Starting A Small Online Business Vs. Small Brick And Mortar Business

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Business startup dilemma: Online or brick-and-mortar?
When thinking about starting a business, an individual will need to decide whether they desire to have a small online business or a small brick and mortar business. Both businesses have advantages and disadvantages, and business owners will need to consider these when making their decision.


An individual will need to choose what kind of business that they want to start. Both small businesses will need some cash to get started. All businesses take money to open and run efficiently. Online businesses will need cash for a computer, internet and advertising, and brick and mortar businesses will need cash for leasing a building, utilities and advertising.


An online business has a higher market for customers since the internet has made it possible to reach numerous amounts of people worldwide. The internet has no boundaries when it comes to reaching and promoting a business. A brick and mortar business does not have as wide an area to advertise to; however, they can create some wonderful relationships by being able to see their customers face to face.


Online businesses do not have as much overhead to keep the business going as the brick and mortar businesses. There is no building to rent or buy, and they have no chance of someone getting hurt on the property and filing liability claims since the customers do not come to them. The online business owner will be able to stay in the comfort of his or her home and just relax while they work. They do not have to get dressed up in fancy suits or outfits to go meet the public. They can just lounge around in their pajamas and work at home.


On the other hand, online businesses have no communication with live people. They can feel cut off from the real world. The brick and mortar businesses have opportunities to meet with people personally, which offer them the opportunities to connect with live people. Therefore, if an individual likes to be around people, a small brick and mortar business would be better.

Pros and Cons

The advantages of an online business are the ease of setup and affordability. An online business can be operated almost anywhere. As long as an individual has a computer, they can start an online business. Advertising can be simple and affordable on the internet with social medias. However, there are some disadvantages to having an online business as well. Some issues are harder to deal with by computer than in person, and it takes time to be established with marketing a product or business.

The advantages of a brick and mortar business are that some people prefer having an actual building to do business in. Some people do not like to do business over the internet, and they would be more willing to visit a location than doing it on a computer. However, a brick and mortar business is more expensive to set up than a small online business. The overhead will include rent, inventory, salaries and other expenses. The business will probably have to be committed to a certain amount of time since a lease on the building will be signed. Therefore, if the business does not prosper, an individual can lose money. In addition, once a lease is signed, the business is obligated to remain at that location and cannot be moved if an unfavorable business decides to open next door.

The choice of business is an individual decision. No matter which small business someone chooses, he or she will need to investigate the advantages and disadvantages of each to be sure which is best for them.

About the Author: The article was written by Matt B., a financial writer for Cash USA — a trusted source for consumers to get the cash they need.

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