Women In Business

3 reasons you should start an online business

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Have you ever considered starting an online business? Does the idea of being able to generate a solid income while raising a family inspire you? If you have ever planted the seed that running an online e-commerce business would give you the freedom and choices you desire, then now is the time to get started.

Never in the history of the internet has the cost and risk of starting an e-commerce store online been so low. Traditionally, you had to find a retail outlet, perhaps get a bank loan, hire staff and stock a warehouse of the product. You likely didn’t have change from $100,000.

Nowadays, the cost to start a business is extremely low. This means the financial risk is also very low. Let’s look at the top 3 reasons why you must start an online business today.

1. You are building an asset you can sell

This is by far the most overlooked aspect of building an online business. When we are talking about an online business, we are talking about an online retail business selling physical goods.

Granted, your online business could be coaching, consulting or something else, but my experience is in building an e-commerce, retail store.

As you build your business, you start to generate cash flow. You may not realise it, but the asset you are building is worth 2-3 times your yearly profit.

Shopify, one of the world’s leading e-commerce platforms, did a study of 281 businesses which sold between 2010 and 2015. The average sale price was 2.39 times their yearly profit with an average sales price of $US497,144 and a median sales price of $US198,000.

Do those numbers surprise you? Hopefully, those numbers excite you.

If you even have an ounce of interest in building an online business, you must do it and build your asset.

2. You will generate another source of income

The average multi-millionaire has more than seven income streams. Yes, that is seven. Not one.

Most people have one income stream. Their current employer.

To build your wealth and have a rock-solid financial foundation, you must have multiple streams of income.

Building an online e-commerce store and selling physical products can start producing income as soon as your ads start running.

The beauty of running online ads via Google, Facebook, Bing and Pinterest is you can scale them up.

As you begin to find out what is working with your test budget, you can begin increasing your online ad spend to drive more visitors and in turn more sale and more cash flow.

3. Flexibility

Time flexibility is key nowadays. Having money is great, but time flexibility and being able to do what you want, when you want is even better.

If you build your online business with the idea of systemising the processes, then you will eventually have a business that can work without you.

Your goal from the beginning should be to build a business which can be successfully managed by other people. Ideally, you will be the strategic thinker behind the business. The person leveraging the best online marketing channels and building the business systems.

Once all this is in place, you have effectively built a franchise style business which can be sold to the highest bidder.

Always look to build the flexibility and time freedom into your online business. Personal freedom, choice and additional income streams are three powerful reasons why building your own business are great.

But do keep in mind, starting, running and managing an online business requires hard work. For the first 12-24 months, you may have to pour all your profits back into the business. The building phase can be tricky, but the rewards as mentioned above, are well worth it.

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About Nicky Jessen

Nicky is the proud mum of 3 beautiful girls and Owner of Earth Inspired Gifts. Earth Inspired Gifts is an online retail store specialising in gifts inspired by Nature, such as Himalayan Rock Salt Lamps, Geodes, Crystals, Jewellery and other beautiful items. In addition to running Earth Inspired Gifts, Nicky has been building and managing many websites, including some of the largest online stores in Australia. Feel free to reach out to Nicky via her Facebook page or Twitter.

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