Should you dive into the world of running an online business, or would a more traditional brick and mortar storefront be the better choice for your small business? Below are some of the pros and cons of both options.
Starting a Small Business: Brick & Mortar vs. Online
Brick and Mortar
Pros
- A storefront in a good location acts as its own marketing campaign, encouraging walk-in traffic.
- In a disconnected world, people appreciate the value of an in-store experience where they can interact with you, your employees, and your products.
- Despite the surge in online stores, studies indicate a large percentage of shoppers still prefer to make their purchases in a store.
- Studies also show that shoppers spend more on average in a brick and mortar store compared to shopping online.
Cons
- You’ll face much higher upfront costs than you would with an online store.
- Your store traffic is limited when compared to the reach of an online store.
- Additional factors and costs such as store upkeep and finding the right employees can be challenging.
Online Store
Pros
- Reach a much wider audience! Being online allows you to attract customers across the country or across the globe.
- An online-only store means a much more flexible work schedule. Work from home, or anywhere you can find a good Wifi connection.
- Your online store is always open, meaning your customers won’t be limited to your hours.
- Online stores have much lower startup costs than a brick and mortar store.
Cons
- Running an online store means you’ll have to actively market your business in order to get traffic.
- If you sell products through an online marketplace such as eBay or Amazon, you’ll face reduced profit margins due to listing and sales fees.
- People are wary of online scams and may opt for a physical storefront where they can interact face to face with employees.