Is there a different mindset between B&M and e-biz entrepreneurs?

[djs13]

I've been deliberating with this idea for a few months now but I haven't seen anyone mention it on the forums yet. Obviously there are many brick and mortar companies that are complimentary to their web site, but in terms of the start-up phase - do you think there's a difference between entrepreneurs who make their money from brick and mortar businesses and those who profit from the internet?

In my opinion, I've found it easier to brainstorm ideas for brick and mortar businesses than e-businesses. This may be caused by my lack of knowledge for html and web design in general. I've drawn up a short business plan for a hospitality-industry business that I know I will implement in the future, but I can't seem to transfer these brain juices to internet ideas.

The difficulties of being attracted to B&M businesses rather than e-businesses is start-up costs. The fees to launch even a complex website often won't compare to a small tangible business.

With about $4k totaled in savings, my options include either forcing myself down the e-biz route, or attain some form of creative financing to boot-strap a B&M business. I also think B&M businesses are slightly less risky in terms of risking someone's complete assets. I say this because one could pay $4k on a website and it could be a complete failure. On the other hand, if someone were to buy a building for their business they could sell it and salvage part of their initial investment.

What do you guys think?

 

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[JayKim]

Re: Is there a different mindset between B&M and e-biz entreprene

Same here and I also have that amount saved, my family used to own a b&m and I'm just learning ebiz, confusing but getting great info from old threads and help from members in pm's. Ive been on flippa lately but I think most of them are not worth it.

 

[Gymjunkie]

Re: Is there a different mindset between B&M and e-biz entreprene

I always thought of Brick and Mortar as "real" business but online business is as real too. I think it is easier to get into online business with less or no money. And I actually think it is less risky than Brick and mortar..

 

[djs13]

Re: Is there a different mindset between B&M and e-biz entreprene

I always thought of Brick and Mortar as "real" business but online business is as real too. I think it is easier to get into online business with less or no money. And I actually think it is less risky than Brick and mortar..

I absolutely agree. Getting into an online business would be much easier with the amount of money I have, but my two biggest set-backs are my difficulties with developing ideas for e-businesses and the risk of dropping $4k for a site design that you really couldn't sell back to anyone.

 

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[yveskleinsky]

Re: Is there a different mindset between B&M and e-biz entreprene

Interesting question. I can say for myself when I first started becoming interested in business all my ideas were either inventions, bricks in mortar or real estate related. It wasn't until I came to this forum that the idea of an ebusiness even crossed my radar.

I will say that it has been my experience that if you go the route of ebiz, that the website is only a small portion of the cost and time--it's the execution of the website that costs time and money. ...And you don't need to spend a small fortune on a site either. There are a lot of templates out there that are free or low cost--or you can have Kerry (Wildambitions) work you up a quote --and she's very, very reasonable.

Just speaking for myself and from my journey with going down the ebiz road (and stalling out many times), I highly suggest this order of doing things if you are going to set up a service type ebiz:

1. Interview 15 people that you think would be your customers or target market. Ask them if they would use your product and how much they would pay for something like it. If they are talking, you need to be listening and taking notes. Ask them all about their problems and what problem you would like solved. ...Do this step BEFORE you design a site. Why? Three reasons: 1. It's easier to solve a need than it is to create a demand. 2. Takes the guess work out of development/design. Ask them what they want and then give it to them. 3. You are lining up customers (and reducing risk), so when your site is ready you can go back to them and get them on board.


2. Start learning internet marketing/SEO. A good place to start is with the Thirty Day Challenge. Keep in mind that the 30 day challenge is specific to launching a product, so if you are launching a service the basics are the same (backlinks, article submission, keyword research, etc.) but the way you approach will be different. Get a basic grip on SEO before you design your site--that way you aren't having to redesign the whole thing later. Seriously, this may sound like a daunting task, but read 3-4 books and you'll have a good starting point on what to do and not do.

3. Sketch your idea on paper and work on getting it developed.

You will make mistakes. You will hit walls. You will have your own learning curve--that's just part of the ride. Just stick with it and when in doubt go back to your target market or come here and get feedback.

 

[biophase]

Re: Is there a different mindset between B&M and e-biz entreprene

I also think B&M businesses are slightly less risky in terms of risking someone's complete assets. I say this because one could pay $4k on a website and it could be a complete failure. On the other hand, if someone were to buy a building for their business they could sell it and salvage part of their initial investment.

What do you guys think?

I completely disagree with this but maybe when I think B&M I am thinking of something else? When you talk B&M are you talking about leasing a space? Buying any type of machinery, cash registers, store displays?? If your B&M fail you are on the hook for the lease term. Any store assets can be sold but will be extremely discounted. If your B&M business failed, what would you really be selling?

On the other hand, if you online business fails you have no lease to worry about. As Yves said, if you have 4k and you spend it all on the site, how do you plan to market your business?

Getting the webpage made is probably the easiest part of the business. Imagine you had your site done right now. What do you do now?? How do you get business and traffic?

