Brick and Mortar vs Based Businessess Term Paper

Brick and Mortar vs Based Businessess - Term Paper Example 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