Two Simple, Yet Powerful Reasons Why You Should Start Your Online Business Today

Two Simple, Yet Powerful Reasons Why You Should Start Your Online Business Today

Posted on 07. Apr, 2013 by in Archived Post

Yes, it is possible. With an internet connection, a PC, and a brilliant idea, you can startup and expose your business to potentially millions of customers and generate enough monthly passive income to retire and live comfortably.

Now, let’s get one thing clear….even though you may have a killer idea for an online business does not mean that someone else does not have the same idea AND is in the process of getting it online, too. You have to figure that into your equation as there is a very good chance of this happening. Even so, your goal is to differentiate yourself or your business in a way that attracts potential customers to you. Your competitor(s) may have the same passion as you. They may offer a similar product or service. So, how you separate yourself from your competitors (along with your determination to succeed) will go a long way in determining the longevity of your business.

Example

Before I started offering Windows Repair CDs and USBs on eBay and Amazon, I knew that I would have some stiff competition. Other sellers where offering a similar product at nearly the same price AND with free shipping. Plus, most were Powersellers, too. Ugh, now that’s a tough market to crack. But, I figured that if I offered 30-day post sale along with a 30-day return policy and provide outstanding service fulfillment, that would give me an edge. And it certainly did. I’ll give you the rest of the story in a later post.

Affordable startup cost

No need to pay premium prices or make long-term commitments for rental space. Those costs are offset by webhosting, web design, web marketing, and SEO cost. Of course, the costs are not equal as it will be more cost effective to take the online route. Plus, as oppose to renting a local space which exposes your business to local customers, taking your business online could expose it to the world. “Could” is the main world as much of your online success will depend heavily on your ambition to market (utilizing SEO and social media) your business.  Plus, the cost and time associated with scaling your business will be much lower than that of scaling a normal offline business.

Example

When I started my eBay and Amazon business, my initial costs were (In regards to Ebay, please note that my costs were not tied to opening an Ebay store which is, I believe, a minimum of $14.99 per month  – I wanted to keep things simple as this was essentially the testing phase of my online business):

  1. 25-pack CD = $16
  2. (10) 8GB  USBs (bought on Ebay) = $90
  3. 12-pack bubble-wrap mailers = $6
  4. Labeler = $15
  5. 100 mailing labels = $8
  6. Listing fees (I will not include seller fees as we are talking about out of pocket cost prior to first sale) = $.50
  7. My time which is priceless

Total = $145.50

Now compare my online cost with the upfront cost of renting/leasing a storefront, equipment, insurance, etc. You can see why the online startup is simply more cost effective and quicker to get up and running.

Flexible Schedule

Imagine being able to run a business while working your day-to-day job. Sounds easy? Well, it isn’t and I, along with so many others, can attest to that. With an online business, you are essentially open 24/7. And if you are selling downloadable items (with Paypal or Google Checkout as your shopping cart), such as music or software, your customers will have access to buy those items at all times. Now that sounds great.

So what are you waiting for? “The right time”, you say. I can tell you the right time is dictated by your mindset. If you are waiting for the perfect time to get started, you may end up waiting forever. “How do I get started?”, you say. By reading our blog on “How To Choose An Online Business”. This article get your pointed in the right direction.

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29 Responses to “Two Simple, Yet Powerful Reasons Why You Should Start Your Online Business Today”

  1. SharonJ

    12. Jun, 2013

    Do you have to pay the 14.99/month when you are just starting out on Ebay? Is that for individual sellers or just online businesses? I wanted to try ebay out and sell a couple of things I had at home, but I don’t want to pay 14.99/month just to try it out!

    Reply to this comment
    • Big Dave

      Big Dave

      12. Jun, 2013

      Hi SharonJ, the $14.99 is the cost of opening an Ebay store which is useful if you sell a high volume of items as it really lowers your listing fees. There are additional benefits to opening a store such as more manageability of product listings and more. It’s worth the price IF you sell a high volume of items…

      Reply to this comment
  2. VahnCross

    13. Jun, 2013

    Would you still have to pay the $14.99 per month when you go inactive in Ebay? It’s quite costly in my perspective.

    Reply to this comment
    • Big Dave

      Big Dave

      13. Jun, 2013

      Hmmmm…..good question. I would think they’ll still charge you if you are inactive. If you close out your account or cancel your account, then the charges should stop.

      Reply to this comment
      • VahnCross

        15. Jun, 2013

        Thanks! That’s kind of a bit of a let down though. If you just get inactive for a bit or you’re not selling well, your money might just go down the drain.

        Reply to this comment
  3. James

    14. Jun, 2013

    I think what Sharon was trying to ask was:

    Is there a difference between having an online store and just selling as an individual?

    So selling, say, wholesale video games in large quantities vs. selling a few clothing items you find around the house. As an individual seller who is just selling a few things here and there, would you still have to pay the $14.99?

    Please feel free to correct me if I’m wrong Sharon.

