6 Reasons Why an Online Business will outsmart an offline Business

11/04/2014

Starting one’s own business is of course a dream come true for anybody. However, because you are not only going to invest your time and money in it but have to give all your attention to it, it sometimes ends up making your life a big chaos. So, before you start a business you must research well and figure out as to what business model will be right for you, which industry you should invest in and what will be your expectations as far as the output is concerned.

Aligning priorities with the opportunities at disposal isn’t a child’s play and that you really need to act smart while picking up the right option. Identify with the need of hour and invest your moolahs prudently.

Now, the advent of internet and the explosion of new e-businesses not only bestow you with a range of options to choose from but that the online business could be really very easier than you think. Let’s see how!

The Explosive Growth of the Internet

1
Let’s talk numbers first:

• Number of Internet users globally in 2013 was 2.7 billion, which was 39 % of global population and more than 6 times of what it was 10 years ago.
• In 1996, 66% of internet users were from the US however the figure is just 13 % at present with Asia and Europe accounting for nearly 70% of all internet users

You can look at the picture below as to how the demographic has switched significantly in past few years.

What about the devices

More and more people are using internet and that the average internet usage time is increasing significantly due to the increasing penetration of smartphones and tablets. However, internet usage on multiple devices complements desktop browsing instead of cannibalizing it as it contributes to the overall internet usage time. Let’s have a look to the total internet time spent on various devices in the picture below and how the figures have changed from 2010 to 2013.

How does that matter

But, the idea is how these figures matter to online Businesses and to you if you are planning to acquire one? And, the answers is yes they do and in number of ways. Let’s see how:

• More the number of consumers online more will be the number of people making a purchase online, making internet an increasingly popular purchasing platform.
• E-Commerce businesses will continue to undergo explosive growth as the number of internet users, irrespective of devices, will only get increased in future and is never going to look back.


The Higher Profit Margins

2
The cost involved in creating and running a website is far lesser than managing and maintaining a physical outlet. So, you can actually make much better margins when it comes to your investment and the output. And, the most remarkable point is that you don’t make better margins for something lesser than that of offline business, instead you get to have better outreach defying all constraints and challenges that were associated with the offline business.

Better Marketing Insights

3

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself “

Peter Drucker actually gave the insight about right kind of marketing long ago by saying so.

Marketing happens to be one the most crucial parts of a business and that it has to be good no matter whether it’s online or offline. The best thing about online or say digital marketing is that although it requires a somewhat different skill set, but it presents you with a plethora of benefits that the traditional marketing can never. Whether it’s about customer engagement, relationship building or fine tuning of the sales funnel, online provide a range of data to the marketers that wasn’t possible with offline. To know more about the advantages of digital marketing you can visit our articles here!

[useful_banner_manager banners=24 count=1]

 

The Flexibility and the Freedom

4

One of the major attractions of the online business model is that it allows you to operate from anywhere in the world whether it is your home, office or some other place. So, it actually gives you a lot of flexibility and more freedom. The flexibility and the freedom don’t surround the work place factor only but you also get the freedom of earning more. The more creative you are, the more you can earn, there is no any limit of earning as such in digital marketing.


The Consistency and the low Risk

5
Like we talked earlier website require much lesser investment than a physical outlet and so, there is very less risk involved in online marketing than the offline. Besides, online marketing is far more consistent as it is independent of any geographical constraints and is simpler in operations.

The Environment’s Friend

6

Online Business model is not just good for you because of the aforesaid reasons but it also helps the environment and helps you in turn. Let’s see how:

• It helps you save paper and indirectly the forests, for the information is processed electronically and stored online too.
• It helps you save carbon footprints with fewer employees.
• There are low transportation costs as you can work remotely also.
• Utilities like water and heating are not required.
• As per various studies, online retailers use 30% less energy than traditional retail operations.


Afterword

They say “It is no short cut to success”, and that you have to cover the same journey to get to your destiny that everybody else are covering, still things are not same with online marketing. A little bit of research, a meticulous and prudent conduction of online campaigns and an even less capital can get you there in actually a very short span of time.

But let me tell you that let’s not get carried away by the big picture as there would be some online businesses as well that will require more labor and specific skill set however if you know the tactics well and can identify with the need of the hour, and work smart instead of simply working hard like animals, destiny is just a step ahead.

[useful_banner_manager banners=22 count=1]

 

Digital Marketing Training Program
For working professionals & entrepreneurs
Learn how to market a business online just like experts & agencies do it.
Learn from real practitioners not just trainers.
[useful_banner_manager banners=26 count=1]


Important Links

Share Button
Masters in
Digital Marketing
for professionals & job seekers
Learn how to market a business online just like experts & agencies do it.
Learn from real practitioners not just trainers.

Watch DSIM Trainees Celebrating Last Day of Batch

Watch Demo


Call Us
Free Demo