Bricks and Mortar Verses the Online World
Just finished doing some due diligence into starting a new offline venture. It is only when we sit down and drill down and research, evaluate financial requirements and implications, create cash flow forecasts and sales projections, evaluate the competition, look at licensing and consent compliance, sorting out insurance looking at leasing premises as opposed to buying looking at any legal implications and generally evaluating all aspects of the business proposal. It takes time and resources to go into things in depth, after that and only then we can make an informed decision as to move forward or not. From here there is planning reevaluation more planning and tweaking.
The upshot is that even before getting to the starting line we can be up for a serious cash outlay before a dollar is made, then the race is on to break even, the sooner the better.
Like most bricks and mortar concerns they revolve around risk the higher the risk the higher the returns. I guess that most business revolves around managing that risk.
Every day new enterprises are starting up and in the same breath, some are going out of business. Being in or starting up a business can be hard many times I hear folks saying
"Oh I just want to be my own boss, I am sick of working for someone else, lining someone else's pockets, I want freedom."
The " cold hard light of day truth " and really sobering fact that working for yourself is no easy road, for sure if done well the rewards are there but there are risks inherent with any business venture.
The really cold hard fact is that you will end up in the initial establishment phase working twice as hard as you did as an employee and if things don't pan out then that will continue until you make it or close the doors.
Being an employee you get paid a salary for trading some of your time, at the end of the day you get to go home and leave work at work. If you own the business, you cart that baby around with you 24/7.
Business in today's world of compliance is hard. There are many risks involved.
Business as a sole trader you have to outlay for resources it can be like buying yourself a job.
Creating an online business does have its challenges. the commonality between the two forms of business is that we are either selling a service or selling a product.
One of the things that may separate the two is that online we do not necessarily have to outlay resources to obtain the product or service we are providing or promoting. We can promote that product or service and receive remuneration for sales that are generated. The affiliate marketing model is well established and a legitimate business model.
One of the things that continually amazes is that there is a relatively little cost associated with creating and doing business online. So for the sole trader, we do not face the associated costs to start and establish that online business.
Business online is an opportunity to create a lifestyle. Still, takes a lot of work and there are many challenges, but when all said and done there are so many opportunities to do things a little differently.
So although similar there are many differences when it comes stop creating that online presence and business?
Alex
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Hi Alexander, a persceptive post with really relevant observations. After running an offline business in a niche that I loved for many years, I feel qualified in agreeing that the strain of 'carting it around 24/7' can be overwhelming!
I regularly feel surprised at the lack of this type of pressure whilst working here online in the same niche! Many thanks, Sue :)
That never ending story can be overwhelming, it is a strange phenomenon, it is as though we can engage without the pressure. Then on the flip side sometimes that lack of pressure can hold us back, having said that it can be very refreshing.
Great post thanks Alex. Very often you see people find out the hard way just how hard a brick n mortar business is - let alone the financial risk! Many others go then and seek investors but then swap a boss for a shareholder which in many cases worse than a boss. I like the idea of the lifestyle business but plan longer term toevaluate store business if it makes sense or unless i fall in love with the lifestyle business!
Rgds
I get the picture, Ian, thanks for sharing your thoughts, looking at that hybrid model it does have benefits, combining the offline and the online together all the best as you work toward the ,longer term
Online business opportunities today make owning your own business accessible to everyone who want to soak up the training and has the drive to succeed.
The low cost of starting an online business has removed the once omnipresent barrier to entry 1st time business owners used to face doing brick and mortar.
There has never been a better time to own a business.
That is so well put Kaju, the technology is so readily available today and with the right training and resources behind folks then we can indeed succeed in creating a very successful online presence. Thank you for sharing your thoughts, I like the close out there has indeed never been a better time to own a business.
We just moved back to Houston Texas. We are thinking of opening a retail store. It is an extension of one of our biggest online niches. I've got someone to manage the store and we can definitely populate the store with inventory initially. Although this will cost about $65,000. It is not in one of the better areas of town because our Market is not one of the more affluent markets. Therefore security and theft is a major concern. There is a similar store to what we want down in the southwest part of town. We may actually just purchase that business. There are plenty of customers and apartment complexes in that part of town. It's just up for discussion right now we've been looking at this for about 2 months.
You will have your thinking caps on hopefully the figures stack up for you and the right choice is made, It is so interesting when you look at creating that hybrid model combining the two of off and online deliveries. thanks for sharing.
I think the main difference is the potential factor. Creating your own business is a challenge but the potential for earnings and free time is attractive. Ultimately, I think it's worth it. Debbie
That is such a good way to put things, Debbie, " The potential factor" so true we do have potential to create that life style using the online business model. thank you for sharing your thoughts.
You have to be willing to do all the things no one else will today, in order to be able to do the things later that no one else can.
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Thanks for another great post. Really good article. Sometimes I am torn between the world of online business versus brick and mortar because of the personal interaction side of it. But then I realize the reality is we still have the personal interaction, it's just not "live". As someone who communicates better with the written word, I am comfortable with online marketing. And, as someone who has owned a brick and mortar business, the financial outlay and stress level can be overwhelming.
Hi, Nancy thank you for sharing your thoughts, there are pluses and minuses to each business model working each to our strengths can pay dividends.