When looking for new business ideas, the question often arises as to whether you should start a physical or digital business. Most people think that a physical business is more legitimate in some way.
However, when you learn that a digital business is just as legitimate and profitable as a physical business, with fewer barriers to entry, you may decide that a digital business is just the ticket you need to become a new business owner.
How much money do I have to invest?
For a business with physical products or a brick-and-mortar location, you’ll most likely need more than $100K to even get started. If you are interested in a specific business, do your research to find out what it would take. But, if you don’t have money in the bank that you can afford to lose, then a physical business may not be the best idea for you.
How much time can I dedicate to my business?
If you need to have a normal full-time job while starting your business because you don’t have any savings to live on, then a digital business may be the best option for you. This is because you can start it at your leisure with nothing more than a computer and an Internet connection.
What skills do I have now that translate into a business?
It sounds wonderful to start a food truck or restaurant, but what is the reality of that? Have you ever worked in a restaurant as a manager? If not, your learning curve will be extremely long. Even if you are currently a chef in a restaurant, making money as an owner is much more difficult than you might think, although it is of course possible.
If you’ve managed to save enough money to live for a couple of years on savings, you just might make it work. But what if you instead took those skills and used them to start a digital business? You could start a YouTube channel cooking your favorite foods, teaching others how to do it, and earning the same amount of money faster with no investment other than time.
Do I have technical skills or can I hire people to help me?
If you don’t know how to build a website, manage social media, or go online, you may have a higher learning curve with a digital business than if you had those skills. But equally, you will have to learn technology for a physical business, such as a point of sale system, how to pay your taxes online, etc.
No matter which one you choose, there are technical skills you’ll need to learn. In both cases, you’ll need to hire people to help you, but with a digital business, you can often find people to help you at a lower cost than if they had to come to your store.
