The pros and cons of running a business in the virtual worldMunira Rangwala
Gone are the days when you needed to have a large amount of capital to rent an office to kick-start your business. Today, we live in a world that is becoming more virtual by the minute. If you have a strong business idea in place, you only need a small investment to get into the online business industry. As you're no doubt well aware, the World Wide Web has leveled the playing field for big as well as small-time entrepreneurs. However, before you take the route that everyone else is taking, you need to be sure that starting a virtual business is the best route for you.
Here are a few pros and cons of the field to help you decide.
The best part of an online business is that it doesn't have set working hours like a regular business. Therefore, if you want to keep your day job while you are in the process of starting your virtual business, you can do so easily. In short, an online business is not an all-or-nothing endeavour.
Little capital required
Unlike traditional businesses, you don't need to have a lot of money to start a virtual business. You just need to have a small amount set aside for the creation of your website, and that too you can do on your own if you have the skills for it. If you want to avoid the cost of creating a website, you can also run your business through social media sites like Facebook and Instagram, and create a website when your business finally turns profitable.
Since there is no need for managing a large physical workforce in a virtual setting, you can devote all your time to the advancement of your business. When you are able to focus your time on the things that actually matter, you can be more productive and profitable in the long run.
Lack of physical space
If you're a solopreneur running your business single-handedly, this shouldn't be a problem for you. However, if you have a few employees who need the facility of meeting rooms, you'll have to book hot desks and meeting rooms on a day-to-day basis. Also, if daily interaction is a must between your employees, lack of physical space will be a big hindrance when it comes to conducting your business operations smoothly.
Too much competition
Every second person seems to be starting their own virtual business and therefore, if you fail to identify a niche, your business won't stand out and you'll be inundated with competition. For example, if you want to start a virtual business for women's fashion, you need to find a calling that will set you apart from the thousands of women's fashion websites that exist already.
While starting a virtual business is a great option for entrepreneurs who don't have a large sum of money at their disposal, it still requires just as much work as any offline business. However, if your business plan is strong, you'll be able to succeed in the virtual world with the right amount of hard work and dedication.