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In recent years, online businesses have challenged the traditional idea of what doing business is all about, not only in concept but also from a financial standpoint.

Indeed, you probably have seen how over the last 10-15 years companies like Google, Yahoo and many others which are maybe just a dot in the sea of internet businesses, have conquered a financial success many traditional companies could never dream of.

The explanation for this is that both offline and online businesses relies on its potential for reach in order to make a profit. In other words, there is a hungry crowd out there that you must feed with a product or service they are willing to pay you for. The more people you reach, the more chances you have to get a part of that hungry crowd to put money in your pocket.

Within the offline or traditional business model, which is an operation ran from a location with employees and inventory, increasing your reach thus your profits will demand you invest a large amount of money in order to get your business up and running adequately.

On the other hand, within the online business model increasing your reach is more a matter of know how rather than a matter of money. Indeed, if you know your way around the internet marketing as a discipline, you can replicate the reach of a million dollar company with less than Rs100 in your pocket. Therefore, to me the online business gets the upper hand, as this entrepreneurial alternative makes owning a highly profitable business accessible to the masses.

 

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