Top 4 reasons why starting a online business beats starting a brick and mortar business…

So recently I seen a statistic about the fail rate of small online businesses and the stat was compaired to the fail rate of starting a brick and mortar business and even though both the numbers are high, the argument was that you’d be better off going to a business school and learning how to start a corperation or brick and mortar business than to utilize the internet and starting a online business. Although I disagree with the statistic I’d like to point out why I don’t agree and give 4 plausable reasons why starting a online business would be a safer bet than starting a business the traditional route. Check out the statisitc by Forbes before reading if you’d like to! Let’s begin.

 

 1. The internet is the new wave

As social media and the power of the internet continues to grow and become more mature, we have the power to guide people’s attention to stores, offers, products, etc… All from the comfort of our home. With the internet and the endless amount of possiblities that it provides us, we cut out most of the tradtional ways of learning and can learn straight from the horses mouth about any skill we want to learn about. No degree is required to start an online business, so you’re not wasting four years of time learning information that hasn’t updated from a professor that hasn’t practiced what they’ve taught.

Now yes, 80% of new businesses(brick and mortar) fail within the first 5 years so when you compare the stats together you would think that brick and mortar businesses would be a better and safer bet to go into, but you have to think about some outside factors that most businesses classes or colleges won’t teach you. How would you start a brick and mortar business? Well first you would have to take some business classes in order to know the ends and outs of why they’re created. When I took some I realized a few things, there’s way too many factors of starting one like for instance:

• Are you starting it by yourself or partnering with people
• What’s the business plan/blueprint you’re going to be using
• Business loans
• Picking buildings
• Hiring employees
• Legal list(contracts, lawyers, etc)

There’s a shit load of factors you have to consider before even starting a business the traditional way, can it be done? Absolutely, but it will take longer while for it to actually come to life and that’s why not many people will do it.

 

2. Smaller risk

Now to go ahead a debunk that statisitc a bit further, the reason why small online businesses are being created at a higher rate and why traditional businesses aren’t being created as much is pretty much one thing… Risk. The average cost to start a business back in the day was around $150,000-$300,000 and thats before even turning a profit. In this day and age with platfroms such as Shopify, Woocommerce, and Amazon you can literally start a online business for less than $30 dollars. So obviously more people are going to start online businesses even if most people who start one don’t even take it seriously( just for shits and giggles).

Now let me ask you a question. Which loss would you rather take? Losing a few hundred to thousand dollars on a small online business or losing 4 years of time, hundreds of thousands that’ll you’ll have to pay the bank back, risk messing up your credit and putting yourself in debt? Me personally I wouldn’t mind losing a few hundred compare to what you could lose if your business fails on that scale. Remember, it’s not the smartest people who make it in this world, it’s the people who can adapt to change. So when these businesses schools and classes aren’t updating their methods on how to create a business for this day and age you’ll literally be setting yourself up for failure and on a greater scale.

 

3. Location neutral

Now one thing that puts online businesses on top of the hill is that where ever there is internet connection you can work. So that means at home, traveling, hotels, beaches, etc… Where ever you go your business goes. In this day and age we are always on the move and there’s nothing more restricting than having a source of income that you can’t take with you. You would have to prioritize your trips and outings accordingly so when you do leave you can have an idea on how your business is doing. Now you could just hire someone to look over your stuff, but me personally it would be more setteling to have full control of my business anywhere I go wether I’m on a vacation or not. I believe having a online business gives you the freedom to set your own hours and set a schedule that can work with your lifestyle and with a brick and mortar business you’d actually be putting 40 more hours than normal employees that work normal 40 hours a week.

 

4. You can create muliple businesses in a short amount of time

Now this is a factor that actaully brings my point home. One thing about starting online businesses is that once 1 business goes up and starts generating you great amounts of money, you now have the skill to start another 1 and another 1. Remember the average millionaire has 7 streams of income. With brick and mortar businesses, more people rely on that 1 business to take off and rely on that one source of income. Nothing too bad about that, but as we look at dying brick and mortar businesses/department stores such as Sears, Toys-R-Us, etc… Yeah they made millions, but it’s not about how much you make it’s about how much you can keep. They’ve lost millions and closed hundreds of stores all because times have changed and E-com giants such as Amazon and Shopify have blown the competition out the water.

So even if you had 7 online businesses and 4 failed, you’d still have 3 to fall back on and you have the knowledge, skills, and capital to create more streams and that’ll put you ahead of most business grads who went to school that learned a whole dated way of doing something instead of adapting to the change which is the internet. So in conclusion with these points, don’t let that statisitc scare you because at first glance with those numbers it would seem to be safer to start a business the traditional way, but when you factor in all of the risk, cost, restrictions, and the drawbacks of starting a business that way, you see that starting a business with the internet in this new age will cut 85-90% of that headache and have a quicker return on investment, creating your financial freedom.