4 Reasons Why an Online Business is a Great Investment
Entrepreneurs are a rare breed of people who are constantly exploring new money-making opportunities. Some discover fresh ventures independently while others are being offered new ideas to partner up with.
Several opportunities, however, no matter how profitable they might sound, end up being a total money-sucking nightmare due to expensive overhead, slow scalability and small margins. Selling online, on the contrary, can be very promising because they don’t have normal obstacles like most ventures do. Below are four reasons why an online business makes a good investment.
Not every online business is going to transform by leaps and bounds easily. Many entrepreneurs start an online shop thinking customers are magically going to find them and sales will pour in because they have a small footprint on the Internet. They are under the impression that a few posts here and there on social media are all it takes to snowball an online shop into a virtual ATM machine.
The truth is, scaling any business is never a walk in the park, whether it is a brick-and-mortar location or an online business. However, an online business definitely has its advantages. For instance, a physical retail shop has a defined customer base, probably a certain radius from its location. An online shop is not restricted by this and can market to a worldwide audience!
Once a successful marketing and advertising strategy is in place, an online business can simply expand its target and grow very fast.
Many entrepreneurs are attracted to online businesses because of the freedom they provide. Modern technology like ecommerce Malaysia, business apps, laptops and tablets are just some of the tools that allow businesses to be operated from anywhere. The next time you are in Starbucks, take a look around, you are bound to see someone working on their online business while sipping their favourite coffee.
Not being tied to your workdesk from 8-5 can be very empowering. Some entrepreneurs do not know how to balance the freedom and fail miserably, while others use the flexibility as motivation to work even harder at any time of the day. Never ever mistake freedom for a chance to slack off. Real entrepreneurs have discipline and understand that hard work is well worth the ability to spend more time with their loved ones and activities that most miss out on because they are part of the 8-5 grind.
An online business will usually let you eliminate some of the inevitable costs associated with a brick-and-mortar business. Not only can you save on expensive rental space, but you can also omit putting your money in stocking inventory. A business dropshipping model with a manufacturer can greatly reduce your financial risk, allowing you to maintain more consistent margins with less upfront cost.
Let’s say you are operating a business that sells skin lotion and you carried four variations: cherry blossom, rose, citrus, lavender. In a physical shop, you would need to keep all four fragrances in stock because you don’t know which one a customer would be interested to buy. At the end of the month, if the citrus ones don’t sell, you might be forced to give a discount and shoulder a loss. However, selling the same products via dropshipping would mean you won’t be left holding unsold stock that you have already paid for.
4. Access to a worldwide market
The best part about an online shop is the ability to run it 24/7 without geographical boundaries. There are no specific hours of operation — an online business can generate passive income around the clock, even while you sleep.
With a well-planned social media strategy, search engine optimization and some paid advertisements, an online business can indeed flourish. You have access to the entire globe right at your fingertips. The luxury of being able to target specific states, regions, and countries gives an upper hand to online businesses.