Which Type Of Online Business Is Right For You?
There are so many options when it comes to starting your own online business. But which type is right for you? Let’s figure it out :)
A ton of factors come into play when trying to decide what kind of business you want to run, right?
Your personality
Your skills / experience
Your likes / dislikes
Your time availability
Your resources
It even depends on your business idea and your expectations of what running a business looks like.
My biggest piece of advice is to take some time and do some research rather than just jumping straight in.
I learned this lesson when I decided to start a crafting and baking blog several years back only to realise that I absolutely didn’t have the time, upfront cash or unique skills to make a go of it. Could I have stuck it out and made it work? Of course. But for me, starting a coaching business was a much more suitable and less stressful choice.
So! There are three main online business models and within those there are an endless supply of possibilities.
Physical Products
Digital Products
Services
PHYSICAL PRODUCTS
To run a physical product business you need to be able to create and ship items.
You need the skill and time to make your products (unless you use dropshipping) and you need the upfront cash to purchase all of your materials, tools etc.
You also need to be able to take really great product photos, or outsource to a photographer and you need to safely package and send your amazing products.
A fantastic benefit of physical products is that you always have product photos to use on social media :) Sometimes the introvert in me really wishes I was more crafty!
Physical product shops are a great option if you’re a skilled maker and have the time and resources to make your products.
DIGITAL PRODUCTS
A digital products business involves creating a product (or several) once and being able to sell the same thing over and over. For example: online courses and memberships, design elements, templates etc.
Digital product businesses are a fantastic option if you are time poor because you can create your product in the time you have and once it’s done you use your time for visibility and customer service. A large part of a digital product business can actually be automated.
SERVICES
Services involve trading time for money. Perhaps it’s coaching calls or freelance work. The possibilities are endless but you only have so many hours in a day. Eventually you’ll reach a point where you can’t scale your business any further unless you implement other methods because you can’t physically work any more hours.
Services are a great opportunity to charge premium prices and connect with other humans while working from home.
Ok! That’s a very brief overview of the three main types of businesses. Your next step is to think about which one is best suited to your personality, current lifestyle and dream lifestyle.
For example:
If you’re a skilled maker, perhaps a physical product business is right for you.
If you don’t have a lot of time, perhaps digital products are the way to go.
If you love connecting with and supporting people 1:1, perhaps offering services is the way to go.
Basically, just weigh up the pros and cons and try to pick something that lights you up because loving your work makes it so much easier. Plus, nothing is laid in stone. You can always change down the track or even create a business that combines more than one business model.
Whatever you decide, it’s important that you create a business that supports your personality, protects your time and prioritises your peace of mind.
Cheering you on,
Michelle xxx