If you are confused between whether to go with the offline business, with the online business or with the combination of both then you need to think twice because both have their own pros and cons that should be considered.
The three factors that you should consider while making the decision are –
- It should be personally enjoyable.
- It should be profitable.
- Preferably, it have to now not placed you liable to being imprisoned.
If you not meeting with the above three factors then probably you are making a wrong decision and this wrong decision may leads to the bad consequences. But if you are meeting with these three factors then there is a great chance of being succeed.
The first factor is highly important because if you don’t enjoy what you do then this is not good for your business in long term.
Now let’s see the the differences and similarities between offline business and online business, so that it would be helpful for the decision making.
Does all business works well as an online business ?
It’s good that every business should advertise online and have an online presence but if we talk about the working then practically only a few businesses brings great results as an online business. Any business which needs your physical presence at a particular location or at a particular time actually does not match with the online business format.
PRO TIP! you really want to start your business then you can easily start it as an offline business and with the time, growth and requirements of your business , you can shift it online.
The main advantage of having an online business is that you can extend you reach to the billions of customers all over the world.
But if you have a service or product based business like clothing, furniture, electronic items, accessories, consultancy, transportation, events etc then yes you should bring your business online. Advertising your product online can create more chances to get a lot of customers and also you can reach the market more effectively as compare to an offline business.
Earn while you are sleeping!
As you know most of the offline business run on certain days in a week for a specific times. If the customer wants to buy anything from a offline business then he can only buy at those specific days and time that you have fixed for your business. It may leads to the change in decision of customer and he/she may go with the online shopping instead.
On the other hand, when you run an online business then everything is available for your customers at any hour and any day. This is one of the greatest advantage of having an online business as you have a great opportunity to make more sales.
If somehow you manage to automate your online business then hurrah! you can have a lot of time in your hand so that you can enjoy your vacations without any worry but remember this requires a good strategy.
Trust is a major factor!
When the customers shop offline they usually don’t worry about being scammed also they have an opportunity to examine the product they are buying. In the offline business, customers don’t need to trust you as the product is in-front of their eyes and they can decide whether they should buy it or not.
In the online business, usually customer has no exact idea about the product or service they are dealing with and it becomes more tough for a first time customer to shop online from an unfamiliar business. If we talk about the scamming then yes, everyday many customers got scammed by fake websites which creates a sense 0f fear in the minds of customers to buy online.
So it is important to make the efforts in online business to create trust of customers over you, so they can buy your product or service without any fear.
Here are some efforts that you can make to form the trust factor in online business –
- Displaying your company registration information.
- Providing full contact details, including an actual street address.
- Displaying any endorsements you may have from government or industrial authorities.
- Displaying photos and information about the business owner and key personnel.
- Hosting an open forum or at least a Facebook page where customers can interact with you.
- Providing the opportunity to use third-party payment processing such as PayPal, Neteller, and Skrill.
What about Seed Investment?
Operating an offline business requires a good amount in the beginning as there are expenses of location, utilities and even parking. You may need to take a good amount of loan to setup your physical inventory and it will become worst if your business goes into loss.
As the online business is independent of location so you don’t have expenses of parking, utilities or other stuff. Also you don’t necessarily need to maintain a physical inventory.
In general, we can say that starting an online business requires a small seed investment as compare to starting an offline business. It means there is a great chance of getting good returns in an online business.
Offline businesses are strong and reliable, but have confined reach. Online businesses have potentially huge reach, however they involve a commonly higher level of risk due to the extra competition. The comparatively low price of online business makes it an appealing alternative for start-ups. Hence online business is easy to start and less expensive, and you will have a less chance of getting into loss with an online business as compared to running the same business as an offline business.