Online vs Brick & Mortar - Which Should Your Business Be?

So you have an idea for a business, and you can’t wait to start. You’ve daydreamed about your Grand Opening, you’ve told your family and friends what you want to do, and you’ve already thought of the perfect name for your new venture.

There’s one problem though. You can’t decide whether you should be opening your business in a store front or limiting your business to the internet.

Before you go throwing thousands of dollars on a lease for a retail space, you should fully understand the commitment you’re about to make AND the alternatives you have to going that route.

To really give your decision thorough consideration, here are a few of the questions you should ask yourself.

  1. Is your business the type of business that absolutely needs a storefront? Are you offering a product or service that can only be delivered to the customer with a physical space — like a hair salon, a car wash, or a restaurant?
  2. Can you afford the retail space? Consider whether you have enough money in reserves to pay the bills for your space. When you rent a retail/office space, you’ll have to cover the rent, utilities, insurance, and — if you have a net lease — you may have to cover maintenance, taxes, and insurance on the actual space. Renting space can get really expensive when your a new business trying to make it.
  3. Could the money you spend on the retail space be better used in other ways to propel your business further? Would it be smarter to use that money for marketing, product research and development, training, or something else that would help your business more?
  4. Would you experience faster growth if you focused on selling online first? Remember, when your business is brick & mortar, your audience is pretty much limited to your neighborhood, city, or county. When your business is online, your audience can be anywhere in the world.
  5. Do you have enough knowledge to run your business from a retail/office space? When you’re new to entrepreneurship, you don’t know what you don’t know. And no matter how experienced you are as an entrepreneur, there will always be things you still don’t know. With that, would you be better off building up your experience in the online world before risking your dream with a physical space?
  6. Would you rather go into a retail/office space to work every day or have the freedom to work from anywhere you want? Some people (like me) see the freedom of working from anywhere in the world as an absolute must. Starting an online business allows you to do that. When you have a physical space, you need to actually be in it for it to make sense.

Having a business in a physical space is sexy to a lot of people. It seems fun and makes them feel like they’ve made it. As you can see there’s a lot to consider when you start thinking about opening a brick and mortar business as opposed to an online business. 

Starting an online business is sometimes as simple as setting up a website and getting the word out about it. There’s so much more that goes into starting a business in a retail space, and it’s not a decision one should make without serious thought.

No matter what, remember that you can always start online, then grow into a physical location from there. As long as your business is not one that absolutely NEEDS retail space, you can absolutely be just as successful — if not more — with a business that’s online only.

Which sounds better to you — a brick and mortar business or an online business? Find me on Instagram or Facebook and let me know.

Also, if you know someone who might enjoy this article, please share it with them. And listen to my podcast, Master Your Mission, for daily motivation and inspiration to pursue your dreams.

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