Some of the most famous entrepreneurs of the last decade own their status and money to the Internet. Examples such as Mark Zuckerberg, founder of Facebook, or Larry Page and Sergey Brin from Google spring to mind and show that an online only venture can be extremely profitable. But past success isn’t the only reason why online business are a favourite of entrepreneurs of all kinds.
Online business have, generally, much less overhead than a traditional brick and mortar company. In many cases, all that is required is a computer and an Internet connection. No need for expensive high street real state, offices or equipment. The advances in networking and remote working mean that even companies that employ several people can collaborate without any of the participants being physically present. This makes starting an online business considerably less risky than a traditional venture, and reduces the need for funding, venture capital and other sources of money. Many online entrepreneurs have a previous interest or knowledge about the technical aspects of having an online business, reducing the need to hire technical people to create a website or marketing the product.
Besides the low entry barrier, online business have a bigger reach than many brick and mortar business can even dream off. The Internet is global, and provided your product is also geared towards an international audience, the sky is the limit. And with people checking on FourSquare from outer space, not even that is true anymore! For those who understand global markets and the potential of millions of customers, online ventures are perfect. A digital product or service is not limited by things such as manufacturing rates or base material costs. A well developed online service that is accessed from the Internet can scale from serving a few hundred people to millions, without a direct linear increase in the costs. For example, a website that sells affiliate products will make more money the more people it attracts, without any extra effort on the part of the person who created the website originally.
The versatility, low initial costs and scalability of Internet business have made them a firm candidate to be the preferred platform for modern entrepreneurs. Couple that with the fact that more and more people are conducting business online and the growing importance of the Internet in everyday lives, and it’s no wonder more and more people try their luck at online ventures, with some of them becoming highly successful.