4 Reasons Why an Online Business is the Best Investment You Will Ever Make – Entrepreneur

Signing out of account, Standby…
Entrepreneurs are a rare breed of individuals who are constantly exploring new business opportunities. Some seek out new opportunities on their own while others are constantly being pitched new ideas.
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. The following are four reasons why online businesses are the best investment entrepreneurs can make.
Not every single online business is going to automatically morph into a huge success with rapid exponential growth. Many entrepreneurs start an online business thinking customers are automatically going to find them and sales will pour in because they have a small footprint on the Internet. They think that a few tweets and some Facebook posts are all it will take to snowball an online business into a virtual ATM machine.
Related: 4 Ways Your Virtual Business Can Build Customer Confidence and Credibility
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 budget to grow very fast.
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.
An online business will often allow you to eliminate some of the huge costs associated with an offline business. Not only can you eliminate things such as pricey office or retail space and long-term lease commitments, but you can also eliminate having to tie up your money in stocking inventory. A drop-shipping agreement with the manufacturer or a manufacture-to-order arrangement can greatly reduce your financial-risk and will allow you to maintain more consistent margins with less upfront cost.
Related: 4 Startlingly Basic Mistakes That Doom Most Ecommerce Startups
Imagine if you had a business that sold hats and you carried five variations: red, blue, green, yellow and orange. In a physical brick-and-mortar location you would need to keep all of the variations in stock because you don’t know what hat the people walking through your door are coming to buy. If the yellow hats don’t sell you are forced to discount them and take a loss. Selling the same hats via drop-shipping would mean you won’t be left holding unsold merchandise that you have already paid for.
The beautiful thing about an online business is the ability to run it 24/7 without boundaries. There are no geographical boundaries and there are no specific hours of operation — an online business can produce revenue around the clock, even while you sleep.
With a well thought-out social media plan, search-engine optimization and paid media strategies, an online business can thrive. You have access to the entire world right at your fingertips. The luxury of being able to target specific states, regions and countries gives an upper hand to online-based businesses.
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.
This Founder Wanted to Infuse a Marshmallow With Chocolate, for a Better S’More. He Had No Idea How Hard That Would Be.
Why Your Franchise Depends on Strong Unit Economics, and 5 Ways to Strengthen Them
3 Reasons Espresso Could Be Your Shortcut to Productivity (It Works for Elon Musk)
Lessons I Learned After Everything Went Wrong in My Business
How This First-Time Author Turned His Coaching Experience Into a No. 1 Bestseller for Kids
The Future of Startups Lives Outside of Silicon Valley: Here’s Why
The CEO of GoDaddy’s Secret to Creating a Culture of Experimentation
Emily Rella
John Kitchens
Devan Leos
Subscribe to our Newsletter
The latest news, articles, and resources sent to your inbox.
I understand that the data I am submitting will be used to provide me with the above-described products and/or services and communications in connection therewith.
Read our privacy policy for more information.
Copyright © 2022 Entrepreneur Media, Inc. All rights reserved.

Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media Inc.
Successfully copied link

source

Leave a Reply

Your email address will not be published. Required fields are marked *

Prev
Best Motivational Video 2019 – Speeches Compilation 2 Hour Long – Motivation for success & Gym

Best Motivational Video 2019 – Speeches Compilation 2 Hour Long – Motivation for success & Gym

Next
Celebrate the Windows 10 'ninjacat' meme with new Microsoft desktop wallpapers – PCWorld

Celebrate the Windows 10 'ninjacat' meme with new Microsoft desktop wallpapers – PCWorld

Inexplicably, a ninja cat riding a unicorn became the symbol of Windows 10

You May Also Like