If your ebiz failed, it still may have value if you got a good domain, had some decent traffic, etc...

 

[yveskleinsky]

Re: Is there a different mindset between B&M and e-biz entreprene

I completely disagree with this but maybe when I think B&M I am thinking of something else? When you talk B&M are you talking about leasing a space? Buying any type of machinery, cash registers, store displays?? If your B&M fail you are on the hook for the lease term. Any store assets can be sold but will be extremely discounted. If your B&M business failed, what would you really be selling?

DJ, Biophase brings up a great point. Just because a B&M business gives you a tangible storefront with tangible products that tangibility doesn't guarantee success--just like a website won't guarantee success. Your marketing and execution of the idea is where success is. Really, if a B&M business fails, you just have more of a tangible failure.

 

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[hatterasguy]

Re: Is there a different mindset between B&M and e-biz entreprene

This is just my preception, but I never viewed e-biz as a serious way to make money. Nor would I ever consider investing in or starting one. I simply don't understand it and have no desire to. I'm not very tech savy, and I don't know anyone personaly with money who has made it online.

Having said that I'm sure you can make money online.


What I think hurts online companies is the same thing that makes them attractive. They are easy to start, and cost virtualy nothing. I needed to raise $300k to do my first deal, you can do a website for what $3k if you pay someone? Damn near nothing if you do it yourself. The problem with that is that it lets a lot of people enter the market who really don't know what they are doing and are not serious. So you get a lot of crap, which hurts the industry's image. Just my 2 cents looking at it as an outsider.

 

[biophase]

Re: Is there a different mindset between B&M and e-biz entreprene

This is just my preception, but I never viewed e-biz as a serious way to make money.

Interesting perception. I don't understand why though. You don't believe sites like craigslist, amazon, zappos, twitter etc... as serious businesses? Just wondering why?

They sell things, they have employees, they have offices, just like all other businesses.

 

[Kinsey6287]

Re: Is there a different mindset between B&M and e-biz entreprene

I have owned three B&m's. And it is true that when they fail you have something to re-coup your money from. However, I know in my circumstance, it is easier to run and maintain an ebiz. I will be starting a, hopefully, very profitable ebiz very soon. But its not all just put the site up and watch money roll in. Thats not it at all! If your providing a service, you have to contact clients or customers. And in my case I am looking at approximately 3,000 clients to contact. It would be easy to just get a marketing agency to do some direct mail or e-mail marketing, but I think this particular idea will be more successful if I actually start calling these potential clients myself.

Really its all about what you put into it. If you have a great ebiz idea and build the website and then just assume everything is going to be good from there, then it will fail. Just like with a b&m there is sometimes a LOT of foot work involved with these businesses.

I think the moral of my post is that you have to work to make money no matter if you have a b&m or ebiz. Different type of work, but hard work none the less.

 

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[Gymjunkie]

Re: Is there a different mindset between B&M and e-biz entreprene

I have owned three B&m's. And it is true that when they fail you have something to re-coup your money from. However, I know in my circumstance, it is easier to run and maintain an ebiz. I will be starting a, hopefully, very profitable ebiz very soon. But its not all just put the site up and watch money roll in. Thats not it at all! If your providing a service, you have to contact clients or customers. And in my case I am looking at approximately 3,000 clients to contact. It would be easy to just get a marketing agency to do some direct mail or e-mail marketing, but I think this particular idea will be more successful if I actually start calling these potential clients myself.

Really its all about what you put into it. If you have a great ebiz idea and build the website and then just assume everything is going to be good from there, then it will fail. Just like with a b&m there is sometimes a LOT of foot work involved with these businesses.

I think the moral of my post is that you have to work to make money no matter if you have a b&m or ebiz. Different type of work, but hard work none the less.

Gooood post!! Speed+

I think it's riskier to be in BM business esp. if you take a big loan and have to risk your home to guarantee it.

Another online biz advantage is that you can set it up to be more independent from you than BM. Some people, after initial phase of working their butt off can later on work just a few hours a day. It is possible, but not for most. You have to get the process of selling or whatever service you have pretty automated.

 

[wildambitions]

Re: Is there a different mindset between B&M and e-biz entreprene

Nor would I ever consider investing in [e-biz] or starting one. I simply don't understand it and have no desire to.

I think this statement sums it up. You do not understand it. Not understanding it is certainly a reason to NOT do it. And without desire, much drive would be lost when working to make it successful.

I don't know anyone personaly with money who has made it online.

Show up at the next B&P meet up and you will then know many!

 

[hatterasguy]

Re: Is there a different mindset between B&M and e-biz entreprene

Yeah that probably sums it up.

Their certianly probably are people who make money online. But I'll never be one of them, it has no draw for me.


I love B&M, I want big brick buildings that I can touch and feel.


Oh I spoke to soon, I do know one person who made pretty decent money online. When I sail regattas he owns a boat were often fighting for position with. He owned a number of porn sights... I guess thats one way to make money online.

 

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