Online Business: Different Types and How to Start One

By Anne Shaw
The Hartford Small Biz Ahead
Originally Published: November 2, 2020 | Updated: August 19, 2022

It’s no surprise that online business is booming. Especially when you consider the long-term psychological effects of the Great Recession on those who experienced a period of job instability. Add that to a growing gig economy plus the current desire to work safely from home, and it’s easy to see why people feel a stronger desire to start an online business. Doing so can help secure financial stability rather than relying solely on one job that can be taken away at a moment’s notice.

The good news is that there are many ways to start an online business and begin generating multiple revenue streams, even passive income. Before we dive into the various small business models and online business opportunities that you can explore, remember that to make online business management sustainable for you personally, you should start by identifying your own talent and passions. Then, find an online niche where they are needed and can flourish.

What Is an Online Business?

These days, the answer to that question might be complicated or simple, depending on how you look at it. The fact is, nearly every business could be considered an online business. Even longtime retailers have been moving more and more of their business online. That’s because as a society, we’re living our lives in a blend of physical and digital worlds. We no longer need to be physically present to buy things, sell things or even do our jobs. Plus, the Internet’s existence means that people and businesses around the globe are now connected and can interact more directly than ever before.

Because of that, starting a business can now take place entirely online via a website, social media and online marketplaces. Often, online is exactly where you meet your customers. And there are plenty of digital, web- and cloud-based tools to help you run all related business operations. But, while an online business can take practically any form, most make money by selling products, services or information.

Home-Based Online Business Ideas

If you’re looking for a home-based online business idea, you may get overwhelmed. There are practically infinite types of online businesses, and the options for running them can also seem limitless. To keep things simple, consider the three main categories that most online businesses fall under. Take a look at these categories below and consider which type would work best for your lifestyle, your experience and your skills.

Offer professional services

Both small businesses and large enterprises often need services beyond what their workforce can handle. That’s why so many people successfully freelance or run LLCs as solopreneurs. There are plenty of businesses and personal services that translate well to the freelance and consulting world because they can be done remotely. These can include…[MORE]

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To read the entire article by Anne Shaw at The Hartford Small Biz Ahead website, visit: Online Business: Different Types and How to Start One