How can I do business on the web?

How can I do business on the web?

Essentially, doing business on the Web can be broken down into five main requirements.

• On-Line Store

The obvious requirement is an on-line store, or commerce-enabled Web site where goods or services can be described and selected.

• Payment Processing

While it is possible to run an on-line store without accepting on-line payments, this is cumbersome and rarely successful. Accepting on-line payments is therefore essential - and at the moment this means credit cards.

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E-Commerce

What do you mean by E-commerce? E-commerce simply means buying and selling of goods and services across the Internet

Advantages and Disadvantages of E-Commerce 

The major advantage to a customer using this mode of shopping

are:

1.   One can buy/sell items from anywhere using one’s computer provided an internet connection is available.

 2.   The shopping can be done 24 hours a day, 365 days in a year

- an internet based shop never closes!

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Measuring Investments

Measuring Investment – (Returns Measurement)

First Principles

Ø  Invest in projects that yield a return greater than the minimum acceptable hurdle rate.

Ø  The hurdle rate should be higher for riskier projects and reflect the financing mix used - owners’ funds (equity) or borrowed money (debt)

Ø  Returns on projects should be measured based on cash flows generated and the timing of these cash flows; they should also consider both positive and negative side effects of these projects.

Ø  Choose a financing mix that minimizes the hurdle rate and matches the assets being financed.

Ø  If there are not enough investments that earn the hurdle rate, return the cash to stockholders.

Ø  The form of returns - dividends and stock buybacks - will depend upon the stockholders’ characteristics.

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Success Quotes

What counts is not the number of hours you put in, but how much you put in the hours.
— Unknown wise person

After my spectacular failures, I could not be satisfied with an ordinary success.
— Mason Cooley

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