The idea of starting an online business is very similar to the idea of climbing a steep mountain.
Many want to enjoy the view from the top, but few are willing to do the hard work it takes to reach it.
If you’re considering starting an online business but are not sure if it’s the best option for you, you’re in the right place.
In this post, we’ll go over 11 reasons starting an online business is the greatest opportunity for the young, hungry entrepreneurs of our generation.
Let’s dive right into it!
1. It's Inexpensive and Easy to Start.
Compared to a brick and mortar, you don’t need to pay expensive fees such as rent, utilities, equipment, and decor to start an online business.
Some of the world’s most successful businesses began with only a website hosting service and a domain name. That’s all it takes to jumpstart your online business and start working towards success.
Since there’s virtually no financial commitment, there’s little stopping you from starting an online business.
Once your website you’ve launched your site, you’re off to the races. You can immediately start working on gaining an audience and strengthening your brand.
After you’ve built an audience, you can develop products and services that they would be interested in purchasing.
For instance, if you’re a photographer, you can promote your services to your readers through your website.
Similarly, if you’re a consultant, you can use your online platform to help you draw clients within your industry.
Even if you’re not an expert on a topic, you can make money online by sharing what you learn.
You can start a blog and sell digital products that cost very little or nothing to create. Ebooks, video tutorials, and website memberships are all digital products that you can develop and sell online.
2. Low Overhead Cost and High Margins
In the past, entrepreneurs had to manage sky-high overhead costs while leveraging significant financial risk to get their businesses up and running.
From clothing stores to restaurants to book shops, brick-and-mortar business owners must pay rent, utilities, employees, and cover insurance costs.
These factors alone are often enough to send business hopefuls running for the hills.
But with the internet came the opportunity to create a business with low overhead costs. You can avoid expenses most expenses associated with running a traditional business.
Stocking inventory has been made more affordable for online businesses.
With a physical storefront, you have to keep all of your products in stock so that any shopper who enters the store has a full range of options to purchase.
But with an online business, you can do manufacture-to-order or drop-shipping agreements to cut down on the financial obligation associated with business inventory.
And if your product is digital, you don’t have to worry about inventory at all. You can start selling your products with as little as $100 to spend on web hosting and a domain name.
Digital products allow online entrepreneurs to enjoy high margins in a way that’s not possible with most businesses.
3. Unlimited Income Potential
Having an online business frees you from having to trade your time for money.
Unlike a traditional job, running an online business allows you to earn passive income. Meaning that money will flow in even when you’re asleep, spending time with your family, or working on another job.
Rather than getting paid a set hourly, monthly or annual salary, the amount of money you make on your online business hinges on your productivity and effectiveness.
If you build an effective marketing campaign, you can cut down on your working hours while still boosting your income.
The best part is that your business never has to close. With payment processing software and virtual shopping carts, your site visitors can make purchases without you having to lift a finger.
While building a profitable online business takes time and effort, it provides you an opportunity to scale your income in a way that a traditional job can’t.
4. It's Much Easier Than Ever.
While being tech-savvy used to be a must to becoming a digital entrepreneur, this is no longer the case.
You don’t need to be an expert in website development and design to start an online business.
Web services like WordPress and SquareSpace allow you to build and maintain an attractive, user-friendly website quickly and easily.
Running an e-mail campaign has been made easy too.
Companies like Convert Kit and Leadpages are stellar for landing page creation and list building services.
If you are looking to create an e-commerce business, it is just as easy.
E-commerce platforms such as Shopify and WooCommerce makes it easy to create an online store.
Shopify will handle all the complicated hosting and payment providers so that you can focus all your energy on creating products.
If you’re using WordPress, you can use the WooCommerce plugin to add e-commerce functionality to your site. This makes it extremely easy to begin selling products on an already active site.
There’s also freelancing platforms such as Upwork and Fiverr, which allows you to complete just about any task that you may need at a competitive price.
From accounting to content creation to marketing management, you can develop a team of freelancers to support your business.
These service providers aren’t the only companies that you can turn to for help with your online business.
Today, more than ever, you have more choices and flexibility when it comes to running a successful online business
5. Access to a Worldwide Market
While brick-and-mortar businesses are limited to consumers in their area, online companies have access to customers worldwide.
