Like many major events in history, the novel coronavirus will go down in history for its contributions towards change and evolution. This year, many businesses have found themselves in a position where they had to pivot, reinvent, or perhaps even completely change their operating models. As a society, many individuals are forming new habits and learning what they can live with…and without. At the center of these changes for business one common theme can be found – the more agile your operation is, the more likely you did not feel the full impacts of the 2020 coronavirus.
Investing in an online business right now has many benefits. Below we discuss the top 3 reasons why owning an internet-based business is a great investment:
Flexibility and Scalability: 2020 forced the entire world to slow down. The daily grind, long commutes and running around was an everyday part of life. Having an online business presents the opportunity for a better work/life balance. Don’t want to work the typical nine to five? You don’t have to. Want to take a vacation? Go for it. National Holiday? You can still keep the business open, even when you would have no traditional employees to work. When disaster strikes, it can be easy to recover or pivot when the consumer climate changes. Having an online business means you can operate from anywhere in the world, typically with just a laptop and an internet connection. You can decide if your online business is your main source of income, or just start out with it being supplemental to other business interests. The freedom owning an online business provides is what is most attractive to entrepreneurs.
Low Risk of Investment: Typically, owning an online business comes with low overhead costs. This cost savings comes from a few areas. For example, having minimal inventory carrying costs due to drop shipping or other vendor agreements. A virtual warehousing partnership with a fulfillment center such as Amazon FBA also presents a cheaper solution since you will not have a brick and mortar warehouse, lease, and warehouse employees on payroll. Additionally, a lot of money can be saved by not having a pricey retail storefront like a typical brick and mortar store would encounter. Most online businesses involve a low startup cost and investing in an established business carries great benefit as well. For additional tips on the benefits of buying an establish online business, you can read our recent blog post here.
Global Opportunity: Casting a wide net on the internet can give you access to a global market. Having a diversified consumer base means you have the opportunity to present your business and tailor it directly to the needs of that audience. There are no fixed shelves on walls carrying product that you need to adjust to a local taste, instead you can adjust your online business specifically for the region you are serving through the use of landing pages or microsites. This helps to mitigate the high failure rate often seen in brick and mortar stores because of the defined audience, often driven by physical location, and the size of the retail storefront which limits the product or service offering. With the help of online marketing you can quickly find and segment different consumer groups to target.
The recent events have everyone’s head spinning in all directions and it is stimulating a lot of interest in owning a business that allows the type of flexibility an internet-based business does. Ultimately, the decision to purchase an online business is a choice that only you can make. But you do not have to do it alone! Hiring an online business broker can help you to find the best investment.