Three features of online business
Business and earnings on the Internet today do not look like something new or unusual. Probably everyone has heard about the opportunity to make money on the Internet or create your own business. And how does the Internet differ from an offline business and what do you need to know before investing money and time in creating a business on the Internet?
Competition on the Internet is not only not lower, it is often higher than offline. Let's take a simple example. When you open a store in your city, you compete only with stores within the city or district. By opening an online store, you compete with any online store, no matter where it is located. On the one hand, this is a minus, on the other hand, it is a plus, since the audience of potential buyers on the Internet is much wider. But, nevertheless, this is a feature of the Internet.
We cited an online store as an example, in fact, competition is everywhere, whether it be applications, games in social networks, services or any other projects. The only exceptions are fundamentally new ideas (like Facebook in its time), but the original idea still needs to be thought up and it is far from certain that it will become successful.
The internet is changing
In our opinion, this is a key feature. The Internet is changing and developing extremely fast, new technologies are constantly emerging. Depending on the type of business and a number of other factors, this feature can be key. For example, you have invested in the development of projects that have no analogues. But a large company like Google did a similar project at the same time as you. Of course, your ability to promote a new project or idea is not comparable.
Or take an online store as an example. You create it, engage in its search promotion, and after a few years, search engines decide to radically change their site ranking algorithms and you lose the lion's share of visitors in an instant. And there have already been many such examples. You will not be able to influence this in any way, since you work in an environment that lives by its own laws, and these laws are often set by the largest players in the market and change them at their discretion.
Of course, in any case, something can be done and corrected, but there are more than enough stories when the variability of the environment led to bankruptcies and the closure of fairly large projects.
The cost of creating projects
The cost of creating projects on the Internet is lower, especially if you compare the ratio of invested funds and the amount of potential profit. To create a production that will bring 500 thousand rubles a month, you need a lot of money to buy equipment, it can be much cheaper on the Internet.
Of course, a lot depends on the project you are creating, but in general, creating a business on the Internet is really cheaper. In some areas in general, there are standard and free solutions. For example, you can order the development of an online store and spend hundreds of thousands of rubles, or you can use a free platform that will provide the same opportunities.
These are, in our opinion, the main features of an online business that must be taken into account in the first place. Well, in general, business on the Internet operates according to the usual laws of business. Someone creates a successful business, someone loses money and it does not depend on the peculiarities of the Internet.