Pros and Cons of Running a Digital Business
The pros outweigh the Cons Majorly
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The charm of digital businesses is hard to ignore. In today’s superconnected world, where tech seems to change faster than light, the attraction of running a company in the online space is stronger than ever. But like all ventures, digital businesses have their own mix of chances and problems, some of which can surprise even the most skilled owners.
Don’t run from the challenges as they are all manageable and nothing is too great that you cannot succeed. It doesn’t matter if this is the first post you have ever read on the subject or the 100th
“Anyone can start right now and earn online”. I am living proof of that.
The Clear Benefits of Digital Business
1. Global Reach
A digital company breaks down the location barriers that have long limited traditional models. If you’ve ever imagined selling a item to someone while drinking coffee in New York, you’re not alone—and with a digital business, that dream is real.
I used to run/own a brick and mortar business (bar/restaurant). It made money but cost a ton to run ($25,000 a month roughly all in). It is crazy to think about now that my monthly costs are more like $250 and I am netting the same profits with not even %2 of the stress.
The internet gives you access to a almost unlimited customer base. Whether you’re selling a software product or an online course, the world is full of potential buyers who can find your brand with just a few clicks.
If you take this and say I am going to capture %1 of my niche market whatever that is you can expect to earn 6 figures in 5 years if you do it right (not everyone will do this of course) but it should be the case . (The problem is not the formula its you)
%1 of a niche for me equals 1000s of people wanting to grow a digital brand online and look to me to help guide them. I am not trying to cater to millions or even 1000s really but a few 100 a year is ideal if you monetize correctly and give the right value.
2. Lower Overhead Costs
Let’s face it: traditional businesses often come with big costs—rent, utilities, office supplies, and more. Digital businesses, on the other hand, remove many of these expenses. You can work with just a laptop and a internet connection. Sure, there might be first costs in software, hosting, or online marketing, but compared to a physical store, your financial overhead is much lower. For new entrepreneurs, this makes starting a business world much more reachable.
I could run my entire operation for $1 a month truly.. How: I have a few lifetime deals (thrive cart, adilo + platforms I use for web hosting come with your domain). I spend a little more then this but only because I choose to.
The point is you do not need anything to start: you can start a substack, build it for free, then expand. Get good at doing “something” anything before you try to do more (this was my biggest mistake the first year)
3. Flexibility and Autonomy: Be Your Own Boss
One of the biggest attractions of running a digital business is the flexibility it offers. Forget the 9-to-5 job; your workspace is wherever you choose it. Whether it’s at home, in a café, or on a beach in Bali, a digital business gives a level of freedom that traditional jobs just can't match. This independence is a strong motivator for entrepreneurs who want freedom and the ability to make their own schedules.
With independence comes the temptation to watch tv, scroll social, or just not engage so be careful here. The trick is to set a system you can follow every week/ month (especially when you don’t want to- which you won’t want to before you know it).
4. Scalability: Grow Without Limits
Imagine running a company that can expand quickly without the need for big extra investment in physical space. Digital businesses shine in scalability. A well-made eCommerce site or subscription service can grow fast, reaching thousands—or even millions—of customers with little extra cost. With the correct tools in place, your business can increase with relatively little trouble, allowing you to boost income while keeping operations simple.
The Dark Side: The Not-So-Obvious Challenges
1. Digital Overload and Competition
Yes, the internet provides endless chances, but it also means your business is in a very crowded market. Every niche is likely oversaturated, and standing out can feel like trying to find a needle in a haystack. Consumers are bombarded with ads, content, and emails each day, making it harder than ever to catch attention. What’s more, the competition is not only local but global. The challenge is to separate yourself in a ocean of noise.
How do you do this? Simply put : you stay in longer then your competition.
How long will they stay in? Average is 90 days most people quit, 1 year everyone quits (but a small percentage). The longer you stay in, give value, and have fun the more success you will have on the other side
What is the other side? 3-5 years (no one wants to hear this but its the truth). If you want to succeed it takes this long and maybe you will succeed). Tough to hear but true.
2. Dependence on Technology: A Double-Edged Sword
In the digital age, your business is only as good as the technology that supports it. If your website goes down, if your payment system fails, or if your customer data is hacked, the results can be disastrous. While tech offers great power, it also brings weaknesses. Depending on third-party platforms for your business tasks—whether it’s social media for marketing or a cloud provider for hosting—means you are subject to their choices, outages, and sometimes unexpected changes in their rules.
The trick: Don’t use an all in 1 or at least not as your only output source. Yes I use substack for my newsletter and my community but if anything were to happen I keep a back of of all articles, subscribers, and can move my business anywhere ina few hours (Wordpress for example).
My course platform is built on thrivecart which is a mobile platform (see sponsorship deals above). This means my students move with my site super easy.
What if thrivecart goes down ? I have my videos / workbooks backed up in (adilo , drive) and can move the links to another platform and import students directly.
The Point: have back ups.
3. Cybersecurity Concerns
A single cyberattack can destroy your business, hurting your reputation and customer trust. With important customer information, financial dealings, and intellectual property all stored online, the stakes are bigger than ever. Digital businesses need to spend a lot on strong cybersecurity measures to protect themselves and their customers, which can add high costs to their operations.
4. The Invisible Nature of Relationships
The digital world has a way of pushing you away from your customers. Unlike physical stores where you can talk face-to-face with buyers and read their body language, online interactions can feel more like a transaction. Building connection, trust, and loyalty takes extra effort. It’s much harder to form real relationships in an environment where most of the communication is through screens, and your “storefront” is just a website or an app. This can be especially tough for businesses in areas where personal connection is very important.
5. The Pressure of Constant Innovation
The speed of tech innovation and customer expectations is nonstop. What works today might be outdated tomorrow. A digital business must always innovate to stay relevant—whether it's updating your website’s user interface, following new social media trends, or using new technologies like AI. The constant need for change can be stressful, especially for small teams without the means to keep up with every shift in the digital landscape.
All of these “challenges” are easy to overcome but I want you to be aware. This is not to sway you from not starting but I believe if you know what to expect then you can better prepare. If you better prepare your chances of success go way up.
What to do Next? This is what I offer & How I Can Help You…
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