    Reply to this comment
    • Big Dave

      Big Dave

      14. Jun, 2013

      You will only pay the $14.99 to open an Ebay store with the intention of selling a higher volume of items. If you are not intending to do that, there’s no need to open an Ebay store, therefore you will not pay $14.99 per month…..

      Reply to this comment
  4. VahnCross

    15. Jun, 2013

    But it’s too bad that Ebay’s being ruined by a lot of scammers these past few years. Many of my friends shy away from buying anything in Ebay because of scams or damaged products. And because of that, Amazon is getting more attention.

    Reply to this comment
    • Big Dave

      Big Dave

      16. Jun, 2013

      You know, for all the baggage that comes with Ebay, I have to say I received so much more traffic from them than Amazon and that’s selling identical products. Ebay is an incredible traffic magnet….

      Reply to this comment
  5. Sky

    16. Jun, 2013

    Having a flexible schedule is definitely #1 for me when it comes to creating an online business…but I think that it’s important to note that even though it’s a FLEXIBLE schedule, getting started with an online business does require time and effort. Having a flexible schedule doesn’t necessarily mean you get to have no schedule at all.

    Reply to this comment
    • VahnCross

      17. Jun, 2013

      Yes, but having an online business has greater rewards in the end. No pain, no gain right? And yeah, having a flexible schedule doesn’t really mean you don’t have a schedule at all. You can just adjust it at your own leisure.

      Reply to this comment
      • Sky

        18. Jun, 2013

        Oh absolutely. It’s just that many people seem to think of online businesses as ways to get rich overnight without any effort and, unfortunately, that’s not the way it works. But I’d rather put the time in now to create a life I want then spend the rest of my life in a job I hate for sure!

        Reply to this comment
        • Big Dave

          Big Dave

          19. Jun, 2013

          “But I’d rather put the time in now to create a life I want then spend the rest of my life in a job I hate for sure!”….that’s it. That’s the mentality you need to have…

          Reply to this comment
  6. SharonJ

    18. Jun, 2013

    Ugh, I am def aware that it takes time and effort! Trying to balance a full-time job, kids, and my online businesses is KILLING me! I can’t wait to make enough profit to do my online work full-time, but I know that isn’t going to be for awhile 🙁

    Reply to this comment
  7. Sarah Harris

    10. Jul, 2013

    I know I want my future to be online however I’m taking a bit of time to do some research with how best to approach it. I hope to get my website up and running over the next few months. I’m finding it really useful reading blogs (like this one) before I delve into my own. Just to see how other people approached it, what mistakes they warn of and what kind of software they endorse is really useful.

    Reply to this comment
  8. Roger

    10. Jul, 2013

    The opportunity cost of delaying your business till the idea is mature to be implemented vs starting a half thought through idea only for some one else to take it and run with it is the risk in getting started in one go.

    Reply to this comment
  9. Taha ayub

    14. Jul, 2013

    well for those who do not want to give $14.99 per month on Ebay, can other free selling sites like OLX can be helpful?

    Reply to this comment
  10. taha ayub

    15. Jul, 2013

    It’s a free classified site on which you can sell your items , http://www.olx.com/

    Reply to this comment
    • Big Dave

      Big Dave

      15. Jul, 2013

      Ok….

      Reply to this comment
    • Hassnain

      21. Jul, 2013

      Taha olx is some what different from Ebay and amazon, people there will contact you to sell your product directly to them without any involvement of the site

      Reply to this comment
    • Charlotte

      20. Aug, 2013

      Is it something similar to Craigslist– without all the other ads?

      Reply to this comment
  11. Sarah Harris

    17. Jul, 2013

    That’s a really thoughtful response Roger. I guess you’re right, my research time is technically an opportunity cost as I could be earning something off a fledgling business right now. I’m still going to take a bit of time but won’t let it drag on infinitely. I’m giving myself until the end of the year to get things up and running.

    Reply to this comment
    • Sky

      24. Aug, 2013

      I think that’s a great approach, Sarah. I am also doing this – I figure if I spend time researching now, I won’t have to spend as much time fixing my mistakes later.

      Reply to this comment
  12. Mike

    17. Jul, 2013

    That’s good Sarah, I think it’s important to put a finite amount of time to your goals. This way it doesn’t get shoved into the “one day far far away basket” becoming more unattainable as time goes on.

    Reply to this comment
  13. Zuri

    20. Aug, 2013

    These reasons ARE extremely simple and have me asking myself, “What are you waiting for!?” It shows that the only way to do something is to get it done– today!

    Reply to this comment
    • Charlotte

      29. Aug, 2013

      It’s also really not that difficult when you look into wholesalers and discounted prices for buying your supplies in bulk.

      Reply to this comment
  14. John

    23. Aug, 2013

    I’m in the process of getting my own eBay store up and running. Just finished sourcing product 2 days ago. There’s certainly a substantial time commitment while getting everything up and running!

    Reply to this comment
  15. April

    22. Feb, 2014

    After listening to your latest podcast and reading this– I am seriously trying to find a way to start today. It’s only 10am here! I’m so geared up to make a change right now!

    Reply to this comment

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