Home Based Business vs Online Business (Part 1)

There are two types of home based businesses. One is the traditional one with an office at your home and the other is a virtual office – your website. Both require customers to keep it going and both require you to do an initial research to see which type of business you should open. Without researching both, the traditional and online, businesses are destined to fail. Let us first look at the traditional home based business.

Traditional Home Based Business

These include all kinds of small cottage industries that can be run with a few people usually family members. Professional services (e.g. photography, print & design, ladies accessories, maintenance & repair services, etc), network marketing (MLM) and food & bakery contribute to the majority of traditional home based business.

Some of these had go on to become local brands and they survive well with regular streams of customers. Therefore, a traditional home based business cannot be booted out for good…. at least not now or any near future. They serve a niche market of their own.

Although many traditional home based businesses have been successful, these ventures are quite risky to begin with. Here are some of their cons:

1) The delivery of a physical product or personal services can be very much limited by time and space.

2) Promotion and marketing of your product or services are also limited to a smaller local market.

3) When business is brisk, you struggle to meet production but when business is slow, you struggle to keep it going.

A traditional home based business require an office, you spend money on decorating that office, even if it is a home. You would require infrastructure like telephone, fax machine, printer and stationary supplies. A traditional home based business may take time to set up.

A point to remember, a traditional home based business requires higher recurring expense when compared to an online home based business.

With a traditional home based business, you need to think about hiring staff and worry about attrition. Then there is the fear of losing your traditional home based business to natural calamities like hurricanes, storms or floods. You would have keep inventory which could cause you losses.

All the above are points to ponder when you are thinking of starting a traditional home based business.

Online Home Based Business

When compared to a traditional home based business, starting an online home based business is much faster. Once you have your website running, you are in business. You do not need to wait for the stationary or the office to get ready.

This does not mean that running an online home business is a piece of cake. You need to invest time to do proper research, as which type of online home based business is suitable for you. The internet is an extremely good resource for research.

In an online home based business you set your own timings and your website announces to world what are your products or services. You do not need to spend as much on advertising as you would do with a traditional home based business. The internet gives you an edge. You reach a much large audience across the globe. This is not possible with a traditional home based business where you end up catering to the immediate community. And once your online home based business is automated, it practically runs by itself.

Examples of Successful Online Businesses

eBay

eBay was one that did not go under when the dot com bubble burst. eBay transformed itself from a garage sale and flea market site into a genuine e-commerce site. Today, eBay has over 29 million registered users selling anything from antiques to jewelry. eBay is made online transaction safe and secure and it allows buyers and sellers to post their comments online. You can check these comments and then decide whether you want to do business with a person / company.

Amazon.com

Amazon.com treats it customers like extremely. It tracks the customers’ tastes so that using Amazon.com becomes a truly rewarding experience. It has outstanding customer service with special discount services on books. Amazon.com excels in one-to-one marketing making each customer feel special.

Universal Elementary Education – An Experiment in Karnataka

Parents of the 32 students studying in standard seven in a school at a non-descript village in the Karnataka State of Southern India staged protests last June. The reason? They wanted their children, especially girls, to continue their education beyond the seventh standard, without travelling to neighboring villages; and the local school in the Tigalarapalya village where they were studying so far did not have classes beyond seventh. So they forced the authorities to add higher classes to the school.

Yet in 2000 and 2001, the same parents had resisted when the government officials, volunteers and non-government organizations pleaded with them to send their children to school. They preferred to send them to work in the silk-weaving factories which abound in their villages, so they could clear the loans they had taken from the factory owners. The rural district of Magadi on the outskirts of Bangalore city has many such villages, where the children work in hazarduous factories. Magadi Makkala Dhwani – a group of four non-government organizations, supported by UNICEF, had then approached both parents and factory owners and educated them on the rights of children and sensitized them to the hazards of working in factories.

The most heartening feature about the protests is that these were not headed by NGOs. It was a protest by the parents and students,which showed the concerted efforts by Magadi Makkala Dhwani had paid off in creating awareness about the importance of education.

