Brick and Mortar vs Based Businessess - Term Paper Example

Traditional business vs online business: Traditional business is often conceived as the typical brick and mortar business i.e. “a business which requires an actual building to conduct operations from” (Franchise Wisdom, n.d.). A traditional businessman first has to layout the site, then develop it as per the demands of the business. Only after that, a business can be started. Considerable portion of a businessman’s total investment is used up in the initial make up of business in terms of office development and setup.

Brick and mortar is also very suitable term for traditional business because it symbolizes material, labor and physical involvement in the business, be it related to construction or not. On the other hand, online business does not cost physical labor, though a businessman might have to spend some money initially purchasing licenses or getting his business registered as per the official requirements of trade. One needs to know and satisfy the legal ramifications of one’s online business before starting it (Elizabeth, 2010).

Still, online business can be started immediately because it usually does not take long for initial online formalities to be met, whereas the traditional business costs much in terms of time, labor and money in the start. In traditional business, the staff required to do the work costs a businessman a lot. In addition to that, the businessman has to face overheads as office and serviceability charges, logistics, food and traveling expenses. On the other hand, an online business provides a businessman with the leverage that he can work from home.

Although the businessman still might have to hire staff for organizing the work online, yet the overhead charges are significantly reduced. There are no traveling expenses, no utility bills except for internet or electricity bill and no food charges. It is indeed, irrational to count electricity charges here because computers and internet are also frequently made use of in traditional businesses. Brick and mortar businesses are far more expensive than online businesses because of overhead charges, insurance, taxes and other property charges (Kayne, 2010).

Online business ensures effective communication. Communication and timely conveyance of instructions are vital for the success of a business. The electronic mail delivers instructions to the concerned immediately, and the sender does not have to incur any additional cost unlike traditional businessmen, who have to incur huge telephone bills and yet, the communication is hardly ever effective or meaningful. This drawback of traditional businesses makes them susceptible to conversion into online businesses in coming years.

On the negative side, online businesses make the owners lazy as their physical activity is significantly reduced. Particularly, the women executives might put on weight. Traditional businesses keep the personnel involved agile and active both in their professional and social life. Traditional businesses have conventionally faced a decline with the evolution of online business trends. Today, people prefer to do internet shopping which ultimately reduces the sale of shopkeepers. Therefore, more and more of traditional businessmen are adopting such businesses that are usually difficult to be run online like the business of construction.

References:Elizabeth, M. (2010). How Do I Start an Online Business? Conjecture Corporation. Retrieved from http://www.wisegeek.com/how-do-i-start-an-online-business.htm. Franchise Wisdom. (n.d.). Traditional “Brick and Mortar” Business vs. Online Business (A Comparison). Retrieved from http://franchisewisdom.com/traditional-brick-and-mortar-business-vs-online-business-a-comparison/. Kayne, R. (2010). What is a Brick and Mortar Business? Conjecture Corporation. Retrieved from http://www.wisegeek.

com/what-is-a-brick-and-mortar-business.htm