Starting An Online Business During An Economic Downturn Is A Good Idea. Here’s Why

Quiet quitting, quick quitting.. Or just tired of your job?

Rocket saw a record month of growth last month, and some of our new customers indicated that the current economic environment had led them to quit their jobs and start their first website to open an online business.

Ditch the 9-5 grind seems to be the theme, it’s hard to argue that remote working has ever been more popular than right now!

Why is Starting an Online Business a Good Idea in Times of Crisis?

These are difficult times. COVID, inflation, and political instability are currently hampering the regular operation of the economy worldwide. However, after the initial COVID outbreak, in many respects, 2022 could be a new beginning. As long as aliens don’t land!

In many countries, governments have launched economic stimulus and social support packages on an unprecedented scale. At the same time, they are also sharpening their basic economic strategies. The COVID lockdowns changed not only the exchange of goods but also the way we work, with consequences that will last beyond 2022. 

Digitization, new work, sustainability, and blockchain are no longer buzzwords but are proving to be the solution finders in times of crisis.

“There’s nothing like an actual crisis to uncover new pains, needs or amplify an existing problem. Millions are stuck at home, be it for work or school, and there are a plethora of problems from this situation needing solutions.”

(EU Startups)

Which Business Models Have the Best Potential for the Future?

Depending on which sector you call home, possible approaches for a successful market entry differ. One thing is certain, however — regardless of sector, your business requires digital tools. Whether it be a website facing out, or a digital inventory system facing in, digital transformation touches everything we do. 

So ask yourself the following basic question: What problem can your offer/product/service solve? 

When something is broken, we become very creative with our workarounds. COVID was no different. When stores and restaurants were shut down, people looked to the internet. Ecommerce is predicted to have grown 4 to 6 years faster due to the pandemic. 

• How many people had heard of Zoom prior to 2020? 
• How many had previously ordered toilet paper from Amazon? 
• Had you ever had a McDonald’s meal delivered to your home? 
• What became necessary or an important nice to have when Home Office became the norm?

“Companies were organized for a world that is disappearing—an era of standardization and predictability that’s being overwritten by four big trends: a combination of heightened connectivity, lower transaction costs, unprecedented automation, and shifting demographics.”

(McKinsey)

What are the Advantages of Having an Online Business Over an Offline Business?

A major advantage of eCommerce over bricks-and-mortar business is speed. Another advantage eCommerce has is reach. Growing globalization and the ability to reach more people over the internet, mean online retailers and businesses can quickly and significantly increase their customer base and sales.

Compared with an offline business, online businesses can have:

• Lower expenditure
• Global reach
• Ease of use
• Better customer experience
  • Convenience
  • Price 
  • Speed of fulfillment

Not only can businesses sell their goods to people outside their region or the city where they are located, but businesses can also trade with other international businesses within minutes.

What Types of Online Businesses are There?

The right online business idea – whether part-time or full-time — is the first thing that will take some hard work. So, what sort of online business ideas are there?

• Dropshipping
• Online courses
• Websites and online marketing
• Consulting
• App development
• Reselling

Reseller hosting is when you purchase server space from a web host at a wholesale price, and then offer it to your agency’s clients at retail pricing. You’re not creating your own bank of servers, you’re reselling existing hosting platforms as if they were your own.

• Food delivery
• Online Events platform
• Game creation
• Translation services
• Affiliate marketing

Affiliate marketing has become exceedingly popular among website owners. Create amazing content, drive significant traffic to your website, build authority, and leverage that authority to sell other people’s products. 

• Lead generation
• Sustainability coach
• Food blogger or online chef
• Content Creator
• Service and support agent

“Owning and maintaining an online business gives entrepreneurs the freedom to make money anywhere in the world … but many entrepreneurs don’t know where to start. The most important step in starting a profitable online business is to find a business idea that matches your skills and strengths.”

(Business News Daily)

What is the Right Online Business for You?

ECommerce is a huge field and can mean different things in different industries. ECommerce describes any business that takes place online, whether buying and selling products or services or exchanging money and data to complete transactions.

ECommerce is a relatively young field but is an ever-evolving industry with many entry points. ECommerce has been around since the late 1960s, but the first online purchase didn’t happen until 1984. Today, trillions of dollars are exchanged online every year. $3.23 trillion was spent globally on the top 100 online marketplaces alone in 2021.

China tops the global eCommerce players with 4 trillion in sales, followed by the USA at 1 trillion. The EU walks in with half a trillion in e-commerce sales. (Statista)

Everyone has a number, as they say, and that number is usually sort of low. Online shops do not stand alone. They require everything from a content management system, PPC ads, social media, online payment and fulfillment systems, and a large crew of people managing each aspect of the system. 

If your dreams mean happiness with anything less than a trillion dollars in revenue, then starting a digital business either to support or participate in e-commerce, is probably a sensible way to go.

“There are a lot of misconceptions about what it takes to run a successful online business. Even experienced business owners often underestimate the time, energy and skill it takes to really succeed online.”

(Forbes)

The Future of Commerce is eCommerce

ECommerce sales in the USA have already hit 1 trillion dollars. The industries with the most growth are expected to be sectors that are able to flexibly respond to a rapidly uncertain and changing market. Food delivery, DIY, and online education certainly saw a boost since the start of the pandemic.

