Working from home is a dream that many people have because of the freedom it offers. However, working from home is not for everyone, so the decision should never be taken lightly. Fortunately, here is a look at the ups and downs of running an online store to help determine if a home business is right for you:
The Pros:
1. You do not need to carry or manufacture products.
If you are worried about the items taking up space in your home or garage, there is no need. If you use drop shipping, the products will be shipped directly to your customers from the wholesalers. However, you will need to keep in mind that the profit margins will be lower with the drop shipping method. Yet, the method is excellent for getting a new business off the ground. The steps involved with drop shipping include:
• Choosing a product • Advertising • Selling products and collecting payments • Placing orders with the supplier
• Customers receiving the products without you ever having to see or touch them
2. You are your own boss.
With so many people being unhappy in their traditional jobs, being your own boss is very tempting indeed. When running an online store, you are your own boss, so you do not have to answer to anyone but yourself. Additionally, your work schedule will be more flexible since you can set your own pace.
3. The startup costs are low.
When starting an online store, you will only need to worry about purchasing a domain and finding a reliable hosting service. Although the plans will vary, you can still easily find those starting around $40 a month. Additionally, the overhead is low, so you can startup your business from the warmth of your own home.
The Cons:
1. You need to make your business a top priority.
In order to truly become successful with any business, you need to put plenty of time and effort into it. Although you can work at your own pace, if you do too little, you will not generate a profit. Since you will likely be working from home, you will additionally have to learn how to deal with distractions.
2. The business typically requires more money overall in order to become successful.
While the start-up cost is low, you will often need to spend more money to ensure that everything works just right. For example, you may need to optimize your website for search engines in order to be noticed. You may also need to spend money on providing quality content for your audience and implementing advertisement methods as well to get even more attention.
3. You have to do lots of research to avoid losses.
If you want to be successful, you will need to dedicate a lot of time and effort into researching various products, as well as the target audience. If you fail to do your research, you may end up making very minimal profit or none at all. Fortunately, any failures can still be used to teach you about what to avoid for future projects. By familiarizing yourself with the ups and downs of running an online store, you will best be able to determine if the career change is right for you.
ABOUT AUTHOR:
Chelsea Miller is a small business consultant. Her articles appear on SME and upstart blogs. Visit the Lenstore link for more information.