If you are a young entrepreneur or you are raising a “CEO Kid” who wants to make money on the internet here are the Basics and a Few Great Tips for Creating a Winning E-Biz:

E-Business Basics

· Commerce – The exchange of valuable good and services.

· E-Commerce – The process of buying and selling products and services across telecommunications network.

· Over 30 years ago banks were the first to develop e-business transactions to transfer money to each other by using electronic fund transfer (EFT).

The Internet and World Wide Web

· Network – group of 2 or more computers linked by cables, telephone lines, or other wired or wireless media.

· Servers – A network of linked special computers.

· Internet – Worldwide public network that connects private networks.

· Internet communications include:

o E-mail

o Instant Messaging

o Newsgroups and Web-based forums

o Mailing Lists

o Internet Relay Chat (IRC)

o FTP – Service based File Transfer Protocol that enables users to upload or download electronic files from a server or internet.

Tip – Internet Users are now using wireless internet access since the number of wireless devices and internet applications are growing and there is almost no limit as to how many wireless devices can use the same wireless server.  Why not research some wireless devices that could help you build your business?

E-Business and the Global Economy

o Global internet access has changed the way buyers, sellers, employees, and business intermediaries interact with each other to conduct business transactions.

Advantages of an E-Business

· Increase sales opportunities (whole world is an audience)

· Decreased Costs (Even paper costs money)

· 24/7/365 -  Sales (Anytime, Anywhere)

· Access to narrow market Segments

· Access to global markets

· Increased speed and accuracy of information delivery

· Data collection and customer preference tracking.

Advantages for Buyers

· Wider product availability

· Customized buying options and personalized information and buying options

· 24/7 Shopping

· Easy comparison shopping

· Access to global markets

· Quick delivery and digital products and info.

· Access to rich media describing products and services.

Disadvantages of an E-Business

Disadvantages for Sellers

· Growing competition from other e-businesses

· Rapidly changing technologies

· Greater telecommunications capacity or bandwidth demands

· Difficulty of integrating existing business systems with e-business transactions

· Problems inherent in maintaining e-business

· Global Market issues: different languages, unknown political environments and currency differences.

Disadvantages for Buyers

· Difficulty differentiating among so many online sellers

· Unpredictable transaction security

· Dealing with unfamiliar, possibly untrustworthy sellers

· Inability to touch and feel products before purchase

· Unfamiliar with buying processes and concerns about vendor reliability

· Issues with state sales tax charges and difficulty with product returns

Quote on success by Bill Gates (Co-Founder of Microsoft Corporation) – “The information highway will… carry us into a new world of low-friction, low-overhead capitalism, in which market information will be plentiful and transaction costs low. It will be shopper’s heaven.”