When e-commerce first started, there were very few businesses that took advantage of this new technology. However, with the rise of internet use and mobile devices, e-commerce has become a collective term for online shopping and online retailing.
Now, immense companies such as Alibaba and Amazon have successfully conquered the online retail market. Nonetheless, to be successful in the online business industry, you don’t have to run a massive corporation like these. Many small businesses have managed to seize their share of profit from online markets. In fact, the latest trends show that the growth of the e-commerce market in the upcoming years will come from small to medium size businesses.
E-commerce is growing rapidly and more business owners are now taking advantage of this opportunity to grow their business online. However, not many entrepreneurs are aware of the benefits that online business can bring to their operations.
But don’t worry, in this article we’re going to discuss 7 key benefits of starting an online business.
Are you ready to get started? Let’s go then!
1. Cheap start-up cost
The first key benefit of starting an online business is cost saving.
For new business owners, overhead costs can be overwhelming and it may impact your financial health negatively.
However, high start-up and overhead costs only occur if you are planning to open a brick-and-mortar business. Online businesses, on the other hand, only require you to purchase a domain name and hosting packages.
You may incur extra cost to hire a professional web designer to design an elegant and professional-looking website for your business.
In that way, online businesses are comparatively cheaper than brick-or-mortar businesses in terms of start-up cost and overhead expenses.
2. No restrictions regarding the location
Another advantage of starting an online business is that there are no restrictions regarding the location of your customers. When starting a physical storefront business, you need to ensure that your product or service will appeal to customers within the vicinity of your location.
For example, if you’re opening an ice cream parlor in San Diego, California then it would be smart to target customers within the San Diego County or Southern California region who love ice cream or frozen treats. Otherwise, customers from other parts of the country would not come to visit your store because they don’t have any interest in what you are selling.
3. Easier and faster financial transaction
According to ForwardAI, online payment services such as PayPal and Stripe allow you to receive a transaction from a customer directly to your bank. This will save you a lot of time in terms of the transaction process. For your global customers, they can make payment conveniently in their own currencies because online payment services will automatically convert their currency to the currency that you will receive. You can also utilize free accounting software like ForwardAI Predict that offers all these payment gateways with multi currency features to help you to manage your day-to-day business transaction, sending invoices and tracking your financial performance.
In a nutshell, an online business can offer you a cheaper, easier and faster business environment. Online business is suitable for those who are seeking to start a new business but having a tight budget. Start-up and overhead costs are relatively low and you can start implementing zero-marketing strategies through online advertising and social media from day one. Furthermore, the transaction process between your business and customer can be done in a matter of seconds and you have the flexibility of doing your business in terms of time and location.
4. Run Your Business From Anywhere
One of the most important benefits of starting an online business is the ability to operate your business from anywhere. Having an online business allows you to operate your business from any corner of the world. This great benefit of having an online business lets you have the freedom to operate your business from anywhere by not just being stuck to a physical location.
You can easily conduct your online business from anywhere all you need is a solid internet connection. Also with reduced paper, works, and virtual databases, managing a business has never been easier than this. With the help of detailed sales and product information online, you will be simply able to keep a record of all the activities and purchase orders. You can simply make use of various online service providers to manage purchasing, billing, order fulfillment, and payments for your online business. Among the different benefits of having an online business, the feasibility to operate your business from anyone is the favorite of online business owners.
5. Your Business Runs Around The Clock
As an online business owner you have the opportunity to reach millions of people around the world 24 hours a day 7 days a week.
Unlike most traditional brick and mortar stores an online business can be run 24 hours a day 7 days a week, even when you’re not in front of the computer.
And because websites are always online it allows others to always be able to find what they are looking for quickly and easily.
This provides business owners with much more flexibility in regards to both when and how they work by allowing the information, products and services to always reach those in need.
As long as an individual has a computer, tablet or smartphone they are able to visit your online business or blog and get the information they need when they need it.
Nowadays many businesses earn an income by offering value to their audience, which is willing to take the time to read or watch what they have to say and/or buy the businesses products, services and/or solutions to help them solve their problem..
6. You can focus on what matters the most to you
According to our Fromdreamstolife, one of the best things about starting an online business is that it allows you to focus on the very things that interest you the most (if you choose) and this can make it easier to sustain your efforts and maintain motivation while you grow.
Unlike other types of work where you end up primarily focusing on tasks that don’t interest you, the work you do in your online business projects provides you with full control and creative freedom over what you choose to work on and how you plan to achieve your goals.
This also allows you to share your experiences and interests with other like minded individuals while also giving you the freedom to build a platform that you can grow over time.
In fact (outside of the traditional eCommerce website) many small online businesses, blogs and websites today earn a living by educating others and helping them achieve their own goals.
They’re vision is focused and aligned with the interests of the creators and the community in ways that other types of traditional businesses may not be.
Whether you have a burning passion to help others develop their own skills or you have a product/service that can provide lot’s of benefits to other individuals and companies, building your own online business can bring you much closer to achieving your goals.
The flexibility and mobility to design a business that matches your personal and professional life interests is not only enticing, it’s something you can build over time and be proud of.
7. Crafting a Budget
According to our blog post, the last critical service based business practice is crafting a budget.
Every company creates a budget that dictates how revenue is utilized in daily operations and the pursuit of future growth. It gives input on ongoing operations costs, creating a budget that allows the company to track all spending and revenue. The funding from the previous year is compared to that year’s actual results to develop a guideline for the following year’s spending plan.
The budget process begins with projecting revenue growth by analyzing past sales trends, industry trends, economic factors, and other variables. This information is combined with an analysis of expenses to determine the amount of money needed to run each department within the organization. Once this analysis has been completed, creating a budget that accurately reflects your business needs without worrying about overspending becomes much easier.
For example, suppose there are certain areas where you want to increase productivity or sales volume. In that case, you can allocate more money to those areas to achieve these goals. However, if there are other areas where you want to reduce expenses or cut costs entirely (such as outsourcing specific jobs), These areas can also make those changes
Congratulations! You’ve made it to the end of the blog post! Hopefully, you’ve learned a lot about the benefits of starting an online business.
However, I know what you might be thinking. What if you do not know how to start an online business? How can one start? Well, you can take a look at our blog posts here and here
But before you go, I would like to offer you something.
Launchgenix is a 3-month 1:1 coaching accelerator program for anyone who wants to learn how to validate and launch their business idea the proper way. It is specifically designed to help you validate your business idea BEFORE you even start building your product or service.
At the end of the course, you will have a profitable business idea that you can take to the market. And not only that, but you will have a clear understanding of how to successfully pre-sell your digital product or service to your IDEAL audience.
It STOPS you from wasting your time, money, energy, and resources on building a business that WON’T ever sell.
You can read more about it here.
We hope these practices can help you build your service based business, so that when your potential clients start looking for someone like YOU, they’ll know exactly where to find you!
I am curious though, have you known about these practices before? And if so, did you ever try to implement them?
Let me know in the comments below and as always feel free to contact me!