Entrepreneurs often invest in brick and mortar businesses as a method to diversify their income streams and asset classes.
Moving forward entrepreneurs are now looking at investing in online businesses and websites.
What are the advantages an online-only business has over a traditional brick and mortar business?
During 2020 traditional brick and mortar businesses have sadly suffered terribly. Many owners have found they can not operate (open their doors), and worse, they still have many of their overheads to pay monthly.
Worldwide visitors 24 hours a day
Website’s on the other hand have very low overheads and one other major advantage above a brick and mortar shop, potential, unlimited foot-traffic 24 hours a day.
A traditional shop has visitors that need to park, find your shop, and enter your business to look around and potentially purchase something. The shop also has to adhere to the allowed limited opening hours governments set.
Websites can attract visitors to their (virtual) store from all corners of the globe 24 hours a day.
Traditional businesses with offices, shops, storage necessities have been slowly declining over the last few years, and for good reason.
Many traditional businesses have created an online presence as well as maintaining their physical location too. Now as we enter 2021 more businesses are closing their physical location and going fully online.
One of the major advantages, other than a substantial increase in potential visitors are overheads. A website does not need to pay many of the overheads that physical offices and stores do.
• No property tax.
• Less regulations, like fire regs.
• No security guard at night.
• No daily cleaning.
• No monthly rent or mortgage.
• No commercial utility bills.
• No storage costs.
• Less staff
• And more.
Cheap to setup and buy
A significant advantage that a website has is that they are much cheaper to setup than a traditional office or store.
You do not need to pay rent upfront or actually purchase the expensive freehold. You do not need to decorate and refurbish at the beginning and every few years.
Quick to expand
Due to the advantages you have read above, internet businesses often expand much faster than traditional businesses.
A combination of lower overheads, less setup, and operational costs, and more potential customers worldwide often results in far better R.O.I and profit margin.
Passive income and hands-off websites
As an entrepreneur, you can either buy a website for yourself or invest in an established website run by a successful fellow entrepreneur.
We will assume that you do not wish to work day and night on your website, but would like a regular income from your investment.
We recommend looking at an established profitable drop-ship or affiliate link websites.
Drop shippers store and ship your products to your customers and they also handle returns on your behalf.
For a list of dropship suppliers please visit our business directory dropship page.
We love affiliate links as a business model for a website and correctly setup will allow you to earn a significant return while you sleep, and with minimum input.
Now entrepreneurs may start to invest in website businesses as they once did with physical offices and shops. No wonder websites are often referred to as internet real-estate.
There are other favourable factors to owning an online business. For example, no dependency on weather conditions, no worry of theft or vandalism, and more.
We hope you enjoyed reading this article and we would be very appreciative if you would kindly share this amongst your friends and colleagues.
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