Many people think an online business is a digital or virtual extension of an existing traditional business. It is not. An online business is a digital enterprise where the primary existence of the company is in the virtual world. However, for our purposes here, we shall include the extensions of existing traditional businesses as online businesses. Here are five benefits to starting an online business.
Most online businesses cost a fraction of what a traditional or conventional business demands. Compare the cost of launching an online store to a “brick and mortar” retail store. The difference will be a small fortune. It is true that starting an online marketplace like Amazon or eBay will require much more money than starting a small boutique store in a neighborhood, but not every online store needs to be an Amazon or eBay.
An online business can be launched in weeks, if not days. Once the business plan is in place and all the products or services are ready to be rolled out, it takes days to setup the online store. For those who do the work themselves, the ball can be set rolling in less than a week.
High Returns on Investments
As already discussed, the initial investment is low to begin with. This makes it much easier to get a high ROI in the beginning. However, given the scope of expansion and exponential growth that one can encounter, the returns on investments are exponentially higher than conventional or traditional businesses. A traditional business can only reach out to an immediate audience. Online businesses can transcend geographical boundaries, cultural and social barriers to emerge as a global phenomenon.
Online businesses can be automated, almost entirely. This is one of the big selling points most people have heard about online businesses – “Make money while you sleep.” You still need to conduct the reviews, assess the performance and make changes as and when needed but you don’t need to personally or physically intervene at every stage. Everything from compliance to sales, customer service to upgrades can be automated. Digital entrepreneurs will have more time at their discretion which can be used to diversify, to expand the business, to venture into new endeavors, and to just enjoy the free time.
A Myriad of Freedoms
Many online business owners take advantage of the ability to work from anywhere, at any time, for as long as they want. This is the real financial freedom. Online businesses are truly empowering. Online businesses also help entrepreneurs to find that quintessential balance between work and life.