Booming Businesses: Best Online Businesses to Start This Year
Online businesses are booming right now, especially now that an estimated 88% of the U.S. population are buying through online means right now. But if you’re new to the idea of an online business, you might not know what business is meant for you. Well, here are some online businesses that are generating the best income this year.
You might have seen online reseller sites before, or you might have actually purchased from one a couple of times right now. If you have, then you would know how crazy good this business model is right now. Post some item online on your website or an affiliated e-commerce website, advertise such a product, wait for someone to buy it, then profit. It’s a pretty simple process and one that has worked ever since the beginning.
So what’s the profit margin of being an online reseller? It’s around 40% to 60% of the item you sell. That’s a considerable amount if you think about it. An alternative to this is a dropshipper, which means that you act as a middle man to consumers and manufacturers. You don’t directly earn the goods, but you get a percentage for every online sale you make. You can get 10% to 30% of profits this way.
If you’re someone who has experience in the world of business or the digital world, then becoming an online consultant is meant for you—online consultants advise small online businesses on how to succeed in their industry. You’ll be answering questions such as how to market themselves online, the target audience of their business, and the proposed business plan of their startup. There is a dire need for this profession now, and it seems that every entrepreneur is looking for a consultant nowadays before they start an online business.
This is a pretty competitive field right now, and it is still unknown how many online consultants can earn from their consulting business. But the average income of consultants is around $80,000, so expect to earn that amount of money once you’ve established your online consulting company.
Remote Tech Support
Ultimately, every online company requires tech support now and then to troubleshoot problems that may occur in their websites. But, of course, this is the same for anyone with a computer and access to the internet. This is why online tech support businesses are essential right now.
Starting a remote tech support company does not require you to have experience in tech support. Your employees will do that for you. But you do need some business management experience. If you’re new to businesses, we suggest that you start as an online reseller instead. But if you’ve managed a business before then, this is the right choice for you.
The profit you can get from this business depends on you charge your customers. This can be between $40 to $60 per hour. What you can also do is offer contractual work to other businesses that need your services. This can earn you a decent amount of money, but it also means that you’ll be working for the same company for quite some time.
How to Finance These Businesses?
Now that we’ve mentioned the best online businesses right now and their possible profit margin and respective industries, let’s look into how to finance your online business.
The primary way for you to finance your business is through a commercial loan. Commercial loans are great because they can give you a lot of cash for a small interest. Furthermore, unlike personal loans, these loans are tied into your business, so you don’t have to lose any personal assets if you can’t pay for them. But you’re still going to need some collateral that mainly comes in account receivables from an online business. This means that the lender will get any future payments from your business if you can’t pay for your loan.
Just a piece of advice: if you’re someone who just applied for a mortgage from a home loan lender, may it be to buy a property or a home, then it’s not the best time for you to get a commercial loan alongside it. Home and property purchases are pretty common right now, and if you’re only starting to pay your mortgage, it’s better if you keep off from starting any risky. If you really want to start one of these businesses right now, use some of the cash you have.
If your credit card is good enough to start an online business, utilize that instead. Better yet, if you’re halfway through paying your mortgage, you can refinance it instead so you can have some leeway to start your online business. It might increase the duration of your payments, but at some point, once your business has grown, you can utilize your earnings to pay for it in the future.
But if you want to take the risk, experts believe that a commercial loan done alongside a mortgage from the same lender can give you a decrease in interest rates if you have a good credit score. If you’re willing to make such a risky investment for your business for a couple of percentages off in interest rate, then by all means, go for it.
Online businesses are making significant income right now, and by starting any of these businesses, we assure you that you can get a decent income from each one of them. First, however, make sure to do further research on each industry to know the best way for you to start. Good luck with your coming online startup!