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4 reasons your startup should focus on digital growth instead of a physical expansion
Plenty of old schools business people will think of starting a business and never think it should be fully digital right from the start. I disagree with that for a bunch of reasons, mainly because I can test the waters with $1,000 and a fresh website compared to a brick and mortar store where I'm locked into paying a $1,500 per month lease for the next 12 months. If a test goes well, a digital business owner can expand to a physical location, but there's still no data to tell them if they're going to be successful.
What you should be doing is focusing on digital growth, not physical expansion, and you will likely become more successful in a shorter amount of time with less investment. In this discussion, I'll be going over the main four reasons you should focus on digital growth, and they are;
Low startup costs and higher margins
When starting a digital company, you will realize the startup costs are much lower because you need to pay for a website and maybe some inventory if you're selling physical products. If you're selling digital services, your margins will be much higher, and this is because you're packaging your time into something that can be sold to the highest bidder. If you were to sell some software, you could have it as an instant download, and that means your time invested was to program it and maintain it... that's it lol
Much easier to scale a digital business
If you were to compare a franchise growth compared to digital business growth, you would quickly notice that a digital business can expand 10x quicker than a physical business. This is because you pay for a domain, set up a website, and use your first successful business to boost your new one. When running a franchise, you can't say "Hey, we have another location over here that you should try!" because it could be out of range or the person doesn't want to go lol.
Digital businesses grow much quicker because you can hit different areas within the same industry and become individually successful at both. Your profits will go into one bank account, making the company much more profitable, but it will still look like two separate entities.
Digital businesses give you more freedom
When you own a business at a physical location, you will need to go into work and be there to get something done or to make a sale. If you were to run a digital business, you would have much more freedom, and this is because you could work anywhere there is wifi for you to connect to.
This isn't a way to help you scale your business quicker, but you'll have much less stress, and that is one thing that a successful business owner needs plenty of lol.
Ability to hire top talent across the world
A physical business needs to hire people within a specific radius to their location, whereas a digital company can hire anyone around the world. This is one of the reasons digital companies have better employees because they can hire the best freelancers in the world, and when someone is working remotely they will do the best they can to keep their freedom!
You could have a fully digital business, physical business, or have a physical business that sells to the local population as well as online but you'll always want to focus on your digital growth as much as possible. This is because you have a larger audience to promote to, a better chance of making a sale, and higher chances of becoming more successful. There are plenty of businesses out there that start with a fully digital company then evolve to have an office space, but it's not always needed, and I should know because I've paid for an office to run my agency out of and thought it was a waste of money lol Focus on your digital growth and your physical growth will follow if you have a brick and mortar store.
Thanks for reading