Online business is a growing phenomenon in today’s economy and has been since the internet was created. In fact, it is arguably one of the fastest growing sectors of our economy. However, it does take a bit of planning to get your online business up and running. There are four main economic theories that you should familiarize yourself with when starting an online business, including supply and demand, economics, information technology, and psychology. Each of these theories can be quite complex and will require a great deal of research on your part to determine if they are the right economics for your online business.
Supply and Demand – This is the most basic of economics and is the basis for all economic activity. Basically, supply and demand exist because there is enough of something (the product) to go around and no more. For example, there are far more cars on the road than there are people, so prices will naturally be higher than people, but there is no overall shortage of cars. Therefore, no matter how many cars you have, you will still be competing with other drivers for the same amount of the product. Online business opportunities such as international business and online bachelor degree programs that are based online allow for a perfect example of supply and demand economics.
Economics – This is another highly popular theory among many business owners. Basically, this states that people act according to their needs, which leads to demand and competition. The result is an increase in prices and profit. This theory can also be applied to a business’s customers. If the customers feel that they are getting a good deal or service and feel like they are getting the best value for their dollar, they will generally return to your business and keep coming back.
Artificial intelligence – This is the study of how people, machines, and even online business strategies will interact with each other in the future. It is concerned with the development of artificially intelligent computers that can make decisions on their own and even compete with humans at a human level. Some people believe this will lead to an explosion in technology. If true, it may eliminate much of the need for human employees and have the online business owner become a millionaire instead.
Risk Management – This refers to the knowledge and techniques needed to manage the risk of running any business online. Some of the ideas being worked on right now include; using social media to advertise the online bachelor degree programs, utilizing location-based services to advertise programs, and researching the demographics to determine which parts of the campus are more likely to be profitable. These risk management concepts are very important to the success of any online business. As a result, there will be a need for more education and training in this field. We can expect this field to expand into several different sectors including gaming, eCommerce, health care, and retail.
International Finance – This involves studying how international money flows and the political, social, and economic factors that can affect it. Many students work towards this degree because they are interested in applying the knowledge they gain in international finance to their business careers. Some of the subjects include; international business cycle, micro and macroeconomics, monetary policy, and financial institutions. These graduates will be ready to apply their learning and research to help others with risk management needs.
Project Management – Most business managers think that there is only one way to grow in business; that is through hiring more employees, building new products, and selling the old products. However, there are some business managers who also believe strongly in managing projects as well as the business. These people should be prepared to pursue careers as project managers, business analyst, or business finance managers. The median annual salary for these jobs is above a hundred thousand dollars per year.
Finance – This involves working with financial markets in the online world. Students who enter into this field should have a bachelor’s degree in finance with a minor in accounting. They will be able to work at their own pace while earning their online bachelor’s degree. Graduates will be ready to pursue careers in financial analysis, portfolio management, risk management, and banking.