There are quite a few reasons why people start online businesses. You landed on this post to know more about making money online. In this post, I will explore some ideas and reasons to start an online business. I will also review my top three advantages of an online business.
The reasons to start an online business vary from person to person. Most people decide to start an online business to earn passive income. Others do so to replace the income of their present job.
What are Reasons to Start an Online Business
More and more people are looking for ways to work from home. Many have ventured into online entrepreneurship to make this happen. I get it. You want to spend more time with your family and loved ones. No one can fault you for that.
You want the freedom to work less, travel more and be available to those you love. You want to send your kids to college without student loans. That can be hard when you have more bills than income and have debt up to your eyeballs. Not to mention the medical bills as a result of an unexpected illness that drains the bank account. I am speaking from experience.
I know firsthand how it feels to have student loans, credit card debt and medical bills. The last thing I want for my daughter is thousands of dollars in debt before she starts living her life. I also don’t want to be away from home and miss all the amazing milestones of her life. That is my why for starting an online business. What is yours?
Advantages of an Online Business
Today people spend so much time away from home and their families. They spend plenty of time on their job. Some even commute long hours to and from work. Trust me I know!
As a travel nurse, I have spent hours behind the steering wheel. That can get old after a while. I also know how easy it is for an eight or twelve-hour shift to turn into much longer hours away from those that you love. Here are a few reasons why online business is the way to go.
Avoid Rush Hour
When you have a thriving online business, you no longer need to roll out of bed each morning to go to the job. You can avoid driving to and from work in rush hour traffic. I hate driving in traffic. I can feel my blood pressure rising when I have to sit in traffic. The time spent sitting in traffic is available now for more critical tasks.
Plus, it is up to you when you work. The time you get out of bed is up to you. I must make an important point here. It is vital that you exercise discipline in regards to this. I recommend that the same discipline you have to get to work on time for your boss that you use that in your own business. Discipline yourself to do the work you need to do.
Many people think that as an entrepreneur that you no longer have a boss but you do. You are your boss. As an entrepreneur, you need to have the discipline to be successful. If you slack on your business, you don’t eat plain and simple. You have to put in the work.
Technology has advanced so much in recent years. With it has come so many new ways to make money online. It has made it even more possible for online entrepreneurs to be prosperous.
People who want to make money online have many options when starting a business online. Let us explore some online business ideas.
Freelance services – No task is too big or too small to outsource. Tim Ferriss introduced me to the concept of outsourcing in his book “The 4 Hour Work Week.” This book is a must-read for online entrepreneurs.
Platforms like Fiverr and UpWork have made it super easy to offer freelance services. To name a few, you can provide proofreading, content writing, or social media marketing.
Blogging – I never thought I would be calling myself a blogger. Can I be honest with you? I used to think blogging was for hippies and spoiled people with plenty of time on their hands. That was before I learned that it is possible to earn a full-time income blogging.
So I jumped on that bandwagon. Starting a blog is easy but making it profitable can take some time. There are various ways that a blogger can monetize their blog. Two ways to monetize a blog is through affiliate marketing and Google Adsense.
Affiliate Marketing – I like to think of affiliate marketing like word of mouth on steroids. As an introvert, I never in my life felt that I had a marketing bone in my body. However, when I started my e-commerce business, I had to learn fast.
Once I got into marketing, I fell in love, I read the books and took the online courses. I don’t consider myself an expert internet marketer, but I grasped the concept well enough. Well enough that I am finally starting to get consistent sales. I can’t quit my day job yet but in due time. Click here to learn how to start making money with affiliate marketing.
E-commerce – Whether you decide to sell the stuff you made or to buy and resell goods, you are in e-commerce. E-commerce products can be physical or digital. Selling on Amazon is a great way to get started in e-commerce. Amazon handmade and Etsy are incredible platforms for selling handmade items and crafts.
If you’re feeling adventurous, you can start an online store or boutique. Shopify is my platform of choice. It has a built-in shopping cart, merchant services, and integrations. You also have the option to use Woocommerce (WordPress plugin) or Bigcommerce.
Low Starting Up Cost
The low start-up cost is one of the most significant of the reasons to start an online business. Many commercials transactions happen online. That has opened up many new avenues for people to do more transactions online.
To start an online business, you need a few things. The first and most important thing you need is a plan. Don’t skim over that, take my advice to write down your business plan. Next, you need a computer, internet connection, phone service and a strong will to succeed.
People ask about how to start an online business for free. I hate to burst anyone’s bubble, but it is not possible to start any business for free. There is always cost associated with starting a business. The only difference is that the costs of starting an online business are lower.
When you start a brick and mortar business, you have to consider the cost to rent or buy the property. Then you have utility costs and the cost for furnishings of the property. With an online business, you can avoid those costs.
Cost Associated with Online Business
You still need to factor in some costs into your online business plans. The first one is the website, web hosting and buying a domain name. If you are selling products, you will need a shopping cart and merchant services.
If you are selling products wholesale or retail, you will need storage. You can fulfill orders for yourself, drop ship your goods or send them to a fulfillment center. Each method has its pros and cons.
To fulfill orders for yourself is simple when you are selling low volume. Once your business grows, you may want to consider using a fulfillment center like Amazon FBA. There are fees involved with fulfillment centers.
If you have good sales volume and profit margins that should offset those costs. You will have more time to think of ways to scale your business.
Drop shipping is an attractive business model for those with little start-up money. There is a possibility to make a profit but the margins are low and the shipping time can be ridiculous.
Using a fulfillment center like Amazon FBA is excellent for low or high volume sales. The con is that Amazon fees can be brutal at times. It can cut deep into your profit margins. When I say deep, I mean like to the bone marrow.
That is why it is crucial to have a written business and marketing plan in place. No matter what business you plan to start, it is an important step. It will give you a well-rounded view so you can plan accordingly.
I want to stress that the planning phase is the most critical phase of building anything. Whether you are building a house or a business, it is wise to have a sold written blueprint.
Your business plan includes your business goals. It is your aim and the roadmap that will get you to your destination of success. If you aim at nothing, you will hit it every time. So please, pretty please write your business plan!
Are the reasons to start an online business resonating with you? Leave your feedback and questions in the comment section below. I look forward to hearing from you.