Another interesting incident occurred last August. Around 26 child labourers were admitted to special residential schools after they were rescued by deputy Labour Commissioner and a team of inspectors and representatives of NGOs working on the pilot project introduced by the UNICEF and Norwegian Agency for Development. The three-year NORAD-UNICEF pilot project was implemented through Karnataka Government in 2002 as a test case in the districts of Davangere and Gulbarga. Since the last two-and-half years, the NORAD-UNICEF office succeeded in rehabilitating about two thousand child labourers working in chronic work situations in the two districts. Several self help groups and youth organizations took part in social mobilisation and mass awareness programmes like enacting street plays on the evils of employing under-aged children and the importance of sending them to school.

The ball that was set rolling in the 90s in the wake of the National Policy on Education through numerous programmes such as World bank-assisted District Primary Education Programme (DPEP), has gained momentum in the last five years through Sarva Shiksha Abhiyan, the integrated national programme for Universal Elementary Education, which aims to provide quality education for children between the ages of 6 and 14 years by 2010. The drive, launched in 2001, aims to reduce the number of children who are out of school, narrow gender and social gaps and improve the quality of education.

Education is the only hope for India to change its current status of a “developing country” into a “developed country”. And she cannot make this change happen unless she ensures that the 59 million children out of the 200 million children in the age group of 6-14 who are currently out of school enrol in proper schools and learn.

What is keeping these 59 million children outside the school? Problems of access, poor quality in school processes, lack of participation by the community in the school affairs and poverty are among the key barriers to universal education. In Karnataka alone, over 300,000 out-of-school children have been mainstreamed during the past three years. But what is causing concern is the national average drop out rate for children in 1-8th standard, which stands at 57% and an alarming dropout rate of 60% for girl children for the same standards.

Once children reach school, a variety of factors determine whether they will learn and acquire the skills to pursue formal education or drop out. In many cases, a child from a poor/rural family is unable to comprehend and cope up with the pace of other formal school children. Teachers are not able to identify or diagnose the competencies that a child lacks and provide him/her with supplementary teaching. It is not uncommon to come across children who have been to school but remain functionally illiterate. Disillusioned youngsters, who may have completed primary schooling and are unemployed, act as a disincentive for education of other children in the community. Younger children and their families see the writing on the wall – primary education does not always improve the situation of the poor unless what they learn is perceived as being relevant to their life situation.

The enrolment drives for out-of-school children, child labour projects and innumerable remedial education and bridge courses have emerged in the last 10 years, started by district and local government authorities and assisted by NGOs, corporate bodies, local business and the community. These bridge or condensed courses have helped children to re-enter the formal stream, prevented dropouts and improved the learning achievements of children in school.

There have been several initiatives taken by private institutions, or government in partnership with the private institutions, that have borne good results.

The Nali-Kali(literally, dance-learn) strategy of teaching developed by teachers in Mysore has adopted creative learning practices to help retain children in school and bring in those not attending school. This method creates the right ambience for the child to learn in a child-friendly fun-filled way through educational toys, songs, games, story telling, all made by the teachers themselves. This method eliminates the formal system of roll calls, examinations, promotions and ranking.

The initiative has helped improve enrolment, particularly of girls, and has been expanded to cover more areas within Mysore and 10 more districts in the state.

The Akshara Foundation, an initiative with the Infosys backing; has worked in the slums of Bangalore to touch the lives of over 60,000 children in and around the city of Bangalore. The young children do not have to follow their mother to her workplace as she goes out to earn her livelihood. Mother of Satisa, who studies in one such pre-school, says happily, “my son does not loiter on the road when I am out on construction. He has learnt to read and write!”

To take care of children who have to work to earn a livelihood Akshara and CWC (Concerned for Working Children) have partnered with the Department for Public Instruction to start Transit School Program in 8 pilot locations in the city. Transit schools are open from 8 am to 8 pm for the convenience of the children. Working children come to the centers (mostly in government schools) at convenient times during the day.

