3 Reasons to Start an Online-Only Small Business

Going online could work to your benefit.

There are plenty of ways you might benefit if you decide to start a small business. For one thing, you get to be the boss. That means calling the shots, deciding what direction you want to take, and who you want to hire to bring your great ideas to life.

Starting a business could also benefit you financially. The more money you make in the course of that venture, the more you get to pad your own savings.

When it comes to starting a small business, you have choices. You could maintain a physical business, or you could limit your business to online only. Here are a few good reasons you should consider going the latter route.

1. You'll save money by not having to rent out physical space

In case you haven't been following the news, rents have gotten expensive on a national level. And that doesn't just include residential apartments and homes. If you rent space for your small business, you might end up paying a premium right now.

But even during periods when rent prices aren't as out of hand, the reality is that renting space is a big expense. And it's one you may not want to bear. If you stick to an online-only venture, you won't have to cover the cost of leased space, and you might also save yourself a lot of money on overhead -- things like utilities and other costs that come with running a physical business.

2. You might maintain a better work-life balance

Just because you run an online-only business doesn't mean you won't have to put in a lot of work. But you may be able to do a fair amount of that work from home. And that alone is a benefit worth considering. 

Working from home can make for a better balance when you have young children and different schedules to juggle. And not having to constantly be present at a physical business outside your home could make your life easier to manage on a whole.

3. You won't limit your customer base to a specific geographic area

When you run a business in a physical location, you may find that the bulk of your revenue comes from the same customer base -- locals who frequent your storefront. Now, that's not necessarily a bad thing. Some people really enjoy supporting local businesses, and you may find that you have enough local customers to sustain your venture and then some.

But if you open an online-only business and market it well, you might manage to attract customers from all over the country. And that could lead to a lot more revenue over time.

Some businesses require a physical location. But if yours isn't one of them, then it pays to consider the benefits of sticking to an online-only presence for now. Remember, you can always start out as an online business and open a physical location once your revenue is steady. But if you go the opposite route -- commit to a lease and then realize you'd rather only be online -- you might end up spending a small fortune and regretting it.