Back in the day, only the privileged few could start their own businesses. Starting capital had to be significant, while outside funding was scarce (unless you had a ‘commerce-savvy family).
Granted, in 2021 that’s no longer the case. Today anyone can start and scale an online business, regardless of their professional background or past entrepreneurial experience.
Yet, while the entry-barrier got lower, it’s not fully gone either. You still need to come up with a viable product idea, figure out your sourcing or manufacturing strategy and then your sales model.
But all of the above should not discourage you from starting an online business!
Reasons You Should Start an Online Business
You may be wondering why start an online business in the first place. Why not go with a brick-and-mortar one instead?
Because starting an online business has several advantages.
Here are the three main ones:
1. It is fairly inexpensive to start.
A lot want to start a business but are deterred by the investment required to get it off the ground. You have to pay for a lease, purchase inventory and budget for employee salaries. What if you invest all that money in your business but it doesn’t work out? This can ruin you financially, have a look at the best business tools for small business owners.
However, with an online business, all you need is:
- Computer. You probably already have one.
- Domain name. You can get one for less than $10/year.
- Website builder: Monthly plans start for $29.90/mo.
In other words — it’s feasible to launch an online business with $100 as a starting capital.
Of course, the more starting money you have, the more online business ideas you can pursue.
But the point is that you don’t need to risk your life’s savings to become a (successful) online entrepreneur.
2. Major potential and growth.
When you have a brick-and-mortar business, you have to deal with the limitations of the “real world.”
Renting in prime locations is expensive, there may not be enough foot traffic some days and the local crowd just doesn’t need stuff all the time.
But guess what? When you run an online business, none of these limitations apply. You can sell to anyone, no matter where they live.