There will be many answers to the question ‘why should I start an online business’ for example you may:
- Want to earn some additional income to pay for a holiday, or help your children
- Like the idea of being able to work from home and avoid that boring daily commute!
- Want to give up the ‘day job’ and work from anywhere where there’s an internet connection at any time you like.
However, if you pause to think about it the tradition lifestyle of education, work and retirement it is unsustainable for most people!
Why is the traditional lifestyle unsustainable?
The majority of people throughout the developed world follow a traditional lifestyle path. This will involve school education and for some a higher level of education. This education process trains most of us to work as employees.
As employees, we will typically work for 40 years in a job or a number of jobs and then we will retire. In retirement, we hope our pension, or the state will provide enough more for us to live for the rest of our life.
In the excellent book ‘Rich Dad’s Cashflow Quadrant’ by Robert Kiyosaki it is shown that 80% of us work as either ‘employees’ or as ‘self-employed’ and we typically work for the other 20% who are business owners or investors.
So why is this traditional lifestyle unsustainable? Put simply it is because we are living much longer, with a healthy diet and good exercise we can live into our nineties, and our pensions both personal and state will not be sufficient to provide for our non-working years of retirement.
Which retirement lifestyle would you like?
In the past retirement income was approximately two-thirds of your final salary. Today many final salary schemes have been scrapped which means people will have to rely on annuities and investments just at a time when the returns on savings are very low.
The state can no longer afford the state pension payments. Therefore, the retirement age has been increased and will continue to increase. You can still retire at 60 or 65 but you may not receive your state pension until your 70!
With many people now capable of living well in to their nineties it is very possible that they will run out of money and will live a life of poverty similar to a homeless person.
On the other hand, you could have a retirement lifestyle that would allow you to travel to the places you would love to visit, spend as long as you like and stay in beautiful accommodation. Along with helping your family, your children and your grandchildren, being able to replace your car or re-decorate your home all without financial constraint.
If, this lifestyle appeals to you why would you want to wait until your sixties to start enjoying it?
Welcome to the modern way of thinking!
In Robert Kitosaki’s book ‘Rich Dad’s Cashflow Quadrant’ one of the concepts that really made me think about changing lifestyle was about ensuring that you are operating in at least two of his ‘cashflow quadrants’ at any given time.
If you accept Robert’s premise that there are only four ways to make revenue and capital, which are his four quadrants – Employee, Self Employed, Business Owner and Investor, then I would suggest that most of us ‘employees’ should also be operating in either or both the business owner and investor quadrants.
To most of us it may seem easy to be an investor whilst working full-time all we need to do is deposit some our weekly/monthly earning in to a savings account. But this is not the type of investing that will make you a big enough return for your 30 years of retirement.
The type of investing that Robert advocates in buying ‘stocks and shares’, ‘buying investment property’ or ‘buying existing businesses’. These types of investments, if done wisely, will give you passive income and capital growth.
This type of investing may present a problem for the majority of employees, i.e. insufficient funds for investing!
With the investor quadrant unavailable due to lack of funds, what about the business owner quadrant?
In the past it was extremely difficult to start and build a business alongside full-time employment. The most common route was for employees to become self-employed in their own small business. Many professionals have taken this route, such as, accountants, lawyers, consultants, etc.
However, this type of business is a form of employment, as without the owners specialist knowledge the business would not be able to trade without them.
In today’s modern world it is now possible for any motivated employee to start a business alongside their full-time job.
Welcome to the world of online business from home!
With over three billion people, and growing, using the internet everyday it has never been easier to start a business.
When you look back at traditional businesses, such as a shop, a restaurant, a garage, they would never have had the opportunity to place their products and services in front of three billion potential customers.
Many typical ‘bricks and mortar’ businesses fail within the first five years. The owners have often struggled to make ends meet during those five years, so the risk of failure was high.
Today you can start an online business from home, working just a few hours a week alongside your full-time employment, with very little start-up capital, no premises and no staff. If, your online business idea does not appeal to the online market place you will know within six months. If, this happens you can start again with a different business model.
Your risk is so much lower with an online business than the traditional route. Firstly, you do not need to give up your full-time income, you can work on your online business in your free time (a few hours a week is all you need). Secondly, if you online business idea fails, it is likely to do it within months not years and thirdly the costs of failure will be considerable lower than a bricks and mortar business.
A new lifestyle
There are numerous types of online business you can start, and there are other articles on this website that can help you decide which one appeals to you.
The great thing about online business is once they have been set up and become established they can produce ‘nearly’ passive income. I say ‘nearly’ because there will still be a need to add additional products, write further articles and monitor your advertising campaigns.
Once you have one online business operating successful you could then set up another one, this way you are not totally reliant on one source of income, which is the situation most employees find themselves in.
When you are making a regular amount of income equal to, or more than, your full-time job you can consider quitting the job. This level of success will give you a new lifestyle of “working less, living more” should it appeal to you!
Setting up an online business – it’s a no brainer!
Hopefully at this point, you will agree that the traditional lifestyle of education, employment and retirement poverty is not very appealing.
Therefore, the alternative of starting an online business from home becomes a no brainer because with a little effort it is entirely possible to have that modern lifestyle dream of “working less, living more”
The rationale for an online business from home:
- You have a potential customer base of over 3 billion people – way more than you need!
- You can start with little money.
- You can start building up slowly alongside your regular job.
- You can start with just a few hours per week of your spare time.
- You can try and test online business ideas quickly.
- You can fail and move on quickly without losing a fortune.
- When successful with your online business you can quit your full-time job.
- You can work at any time form anywhere there is an internet connection
- No more daily commutes to the office to sit in endless boring meetings.
- You can set-up multiple streams of income by having a number of online businesses.
OK I’m in, how do I start?
Hopefully I have been able provide some convincing reasons ‘why you should start an online business’, but before you rush off to get started there are numerous things to consider.
Unless you have started a business before you will need help, and hopefully you will be able to find the advice and information you need within this site. If you are ready to start your online business adventure, please take a look at this article:
I hope you enjoyed this article and if you have any questions about starting an online business, or you would like to make a comment, please use the box below.