Online businesses are on track to dominate the market as a media-buying giant. GroupM predicts the e-commerce market will grow by $7 trillion and represent at least a fourth of total global retail sales by 2024. Although e-commerce has always been on a steady rise, the global health crisis accelerated its growth, as it forced many physical stores to put a pause on their operations.
However, the online marketplace presents unique challenges that online business owners must overcome. Understanding how to protect your online business is vital if you want to find longevity and success in the e-commerce market. With that said, here are three ways to help you protect your online business.
- Choose a Reliable Hosting Service
- Ensure That Your Business is Legally Sound
- Invest in Cybersecurity
Choose a Reliable Hosting Service
Besides joining e-commerce platforms, you can also launch your professional website to offer your products and services. Much of the success of your online business relies on balancing superb design with great web hosting features. While there are a ton of free web hosting service providers online, you’re better off trusting your business’ sensitive data to a provider that is PCI-compliant and has active security measures to thwart cyber threats. When looking for a reliable hosting service for your business, PC Mag recommends firstly listing down the features that you need — such as a dedicated server, high-end cloud server platforms, advanced WordPress options, customer support, and any digital service that your online business might require. These should cover all your bases.
Ensure That Your Business is Legally Sound
Although it’s easy to be lax about legal concerns, you shouldn’t forget to iron out your business’ legal guidelines nonetheless. This way, you can rely on the law if your online business encounters a problem. For example, your online business must have a paper trail — especially if you plan on entering partnerships with other entities or companies. Having a contract protects your online business and outlines the exact agreement that you and the other party have co-signed. This will help quickly settle any legal issues that you might face if the other party fails to fulfill their obligations specified in the contract.
You can also better protect your business by choosing the right business structure. While being a sole proprietorship or partnership has its perks, like less paperwork and simplified tax reporting, incorporating a limited liability company (LLC) is well worth the extra steps. A guide to LLCs by ZenBusiness explains the numerous benefits of an LLC structure for online businesses — namely, establishing a clear divide between your personal and business assets. This is especially helpful in case your business runs into legal or financial troubles. With how volatile companies can be amid the pandemic, it can significantly help cushion any unexpected blows.
Invest in Cybersecurity
Cyberattacks are at an all-time high — and small businesses are often the target. Indeed, CNBC reports that 43% of cyberattacks target small businesses, and only 14% know how to defend themselves. This is why your online business must invest in cybersecurity solutions to fortify and protect sensitive business and customer information. For one, you can employ the services of cloud computing companies that can explore and detect problems in your tech systems in real-time. Besides, data classification software can also help bolster your cybersecurity by making it easier to access data while mitigating the risk of a breach.
If you want your business to flourish during these precarious times, you should heed the tips and advice we’ve listed above. For more insights on how to manage your online business, be sure to check our post entitled ‘5 Things to Know When You Consider Doing Online Business’.