Entrepreneurs are always on the lookout for new business opportunities to invest in, but with so many traditional businesses proving to be extremely demanding in terms of time, overhead and risk, investing can often end up being more trouble than it’s worth. For those with an entrepreneurial spirit, investing in online business has increasingly come to be the answer. Today we’re taking a look at the question we’re asked most often: Should I invest in an online business?
Let’s begin by looking at some of the key differences between online and traditional business investment. One of the most striking contrasts is in the potential customer base. While brick-and-mortar businesses are restricted by geographical location, with a defined customer base, and require significant investment when it comes to expansion, online businesses have global reach from day one. So, if you’ve got the entrepreneurial drive to expand and achieve, the answer to the question ‘Should I invest in an online business?’ is clearly ‘Yes.’
One of the main drivers of the high costs associated with brick-and-mortar business is the need to store and manage stock. For online businesses, especially those which use a drop-ship model, this is not an issue. Drop-ship agreements allow you to focus on selling and leave the hassle of storing and shipping inventory to the manufacturer. This kind of online business delivers more consistent margins, less upfront costs, and huge savings on storage and inventory control. By relocating a large part of the day-to-day operations of the business to the supplier, this type of business allows you to create a passive revenue stream that keeps flowing, even when you’re asleep.
Another significant difference between online and traditional business investment is in the amount of time you’ll need to dedicate, and how you’ll be spending that time. Traditional businesses often require you to be on-site to personally oversee the running of the business, which can be a real impediment to your other entrepreneurial activities. Thanks to laptops, VOIP telephony and business apps, it’s possible to run several online businesses simultaneously from wherever you happen to be. And remember, online businesses operate 24 hours a day, so your site will still be earning you money while you sleep. For serial entrepreneurs set on building an empire, online investment allows the rapid acquisition of new investments with a reduced risk of spreading yourself too thin.
Entrepreneurs who have bought online businesses through The Website Brokers are able to take full advantage of the benefits of investing in an online business. Freed from the constraints of brick-and-mortar operation, our customers are able to lead flexible lives with a flexible income.
So there we have it. Online businesses generally have lower overheads, are easy to scale up, and require far less of your time than traditional business investments. When it comes to answering the question ‘Should I invest in an online business?’ our answer is a resounding ‘Yes!’
