Entrepreneurs who are planning to start a new business venture should consider the differences between an e-business and a traditional business model. Differences don’t suggest one is better than the other. One model might be better suited for certain types of business products and services. Some businesses benefit from a combination of the two models.
Differences in Overhead Costs
E-business models generally have lower overhead and startup costs compared to traditional business models with brick-and-mortar stores. Eliminating the need for location rent, staff and utilities that are necessities with brick-and-mortar locations help businesses improve profitability.
Those who choose a brick-and-mortar model also need…
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