The current pandemic is presenting a variety of challenges for individuals and businesses.
Especially now, as we begin to see the numbers peak. People are losing jobs and businesses are cutting back on spending.
Unfortunately, this will leave many people unemployed and not knowing what to do next.
Others who remain employed will risk contracting the virus.
So, to those people looking for another option that has boat loads of opportunity, consider starting your own digital business where you can make money online.
5 Reasons Why It’s Smart
- Less competition: This is the opposite time to start a business for most people. Most people want to start a business when the economy is thriving. However, if you start one now with less competition in the market, you have the potential to gain more market share in less time.
- Less overhead: This is a crucial part to saving money for any business. Imagine not having to pay rent for your office space and using that money on advertising or hiring more employees. You won’t be spending any additional money, but the revenue generated could increase exponentially.
- Wider pool of applicants: When you have a local shop, you need to hire local candidates to work there. However, if you have remote employees, you open up your talent pool nationwide. This increases your odds of finding the perfect applicant that suites the role best.
- Flexible hours: Working from home typically gives you and your employees flexibility during the day. You can enjoy your cup of coffee in the morning and not worry about being stuck in traffic. Imagine not having to rush to work to clock in…talk about an anxiety-free week!
- Less risk contracting the virus: Isn’t this one of the main reasons you’d start an online business? When you’re working from home, you don’t have to worry about being around co-workers in a crowded space. This is not only the safer option for you, but it will help stop the spread of the virus.
Other Things to Consider
Now, just because there are many pros to starting a business online, there are other things to consider.
Are you going to be happy working from home?
When you’re running a digital business online, you likely won’t have an office space. This means less in-person interaction with co-workers and more isolation at home. You can counter this with zoom calls and virtual happy hours, but this is definitely something to consider if you’re a social butterfly.
Are you comfortable with a variable income?
Unless you have specific annual contracts lined up from customers, odds are that you’ll experience a variable income. Both for your business’s bottom line and for your salary. When you become a business owner, you’re the last one to get paid. You have to be comfortable with this and the risk it may present.
Are you a good leader?
If you’d rather take orders than give them, being a business owner may not be for you. Your employees are going to look to you for direction just as you have with your former manager or boss. This means you have to understand all aspects of the business and be ready for questions every day.
Do you have access to capital or lines of credit?
The good thing about starting a digital business online is that you can cut major costs such as office rent. The bad thing is that you’re still going to need money to get your business off the ground. This means you’ll either need some sort of financing or you’re going to have to dig into your savings. Here are some costs you’ll likely encounter:
- Employee salaries
- Buying/designing a website
- Website hosting
- Inventory (if tangible)
- Advertising and marketing expenses
When there is economic uncertainty, don’t assume that it’s bad for everyone and everything.
Many businesses will maximize their value and flourish during these times.
If you can solve a problem that is presented by these new circumstances, you can thrive during a pandemic.
For example, the virtual conferencing companies such as Zoom have grown immensely as more businesses are going remote.
Before you begin your digital business, do your own due diligence about your market, competitors, product and potential business loans.
Make sure you’re 100% dedicated and motivated before starting. If any of the questions above are concerning to you, it may be a sign you need to consider other options.
There are plenty of opportunities out there, you just need to find them and successfully execute your strategic plan.
If you enjoyed the article or have any questions, feel free to contact me with the information in the bio.
Jordan Parker is a former financial advisor and entrepreneur who teaches others about personal finance, investing, and making money online. He resides in Milwaukee, WI and is the founder of byjordanparker.com.