Brick and Mortar vs. Online

When most people think of starting their own business, they tend to envision a traditional “brick and mortar” business, i.e. a business which requires an actual building to conduct operations from. Luckily, in today’s internet age, other options exist. Many people are flourishing today running their own online businesses… businesses devoid of the hassle of employees, overhead, long hours, and so on.

Read the following article for a detailed comparison of traditional brick and mortar business and non-traditional online business.

Cost

Whether you’re looking to buy into a franchise, or whether you’re looking to start your own brick and mortar business from scratch, you’re going to face a serious start up cost. Investing in a franchise will set you back somewhere in the hundreds of thousands of dollars, while a brick and mortar business will have you investing in equipment, furniture, legal and consultation fees, licensing fees, internet and phone connections, taxes, and of course… a location.

Every business is different, so of course it’s impossible to say exactly how much all of this will cost you, but it’s suffice to say that it’s probably going to take a hefty loan from the bank for you to get started.

A legitimate online business will set you back significantly less money. Exactly how much is hard, as it will depend on which online opportunity you decide to join. However, if you are serious about starting your own legitimate online business, it’s not going to be free. Most genuine online opportunities will have you investing anywhere between $1000 and $10 000. Just like any traditional business, it takes money to make money. If you’re looking to get into online business and you have a “get rich quick” mentality, I would suggest looking elsewhere… because it doesn’t exist online.

Workload

Most people venture into online business not for the money, but for the personal time and freedom the minimal workload and the ability to work from home will allow them. Most top earners in the industry today spend around 30 hours a week on their business. This is time spent from working from home, at any period of the day or night. As a brick and mortar business owner, exactly how much you work is of your own accord of course, but it’s extremely rare to find a traditional business owner turning a profit with such a minimal and flexible schedule.

Convenience

Much of the hassle seen in traditional business is virtually non-existent in online business. As a brick and mortar business owner you’re reliant on others, i.e. your employees, to help turn a profit. Online business owners do not have any employees… they are 100% reliant on themselves. This also means they do not pay any wages.

Overhead (expenses which do not directly contribute to profit) is another unfortunate necessity of traditional business. This may include rent, accounting fees, advertising, depreciation, insurance, interest, repairs, supplies, taxes, and so on. For the mere fact that you will be working from home, as an online business owner, most of these fees are non-existent.

Lastly, managing inventory is a major hassle seen in traditional business, and something online business owners do not have to deal with. As an online business owner, any necessary stocking or moving of inventory is taken care of for you by the company you’ve partnered with.

Time-To-Profit

Typical “time-to-profit” or “time-to-recoupment” for traditional brick and mortar businesses tend to be defined in years… partly due to the massive initial investment you’re required to make. As an online business owner, your turn-around time is going to be largely dependent on how much time and effort you’re willing to put into your business. A typical turn-around time for an online business would be a few months, however, it is not overly uncommon to see someone turning a profit within a few weeks if the determination is there.

As a final note, with any business, you have to be careful about what you’re getting into. Not all online businesses are genuine, and some are flat out scams. If you’re thinking about getting into online business, do your due diligence… do some research and find a legitimate businesses to join. Ensure you will be provided with the proper training and resources to market your business online. Do so, and the time and freedom you desire could be yours.