Building an online business
is an effective solution for your finances and your entrepreneurial spirit
In fact, building an online business has many advantages in terms of: costs and income potential. In this article we're going to analyze the similarities and differences between online and traditional businesses...
If you're new here in the site, please take note this article is part of a section dedicated to learn about how to make extra money as a first action step to improve your personal finances.
For your own benefit, we encourage you to read this article and if you need more information, go to the main page of this section to follow the sequence of articles. You can use the links at the bottom. Thanks and enjoy!
Building an online business system vs. a traditional one
Watch this graphic:
Could you find similarities and/or differences? Ok, let's analyze them...
As you can see, building an online business in general terms is the same than a traditional because both have a system, tasks and a logic sequence that begins with a properly research.
The main difference lay in the costs of each task and in the income potential. For instance:
- In a traditional offline business entrepreneurs have to spend money (sometimes a lot) to research and develop their products or services, create prototypes, make market validations, etc. On the other hand, building an online business results inexpensive because uses mainly information; and obtain information nowadays is affordable thanks to the internet.
- An offline business has to invest in plant, equipment, human resources and many other things to operate. Building an online business means create Content and this could be free if you create your own content or outsourced by hiring a writer online.
- For traditional businesses, location plays an important role in their success as they have to be where the people is and create banners, ads, etc. to attract them; a lot of costs of course. Building an online business is different because instead of spend a lot of money in marketing campaigns you focus your efforts in provide what the people are looking for on the internet: valuable and useful information.
This content will rank high in the results of Search Engines generating automatically and naturally free traffic (i.e. potential customers) with an open to buy mindset due that your quality content has build your reputation, made them like you and open to listen what you have to say.
- Building an online business has a better income potential too. Just watch the graphic again...In a traditional business you invest a lot of money, time and effort right from the start but you're limited to sell one or two products. Of course this might be highly profitable but you're still limited to those products (or services). You can't sell anything or monetize in anyway those people you've reached with your marketing campaigns but didn't buy your product or service.
With your online business you can monetize your visitors in many ways. Of course you have a primarily income source (i.e. selling your product or service, etc.) but you can monetize those visitors that aren't interested too. Maybe you can sell advertisement, place some Google ads, sell other companies' products or services that complement your business, etc. That's why; building an online business has multiple income streams.
- Finally, to give support to your customers a traditional business has to create a service center with all the costs of human resources, communications, etc. Those represent high costs. An online business can serve its clients helped with many low cost or even free resources on the internet.
Please note that I'm not saying that build an offline business isn't attractive or profitable, not at all! Say such thing is ignore all the big corporations in the world, the employment they have generated and the progress they have boosted.
What I'm trying to show you is that nowadays starting a business is far more easier than years ago.
In the past you had to have a really good idea, make a very compelling business plan and look for investors to make your business a reality. This could take months or years just to start.
Thanks to the internet you can start building an online business right away and if you follow the C-T-P-M process we have described before, you can succeed. If you want more information about the C-T-P-M process, click here.
Also, your business can grow step by step to a more traditional business system if you wish. In fact if you want to look for investors, having proved that your online business works is a big, big point in your favor in front of them.
Now let's back to the main page of this section to learn more about how to make extra money as a first step to improve your personal finances. Just use the links below:
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