Most online businesses cost a fraction of what a traditional or conventional business demands. Compare the cost of launching an online store or eCommerce site and an actual retail store. The difference will be a small fortune. Indeed, starting an eCommerce site, or global marketplaces, like Amazon, or eBay, will require more money, not every online store needs to be an Amazon or eBay.
An online business can be launched in weeks, if not days. Once the business plan is in place and all the products or services are ready to be rolled out, it takes days to start an online business. For those who don’t need to rely on website designers or a multipurpose agency, the ball can be set rolling in less than a week.
High Returns on Investments
The investment is low to begin. The returns are high anyway when you assess the ROI. However, given the scope of expansion and exponential growth that one can encounter, the returns on investments are exponentially higher than conventional or traditional businesses. Traditional business can only reach out to an immediate audience. Online companies can transcend geographical boundaries, cultural, and social barriers to emerge as a global phenomenon.
Online businesses can be automated, almost entirely. You should conduct the reviews, assess the performance, and make changes as and when needed, but you don’t need to personally or physically intervene at every stage. Everything from compliance to sales, customer service to upgrades can be automated. Digital entrepreneurs will have more time at their discretion, which can be used to diversify, to expand the business, to venture into new endeavors, and to indulge in leisure activities.
Online business owners can work from anywhere, at any time, for as long as they want, and there’s the elusive financial freedom. Online businesses are genuinely empowering. Online companies also help entrepreneurs to find that quintessential balance between work and life.
TOP 5 MISTAKES
Every business owner makes mistakes. Even the likes of Warren Buffett, Richard Marx, and Elon Musk have made mistakes in their businesses. The quintessential need is not to be perfect and averting every mistake but to avoid those ones that will cost your business dearly. Here are the top five mistakes online business owners make.
A business must always remain sustainable, and for that, it is necessary to remain reasonable with all expenses or recurring financial liabilities. Affordability should not be how a business owner makes decisions. That will not align well with the enterprise. For instance, opting for cheap hosting plans will save you money, but the real cost has to be assessed.
severely capped bandwidth
minimum security for the website
the online presence will be compromised as the uptime will not be a hundred percent or even close
scaling will be dealt with very slowly
Infrastructure is the backbone of any industry or business. Online business owners often opt for cheap support.
Globalization has ushered in an era when you can find people to do everything at a fraction of a cost than what you would have paid in the pre-globalization days. It is not fair to state that the quality of professionals or their skills has waned, but outsourcing has its pitfalls.
You can, and should, outsource anything that you are not very good at. From website designing to accounting, you can, and must, hire experts. Also, note that outsourcing is not necessarily off-shoring. You can hire contractors or companies based in your city, state, or country. The trouble lies in outsourcing everything.
When business owners don’t have control over the assets of the company or the day-to-day affairs, this affects one, or all, aspects of the enterprise. The business is bound to suffer sooner or later.
Lack of Diversification
Many business owners are content with their zeroed in focus on one or a few niches. It is perfectly acceptable to focus on one or a few niches, but you need to diversify to sustain your overall empire through the years. Every niche goes through upswings and downswings. You can always enjoy the growths, but you need to plan for the downswings.
Cease in Upgrading
Many online business owners launch their enterprises with state of the art propositions and then stop upgrading. It is not just the technological infrastructure that needs to be improved, but also the quality of products and services, how the business is managed, and how the clients are dealt with.
Digital enterprises can spring up in no time and usurp the market share of a major brand in a brisk few weeks. Ignoring competition is a surefire way to ring the death knell for the business.