CONTRIBUTED BY:
CONTRIBUTOR
Founder
of FE International
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.
1. Offers incredible
scalability
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: Do you desire to know how to buy an established business with very little capital and start making money right away? Then, see details here!
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.
2. 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.
3. Low overhead and high
margins
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: Do you desire to know how to buy an established business with very little capital and start making money right away? Then, see details here!
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.
4. Access to a worldwide market
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.
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