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Starting an Online Business in 2020: Why You Should Do It & How You Should Do It

With the current economy and having to be confined to our own homes, 2020 has been a difficult year. Many employees have experienced salary cuts and unemployment rates have continued to increase. Meanwhile, physical businesses have struggled to operate due to Quarantine and social-distancing. However, despite the complicated circumstances, one must recognize that as a door closes, so does another one open.  

Enter the internet. As citizens have resorted to remote interaction and online consumption, the internet has become a rich playing field for small online businesses to operate.

Here are the reasons why you should start your own small online business and how you should do it. 

Why You Should Do It

As 2020 changed the landscape, so did it create a demand for businesses to cater to the public’s habits and interests. The internet can provide a great platform for entrepreneurs to not only appeal to potential clients but also offers access to a larger international market. 

Anyone who owns a computer can easily start an online business. Better yet, anyone who begins an online business need not possess any traditional business management experience. That is the magic of the Internet! With today’s technology, there exist multiple tools, services, and resources that can help manage the technical aspects of an online business for you. Long are the days when building a small business required a vast amount of knowledge and orientation. Now, one can manage their own business with the ease of one click. 

Moreover, unlike “brick-and-mortar” businesses, starting an online business does not require one to spend a vast amount of money. On the contrary, there exist many free services, such as WordPress or eBay, that enable entrepreneurs to set up their businesses for free, or in the least for a small cut. This in effect offers a lower financial risk compared to traditional businesses.  

How You Should Do It

In beginning a small business, the entrepreneur must first know their options. As is the case for an online market, there exist five types of online businesses to consider: Online Videos, Blogging, Affiliate Marketing, Drop Shipping, and Information Products. 

Whatever kind of online business model you choose, you must remember to consider your target audience and analyze how your business can complement their interests. In considering your audience, you must also evaluate if their market is financially viable. It is often in these cases that one must conduct market research, however, online search providers can help in this case.  

Because the business is set on the Internet, it is important to familiarize oneself with cybersecurity. To stray away from any potential malware, always make sure to update your information and consider changing your password every three months. 

As for money, remember to pick an accounting system. Depending on the shape and size of your internet business, an accounting system is vital. For a less stressful venture, consider software accountants, they can make running your business a lot easier.

Initiating an online business during 2020 can be intimidating, yet it is not impossible. It is important to stay calm during these unusual times and realize that resources like the Internet can offer great opportunities. In the end, like the saying goes “when life gives you lemons, make lemonade!”

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