Globally, purchases are increasingly being made on the go from mobile phones and websites.
Consumers want the store to come to them.
The simplicity of creating an online business even for 'Newbies' and the low start-up cost from USD$100 - is contributing to a new generation of online entrepreneurs.

16 Reasons To Start an Online Business

The opportunities for online self-employment and online business (e-commerce) have seen exponential growth and continue to do so, due predominantly to increased social media and mobile technology usage.

The Internet is therefore increasingly becoming a viable option for global work solutions through freelancing and to create and build a future in online entrepreneurship.

The very low cost of implementation, job flexibility, ease of set-up and marketing, compounded with the global clientele reach, in comparison to a brick and mortar business or regular 9 – 5 job, is incomparable.

Advantages Of Online Business (E-commerce)

1. Global Internet growth

An analysis of a report from Internet Users by Country by Internet Live Stats and Individuals Using the Internet by The World Bank, clearly shows that growth isn’t stagnated nor slowly increasing, but instead is doubling every 5 years.

These reports also determine that as of September 2016, World Population’s with internet access is 50.1% (that’s 3.7 billion people!).

We find ourselves in the midst of the greatest information and communications revolution in human history. More than 40% of the world’s population has access to the internet, with new users coming online everyday. Among the poorest 20 percent of households, nearly 7 out of 10 have a mobile phone. The poorest households are more likely to have access to mobile phones than to toilets or clean water.
We must take advantage of this rapid technological change to make the world more prosperous and inclusive.” – Jim Young Kim, President, The World Bank Group: Forward, pg xiii The World Development Report 2016, Digital Dividends.

This clear indication of rapid internet growth and usage, creates avenues and opportunities for fulfilling demand among a growing online clientele.

2. Growth of E-Commerce

Regardless of which neck of the globe one lives, e-commerce (sale of goods and services via the internet) provides ease of access, affordability, variety, up front customer reviews, and convenience.

A report from U.S Department of Commerce for 2017 (U.S Quarterly Retail E-commerce Sales) evidently shows e-commerce is consistently increasing within the United States.

In recent months the shopping landscape has been evolving, with retail giants J.C.Penny, Macy’s, Sears and Payless filing for bankruptcy or closing hundreds of retail outlets, due to continued loss of customers and profits to e-commerce.

The World Bank Report 2016, Digital Dividends, acknowledges the significance and impact of digital advances on the global economy-

The benefits of digital technologies filter throughout the economy (Figure O.9). For businesses, the internet promotes inclusion of firms in the world economy by expanding trade, raises the productivity of capital, and intensifies competition in the marketplace, which in turn induces innovation. It brings opportunities to households by creating jobs, leverages human capital, and produces consumer surplus….”p.g 11
“The internet makes labor markets more efficient by connecting a larger pool of individuals and firms at lower cost.”

3. Global clientele

This advantage cannot be emphasized sufficiently. The internet, Global Sales - The Bread & Butter Hub
social media and advertising reach all corners of the globe.

The limitations here being language barriers and internet
accessibility, but the potential market size can still be in the millions.

To put into perspective – Internet Penetration of Population for 2016 shows an increase of millions from all spheres of the globe with the greatest increase of internet users of 108million in India. The highest internet penetration percent is Iceland at 100%. These statistics evidently display the wide-reaching global scope of internet service and therefore an increase in social media and e-commerce.

The World Bank highlights the rapid growth and availability of digital technology:

Digital Dividends Report 2016, pg5 states “The internet and related technologies have reached developing countries much faster than previous technological innovations… More households in developing countries own a mobile phone than have access to electricity or improved sanitation (figure O.4, panel a).”

4. Potential for high profits

Factors affecting any business’ profits such as low sales, location, competition, economy, advertising cost, overheads and the list continues, each analyzed, can be proven to have less or no impact on online sales.

Firstly, the profit margins though variable according to the type of business and the market size, still can yield high profits due to low overheads, global reach and 24hr business hours.

Secondly, due to the global reach, factors such as location, low sales, and economy are less or not impacted. For example: If the local market of your country was facing recession, your traditional business would shut down or you lose your job. But if you have an online business, you market to stable economies.

Thirdly, earnings are primarily USD currency, unless otherwise requested or products are specifically sold in another currency.

Online business is a low investment, high profit opportunity.

