Running a business online has become more mainstream in the last 10-15 years. Now that it’s more common these days, what are the benefits of an online business?
Some of the benefits include low startup costs and a higher reach of acquiring customers. Along with that, the ability to grow your business exponentially is much better when you take the online route.
In this article, I’ll discuss why taking your business online is the best path to achieving financial freedom in the long run. Also, I’ll lay out five advantages you have at your disposal for running an online business.
UPDATED: FEBRUARY 14, 2023
- Why Take The Online Route?
- Minimum To No Startup Costs
- Business On The Clock 24/7
- Low Marketing Costs
- Work On Your Own Terms (I.E. Time Freedom)
Why take the online route?
The internet has become much more advanced when it comes to conducting business. Compared to the last 20-30 years, it’s a lot easier to interact with potential customers online.
According to Statista, here are some stats to look over:
- As of 2023, there are around 5.25 billion users online.
- In 2021, around $5.2 trillion was earned in eCommerce sales- and that number is expected to go much higher.
- In 2021, around 70% of all retail websites came from mobile devices (i.e. iPhone, Android, Google). Mobile usage has increased exponentially, and this trend will continue to climb higher.
If you have a business (or thinking about starting one), look into going down the online route. So take advantage of the tremendous opportunities that await you moving forward.
What are the benefits of an online business?
The internet has made it easier to reach out to potential customers than ever before. They include minimal startup costs, being on the clock 24/7, low marketing costs, low overhead, and working on your own terms. The transaction process is streamlined and much more convenient. An excellent example would be shopping on Amazon.
Minimum to no startup costs
Starting a business online is much cheaper and easier than it was 10-20 years ago. Within the next few minutes, you can start a website for free, or purchase an inexpensive domain name (for less than $15/year).
Also, you can get high-quality web hosting as well (which is not too expensive depending on the service you use). The best part is you can start today for very little cost.
In less than 30 seconds, you can install a brand-new website. Within less than a day, you can create your first page, and even write a few posts as well.
As another alternative, you can start your own YouTube channel right now. Just get your account set up (especially if you have a Gmail account), and you can easily record your first video today. If you have a smartphone, you can record right from your phone.
My main point is it’s much easier to get started than at any time in history. It’s remarkable how far we’ve advanced at a technological level.
Business on the clock 24/7
With a website, any online user can visit your website at any time of the day. The potential to reach people around the world is high.
You can reach people from another side of the world while you’re sleeping. That’s where the idea of earning passive income comes into play.
There’s no need to close down your business during certain times of the day. The crazy part is your business remains open during the hours you’re asleep. Please note that’s possible if you know how to do it properly.
What is the biggest challenge when taking a business online?
The biggest challenge is acquiring organic traffic. Paying for traffic is easy, but getting organic traffic is a skill to master. Content creation can also be a challenge for new businesses.
Low marketing costs
Running ads online is far much cheaper than traditional advertising. Common methods include newspaper ads, TV commercials, or billboards you see while driving. Depending on which method you choose, it costs a lot to put something out there.
For instance, getting your product/service on a TV commercial is not cheap. A 30-second TV commercial can be produced for as little as $1000 to over $50,000.
Costs are higher during primetime viewing hours (i.e. watching during the evenings). Commercials make the Super Bowl one of the most-watched TV events of the year.
If you were to go the online route, it’s cheaper if you invested some money into pay-per-click ads (PPC). The most common ones include Google Ads, Bing, and even YouTube ads as well.
These places are very inexpensive if you understand how they work. PPC campaigns can be run on a small budget and still be effective.
If you’re starting out, the best way to do content marketing is through organic traffic. That can be done by doing search engine optimization (SEO) or sharing your content through social media.
Although it may take a little longer, it’s worth putting in the effort and waiting it out. If you have more time and want to learn the process of SEO, it’s an option I always recommend to those starting out in an online business.
A relevant article from notimekillers.com
Read next on “How Long Does It Take To Start An Online Business? Timeline“, to see how long it can take to see success in business. If you understand how that works, you’ll be one step ahead of the game.
When you have an online business, there’s no need for office space or hiring a lot of staff members. Usually, these add up to more costs for a traditional business.
But when it’s only you, there may not be a need to hire during the first year or two in business. Of course, you will want to scale and hire people at some point. But when starting out, you want to keep your costs at a minimum.
Best tip: Keep costs low while growing a new business during the first 12-24 months.
Work on your own terms (i.e. time freedom)
It may not happen right when you’re starting out. But over time, it’s possible if you put in the time and effort.
When your business gets to a point of profitability, you have more choices on where you want to take the direction of the business. Also, you can create your own schedule- making up the hours that work the best for you.
When you have achieved time freedom, you’re no longer subject to work under someone’s own terms. For a lot of people, that could be working the 9-5 grind for an employer.
There are a lot of benefits to having a business online. They generally outweigh the pros of operating a traditional business.
The five advantages laid out earlier are some things to take into consideration. The best part is it’ll get a lot easier as technology continues to advance.
If you’re interested in starting an online business, I encourage you to think it over. Feel free to check out my top recommendation for getting started right now. Get going on your free starter plan today.
Your Turn: Do you see the potential of a thriving online business?
I would like to get your thoughts on this topic. Do you think having an online business is an advantage to running a traditional business?
Do you agree that it’s much cheaper to start an online business? Which of the advantages discussed earlier resonates with you the most?
Feel free to share your thoughts by leaving a comment below. I look forward to reading your thoughts, and I’ll gladly respond promptly.
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Eric is the owner and chief editor of notimekillers.com. He takes great pride in helping people manage their time and grow their businesses. Eric is a firm believer in financial and time freedom, as he believes in financial independence and taking ownership of your time. “Time is your most important asset. It can be your best friend or worst enemy. How you use your time can shape the future you desire to have.” In his leisure time, Eric loves to write and read whenever possible. He enjoys going for long walks outdoors while doing in-home workout videos every week. You can also connect with Eric via LinkedIn.