Are you considering buying an online business or subscribing to an online business system? As you are probably aware, there are a variety of options available and this makes it challenging to come to an investment decision that accurately reflects your priorities.
Not only will you be looking at what kind of business model makes the most sense for you personally, you will also be considering what system to invest in, and what you hope to achieve from your investment.
There are several compelling reasons to choose an online business over an offline one. Consider the following.
1. Reduced Overheads. Both your investment and your running costs will be far lower with an online business. This is particularly true where there are no physical products and where overheads such as shipping, business premises and staff are not required.
There is a decidedly different focus with an online businesses, where outreach and content creation are the main priorities. Although content generation, SEO, social media and other marketing channels may require some time investment, the physical resources needed are minimal.
And of course, reduced overhead means higher profit margins. With an online business, there is a myriad of unique monetisation methods and this is another factor that makes the web all the more attractive.
2. Increased Adaptability. Marketing is one of the most important factors to success in any business. What makes online marketing more attractive than offline marketing is that tracking and measuring your return on investment is much easier. By taking advantage of the abundance of tools and data available, you can adapt fast and change your approach and strategies as needed. If you have two equally good ideas and you’re not sure which to go with, you can split-test your ads, email campaigns, sales pages, order forms and other initiatives, and then compare results.
You can take advantage of tools such as Google Analytics and if one traffic strategy isn’t working, you simply try another. If conversion rates are low, you can make some tweaks to your website to increase conversion.
In addition, targeting specific demographics has never been easier, especially with the rise of social media advertising. When you advertise on social media, you can define the audience that you want to target and focus on the people that are most likely to be interested in the product or service that you are offering.
Finally, there are a tremendous number of marketing channels you can take advantage of. Blogs, podcasts, videos, social media, email campaigns, white papers, ebooks and a variety of other assets that can all be used to attract subscribers and, ultimately, buyers.
In short, all of these elements allow for more adaptability. With an online business, you can quickly identify what is working and what isn’t, and tweak your strategy on the fly.
3. Added Flexibility. With an offline business, you are generally tied to a physical location and usually to set hours of the day. And so the flexibility of an online business – the ability to work from any location and during the hours that are most convenient for you – is attractive to many entrepreneurs and investors.
With an online business, if you need to work from home, you can. You can also do your work from just about anywhere in the world, as long as you have a reliable internet connection. Passive income is a draw for many, and for increasingly more people, a reality.
And the time commitment for an online business owner will also be relatively low with the right business model.
If you want to be able to sustain a profitable business while exploring other ventures, or if you want to have more time for yourself and your family, the flexibility of an online business will prove invaluable to you.
4. Lower Risk. Shrewd investors will be wary of taking risks that could end up costing them in the long run. You can’t necessarily pick a winner every time, but by doing your due diligence, you can mitigate risky and unwise investments.
For the most part, online businesses are lower risk than bricks-and-mortar businesses. Starting an online business will cost far less, and because of its inherent adaptability, it is possible to make the business profitable in a relatively short amount of time. This doesn’t completely eliminate the possibility of failure, but it does mean that, if necessary, strategising and starting over isn’t that hard. There are a variety of ways to make money online, and finding the right fit could be a matter of experimentation.
Online businesses are also more liquid than you might think. There is a lot that can go into selling a business that is more geographically-dependent and operationally complex. Because online businesses aren’t tied to a location and they require less work to maintain, there are a lot of buyers out there looking to purchase this kind of opportunity.
The due diligence period on online businesses is also much shorter than on physical businesses. Ultimately, an online business is far less risky than an offline business.
Starting a new business vs. buying an existing one
So you understand the primary advantages of investing in an online business over an offline business. However, you might still be wondering whether you should start a new online business or buy an existing one.
Obviously, starting a new online business will require a higher investment of time and money. Not only that, but your knowledge and experience in any given field will dictate how well you can run a given business. This could result in ‘business blindness’ in the sense that you might miss potential opportunities because of your partiality towards certain business models or industries over others.
Here are several reasons why buying a pre-built business is a better decision:
- The business model is proven and profitable. You don’t have to spend time split testing, experimenting and tweaking your way to profitable trading.
- All of the tools and platforms are pre-built, offering you a business that is ‘out-of-the-box’ and ready to generate income from Day 1.
- You will up-skill yourself by gaining knowledge and experience in the specific industry the business is in.
- The business will probably already have a solid reputation, making it far easier for you to connect with willing buyers in the online marketplace.
Hopefully you now see why an online business is a solid investment, because every entrepreneur and investor has to consider how much time they have, and how much money they’re willing to risk.
However, as you begin to consider the options available to you, you will see that online businesses are incredibly adaptable. And buying a pre-built business will be advantageous for many reasons, as it will allow you to leverage the resources available to you, realise quicker profits and enjoy the fruits of a business that will be more sustainable long-term.
Dedicated to your future,
4 Reasons Why An Online Business Is A Solid Investment
Content courtesy of Thomas Smale, Co-founder of FE International