This is a business with a classic physical location outside of the home. It involves a dedicated facility - whether retail, wholesale, service or manufacturing.
- Gives you an opportunity to work face-to-face with people and become more involved in your community.
- A physical location may attract walk-in traffic to supplement traffic you gain through marketing efforts, depending on your type of business.
- Gives you a dedicated space to go to work each day and become mentally and physically immersed in running your business.
- Higher risk and startup costs (build-out costs to set up your location, lease/purchase costs)
- Requires a full-time commitment upfront to get the facility ready for business, as well as to hire personnel to staff it.
- If your concept is retail-oriented, you must acquire inventory to merchandize your store.
In this model, you don’t have foot traffic in your business, only traffic to your website. You sell your product through your website to consumers or to other businesses.
- As with a home-based business, this is a lower risk, lower cost business to start. You don’t necessarily need lots of personnel, inventory and facilities.
- You can choose to do it full-time or part-time.
- Easily scaleable – you can make your e-commerce business as big or small as you’d like to suit existing commitments, such as parenthood and a day job.
- You can tap into a national, or even global, customer base through the internet.
- As with a brick-and-mortar store, shipping, inventory management, and credit card processing can all become headaches if you don’t do them right, particularly if you are a one-person show.
- Over 800 million people access the internet globally, but it’s a challenge to a) get that traffic to come to your site and b) convert them into a customer confident enough to make a purchase.