5 Reasons Why an Online Business Is a Great Investment
Investors and independent business people hear a lot about more traditional investments such as the stock market, real estate, or precious metals. These are all good investments that can help you make a living or build personal wealth.
What we might not realize, however, is that internet businesses can make great investments as well, whether you’re putting up capital or starting the business yourself.
Fortunately for investors and entrepreneurs, technology makes online businesses more accessible than ever, adding to your profit potential. Here are 5 reasons why an Internet-based business could be one of the best investments you’ll ever make.
1. Low Overhead and 2. High Margins
Some of the things that make Internet businesses popular with entrepreneurs should also make them popular with investors. For example, most online businesses are run from home, at least early on. They often don’t involve buying inventory or hiring a bunch of employees until they are starting to make money. This low overhead boosts profit margins, meaning the owners – and any investors – can more easily get into a profit-pulling territory.
3. Worldwide Opportunity
People start Internet businesses because they’ve seen an opportunity to make money. Thanks to the web, you have the chance to market your products across any geographical lines. Without the Internet, you could be missing out on millions of people who fit your niche, just because they’re in Australia or Hong Kong.
But because online business has no borders, your potential customer base is virtually unlimited. And as any investor knows, the bigger a business’ lifeline of possible customers, the more money they can make.
It may seem trite, but everyone dreams of making a living doing something they are passionate about. And most investors want to see that passion out of any business owner they partner with. Online business offers an unprecedented opportunity for people to find their passion and make a killing on it by sharing it with others around the world. It’s the American dream, really.
Of course, not everyone who starts an online business will succeed, especially on a grand scale. But there are also many who gave up the “security” of a 9 to 5 job to pursue their passion and actually got wealthy doing it. To succeed in the best possible sense, find your passion, or find an investment opportunity that aligns you with someone who loves what they do. Passion feeds success.
4. Low Startup Costs
Starting an online business doesn’t have to cost a ton of money, especially if you start small. Most often, you can get started either independently or with a small business loan. Many successful Internet business people tell a similar story of starting something that they didn’t think would go anywhere. In the beginning, it was just for fun. Maybe it was a blog, or an eBay store, or an idea that they couldn’t get out of their head.
The costs of actually getting your business online are minimal, and with lower-cost Internet advertising and social media that spreads word-of-mouth like wildfire, your lower startup costs can help you reach profitable status much faster than a brick-and-mortar store.
5. Ultimate Job Security
A lot of people are afraid to give up their jobs to pursue a dream. Especially for those with families, this is a legitimate concern. But consider this: any time you go to work for someone else, you are – to an extent – at their mercy. When financial constraints come, cuts are made and jobs are lost.
When this happens, a lot of people say that they didn’t even see it coming. Of course, there are struggles and challenges in owning any business. But when you’re in business for yourself, you’re in the driver’s seat.
If you want to start your gig on the side and keep your full-time job until it takes off, you can do that. If things do start to go south, you are likely to see the downturn ahead of time.
And better yet, you are in a position to do something about it before it’s too late, whether it’s short-term funding or altering your strategy. No more waiting for the proverbial ax to fall.
Whether you’re looking to invest in a company or starting one for yourself, online business means the field is wide open for anyone with a great idea. Even if you don’t have a hand in the next big thing, the above reasons are just a few of the factors that make owning or investing in an Internet business a potential money-maker.
Expert Jackson Cooper shares his experiences in real estate, finance, investments, and asset protection with working professionals and everyday men and women to help better his audience’s financial success and security. Jackson is a writer and real estate enthusiast, involved in the outreach team at Jensen and Company. For more tips and advice, visit with him online – Twitter – LinkedIn