This is a great time to start a new business
This is a great time to start a business, but not just any business. Certain businesses offer greater flexibility, leverage and scalability. It’s important to consider your options before deciding on the type of business you want to start. I think it goes without saying that online business is the way to go right now, especially for beginners, but there will continue to be a market for businesses with physical locations and new opportunities will emerge as things begin to open back up. We will examine several options here and explore the best business models for 2021.
Online vs. Brick and Mortar
Brick and Mortar
Having a physical location for your business can have many advantages over an online businesses. With a physical location, you can create a more immersive customer experience. You have a much greater ability to connect with your clients. Your customers come to you. You also have the option or maybe the necessity to offer a hybrid approach, a physical showroom with online offerings. Many existing Brick and Mortar businesses have had to make this adjustment in recent years. As things begin to open up again, people will want to be able to congregate with others, there is some opportunity here.
There are also many obvious downsides to a physical location, especially in today’s economy. Brick and Mortar businesses have higher start up costs, less flexibility and greater risk. You have to deal with City building permits, contractors, finding a good location, etc. For these reasons, they are less beginner friendly. They will continue to be relevant but they are still hurting and it will take some time for things to open back up completely. It will also take some time for commercial property values and lease rates to adjust to the new economy.
Online Business
Virtual businesses have to be considered among the best business models for 2021. Online business offers the greatest flexibility and the lowest barrier to entry. Anyone can start an online business relatively quickly and with little cost. It’s important to remember that any business requires some initial investment and recurring cost. A business also takes some work to get going, especially in the beginning when you are doing the planning and initial setup for the business. Online businesses are a great option for beginners. Having said that not all online business opportunities are created equal. Which online options offer the best business models for 2021?
Physical Product vs. Virtual Products
We are all familiar with ordering physical products online. The convenience and ease of online product delivery is the greatest threat to Brick and Mortar business. What many people may not realize is that virtual products offer a huge opportunity and have a distinct advantage over physical products.
Physical products have shipping, storing and recurring costs. There are production and logistical constraints as well. We have seen widespread Supply Chain issues over the last year. Physical products can still be a great opportunity, but those factors must be considered. Offering physical products online is among the best business models for 2021. However, it’s not the most beginner friendly.
Product vs. Services
With so many businesses moving online, there has never been a bigger need for digital agencies to service these businesses. You can automate many services to some degree to give you the flexibility to work from anywhere on your own schedule. Be sure to offer the service as a product and not in exchange for your time. This could be a digital Agency where you offer marketing, SEO, relationship management, customer service, etc. to other businesses.
You don’t want to be just working remotely in exchange for your time. It’s critical if you offer services to offer them on a ‘subscription’ basis for a product, not in direct exchange for hours worked. You want a scalable business, not a remote job. You want to be able to use automation and leverage to fulfill on these services so that your business is scalable. In other words, you want to be able to grow your business to whatever level you decide on and not be limited by the amount of work that you can do personally. A Digital Agency is definitely one of the best business models for 2021.
Information Products, Training and Coaching programs
Informational products have a huge advantage because they don’t need to be shipped and the delivery can be automated once the transaction is complete. Ebooks and courses are products that you can develop once, update periodically and sell multiple times. They can also be part of a larger training or coaching program that can be customized for the client. This is huge opportunity in today’s economy. People are looking for ways to learn new skills online. Virtual education is one of the best business models for 2021.
Affiliate Marketing
You can also start a business based on marketing other’s people products. You don’t need to develop, deliver or even handle the transaction. As an affiliate marketer, you help connect the consumer to the producer and you earn a commission. This can be done through a blog, youtube channel, social media channel, etc in combination with an email marketing service provider such as AWeber. This is definitely one of the best business models for 2021. You can provide a valuable resource to consumers and connect them to products that you value.
How to get started
This is such an exciting time to start a business. It’s never been easier and there are so many resources available. Do some research and planning and think about your goals. Is this a business that you want to eventually sell? Will you be doing this on your own or with partners? What type of business interests you the most and what skills will you need to do make that business successful?
There is room for anyone in the market if you have the right skills and mindset. Look for good training program to help you get started. Jeff Lerner has developed the Entre Institute to help new entrepreneurs learn about and create their own online business. Tap the link below to learn more. His introductory course is very affordable and will give you a lot of insight into the opportunities available today so that you can make a better decision on how to move forward.
