Many entrepreneurs don’t consider any piece of technology to be significant if they can’t leverage it in some or other way to make money. Sometimes it’s not always about directly completing an action which generates money, but about saving money or growing an asset using that tech, be it savings made during in sourcing materials and staff for a product or service, or growing a customer database.

That said however, it makes for some rather interesting observation delving into what entrepreneurs seem to have had success with in the world of operating a virtual business. E-commerce is perhaps the greatest platform over which a self-starter with an entrepreneurial mind can have a field day. Some, experience huge and it’s perhaps interesting to just take a peek into what makes up a virtual business.

A Product or Service to Sell

Sure, a lot of information you might come across about operating a virtual business will tell you that all you need is a laptop and an internet connection, which is true to a certain extent, but those are just the tools you need. Ultimately you have to sell something, in one way or the other, so traditional business practices should remain intact. I mean you look at something like the Sage Accounting Package for example – that’s a type of product or service which pretty much epitomises how business operates online, both in the sense that it is in itself a product/service and in that it’s a tool which can be used by virtual business operators and traditional brick-and-mortar businesses for that matter.

Some of the best products that sell online are digital products, but more often than not, the non-tangible business offering facilitates the movement of physical goods and services as a third party. Digital services also sell well online, ranging from what freelancers offer as their paid services to what the likes of Google and Facebook deal in, which is marketing and advertising on a hugely populated platform.

Distribution and Management Infrastructure

The internet itself forms part of the infrastructure which is essential to operating a virtual business and it pretty much covers the distribution channel, through such methods as drop-shipping or multi-seller platforms (like Etsy). From there you can construct what begins to take the form of a business, except its main components are operated online and depending on what type of virtual business you’ll be operating, add-on components to facilitate the business’ management and distribution can include the likes a Bill of Materials (BOM), virtual supply chain management and even distribution channels which operate in the real world, like your liaison with a shipping company to deliver the physical goods you sell. These records of your online business’ operation which will come in handy for some serious equity release should you seek to expand.

Ultimately though, to the truly determined entrepreneur, the virtual world offers a great platform over which to operate a virtual business which can be highly automated as well.

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