ECommerce is a huge field and can mean different things in different industries. So what is eCommerce? ECommerce describes all business that takes place online, whether it’s the buying and selling of products or services or the exchange of money and data to complete transactions.

ECommerce is a relatively young field, but is an ever-evolving industry. Electronic commerce has been around since the late 1960s, but the first online purchase didn’t happen until 1994. and an ever-evolving industry. Today, trillions of dollars are exchanged online every year.

• $3.23 trillion spent globally on the top 100 online marketplaces in 2021

China 4 trillion (https://www.statista.com/statistics/289734/china-retail-ecommerce-sales/)

USA 1 trillion https://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast/

EU ½ trillion https://www.statista.com/topics/3792/e-commerce-in-europe/#dossierKeyfigures

We all know that eCommerce is not a fad or a flash in the pan. The internet is real and growing with VR online and virtual retail will continue to grow. In fact, some believe that eCommerce will soon generate as much and possibly more revenue than traditional brick-and-mortar shops. This sounds quite realistic, as many retailers already use both sales channels.

The easier it is for people to find you and buy something from you, the more likely they are to remember you and return to you. Omnichannel retail is a big part of this.

Omnichannel Retail: Someone with a brick-and-mortar shop, an eCommerce site, social media channels with shopping features, and using marketplaces like Etsy or eBay. 

Today, just having a brick-and-mortar store is not nearly enough. Omnichannel retail is the real future of e-commerce.

What is the Right eCommerce Business for You?

If you need motivation, Shopify has many ideas to start your own online business. We think using Rocket’s WooCommerce Hosting is much better though…

• Dropshipping
• Online courses
• Websites and online marketing. Maybe reselling web hosting?
• Consulting
• App development
• Food delivery
• Game creation
• Translation
• Affiliate marketing
• Lead generation
• Sustainability coach
• Content creator
• Service and support agent

eCommerce: Why is it Better to Shop Online for Goods and Services?

Cheap and Fast: the Advantages of Online Shopping

Online shopping is possible in all areas of our life. We can not only purchase electronics and clothing on the internet but even medicines and groceries. We can book holidays, watch films, and download games. The advantages of this start with price: less overhead. Online shopping is often cheaper and comparing prices is much easier than walking from store to store. 

Is what we order online any good? Probably. It’s certainly fast! Online businesses mean we can have what we want much faster than a traditional business. When is the last time you went to a cinema to watch a film?

Easy: Convenience is Also a Big Factor in Ordering Online

If you’re like me, you order things while you’re waiting in line at the movies. Or while you wait for your meal to be served. Using our phones, we can shop from anywhere, and at any time, whether on the sofa or on the train. 

You don’t have to go anywhere, because the products are sent directly to your home. There are no opening hours either: online shops are open in the middle of the night, on Sundays, and on Christmas Day.

“Jungle Scout surveyed more than 1,000 U.S. consumers …. Since Q4 of 2020, consumer priorities have centered heavily on how to cut costs — whether that’s favoring a cheaper product, selecting an item with free shipping, or comparing several products for the best deal.”

(Jungle Scout)

3 Reasons Why Starting an Online Business is Smart (Right Now)

Times of crisis offer more opportunities than risks for resourceful founders. Adaptable, lean, agile, digital business models are the best strategy in times of crisis. Especially in uncertain times, having more flexibility is not just an advantage but a requirement. 

Uncertainty currently features in our everyday lives. Prices for utilities, groceries, housing, and other goods are rising. Supply chains continue to be unpredictable and the consequences of the pandemic are still being felt. So why take risks now of all times and dare to take the step into a new business? 

Admittedly, the time to start up does not seem ideal. Nevertheless, there are several reasons for implementing one’s own business idea at any time, completely independent of external influences.

Times of Crisis Offer More Opportunities Than Risks for Entrepreneurs

There are always winners who make a virtue out of necessity. Many new businesses have been made possible by the pandemic in the first place. COVID test centers, warning apps, and widespread demand for masks did not exist two years ago. Online trade boomed and services previously offered locally, such as counseling and teaching, took place online. 

Those who relied on a digital business model were able to reap the rewards during the pandemic. The same applies to other external influences such as climate change, digitalization, or the consequences of war — everything can also contain new impulses for business ideas.

Digital Business Models are the Best Strategy in Times of Crisis

Anyone offering online goods or services is independent of place, time, and contact restrictions. Since money and personnel requirements are often lower, the financial risk is also more manageable. Providers of digital services are extremely flexible and can also react quickly in future crises.

Digital Services Offer a Greater Degree of All-Round Independence

All that is needed is a stable internet connection to serve customers themselves on the move using a smartphone or laptop. This means that the place of business can be freely chosen. Digital employees can flexibly change location if economic or political reasons require it.

“In this interconnected world, it is easier than ever to make a living doing what you love. Be forewarned: being self-employed is hard work, but it is worth every sleep-deprived moment.”

(Life Hack)

We’d Love to Show You What The Fastest WordPress Hosting Actually Means to Start Your Online Business!

Starting your own online business? Don’t sell the farm to buy the paddock. The Rocket Platform has built-in features that eliminate your need for otherwise paid versions of security, image optimization, CDN, and JS content loader plugins. They are features built into your new favorite platform (the product formerly known as Managed WordPress Hosting). Oh, and we love the free e-commerce plugin Woocommerce too!

Let’s talk about how we can migrate your existing business or your new one with Rocket.net, the fastest WordPress hosting in the world.