Azim Premji Foundation focuses on “quality of education” and what happens inside a school, taking note of the numerous initiatives taken by the government. Its CEO Mr. Dileep Ranjekar says that their programs demonstrate “proof of concept” that can be replicated at a large scale in the government system. The Accelerated Learning Program and the Child Friendly School are examples of such programmes.Large numbers of children have been mainstreamed through specially devised bridge courses.

The foundation has developed CD based, child centric and interactive curricular content in local languages that is being used by thousands of schools across five Indian states. The CDs are free for all government school and non-government schools that cater to children from socio-economically weaker sections. Other schools can have it at a very nominal charge.

Mr. Dileep Ranjekar says, “We have tried to use IT to enhance the curricular learning of the children as well as to create excitement in the schools. The attendance of the children is significantly up on the days they are scheduled to work on the computers.”

There are some more remedial steps that government/NGOs can take:

  • Mobilise and organize working children into a self-managed association/organization. Educate them about their rights – right to education, freedom from exploitation, hazardous and non-hazardous work, nutrition and emotional and physical well being.
  • Take a close look at what is happening inside the school. How are children- girls, children from disadvantaged groups, children in difficult circumstances treated?
  • Set up a help-line line to reach out to working children in distress, confront and work with the government, and employers to ensure the rights of children.
  • Encourage older children to talk about their future – training, employment and self-employment opportunities and link education with future prospects.

Differences in the Types of Auctions That Take Place Around the World

Auctions are those events where properties or goods are sold to the highest bidder. Auctions are mostly public events, where bidders make a series of bids and purchase a particular item for a high price. During auctions, bidders decide the price of an item rather than the seller. It depends on bidders to decide the amount they would want to pay for a specific item. During an auction, a bid is a proof of a legal binding. Bidders agree to pay the amount that they have bid. In a high profile auction, bidders may have to pay a deposit in escrow accounts or give a proof that they can pay for those items.

Types of Auctions:

Different types of auctions take place around the world. Below mentioned are some types of auctions:

1. English auction:
This is a basic type of auction. In this type, people can see the item and then start bidding. Bidders slowly raise the value of their bid until everyone gives up. The highest bidder is the winner. An auctioneer manages an auction, keeps records of the on going bid and decides the winner. Sometimes, the seller will quote a minimum amount for an item to the auctioneer, below which the auctioneer cannot sell that item.

2. Dutch auction:
In this type, the auctioneer sets a particular price and then gradually lowers the price. People in public will start bidding and later decide which prices are suitable for the item. A seller may use this type of auction to sell large quantities of same products to the public. For instance, a seller may want to sell a large amount of hay and will thus, decide to sell this hay to people for the same amount, once a reasonable price is decided.

3. Silent auction:
In this type, the bidders in public will present their bids in a sealed format. These sealed bids open at the same time and bidder with the highest bid wins. There could be a modification in this type of auction. The bidders are allotted a specific period to bid. They can roam in a room displaying the items, and write their bids on an associated sheet of paper. The bidders are allowed to see bids of other bidders and can choose a higher price for an item. At the end of the allotted time, bidder with the highest bid is the winner.

Examples of Auctions:

Auctions can be of two types either public or private. Sellers may trade any kind of items in both types of auctions. Some areas where auctions take place are:

1. Antique auction: An antique auction consists of a trade opportunity as well as provides entertainment.

2. Collectable auction: In a collectable auction, the seller may put up collectables like coins, vintage cars, luxury, stamps, real estate, and luxury for sale.

3. Wine auction: In wine auction, bidders can bid for rare wine, which may not be available in retail wine shops.

4. Horse auction: Bidders can bid for young horses of the best breed.

5. Livestock auction: In livestock auction, bidders can buy pigs, sheep, cattle, and other livestock.

The other examples of auctions may not be public. These auctions are for bidders from corporate levels. Some examples of private auctions are:

1. Timber auction
2. Spectrum auction
3. Electricity auction
4. Debit auction
5. Environmental auction
6. Auto auction
7. Electronic market auction
8. Sales of business auction

Bidders in an auction need to examine the items displayed and decide an appropriate price for an item. Thus, auctions help buyers in getting the best deals and in gaining better profits for sellers.


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