Skip to 0 minutes and 7 seconds Well, when I was starting out, I considered a few different resources. Firstly, there were operational factors, like stock transport, storage, insurance, that sort of thing. And then I had, I guess, a human resource component– who I would get to actually build the online business, because I certainly wasn’t able to do that myself. I worked with a graphic designer to put the brand together. I’ve also brought on someone to assist with the online advertising component of the business. So we run campaigns on Facebook, Google, email, and I have someone consulting and helping to execute that advertising and marketing side of the business. I think when I was starting up, I had no real grasp of how many resources you need.
Skip to 0 minutes and 53 seconds I obviously had to have someone build my website, someone do the designing product. And the other thing is, I’m also an “outsourcerer.” If you don’t know how to do something, pay somebody to do it. I use Airtasker for people, so if I want somebody to put a video together for me or maybe Photoshop a bunch of photos or something like that, I can just put it up on Airtasker. So you’re not paying wages. You get a job done and you get it back. You can’t be a jack of all trades. Do what you know how to do, and pay somebody else, and have that in your budget.
Skip to 1 minute and 25 seconds As far as location, I think the main area of location was where I was storing my stock. I started at home in my garage with the storage space that I had. And then when I grew out of that, I moved into a storage unit. The rest I could sort of operate as long as I had an online connection. But what I have learned along the way is you need to have no holes in your supply chain, otherwise, again, you’re wasting your money. So before I go into anything else I do with anything to do with my business and spend another drop on anything, that supply chain has to be perfect.
Skip to 2 minutes and 1 second So you have to make sure you’ve got the raw materials not only available the one time you want to purchase, but are they going to be available again later? So is it a consistent supplier? In terms of financial resources, I, I guess, did the math and set a little budget about what I would need to get started. And I think the benefit of starting an online business is that you don’t really need a lot of capital. It’s about growing your business with your capital as you go along. When I initially started out, I didn’t have any capital.
Skip to 2 minutes and 33 seconds So I probably did things on the cheap as much as I could, which I’ve learned doesn’t necessarily work, and you can waste your money. And then when I started the second time around, I had a little bit more capital, so I was able to been a little bit more frivolous with my money, which also isn’t great. Don’t be frivolous, even if you’ve got capital. But what I am learning now as my capital is dwindling is you start to become a lot more resourceful. But if you’re going to start a proper business and you really want to do it properly and do it on a larger scale, get the backing and do it all properly.
Internal factors could also affect your business. These micro factors are those situations or events that occur within the business and that are generally under the control of the business.
These are the strengths or weaknesses that your business exhibits. Internal factors can have a significant impact on how well your business meets its goals, and these factors might be regarded as strengths or weaknesses, depending on the effect they have on the business.
Internal micro factors include:
- Production resources: These are the input resources that every business requires to produce its output products and services. For example, raw materials, technological resources.
- Financial resources: These are cash and financial resources used to set up and operate your online business. For example, cash on hand, loans, overdrafts
- Human resources: This is the human capital required to set up and run your online business. For example, core staff, contractors, consultants etc.
- Location: This is the physical location of your online business. For example, does the business need to be located close to any facilities (road, rail or shipping transport, or postal facilities)? Does the business need to be located in a major city or can it be located in a rural area, or can it be run from anywhere?
- Distribution: This is the means by which the product/service will be delivered to customers. Online businesses that don’t have a shopfront, rely heavily on effective distribution systems.
- Business image: This is the image that the business conveys to its customers and others.
If you don’t know how to do something, then you should consider outsourcing that task to someone who has the experience and knowhow.
There are online marketplaces that link businesses and individuals, providing you with easy access to people who can help you get a small job done quickly. Many of these individuals in these marketplaces are rated by others who have used the service previously and provide a testimonial to help you select the right person for the job.
There are many worldwide online marketplaces - from Airtasker, TaskRabbit or OneFlare, to Thumbtack or Kaodim - that can assist with web development, design, photography, business materials, marketing, and accounting services, as well as many other services.
In addition to getting the job done, sometimes you may also need to think about how to raise the capital. There are many approaches today - following are some of the most common funding sources.
Listen to our entrepreneurs and the types of resourcing they needed to cater for internal and external factors.
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