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Home Business

Brick-and-Mortar vs. Online Business: A Quick Guide

Enroute Editor by Enroute Editor
December 5, 2021
in Business
0
brick-and-mortar vs online

What to Know

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  • Overhead Costs
  • Business Opportunities
  • Target Market Reach
  • Customer and Owner Experience
  • Are You Trying to Decide Between a Brick-and-Mortar Vs Online Business?

Are you thinking about becoming a small business owner? What do you want to do? Where do your passions lie? Just as importantly, do you want to open a brick-and-mortar business in your community or run an online business? There are pros and cons to each option. Additionally, not all business models lend themselves to online exclusivity. We want to help make your decision easier. Keep reading for the major difference between a brick-and-mortar vs online business.

Overhead Costs

When diving into the world of business ownership, one of the major factors you need to consider is your budget. How much money do you have to get started? How much money can you get approved for through a business loan?

When looking at a brick-and-mortar vs online business, it’s easy to see that one is more affordable than the other. A brick-and-mortar business requires a commercial facility, which includes rent, insurance, and utilities. It also requires on-site equipment, supplies, materials, and more.

Conversely, if you do everything from your business website, your costs will be relatively low. However, if you’re in the retail industry and use third-party dropshippers, this means taking a massive cut on all of your sales.

Business Opportunities

As noted earlier, not all types of businesses can be conducted exclusively online. If the services you offer are hands-on, it’s not realistic to operate an online business without a physical presence. This applies to things like contracting, chiropractic services, massage therapists, etc.

However, if you offer services that can be conducted via the internet, you can simplify your job. For example, counselors, psychiatrists, and even personal trainers can provide excellent services through video chat.

Target Market Reach

Now, let’s talk about your target market. When you operate a brick-and-mortar vs online business, your services and/or products will have a somewhat limited reach. If you focus on local consumers, you’re only going to make local sales.

Alternatively, if you operate an online business website designed to make national or international sales, you can expand your target market exponentially. With competition website design, you can generate hype for your brand across multiple states and countries if you desire to do so.

Customer and Owner Experience

When looking at brick-and-mortar vs online business models, we have to examine the customer experience. Some consumers prefer to shop at physical locations. They enjoy holding products in their hands, trying on clothes, etc.

However, 80% of Americans shop online because it’s fast, convenient, and generally more affordable. You can benefit from this as a brick-and-mortar shop by taking your store online.

However, as a business owner, you can enjoy the convenience of not owning a physical store by keeping it all online. There’s less stress and less work involved.

Are You Trying to Decide Between a Brick-and-Mortar Vs Online Business?

What do you think? Do you want to start a business with a physical location or do you prefer to keep everything online? Clearly, there are major differences between a brick-and-mortar vs online business.

We hope our article helps you make the right choice. But if you’re looking for more small business advice or tips on marketing for businesses, you’re in the right place. Take a look through the rest of our blog to find the information you need to find success.

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