Online Vs
Offline Businesses
Extremely Low Startup Cost
Perhaps one of the
most attractive aspects of business on the web is the extremely low
startup cost. If you were to consider a normal offline business,
we'd be talking about some sort of office space or shop space, one or
two employees at the very least, some kind of inventory, maybe
renovations, and lots of other smaller expenses.
Even if you were
to work on a shoestring budget, you may need at least $50,000 to run for
a year. And a lot of businesses do not show a profit in the first
year. Do you have $50,000 to spare? And that's just for the first
year!
The Internet, on
the other hand, actually allows you to start a business at ZERO cost.
There are lots of free stuff on the net. You can use those
resources to start a business at no cost.
Of course, it is
highly advisable for you to pay for certain things, like a domain name,
web hosting and one or two services that will help automate your
business. Your business will run more smoothly and gain more
credibility, and be more profitable in the long run.
Remember what they
say about free things, "You get what you pay for."
For a start, let's
talk about $50 to $100 a month. You can afford that, right? Bet that's
less than your kid's allowance.
Global
In the offline
business world, even if you have a product that appeals across borders,
you are going to have a massive organizational nightmare in figuring out
how to expand regionally, not to mention globally. And that's assuming
you have the financial muscle to even consider it.
In an online
business, a global reach is the norm rather the exception. Every online
company is effectively a global company, with the potential to sell
globally.
But if you want to
sell to any Tom, Dick and Harry on the web, you must choose your
products or services carefully. Granny's Heavenly Cookies will
probably sell to almost anyone on the web but if you are selling real
estate in Florida, you are going to have a very select and localized
audience.
You Can Work Part Time
For most offline
businesses, working part time is not an option - at least during the
starting stages. Every day that your business is running is costing you
money - money for the utilities, money for the rent, money to pay your
employees, etc.
You are going have
to quit your job and work on your business fulltime to make sure it
turns a profit - before you run out of money. For an online
business, you can keep your day job. Your monthly expenses will be very
low as compared to offline businesses and so there is no need to be
profitable as soon as possible.
Only when you find
that your business is starting to generate a serious income, and you are
having problems coping with its demands, do you have to consider
quitting your day job.
First Impressions Count
The street
location of a business, or the building it is in, will give the visitor
the first impression of the size of the business. In many cases,
this first impression will be the determining factor as to whether the
business makes a sale.
When you are
online, however large or small your company is, you will still occupy
one screen of your visitor's monitor. As a small business, with a
well-designed site, you will have a much greater chance of impressing
your customers and luring them from your bigger competitors.
