Entrepreneurs constantly keep exploring new business opportunities. The majority of opportunities, no matter how good they might sound, end up being a complete money-sucking nightmare due to expensive overhead, slow scalability, and low margins.
Online businesses, however, can be very appealing because they don’t have the traditional hurdles that most new ventures face. Too many people view Internet business through an extremely narrow lens – either you’re pawning off your personal possessions on eBay or you’re trying to be Mark Zuckerberg with the next big Internet thing. The reality, of course, is that there are many different ways to do business online. There are enough different Internet business models out there to suit any particular combination of strengths and weaknesses. What really matters is the “why” – that is, why you should consider pursuing online business in the first place.
Why an Online Business?
Here are five compelling reasons to start a home based online business.
Reason #1: Very Little Risk
Starting a home-based online business doesn’t require the high costs of a traditional brick and mortar business. You don’t have to dive into your savings, get Business Lines Of Credit or borrow from friends and family. You can get started right away without breaking the bank. Whether you decide to operate from a spare bedroom or a garage, your new business can be up and be running quickly and with very little risk. According to FranchiseHelp.com, 70% of home-based online businesses survive at least three years, compared to just 29% of non-home-based ventures.
Reason #2: Low Online Business Startup Costs
If you’ve always had an entrepreneurial bent, know that those business owners who choose to launch their ventures online enjoy substantially lower startup costs than those in the real world. Think about it – the “real world” business owner must pay for commercial space, physical inventory, printed stationery and more. As an Online business owner, your only real expenses will be a domain name and hosting account. Even if you do decide to purchase inventory outright or invest in tools that will make running your Internet business easier, your overall investment will still be much less expensive than maintaining a physical presence offline.
Reason #3: Unlimited Earning Potential
In a typical type job, your earnings are tied directly to the number of hours you work, not necessarily how much work gets done. The opposite is true when you run an online business. Online businesses allow you to be able to quickly scale from a few hundred dollars in sales to thousands of dollars in sales without slow down. Your income is directly related to how hard and how well you do your job.
The sky is the limit when it comes to making online money. The choice is yours when time comes to decide how much you want, or need to earn.
Reason #4: Provides Limitless Freedom
Many entrepreneurs are drawn to online businesses because of the freedom they offer. Modern technology, laptops, tablets, business apps and VOIP communication systems are just some of the tools that allow businesses to be operated from any location. Next time you are in a Starbucks take a look around – I guarantee someone is working on their online business or startup while connected to wifi and sipping their favorite coffee.
Not being tied to a particular location or desk from nine to five can be very empowering. Some entrepreneurs don’t know how to balance the freedom and fail miserably, while others use the freedom as motivation to work even harder. Don’t mistake freedom for time to slack off. True entrepreneurs respect the freedom and understand that the hard work is well worth the ability to spend more time with their families and partake in activities that most miss out on because they are part of the nine to five grind.
Reason #5: Online Business Offers Scalability
When you learn how to generate profits online, you’re teaching yourself how to become financially independent. As you start selling products online successfully you can scale up your business. By repeating this process, you have the potential to create multiple streams of income. With an online business, your income isn’t dependent on the number of hours you work. Scaling any business is not easy, whether it is a brick-and-mortar location or an online business. But an online business has advantages. For instance, a brick-and-mortar retail store has a defined audience, typically a radius from the business location. An online business isn’t restricted by this and can market to a worldwide audience.
Once a successful marketing and advertising strategy is identified an online business can simply open up its target and increase the budget to grow very fast.
Reason #6: Ultimate Job Security
There is no such thing as job security unless you create it. Your employers want money, rightfully so, and they don’t particularly care how loyal you are. They will do what is necessary for profit not what is necessary to keep their cogs happy.
You cannot rely on anyone or any company to employ you forever. You can only ever rely on yourself and one thing is for certain: The internet isn’t going anywhere.
I hear a bunch of silly conspiracy theorists worrying about the day the internet gets “shut off”. Friends, there is no on/off switch for the internet. It’s here, it’s here to stay and every damn person you know is addicted to it.
I’m addicted to it as much as anyone. The obvious solution here is to make money from your addiction. You will be online anyway so you may as well be making dollars while you do it.
Reason #7: Online Business Provides Flexibility
Working out of your home provides much greater flexibility and control than starting a conventional business. With an internet business, you can choose when you want to work and where you want to work. You’re not confined to a single location; you can be on a beach or on a plane and still be able to work.
Reason #8: Access To A Worldwide Market
If you already operate an offline business that either sells products or takes on freelance clients (for example, as a freelance writer, web designer, programmer or accountant), transitioning your business online will give you access to a much wider pool of clients and buyers. No longer are you competing against other agencies in your area for the same small network of customers – instead, as an Internet business owner, you’re free to think as big as you want. This could mean accessing buyers a few towns away from your own or even “going global” in order to expand your business’s reach dramatically.
Reason #9: Follow Your passions
As someone else’s employee, you aren’t working on the projects you’re passionate about. You’re completing tasks in order to increase somebody else’s bottom line. And while this arrangement works for some people, most chronic employees don’t know what they’re missing when they trade the passion of working for yourself on projects you care about for the “security” of the daily grind.
If you aren’t personally satisfied by your current day job, you owe it to yourself to at least investigate the potential fulfillment that comes from running your own online enterprise.
Reason #10: Online Business Is More Fulfilling
Running an online business is more fulfilling than working under someone else. You are your own boss. Running your own business online can be a very rewarding and gratifying experience. No matter how big or how small your idea is, by doing something you’re passionate about, your journey to success can be much easier and fulfilling.
Have you previously invested in an online business or are you considering it in the future? Share your thoughts with us in the comment section below.