Virtual Business

This is going to be a rather short posting about virtual business. Regardless, it hopefully will make you think about how you operate your business.

What is Virtual Business?

Wikipedia defines a virtual business as one that employs electronic means to transact business as opposed to a traditional brick and mortar business that relies on face-to-face transactions with physical documents and physical currency or credit. Yes, I know Wikipedia has its limitations, but in this case the definition is a pretty good one.

So What?

If you are strictly an e-Commerce business, then you are already a virtual business. Likewise, if you are a brick-and-mortar business that also conducts business via e-Commerce, then you also are already operating at least partially as a virtual business.

Why Have e-Commerce?

One of the primary reasons for having an e-Commerce operation is that it allows you to reach customers that you other wise could not. What was once a local business only can become a national or international business almost overnight. That is obviously a great way to grow your business. So, if you want to expand without having to invest in hard assets like buildings and equipment, e-commerce may prove valuable.

e-commerce

What Else is Virtual Business?

Other aspects of virtual business include allowing customers and vendors to communicate with you via email, online chat, etc. A customer may ask for help with a product or want to know how to make a return or exchange. A vendor may want to make known a special deal being offered, just as you may make customers aware of sales. Likewise, some companies are finding it beneficial to make use of a Part-time CFO or Controller by allowing them to perform services via the internet.

Also falling within the realm of virtual business is the trend of companies to maintain information in the cloud. This helps reduce information technology costs and can improve the security of information by use of remote storage that is backed up at other locations. Some companies are even using the cloud to maintain their accounting records.

business in the cloud

What can you do to take advantage of virtual business? Do you need to establish an e-commerce operation? Are there ways you can improve communications with customers and vendors? Can you reduce costs and improve security by taking advantage of the cloud?

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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