5. Simple to achieve

It may still be a misconception that starting any form of online business is difficult, and requires programming knowledge: this is furthest from the truth.

To state it simply, once you can operate a smartphone or Microsoft Word, you can create a website.

The advancement of technology has made previously complicated programming now as simple as typing in Word or using drag & drop methods.

Additionally, videos and tutorials whether free or paid from successful online entrepreneurs or business organizations, provide step-by-step guides in your chosen business model.

6. Low Start-up cost

Comparable to starting a brick and mortar business, online business is extremely low cost
since overheads such as; property (rental or mortgage), inventory (purchase, stocking, and delivery), vehicles and salary for staff are low or non-existent.

Your store is your website, for which the basic cost of hosting is as low as USD $6 monthly.
Total monthly cost per business model averaging USD $100.

In comparison to a regular office job, monthly expenses such as commute, meals, and
uniform in addition to the hassle and logistics are equivalent to online business start-up cost.

7. Flexibility

You set your work schedule. Whether you desire your online business to become full-time or part-time it’s all your decision. The option may also be to focus on the business only on specific days.

8. Work from anywhere

You can work from home, cafe, anywhere. Similarly to having a global reach, you also can operate your business from any corner of the globe, once internet connectivity is reliable.

9. Services Reasonably Sourced

A great aspect of an online business is the availability of professional services at significantly lower cost.  If one or several aspects of the business aren’t your specialties, you can obtain professional services through Freelancers. Additionally, these services may be offered which may not be readily available in a local market.

Examples of services are; book and article writing, logo designs, web-site maintenance, videos, diagrams etc.

Added to this is the option of hiring a Virtual Assistant (VA) whose responsibility it is to manage part or all aspects of your business (e.g social media, or blog posts).

These positions can be sourced starting at USD $5 from Freelancing Platforms such as Fiverr, HireWriters, FreelancerUpwork.

Additionally, you can hire people to do less skilled aspects of the job to free yourself to pursue more profitable opportunities or give you more freedom.

10. Facilitates most fields of Expertise /Passion

If unfamiliar with online business models, the setting up, launching and scaling up of an online business can be learned through step-by-step guidance or tutorials.

Depending on your choice of niche however, either expert advice can be outsourced or you can ensure your niche is one you are qualified in or have gained sufficient experience to provide information to others.

For example, you may decide to sell products related to Survival/ Outdoor Activities.
This may not be a familiar field, but with some reading and research, you can become acquainted sufficiently enough to market associated products.

Additionally, even if you are qualified in a specific area, you aren’t limited to begin your online business in your field of studies.

11. Open 24/7

Your business has no closing periods or days. Sorry We Are Closed - The Bread & Butter Hub

This increases your customer base
and selling power!

12. Low cost to Scale Up

Unlike a brick and mortar business, scaling up your business, does not require a larger facility, more staff or vehicles.
The cost to facilitate an increase in customer base, will depend on your type of business but will require upgrades such as web hosting and email facilities, averaging no more than USD $100 monthly.

13. Coaching & Training Programs

The availability of blogs, articles, videos, coaching from successful online entrepreneurs and Facebook Community Support groups facilitate ease of launching and building your online business.

14. Evolving Tools & Software

There are frequently updated or new software and guidelines in technology and operating an online business. These work to the benefit of all users, and so keeping abreast is beneficial and aids in improving efficiency.

15. Facilitates family-life, work & travel

An important aspect at some stage of life that everyone desires, is job flexibility for especially young families, or simply a personal desire to be free to travel the world but still earn an income.

Additionally, another job can be maintained if so desired especially in the early stages as you launch and grow your online business.

These factors can be easily accomplished by an online business, hence it’s frequently termed ‘The Freedom Lifestyle’.

16. Affordable Marketing Strategies

Content on your blog or website which is informative and accurate, social media and Search Engine Optimization(SEO) techniques are your advertising tools which are both simple to master, cost-effective and attainable.

Advertising via Facebook, for example, USD $10 can potentially reach up to one thousand users, likewise, Google Adwords can cost approximately USD $40.


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“Growth, jobs, and services are the most important returns to digital investments…..
digital technologies help businesses become more productive; people find jobs and greater opportunities;
and governments deliver better public services to all.
Countries that are able to swiftly adjust to this evolving digital economy will reap the greatest digital dividends,
while the rest are likely to fall behind.” Digital Dividends. pg 5



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