Home-based e-business - an option for the self-employed?
5.2.2 Home-based e-business is not applicable for everybody
Unless the target market is entirely based locally or in Greater China, it is essential to have good competency with English in order to communicate effectively through the Internet. It is especially true if the business is to sell physical products or to provide services online. A certain degree of technical competency with the Internet is required in order to run a successful e-business. Different types of e-businesses may require different level of investment in terms of cost, specialist and technical knowledge. However, all types of e-business demand a great deal of commitment in time and effort. Therefore, to set up and maintain a successful home-based e-business, one should have good self-management skills. Most people working at home may find it difficult to define work and home business. They may be distracted continually at home by their children, or work so much that their family life is distracted. After all, an online business is a 24 hour a day, 7 days a week business. Therefore a lot of self-discipline and motivation is required in building up a home-based business.
5.2.3. The most suitable type of home-based e-business for Hong Kong residents
After reviewing the various opportunities available, the author has come to the conclusion that selling physical products is the most viable option for a home-based business in Hong Kong . Firstly, it is relatively easy to source products cheaply and import tax-free in Hong Kong . Secondly, the postal services are pretty efficient, and Hong Kong has a stable currency that is linked to the U.S. dollar. Lastly, trading goods has always been something that Hong Kong is renowned for, and is one of the key pillars of the local economy. However many products can now be obtained more cheaply in the U.S because distributors there are able to obtain much larger discounts through high volume orders [23] compared to those in Hong Kong. As a rule though, most online shops in the U.S do not ship outside the U.S. thus providing an opportunity for businesses based in Hong Kong . It is now very easy for a person to start trading physical products through eBay [11] and other auction sites. Moreover, it is now much easier to set up an online shop as TURNKEY solutions are available through a number of web-hosting companies in Hong Kong and abroad. It also much easier to accept credit card payments online for Hong Kong residents nowadays.
It would be extremely difficult for Hong Kong residents to earn a full-time income through affiliate programs alone. Firstly, it is extremely difficult to build up web sites with high volume traffic, and secondly, many companies offering affiliate programs will not accept Hong Kong residents. Many of the opportunities available for selling soft products function in a very similar to multi-level marketing (MLM). Unless one gets in very early, there is very little profit to be made. That is unless one is willing to spend the time and investment in creating a unique soft product oneself. Even then, piracy could severely limit the profit that can be made. Although vastly profitable, adult sites are not for the average person. Unless one has a specialized service to offer, it is normally very difficult to set up a successful online business. Similarly as in the case of soft products, many of these so-called opportunities like “Travel agency in a box” function like an MLM business.
Setting up a home-based e-business is now a viable proposition for self-employed individuals in Hong Kong , as the author can attest to this. Although still lagging behind North America and Europe , the basic infrastructure is here, especially the means to accept online payments. The level of competency in English is high in Hong Kong and there are efficient and economic postal and courier services. However, a home-based e-business is not for everybody as a fair degree of competence in the use of e-business resources is required. The most suitable type of e-business for Hong Kong residents is the selling of physical products either through auction sites, or through online shops. The ever-increasing amount of unemployment, and with the waiver of the business registration fees for 2002 should encourage more people to set up e-businesses.