4 reasons to start an online business

The entrepreneur is a rare and special breed. They constantly explore the final frontier of business opportunities. They may try to find these opportunities by themselves, or they may have other people pitching them to them.


Most of these opportunities sound great on paper but end up being massive money-sinks because of high overhead, low scalability, and even lower margins. There’s a lot of appeal to online businesses though because they avoid the common hurdles faced by other business ventures. Here are four reasons an online business is one of the best investments you can make right now.


They Offer Great Scalability

One thing you have to understand businesses is they aren’t all overnight successes. Most entrepreneurs will start their online business with the idea that customers will just show up at their door and the sales will flow in because they have their own little corner of the internet. They have this misguided opinion that with some Facebook posts and tweets they’ll soon have a money-making machine.


It’s not easy to scale a business, whether that business is an online one or a physical one. There are some advantages to scaling online businesses though. Brick-and-mortar stores will have their own defined audience. This is generally a small radius around the business itself. These restrictions don’t apply to online businesses because they reach global audiences.


After putting together a successful strategy for advertising and marketing, businesses are able to open up their target and increase their budget to bolster growth.


Unlimited Freedom

Entrepreneurs generally open online businesses because they offer unlimited freedom. There are plenty of tools that allow for businesses to be owned and operated remotely, including laptops, business apps, tablets, and VOIP communication programs. Do some people watching the next time you visit Starbucks and you’re sure to see someone working on their startup or business while enjoying their coffee and free wifi.


It’s empowering to not be tied down to a location or desk nine-to-five. Some entrepreneurs will find themselves struggling to balance their newfound freedom, and others use it as motivation to keep them working. Don’t feel that the freedom brings a chance to slack off though. A true entrepreneur respects their freedom and understands that the hard work they put into their business is worth it to spend more time with their loved ones and enjoy activities others don’t get to do thanks to being tied down to a nine-to-five.


Reduced Overhead and Higher Margins

Online businesses generally allow investors to avoid the huge costs that come with running an offline business. You can eliminate the costs of having a retail/office space and the financial commitments of a lease for a start. You also save money on having to store inventory. Drop-shipping agreements with manufacturers and manufacturer-to-order deals significantly reduce financial risks and allow you to keep up a consistent margin without as much upfront cost.


Let’s say you were running a business selling hats and you stocked five different kinds; red, green, yellow, blue, and orange. You would have to keep all of these variations in stock in brick-and-mortar stores because you have no idea what kind of hat the customer that walks in wants to buy. You would have to start offering a discount on the red hats if they didn’t sell too, which eats away at your profit. Selling these hats through a drop-shipping agreement means that you aren’t holding on to the unsold merchandise that you’ve paid for already.


Access to the Worldwide Market

One of the best things about running an online business is that it can be run around the clock with no boundaries. There’s no specific hours of operation or geographical boundaries that you are tied to. Online businesses can make money all the time, even if you aren’t awake or taking care of it.


With proper search engine optimization, social media, and paid media at your disposal, your online business will thrive. You’ve got the whole world in your hands. Online businesses have an upper hand because they aren’t forced to target a specific state or region.


Have you ever invested in online businesses before? Are you just considering it? Let us know your thoughts and leave a comment.



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