With the continuous growth of the e-commerce industry, and the increased rate of working from home (thank you, COVID-19), online business is thriving and attracting more people, now more than ever.
Running a business on the internet seems like the next best thing to do, and the reality is that it’s a very productive path to take.
Many people are familiar with the advantages of becoming an online entrepreneur. However, it’s easy to overlook the cons because of how awesome this path can get.
One of the things required to be a successful entrepreneur is the ability to gauge possibilities and work out the best possible outcome.
Thriving, more than surviving at entrepreneurship, will mean that you understand precisely what you’re getting yourself into and getting ready for the outcome.
That’s why I’ll be discussing the pros and cons of becoming an online entrepreneur to give you better clarity before diving into it.
Pros of Being an Online Entrepreneur
Online entrepreneurship gives you the chance to do the kind of work you like. Here are the benefits that come with doing your business online.
Freedom and Ability to Adapt
This looks like a whole lotta freedom... awesome!!
When anyone thinks about entrepreneurship, this is the first thing that comes to mind. The reality is, that’s how it works. Entrepreneurship allows you to do what you want. You’re free from working an office job which you may not fancy, working in an environment where you’re not free, or with people who you don’t entirely gel with.
You have the freedom to do your own thing and work with your ideas. The online community also gives you a wide range of opportunities to pick from. Almost every job done from a store or office can also be done over the internet now.
Online entrepreneurship also puts you in a better opportunity to adapt to new market needs and trends more than regular entrepreneurship.
Control and Better Customer Retention
Getting visitors and retaining them as customers are more leisurely in an online business. The amount of data of online consumers you can collect and use is vast. The internet provides you with enough digital marketing tools that you can use to construct a more comprehensive database of your market and create better business opportunities for yourself.
Besides, working 9 to 5, five days (or more) a week can become a tiresome routine, especially when you think that you’re working for someone else’s business. If you value control, and you’re big on the idea of not relying on someone for a paycheck or how you live your days, then that’s one of the most exciting parts of being an online entrepreneur.
Starting your own online business means you get to quit your job and be your own boss. It can be an uplifting experience to see yourself start something from ground zero and build it into something big –sometimes bigger than yourself.
How good would it be to write this exact note to your boss???
You get control over your business, those you employ, the kind of work you do, and most importantly, you control your time.
Flexibility and Greater Reach
Flexibility is essential to living a fulfilling life, especially when you’re middle-aged. You don’t have as much agility as you used to, and the last thing you need is to keep working dreary routines. As an online entrepreneur, you still have a responsibility (probably more), but you can handle them at a very flexible rate. You can work from home, collaborative workspace, or be a nomad if you wish. With entrepreneurship comes a lot of flexibility.
A flexible work schedule allows you to maximize your contribution to any work you do –especially if it’s yours. With internet connectivity, you can reach many people in different places with a little bit of effort.
Who doesn’t want work that can give the most profit?
First, online businesses give the advantage of operating in a system that offers the lowest overhead cost –like owning an office or store, physical signage cost, insurance policies, and other costs that can erode your profit margin.
Also, most of your profits slide right into your own pocket. As opposed to employment, you don’t have to work, and someone else is giving you a mere cut from the big profit.
Everyone knows this is EXACTLY how it works...
As your business matures, so do your income rates. A reasonable income brings about financial freedom, and it’s one reason people get attracted to entrepreneurship.
Cons of Being an Online Entrepreneur
There are many things you enjoy by being an online entrepreneur. However, the career path also has some downsides.
You’re responsible for everything that happens with your business. No longer can the blame be put on an erring colleague or someone from the management team who was asked to fix a problem. If anything goes south, you’re expected to take responsibility and find a way out of it. With an online business, the future of your business (and paycheck) is in your hands.
Moving into entrepreneurship means you leave the luxury of having a constant salary to relying on an unstable income. Sometimes, the pay may not roll in until long after you started. You're entirely responsible for yourself and how you fare until your business becomes grounded.
It's really about the sacrifice and the weight of responsibility. And it can be difficult to bear during the growing days.
What is the possibility of your business thriving when you need it to? It's quite relative. As an online business owner, you take all the risks associated with your business. You know that things can either go well or don't.
A significant risk that occurs is that there's a chance other people are doing the same thing as you. Finding ways to stand out and create a niche for your business can be a bit of a task.
You stand the risk of forfeiting your capital, time, and effort to get your business off the ground.
When starting out, you do almost everything yourself. From setting up your online store or profile, to optimizing the profile, to getting your first clients, and everything there is to your business. It takes a lot of energy and resilience.
This workload can take its toll on you and keep you on your feet at all times. You can be found working late into the weekends because that's what's required, missing out on some fun activities, just to make sure your business is well-grounded.
Sometimes you just gotta sleep!
Most of the significant advantages of being an online entrepreneur usually come after the business is well established. Even though online entrepreneurship can be exciting and fulfilling, it's not always easy. So, don't overlook the downside.