When you’re selling goods and services online, your customers can have access to them regardless of where they are.
For instance, say that you’re an artist looking to sell your paintings to interested buyers.
If you opt to open a local storefront, you would only have access to consumers who can easily travel to that storefront.
But, if you were to create a website and sell your art over the Internet, you could reach potential customers in countries all over the globe.
Without physical limitations on your audience, you can grow your online business quickly.
Plus online internet access is growing in developing countries. In 2010 only 21.2% of people in developing countries had access to the internet. That number increased to 47% in 2019.
Making payments online has also become more manageable and safer across the world.
PayPal, one of the most trusted and easiest online payment methods, is now available in over 200 countries and accepts 20 different currencies.
This is excellent news for all online businesses and shows that the future is bright for digital sales.
Now more than ever, your online business has the opportunity to thrive with customers all over the world.
6. Create Long-Term Financial Security
With hard work and an excellent business plan, you can grow your online business into a stable revenue source.
Successful online business owners have proven that this time and again.
The amount of money you can make with an online business can bring in an annual income upwards of six figures.
You’ll be able to do all this without the fear of getting fired or laid off.
Once built, an online business can provide you with a good income source for years to come.
7. You're in Control
The truth is, traditional jobs can be limiting and sometimes prevent you from developing the knowledge and skillsets you need to improve on your career.
This is especially true in large corporate situations, where politics tend to seep in and impact your productivity at work.
In contrast, when you’re an online business owner, you’re calling the shots.
You get to have the freedom to learn, experiment, and make mistakes. You can make decisions based on what you believe will benefit your company and customers best.
While running an online business may seem daunting, it will provide you with the freedom, flexibility, and opportunity to a fulfilling career.
8. People Are Consuming More Content than Ever
People are consuming more online content than ever.
Regardless of your niche, it’s likely people are seeking out online content relating to it.
This makes it much easier for you to find your audience and convert them into paying customers.
Additionally, with advancements in technology, you can find and connect with your ideal audience in a variety of ways.
Today, you can reach your customers through video, text, audio, and social media content. This wasn’t the case ten years ago.
Plus, with search engines more capable of separating high-quality content from digital fluff, you have the opportunity to stand out and build a rock-solid brand.
9. You Can Work From Anywhere in the World
As an online business owner, you can work anywhere, so long as there’s an internet connection.
Go to your local coffee shop; you’ll likely find someone busy with their online businesses while enjoying a cappuccino.
Without the obligation to work in a specific location, you can enjoy remarkable flexibility as an online business owner.
Whether you’re in your home office or enjoying a cafe in Europe, you can make money and grow your online business.
10. Lucrative Exit
All business owners must consider the possibility of selling it in the future.
For local businesses, the pool of interested buyers will be limited based on location. Online businesses, on the other hand, are available to buyers all over the world.
With the rise of successful online businesses, many investors are looking to online companies as potential acquisitions. This is evident with the rise of companies such as Flippa and Empire Flippers.
Your online business doesn’t have to expand into a massive corporation to sell. Small online companies with values at $10,000 are in great demand.
Plus, many brokers are now specializing in helping small business owners find buyers. So, if you’re looking to sell your online business in the future, you can rest assured that it will be possible and, likely, quite lucrative.
11. The Rewards are Priceless
Starting a business is hard.
You’ll often find yourself working late nights and on the weekends, saying no to friends and family, missing out on fun occasions, all the while not getting rewarded, paid, or recognized.
But the joy that comes from turning your ideas and dreams into reality is unlike any other.
Even more fulfilling is when you see your business touch and transform lives.
When you create something that serves others, you get to experience the joy that comes from being a part of something greater than your self.
While entrepreneurship is a tough path to take, after the initial struggles, its rewards are priceless.
Conclusion
Regardless of your schedule, financial standing, and skillset, you can succeed as an online business owner.
Consumers are overwhelmingly making the shift towards online purchases, and you can expect that trend to continue.
So, don’t hold yourself back from making the jump as an online entrepreneur.
With hard work, passion, and dedication, there’s little stopping you from succeeding online. Over time, you’ll see your vision come to fruition, even if you started with nothing more than a website.