According to Statista, internet penetration is predicted to continue on an upward trend and therefore investing in digital entrepreneurship is wise. But don’t go into digital entrepreneurship with rose-tinted glasses as there are some challenges that you will face and need to overcome to have the success you dream of. Let’s look at the pros and cons of digital entrepreneurship.
Four key reasons why people choose to become digital entrepreneurs
1. Low start-up costs
Because your enterprise is hosted online, there are fewer start-up costs. If you are a retail shop, you will only need to pay the hosting costs for the web store. In contrast to a brick-and-mortar store where you will need to pay rent and the salary for the staff to man the store.
2. Ability to reach a global audience
As your store is on the internet, there is a wider audience you could reach than if you had a physical shop or weren’t online. Traditional entrepreneurs without an online presence are restricted to the local geographical area where they are based.
3. Flexibility in work hours and location
Your business is online and technically wherever you have access to the internet you can do business. This means that you can move around and still do work while enjoying the culture and experiences of a different place. Depending on the type of business you run online, you could also work around other commitments you may have.
4. Easy to market to your ideal client
Social media is the best place to connect with your target audience. Digital marketing has the capacity to pinpoint those individuals who have contacted your brand and target them. With 4.89 billion social media users, there is a large pool of people who you can connect with using the social media platforms that your customers are on.
Four challenges to consider when you start your digital entrepreneurship journey.
1. High level of competition
Even though the internet offers you access to a wider audience, it also might increase the amount of competition you have. Because of the low start-up cost, there may be more competition than you may like. The way to overcome it though is to ensure you stand out from the crowd with your unique selling point.
2. Lack of face-to-face interaction with customers
The internet has been around since 1983, but many people are still skeptical about doing business online. With many scams being highlighted online and through media, getting people’s trust can be hard and there is not often a chance to have in-person contact with your customers. It is imperative that you show your audience the face behind the brand and host online live chats to build trust with your audience.
3. Requirement for technical skills
When you start a digital business, you will not only have to be knowledgeable in your field of business, but you will also have to have some technical skills to help you navigate the digital environment you find yourself in. You will need basic web development skills and knowledge about cybersecurity to ensure you are keeping your customers’ information safe.
4. Need to stay up to date with the latest technology trends
With technology changing at a rapid pace, you need to stay up to date. Only in the last 40 years has the cell phone changed from a brick-sized device to make phone calls to a mini computer you can easily hold in your hand. You need to be future-focused and assess the impact new technology will have on your business.
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