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Ten Reasons It’s Better to Start a Small Business Online First

2012 March 23
by Contributor

When you have a great idea to start a business but you don’t have a lot of start-up capital, you can save a lot of money by starting your business online. There are many benefits to starting a business online before venturing into the offline arena.

  1. Less overhead expenses. By starting your business online, you reduce your expenses tremendously. You may be able to work out of your home, which will eliminate the expense of rent and transportation.
  2. Day job. You can keep your day job while you are starting your online business. An online business can be operated any time of day or night. Many processes can be done without human intervention. Though you will need to give your site your personal attention, it doesn’t have to be during normal business hours.
  3. Easy to Change. It is easier to add and delete products online than it is in a brick and mortar retail store. If you are going into the retail business, you can test your products on the online community before putting them in a storefront. If a product turns out to be a flop, you can easily delete it from your online store.
  4. Develop a following for your product or service. By utilizing social networking and blogs, you can build a community around your product or service, before you take your business offline. These followers will be the people who allow you to compete with larger businesses.
  5. Less Risks. It is easier to take chances when you start your business online because its easier to make changes if you make a mistake. If you take a chance and it works, great! Success is encouraging and can lead to more innovative ideas. However, if you find that something you tried on a whim doesn’t work, it is easier to make a change online than offline.
  6. You can move faster online than offline. With an online business, you can be up and running in a matter of weeks. Offline, the process can take months. A domain can easily be purchased, and someone who knows how to design a website can put one together fairly quickly.
  7. Earn while you learn. Starting an business is not easy. You will need to learn a lot about your market and business in general. If you start your business online, you can start earning money while you are still learning about your business.
  8. Tax benefits. If you run your online business from home, you can qualify for significant tax benefits. You can not only deduct a portion of your rent or mortgage, but the same percentage of electricity and insurance as well. Office supplies and furniture are also deductible and can help to offset your taxable income. This will help you save money to expand your business.
  9. An online business is portable. Because business in handled via the internet, you can do business anywhere you can get internet access. Take your Wi-Fi hot spot with you and your business is where ever you are. Having a portable online business allows you the freedom to scout permanent locations for your offline business, while still operating your business online.
  10. Bigger market. By starting your small business online, you have access to the world, not just the community you are physically doing business in.

Small business owners do not need to think small just because they don’t have a lot of capital. The internet lets entrepreneurs compete with huge corporations on a level playing field. By starting online first, small businesses can grow at their own pace with unlimited potential.

You can visit for more tips on starting a small business.

cc licensed ( BY SD ) flickr photo shared by ‌Bahadorjn

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