Advantages And Disadvantages Of An Online Business

With over 4 billion users on the internet, there’s no better time to start an online business. 

More and more people are making purchases from their phone or computer, than brick and mortar businesses.

But what are some of the advantages and disadvantages of an online business? This is a question I plan on answering in this article.

So if you’re thinking about starting your own online business, it helps to understand what you’re getting yourself into.

The Birth Of Online Business

Ecommerce, which is the buying and selling of goods over the internet, has allowed businesses to service customers and grow their business exponentially.

If you are a company without a strong online presence, you put your business at risk of extinction.

Just look at companies like Blockbuster, Toys R Us, Circuit City, and many others.

Although ecommerce has put many companies out of business, it has allowed individuals to start their own.

From blogging to selling products on ebay or amazon. Ecommerce has allowed the “little guy” to get a piece of the action.

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Online Business vs Traditional Business - What’s The Difference?

When trying to figure out the pros and cons of starting an online business, sometimes it helps to compare it to the traditional way of running a business.

Where actual goods are bought and sold in a physical space. When it comes to online business, goods are bought and sold.

But through the internet, there’s no communication exchange between the buyer and seller.

Everything is done through a website, and depending on the type of product or service you’re selling, it can be delivered electronically, or by various carrier services.

Advantages Of Having An Online Business

See back in the days, in order to start a business, you needed a lot of capital.

But with the internet growing the way it has, it has allowed individuals with not a lot of money, to get started at a very low cost.

Which brings up one of the best advantages to having an online business.

Reduced Costs

In order to start your traditional business, you would need 10’s of thousands of dollars.

But with an online business, you can get started for a couple of hundred dollars. And in some cases, you can get started for free.

But if you’re serious about building an online business, the best route is to pay for things like a domain name and hosting.

You don’t have to worry about managing employees, equipment, and depending on the type of business you have, inventory.

This allows you to create something that could still produce for you a full time income. 

You Don’t Have To Deal With Employees

I mentioned this in the previous paragraph, but not having to deal with employees is an awesome benefit for those that like to work on their own.

You don’t have to deal with anyone calling out for whatever reason.

You also don’t have to go through the process of hiring and firing, and trying to find a good fit.

Now as your business grows, it may be beneficial to hire someone to do some of the work for you, but that is totally up to you.

You Are Your Own Boss

It’s safe to say that most people hate working for someone. But unfortunately, very few have the courage to actually do something about it. 

If you are that someone, and I assume you are or you wouldn’t be reading this article right now.

But if you are, than being your own boss is one of the ultimate freedoms when making money.

No one likes to be told what to do, and having an online business gives you this type of freedom. 

Freedom Of Time

If you’re not aware of it by now, the most valuable asset you have is your time.

The fact that most people have to trade in their time for dollars, is a huge reason why so many people are unhappy with their jobs.

Many would tell you that more money would make them happy, but research has shown that not to be the case.

People want more time to do the things they love. And it’s hard to do that if you’re stuck at work.

But having a successful online business gives you the freedom of time.

However, keep in mind that in the beginning of building your business, you have to put in 60+ hours a week.

But to be honest, it doesn’t really feel like work because you’re doing something that gives you purpose.

Disadvantages Of Having An Online Business

Although there are many positives of having an online business, there are definitely some negatives to it. As someone who has an online business, the disadvantages are real.

So let’s start off with one of the most difficult disadvantages of running an online business, and that's motivation.

Self Motivation

Having motivation is crucial to anything you do in life.

Whether it’s exercise, eating healthy, or making money. Without motivation, being successful can be very difficult.

So when it comes to running an online business, the fact that you don’t have a boss, allows you to not be accountable to anyone but yourself.

So all those times where you’d daydream, take super long breaks, or waste time surfing the internet, you always had someone that would hold you accountable.

Well with your own online business, you are in charge of you. You finding motivation to stay on task can be tough.

As someone who gets distracted fairly easily, I know first hand how difficult it can be.

Lack Of Interaction

If you ask anyone that has left their jobs, what they miss most about it, I’m sure they would say their coworkers.

Yes there are always those that really get on your nerves.

But the interactions are something that we as human beings need, especially when dealing with the stresses of work.

But as an online business owner, the only person to interact with is yourself. This can lead to a lot of loneliness.

So making sure you can handle the mental aspect of having an online business is important. 

You’re In Charge Of Everything

When you work for a company, there are levels within a corporate structure.

Everyone has assigned roles, and must report to someone on how they are doing with particular assignments.

This is far from the case when it comes to having an online business.

You are in charge of finances, marketing, content creation, and a whole bunch of other things.

This can be a huge reason why many decide not to get into starting their own business.

But for those that take the leap, managing all of this can get a bit stressful. But once you’ve created a system, you learn how to manage it.

Lack Of Funds

One of the most difficult things to deal with when starting an online business is the lack of income.

In the beginning, you can go months before you make your first sale.

This can be a problem for anyone that is used to working a regular 9 to 5 and getting a consistent paycheck.

Knowing you have bills to pay and your business won't be producing any income right away, can scare the boldest of person.

That’s why I would recommend not leaving your day job right away when you first start your business.

The great thing about starting an online business is that you can go at your own pace.

And as it starts to create an income, you can figure out how you will be exiting your existing job.

Where Is Business Trending?

Earlier I mentioned that there were over 4 billion users on the internet.

That number will only grow as more and more people in world improve their access to the internet.

This is a huge opportunity for anyone that is looking to start an online business. The more people that have access, the more money that is there to be made. 

And the best part is that you only need a small percentage of the internet users to make a full time income.

The internet allows the playing field to be leveled due to the low cost to start an online business.

Even big businesses understand the importance of having an online presence.

And as more jobs get automated, there will be people looking to learn how to create income for themselves.

Thus more people will turn to building their own online business. 

Final Thoughts

No longer do you need a lot of money to start a business. All you need is training and the desire to want to improve your financial situation.

If you’re someone that is thinking about starting a online business, I would highly recommend you give it a try.

Although it’s not easy, the experience of building something that’s yours and seeing it create income for you, makes it all worth it.

How I Earn My Money Online

In 2018, I finally became a Six Figure Business, and it only took 27 months to get there. This allowed me to leave my part time job, and become a full time affiliate marketer.

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If you’re curious as to how I was able to create passive income for myself, then I recommend that you click the button below. I have prepared a special video that will explain how I did it.

Ralph
 

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