Online Business vs Traditional Business

Leave a Comment 3721 views

So What's It Going To Be - Online Business vs Traditional Business? - You Decide!

So when looking to start a business you may be looking for an online business vs traditional business comparison.

In this post I will give you a true and honest online business vs traditional business comparison as I have I have done both in my many years of being my own boss.

I will start off with the traditional business model as that is where I started way back in 1990.

The traditional business is where you have a physical presence in the real world. These can come in many forms but commonly they are suggested as bricks and mortar businesses. The high street where you live will be full of traditional businesses.

These will be shops, offices and workshops where members of the public will walk in and exchange money for the owners products and services.

The traditional business owner will have invested a lot of money setting their business up. This includes machinery, inventory, premises whether that be owning or renting, insurances, utilities such as heating and lighting. All of these overheads can be very expensive which will utlimately cut into their profit margins.


My first business was an open air market trading business. I would travel to different towns each day of the week, set out my stall and hope people would come in and buy the childrens and babywear products I was selling.

I still had rent to cover, the running costs of my vehicle and the inventory to hang in my stall as well as various traders insurances. In all this business cost me £5000 to set up back in 1990 and in todays values that would be around £10,000.

Basically the money that I invested in the inventory was dead money until I sold it and hopefully made a profit.

Traditional businesses usually rely on the local community to support them so they can be restricted to the amount of people who are interested in their products and services.

At least with my market business I had different audiences everyday but I still had to go to them.

My next business which became my main income for 25 years was a service industry business. I offered my services to people who wanted their windows, carpets, driveways, patios and gutters cleaned.

Again this involved buying equipment and in all I invested over £75,000 over my time when you take into account day to day expenses and the updating of vehicles. Agreed I did not have to buy inventory which helped but I was basically trading my time for money with the services that I offered.


With this type of business you only have a certain number of hours in the day to work so you have time constraints. During the summertime I could work longer but in the winter the days became very short and add in the severe weather it meant that my earnings went down at that time of the year.

When I started out marketing my businesses I was limited to the local newspaper, postcards in shops on their notice board, knocking on doors to gain customers and word of mouth through recommendation.

This is one big benfit today as with the internet becoming more powerful traditional businesses can leverage that to have an online presence which I never could when I first started. Saying that even having a website for a tradtional business you still have all the high overheads as I mentioned before.

Traditional businesses can still survive but with the competition from the online business world anyone setting up a traditional business in today's marketplace will have to work so much harder.

Just look at your high street and see how many empty shop units there are, major high street brands have gone to the wall because they have not kept up with the times. Peoples buying habits have changed and more and more are turning to the internet. These are things to bare in mind if you are considering setting up a traditional business.

So we move onto the online business world. Having an online business is far less expensive to set up and later I will show you how to start an online business for under $300. Learn more.

You don't need premises as everything can be run from your PC, Laptop, Tablet or Smartphone. There are business models, like the one I will show you, where you do not need to have your own products.

Even if you have your own retail e-commerce online business you will have to purchase inventory but there are business models where you can get third parties to pick, pack and ship your products to your customers. They will also handle returns and customer service on your behalf.

This means again you do not need premises or staff so it is a lot more cost effective. All you need to do is manage your online business from your computer.

Now we come to the biggest feature of having an online business. You are not restricted to your local community for your customers.

Online Business World Marketplace

With online marketing you can reach all four corners of the world and have access to potentially billions of people.

There are tools and resources available which show you how to target the people who are interested in your products and services.

If you sell digital products like e-books, mp4 video, mp3 audio, video training courses, membership sites e.t.c then you have no fulfillment costs at all as these types of products are available to download.

My business is now a totally online business model and totally different to my previous businesses. I work from home so there is no commute. I have no premises to maintain, no staff to be responsible for and no inventory to purchase.

The only piece of equipment I need is my laptop and I also have the flexibility to work from anywhere in the world as long as I have an internet connection.

I sell products that I do not even own and have the opportunity to earn multiple thousands of dollars for a single sale.

With the types of systems I use it means that a lot of my business is automated. Meaning when it is set up all I need to do is manage it. My business can work 365 days a year and 24 hours a day. Something that is not possible with a traditional business.

I feel very fortunate now as I do not have to be at a certain place at a certain time. I have been able to move to a warm country so no more battling the elements in the United Kingdom anymore which means I can trade EVERYDAY!

Now I could go on an on but I won't as I know you time is valuable and I appreciate you still being with me.

I promised you earlier that I would show you an online business model whcih you could start for under $300 so I will honour that promise.

It is the same business model I use on a daily basis and you can learn more about it by Clicking Here.

So you currently have this online business vs traditional business conundrum and I will now give you my recommendation on the course you should take. In my opinion the online business model is the one that I would recommend. You have the opportunity and flexibility to start a real business that you will love and that you will be able to live your life on your terms.

To your success.


Pete Harris


How to make your first 10K online!