New Business Start Up: Online vs Brick and Mortar

If you are going to start a new business, you will need to think about several factors. One popular consideration is whether you should open an online business or a brick-and-mortar location. Here are a few things to consider about this dilemma.

Initial Cost

One of the big things that you will need to look at is the initial cost of each project. In order to get started online, you are going to need a much smaller initial investment. You could potentially get an effective website up and running for a few thousand dollars. If you were to open a brick and mortar location, you have to come up with many thousands of dollars just to open your doors. 

Overhead

You also need to think about the overhead of each option. The ongoing costs of an online business are going to be very small. You may have a few employees eventually, but you could potentially run it all by yourself. With a brick and mortar location, you are going to have to pay rent or a loan payment, insurance, property taxes, utilities, wages, and a host of other expenses every month. 

Making the Decision

If you can be successful with an online business, this would be a much more sound financial decision. You have a lower initial investment and a lower amount of ongoing costs.

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