I live near the center of my town, and I see a lot of offline businesses come and go. The landscape is ever-changing with pizza shops and delicatessens and hair salons and breakfast shops and so on…. moving in, then leaving within 2 years because they went belly-up.
It’s tough to run a food business these days what with the food prices going up and if you’re renting your business space, the rental market is tightening up, too.
When the rental market tightens up, landlords get the feeling of security back and usually start raising rents when there’s more rent to be gleaned from the business tenants.
Then again, most business tenants sign long-term leases so today’s pressing concerns with real estate don’t really affect most businesses unless their lease is up.
For online businesses, conditions are much different.
You don’t need a business permit to conduct business online
You don’t need a business plan or even office space…
All you need is a website and an autoresponder, and technically, you can get by without those, too.
For offline businesses, there has to be money made off each and every action in order for the overall business to thrive.
For online businesses, the overhead is so low that you can waste 90% of your time doing stuff that is non-productive then write an email to your list and make a day’s pay from that alone.
It is this ease of entry that makes online business development so alluring, but it is also why so many people don’t take it seriously.
If a large number of people fail within 2-3 years with their offline businesses, why should it be any less, or lower for the online world where the barriers to entry and almost non-existent.
Put up a website, become an affiliate of something, and get traffic to your site, and Presto! you got yourself an online business.
Online business people face the same challenges of Offline business people…
What it comes down to at the end of the day is,
“is all this effort providing me with financial freedom and happiness and success”
Because of the almost non-exisitent barriers to entry to the online business world, there are more people failing on average.
On the postive side to all of this, the low barriers allow people to see if they possess the acumen for any type of business at all with low risk, and that is part of the appeal, too.
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Daniel McGonagle
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