Starting an Online business is somewhat easier today, with plenty of DIY resources available to everyone. But there are Pros and Cons of everything, and starting an online business too has its own pros and cons.
We will be discussing the Pros and Cons of starting an Online Business here in depth, with my experience of past 5 years.
Pros of starting an Online Business as a beginner:
- Easy to start
- Requires lesser capital comparatively
- Has reach to multiple cities from the start
- Can be done along with fulltime/part time job
- Independence and not working under someone else
1. Easy to Start:
The best thing about online businesses, is that you get a website or app, have products to sell and you are ready to go.
Facebook provides option on personal accounts too to run ads, as simple as that.
People even are selling online through instagram pages and whatsapp.
2. Requires lesser capital comparatively:
Since online businesses can be started and operated using a pc/laptop, internet connection and products to sell, you can save much on lease/renting a office or warehouse space for the start.
One can operate it from home with no much hassle. And requires no shelves, no shops or fancy showrooms where the major chunk of money goes for offliners.
3. Reach to multiple cities from the start:
This is probably the best thing about running an online business.
In an offline business, you only reach customers of that area or at most of that city. But in case of online business, you have reach to whole country’s customer base right from the day 1.
And that improves you chances of growth and getting orders.
4. Can be done along with fulltime/part time job:
I have seen several entrepreneurs, who have not left their regular job and are doing online business with great success especially on amazon.
And this is one of those benefits that online business has to offer to their owners. Since all you have to be good at is selling online, and you hire a guy/girl for packing and labelling of orders everyday and you are done.
5. Independence and not working under someone else
Online business just like any other business provides self dependency and freedom from 9-5 hassle.
It provides a sense of independence and self sufficiency.
Cons of starting an Online Business as a beginner
- Huge competition in the market
- Difficult for smaller players to get orders
- Financial stability is a myth
- People copy your idea and end up ruining the market
1. Huge competition in the market:
With the massive growth in past decade, this segment is getting saturated. With lesser advertisement alternatives of facebook-instagram and google ads, it is becoming difficult and costlier to get orders and keeping the ROAS profitable.
2. Difficult for smaller players to get orders
If you are new with low customer base and low following, it will be difficult for you to get orders. As people don’t trust new online businesses, all thanks to scamsters who have ruined the trust factor recently.
3. Financial stability is a myth
If you are bootstrapping, you will find it difficult to manage funds enough to be able to keep business and you personal finances stable.
Better you get VC or angel investment as soon as you can get it.
4. People copy your idea and end up ruining the market
People in Indian subcontinent have a habit of copying things and not doing something new of their own.
As soon as you come up with something fresh and new, somebody will try to copy it and bring in their cheap copy of it in the market. And ultimately end up ruining the market for both.
