what printed catalog cost and the duplication is achieved virtually. The vital part is to note that the internet is not a business strategy. However, it helps businesses to formulate strategies more effectively and efficiently. These are none other than the Internet or Online retailer.

Professional/Specialized Services: This model includes Professional services such as accountants, consultants, architects, etc. The use of technology has encouraged service businesses to devise innovative strategies to support the very nature of the business.

The service industry advertises its services electronically that is through the internet and since the internet reaches a global audience by breaking the geographic barriers and hence today’s service sectors enjoy massive profit and growth since the internet has out-performed the traditional advertising and it directly reaches its prospective audience.

Information business: This E-business model is for those who gather, create, and sell knowledge. The Internet has given a new room for this kind of business. Today people use the internet for many reasons and information search through the internet ranks top. Many entrepreneurs today adopted this business methodology and have created success because there is a lot of scope for business in this digital era and information business is one such business that grows at a full pace.

Internet Careers: Many people have started making careers on the internet itself. This business model includes graphic artists, web designers, and developers, software programmers, computer and software trainers online, Internet marketing professionals, etc. This is considered the fastest-growing business and many people have started the business model.

Electronic Publishing: Today people can find free news, magazines, and newsletters in digital format. In this business model, any factual written material can be published in digital format and uploaded to the website. Online or Electronic publishing is exploding since it’s too cost-effective when compared to the printed version of newspapers, magazines, newsletters, etc. There are many innovative ways that a company can generate revenue from this business model.

E-Advertising: Electronic advertising, the business model which grows constantly and is expected to out-perform the traditional advertising methods. From this business, model companies can simply sell advertising space on the web which in turn generates a mutual understanding to both the parties (advertisers and publishers).

Advertisers get revenue by posting an advertisement on their website and publishers get traffic to their website and/or brand awareness of their (publishers) product through advertisement. This is a big business and one can monetize his/her website (if available) by just selling the website space.

The above-mentioned internet business model has been adopted by many companies and has created a history in this digital era. Thus internet has become the right source and a powerful tool for businesses to create a new and innovative business strategy to sustain the market.