Whether you are an entrepreneur or a student or a retired banker, you have got to have hobbies. Most of us intend to turn our hobbies into something productive. In the end, our aim is to make money out of it.Need for Online financial management might seem to be just not related right at this moment.
Suppose you are a photographer and you specialize in product photography who also happens to be a foodie. As is evident, your try your hands on food photography. I am a foodie as well, and I would be delighted to see more of your photographs on different cuisines, tickle my taste buds and maybe try them myself.
However, we have a loser here. Your opportunity cost of ‘making’ the photographs is enormous because you do not earn anything out of it. Result? You might shift your genre altogether or stick to personal blogs to showcase your skills.
You need a website or a blog. You might send it to boutique restaurants and hotels which might be interested to see your photos and might even hire you. Online advertising is thus a necessity nowadays if you need to feature your work. In case you are not a photographer and you design fashionable clothing meant for the cold season, you need to specify a target audience and make plans to sell your clothing online.
You, therefore, are in dire need of an ecommerce site so that you understand your audience, read the reviews, knows whether they want more of sweaters and not lousy pullovers and act accordingly. However, you are afraid of the huge cost associated with managing an ecommerce site. Efficient Online Financial management is, therefore, a necessity.
10 ways in which you can manage your ecommerce site and help yourself reach out to your target:
- Target locked:
Now suppose you are a designer freak and after years of planning, you finally land up with an ecommerce site of your own. You choose a weird and funky name for your site, buy a domain and prepare to take off.
By this time, thousands of dollars have already been spent on advertising and marketing and you think you have at least one nicely designed shirt for everyone. Voila! ‘The fool shouts loudly, thinking to impress the world’. As the saying goes you cannot impress everyone out there. You need to be target specific.
So, your first step towards allowing more and more customers is fixing your target. If you specialize in clothing meant for teens and tweens, trying to make some for septuagenarians, will be a failed attempt.
- Waiting and waiting for Finance:
One of the main problems that you might face as a new entrepreneur is collecting funds. Unless I love you dearly and I am already drowning in dollars, I will not consider furthering any financial help to you. Result? You might face serious setback and might choose to shut everything down.
Trust me, managing a website and meeting the huge demand is not cheap. Although complicated online financial management skills are not required, you need someone who will agree to pay for you at least until you manage to walk on your own.
Angel investing is one of the possible ways in which you can do that. You need to get hold of an affluent individual who will help you with capital in return for debt equity. Long story cut short, you will need to make him understand that you will profit from your venture and pay him back.
- Self-Financing, attempts to carry the torch all by yourself:
Now suppose that you are dripping in gold and can manage to hold your back yourself. You have already signed in to all the formalities and you think you can manage everything by yourself. Wrong! You are meant to be a designer and not a finance guru. You guessed that right. You need a financial advisor. Someone who can guide you through the processes involved and helps you make me profits.
- Bank Finance, boon or bane?
Tones of businesses out there are dependent solely or partly on bank loans. Banks provide you with credits depending on your investments made, nature of your business, whether you deliver your goodies to customer’s homedirectly etc. depending on a variety of factors, you are provided with short term or long term loans to sustain or further your venture online.
One of the most important Online financial management systems require you to provide complete information of your venture and how to plan to repay the same.
Interest rate charged by banks varies hugely from venture to venture depending on the risks involved. Thus a mobile store will be prone to lesser rates as compared to a liquor counter.Banks also provide discounts on rates depending on fluency of your repayment/s and future prospects.
- Managing the demand:
Let’s assume that your business is booming and not even a cyclone can stop you. Well, the ever increasing demand for your teen goodies might. You need to have resources to manage the increasing demand.
One way to manage that is by hiring efficient financial advisors as I already recommended and efficient managers. The cost you might incur managing the next thousand orders might be huge. You might consider predicting that well before you even reach that position and act accordingly. Always take a step ahead, always!
- Reformed Finance management:
New and improved online financial management schemes have been developed by almost governments. One of the aims of the government is to enable the indigenous sectors of its economy to grow. Hence you will be provided with financial helps and you might even be lucky enough to make your way into being one of the leading entrepreneurs and not just a designer.
- New market Alert- Shift in trends:
So you are a classic rock fan from the 90’s and I find it real odd to find chains of Led Zepp tee shirts because I am fond of Daft Punk (say). I might even choose not to visit your site, ever! Point is, you need to alert about the change in market trends as you advance your way to making your venture bloom. Off course, you need to keep classic rock tees as well, but make sure that you do not spend a million on making them only.
- Seek and Destroy:
No, you are not alone. There are tons of business tycoons out there all making (sponsoring) designer clothing. Rule one; you cannot suffer defeat without even trying. You need to effectively set prices of your shirts that will be both competitive and accommodates for your profits. Secondly, overconfidence can kill so make sure you every dollar knowing why.
- Pester the Imposter:
Online financial management includes identifying any fraudulent imposters who might copy your name and ideas attempting to destroy you’re long built trust of customers. A legal advisor is therefore a necessity.
- Not Dead yet:
If you are not lucky enough to sustain the competition or you think that your competitors have outperformed you, DO NOT step back. Cut your costs wherever possible; take lesser loans and concentrate on the existing resources to gain grounds.
‘In the long run, we are all dead’, so make a move now and make sure it’s worth it.