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33 Cards in this Set
- Front
- Back
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What are 6 common myths about E-Commerce?
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1. It's Easy and Inexpensive
2. Build it and they will come 3. Privacy is not an issue **** 4. Customer Service isn't important **** 5. Flash makes it better 6. It's too late |
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When was the first e-commerce transaction?
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1994
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___% of the US adopted the internet in 7 years.
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50%
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____% of Business-to-Customer sales in the US are done through e-commerce.
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12%
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Business-to-Business is ____ times greater than Business-to-Customer in the US. (In total $)
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17 Times
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___% of the US research the products on the internet before they buy.
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60%
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Does the internet make it harder or easier to compete on price?
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Much harder.
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___% of all possible URLs have been purchased.
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98%
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What is the minimum typically paid for an existing URL?
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Between $1,000 - $2,000
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What is the minimum number of days typically spent on completing an e-commerce site?
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90 days
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What's the typical price that is spent on an e-commerce site?
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Between $25,000 - $50,000
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For every $1 purchased on an e-commerce site, there is $_______ that's abandoned.
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$4.51
- Abandoned by a customer putting them in the "cart" and didn't buy it. |
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What are 5 strategies for e-commerce success?
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1. Focus on a niche
2. Create a community (Forums) 3. Give something away - then sell something. 4. Be Creative 5. Advertise |
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What are 3 Primary Methods of Advertising on the Web?
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1. Paid or Sponsored Search Engine Optimization
2. Natural or Organic Search Engine Optimization 3. Banner Ads ----- Leaderboards ----- Skyscrapers ----- Boxes |
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Over ___% of the time, consumers go to a search engine to shop.
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77%
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What are 2 elements of Natural/Organic Search Engine Optimization?
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1. Relevancy
----- Content, Headers, Title, Image Tags 2. Creditability ----- Reviews, Articles, Blogs, Links, Press Releases |
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The 1st Organic entry is clicked ___% of the time.
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65%
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What is the minimum amount of time to reach a peak SEO Ranking?
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No less than 6 Months.
----- SEO Specialist --> $2,000/month |
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What is the 3 most cost-effective ways to Advertise?
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1. Organic Search
2. Paid Search -- But is going down 3. Banner/Social Ads -- But is going up |
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What do Analytics do for a website?
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Gives a total break down of a website. It shows:
- Number of Site Visits - Source of the Visits - Length of Stay - Quality Ranking |
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1/3 of all entrepreneurs run a company WITHOUT a _________ Plan
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A Financial Plan
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Only ____% of entrepreneurs use financials as part of decision making.
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11%
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What are 3 Important Financial Statements?
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1. Income Statement ****
2. Cash Flow Statement **** 3. Balance Sheet --> Only for Cash |
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How do you find Cash Flow?
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Cash Flow = (Net Profit) + (Sources of Funds) - (Uses of Funds)
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When doing an Income Statement, what 2 things should you also show?
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- A % of Sales
- Budget and Variances |
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What is the Cash Flow Cycle and how long does it usually take to complete?
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1. Order Goods
2. Receive Goods 3. Pay Invoice 4. Sell Goods - 178 Days 5. Deliver Goods - 3 Days 6. Send Invoice - 9 Days 7. Customer Pays - 50 Days 240 Days to Complete. |
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What are the "Big 3" of Cash Management?
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1. A/R - Collecting A/R is the greatest cash flow PROBLEM for small companies.
------ 90% of wholesale & manufacturing sell on credit ------ 40% of Retail sells on credit. ------ 95% of small companies sell to ANYONE. 2. A/P - 2/10 Net 30 ------ Goal is to stretch out payment without hurting credit rating 3. Inventory ------ Too Big is a problem -> 25-30% over cost of inventory ($100 really equals $125) ------ Too Small is a Problem |
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What are 3 steps to solving an A/R Problem?
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1. Detailed Credit Application
2. Have a Written Credit Policy 3. Send Timely and Accurate ------ 65% of all small companies have No Late Fee 4. Having an A/R Aging Report |
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What are some Source of Equity?
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1. FFF -> Friends, Family, Fools
2. Angels -> Successful entrepreneur 3. Venture Capital |
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What is an Investment Horizon?
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How long it takes to get your money back -> (Up to 7 years)
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What is a Staged Investment?
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When Venture Capitalists commit a fraction of a total investments until the company hits a Milestone.
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Less than ___% of Business Plans submitted to VC receive funding
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3%
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What are 6 Sources of Debt?
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1. Commercial Banks
--- Term Loan - A set amount of time for the loan to be paid back --- Installment Loan - Paying equal installments until loan is paid back --- Line of Credit - A/R can be handed to the bank and they give 80% of the value (Can also pledge inventory - usually 50% of value) 2. Small Business Administration. --- (7a) 85% of the first $150,000 --- 75% of $150,00 - $750,000 3. Leasing Company 4. Rent 5. Bonds 6. Vendor Credit (A/P) |
