I wanted to explore today a few of the benefits of having an online business.

One of the first things that comes to mind is the cost of starting a brick and mortar business. The star up costs alone can be enormous. It can take about 5 years for a business to be in the black.

A few months ago I met a lady who bought a niche fast food franchise. She has 3 branches open in Orange County.

The cost to start a franchise is not cheap. For this particular franchise it cost about $250.000. $100,000 has to be liquid capital.

If you own more than one franchise unit you have to have additional capital.
 
Lets go over the costs of starting an online business.  Why it is a better alternative than an offline for most people?

First you need a domain name. That will cost you about $10.00 a year.

Next you need hosting. On average it will cost you $10 - $20 a month for a hosting account. This of course varies on the vendor you choose and what services you need.

You also need an internet connection. This will cost you $10 - $50. You can start out with a cheap dial up or go for higher end cable service. I recommend getting high speed access if you are still on dial up. Good old Aol. charges $20 something a month. I pay less for my high speed. So the costs have come down.

If you are really on a budget you can skip the internet connection and work from an Internet Cafe or local library. I don’t recommend it, but it is an option for those just getting started.

Another thing to consider is the cost of utilities. The monthly utility bills for a retail location can be very high. With an internet business you’re already paying the bills for your house. So the extra cost on your utility bill will be quite small.

You also have to pay monthly fees to lease your retail space. The cost depends on your location. The better the location the higher the cost. You may only spend a few thousand a month, but if your located in a strip mall with little foot traffic you will be lucky to cover your overhead. A high volume location usually costs in the high 4 to 5 figure monthly range. This again will vary on the country you live in.

Lastly to consider is the freedom. With your internet business you can go pretty much anywhere and live anywhere you want. All you need is an internet connection and payment processors. Your not tied to a single location. If you need a day off you can take it.

With a retail storefront you have to be available for emergencies. You need to hire staff and make sure they are running things right. Many retail owners have nothing but a job. They are the ones running the store everyday.

There are of course other benefits, but this gives you a rough idea.

I hope this reminds you of how lucky you are to have the internet. It sure makes it a lot easier to get started living the life of your dreams.

Till next time. Keep working toward your dreams!