Business investment in the present era is increasingly dynamic, widespread, and does not have to be expensive. This is due to the presence of a new business model that can be reached by all people, namely the online business. But is offline business abandoned because of losing competitiveness with online business? Apparently not. A number of companies still want to invest in offline businesses, even though they also go online.
In this situation, the question arises about which is better, whether an online or offline business. Then when we have venture capital, which one should take precedence. Whether online business or offline business. To answer the questions above, let’s look at the following description:
1. Cost Comparison
Many people argue that capital for online business is much cheaper than offline business. This view is true and it is a fact. In online business, we only have a set of devices, websites, social media and off course internet connection. It’s very cheap to create and host a basic website. To increase the credibility of online stores, we only need to pay a low cost. Promotions will be cheaper and almost no cost.
When compared to an offline business, capital for the procurement of goods and services will definitely be draining and costly. Because in an offline business, we are not only focused on marketing. In fact, we also have to think about the location of selling, the selling tools and the promotion system that is still very manual.
2. Advertising Fees
The marketing and promotion system in ancient times was much cheaper and simpler. People still sell goods based on their needs, so the way of selling is easier. But today, competition is very tight, especially in the virtual world.
Promotions for online business advertising must be done on a large scale so that we can win in the competition and reap the maximum profit. Online businesses also compete with other online businesses that are scattered. Online businesses must also be able to get the trust of consumers to have a generous customer.
Meanwhile, the cost of advertising for offline promotions may only be in the area of installing banners and billboards. The rest, we only need to spend a little capital for advertising, because the buyer can be found directly. Branding and building trust are also not needed because consumers can see the quality of our selling goods directly.
3. Business Competition
Business competition for online or offline businesses is different. For online business, the competition is very fierce because there are many people who are competing in this business. Online merchants also have to compete to get virtual consumers who will not necessarily buy our selling items.
Unlike the case with offline business. Maybe the competition is only one or two traders. Especially when we are the only person selling goods in a particular area, then the competition will not be too heavy.
For example, we are offline traders who sell soap in area A. The rest, there are no more traders selling in area A. While soap is one of the basic needs of the community, we will also be able to become sole traders who can reap huge profits without worrying business competition.
4. Alignments to Local Demand
The offline store is superior because it can be very siding with local demand. Surrounding people will certainly prioritize shopping at an offline store that is close to shopping online and having to bear shipping costs.
The offline store also allows consumers to interact with traders in real terms. They can also be free to chat, bargain and make other interactions without being suspicious. While when transacting online, we will communicate through the device perantra. All transactions are considered still limited and are still considered vulnerable to fraud.
After comparing between online and offline businesses, we know the advantages and disadvantages. Both of these selling styles must be used based on needs and interests, even encouraged to collaborate. The goal is that you can open the door as wide as possible for consumers, both real and virtual.