Technically, an online business is not a digital or virtual extension of an existing traditional business. Instead, it could get defined as a digital enterprise where the primary forte of the company is in the virtual world, and this can have many advantages.
However, for the purpose of inclusivity, we shall include the digital or online extensions of existing traditional businesses. Here are five benefits to starting an online business:
1- Reasonable Investment
Most online businesses cost a fraction of what a traditional or conventional business demands. Compare the cost of launching an online store or e-commerce site vs an actual retail store. The difference will be a small fortune.
It is true that starting an e-commerce site or global marketplaces like Amazon or eBay will require much more money than starting a convenience store in a neighborhood but not every online store needs to be an Amazon or eBay.
2- Easy Startup
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 start an online business. For those who don’t need to rely on website designers or a multipurpose agency, the ball can be set rolling in less than a week.
3- High Returns on Investments
The investment is low to begin with. The returns are high anyway when you assess the ROI. 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. You should 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 indulge in a plethora of leisure.
5-A Myriad of Freedoms
Online business owners can work from anywhere, at any time, for as long as they want and there’s the elusive financial freedom. Online businesses are truly empowering. Online businesses also help entrepreneurs to find that quintessential balance between work and life.