The internet is still evolving every day, and one of the greatest benefits of its continual expansion is the possibility to build a business online. In the past, most people had to work hard to save enough money to lease or buy a commercial property. They had high overhead expenses and had a difficult time marketing beyond a local audience. With the benefits that e-commerce has to offer, anyone can start an online business, and now is the time to do it.
Why Start an Online Business Now?
One of the main reasons why now is the best time for you to build a business online is the rapid growth of e-commerce. According to the United States Department of Commerce, the digital economy grew at a rate of 5.6 percent each year between 2006 and 2016. In comparison, regular commerce grew at a rate of only 1.5 percent each year. Services and products that were digital in nature accounted for $1.2 trillion or 6.5 percent of the United States economy in 2016. Also, e-commerce made up 3.9 percent of the jobs in the United States during that year with a total of 5.9 million jobs. It is beneficial to establish your business while the growth continues.
If your goal with wanting to create a business online is to earn more money, you will be happy to know that there is an optimistic outlook in this area. While the traditional economy's average annual wage was about $66,500 annually in 2016, the average digital economy salary was a little more than $114,000. This finding was from the same report that included the previously listed statistics from the U.S. Department of Commerce.
Easy Earning Options
Another monetary benefit when you build a business online is the ability to earn a passive income. There are some ways to create a business online with minimal effort, and some types of advertisements can earn you money while you work on other projects or online business ventures.
Comfort and Productivity
Working from home is a huge benefit if you want to build a business online. Contrary to popular belief, working at home does not necessarily mean that you will be less productive if you decide to build a business online. Inc. published an interesting study from Stanford that spanned two years. The CEO of a large company participated and let some employees work from home during that time. In comparison with the employees who worked at the office, the telecommuters showed a productivity boost. They took shorter breaks, they did not get sick as often and their retention rate was better.
Employment and Environment
Another advantage that the Stanford study showed was a lower cost of employment. If you plan to create a business online and grow it, you will need to think about hiring your own employees in the future. In comparison with the cost to retain workers in the office environment, the company in the study saved $2,000 annually per telecommuter. Recruiting, training and hiring also cost money, and the improved retention rates referenced in the study indicated that it was easier to retain telecommuters. Another benefit when you build a business online is the reduction of emissions and environmental waste, and you save money on public transportation or gas and vehicle upkeep. If you plan to hire remote employees after you start an online business, you can minimize your company's carbon footprint.
When you start an online business, one of the biggest benefits that you will appreciate if you have a family or a busy social calendar is a flexible schedule. Many people who create a business online do their work around their family time, social commitments or other jobs. Many types of online work can be done from your laptop, which means that you may be able to take your work with you if you travel.
If you have an entrepreneurial mindset, potential comes in many forms. In the form of size options, you can earn a passive income, start a small operation or build a global enterprise. With the growth of the internet, you also have more access to funding around the globe. There are small business loans, angel investors, B2B loans and more for startup costs. If you need money to get you through seasonal dry spells or past unexpected financial hurdles after you create a business online, you have more options such as invoice factoring. Overall, it is easier to build a business online and keep it going without the high overhead costs of a traditional business.
When you start an online business, another option category is business type. If you open a brick-and-mortar storefront, it is hard to switch to another type of operation. For example, you would have many challenges changing a bakery into a clothing store. When you create a business online, you can choose something else if your first venture does not work. For example, you may build an online business for T-shirt printing and use an on-demand print service to serve your customers. As you learn about SEO and marketing your business, you may later decide to start an online business for SEO services. The transition is easier without the added work of local market research, possible relocation and more.
Common Types of Online Businesses
If you have a specific skill set that can be utilized digitally, you can easily build a business online. For example, you may have graphic design or web development knowledge that you can use to start an online business since many people and companies cannot do their own design and development work. These are some ideas that many people can use to create a business online:
Printing merchandise through a third-party vendor
Online retail store
Life or business coaching
Social media management
Vlogging for marketing
Content writing and editing
Many people who create a business online start with affiliate marketing. With this option, you have an affiliate account with one or more companies. You may share links to products or services for that company in a blog, vlog or social media post. If people click the link and purchase the service or product, you get a commission.
With an online store, you can start small without having to pay for inventory when you build a business online. You can use a printing or shipping service and relay orders as they come in. The listed options require some research before you start an online business. However, they are some easy starting points that allow you to create a business online and start earning money quickly.
When you start an online business, one of the biggest hurdles is reaching your target audience. Create a realistic marketing budget. Also, familiarize yourself with local and global marketing techniques to help you establish and build your business online more effectively.
Get started learning how to start your own online business the same way I did with SFM and the Free Start Up Bundle. It is a great way to learn how to start your own online business and it actually gives you all the tools and training right at your fingertips.
The opportunities are at your fingertips and easier than ever.