Why 2023 Will Be a Great Year to Start an Online Business

The opinions expressed by the entrepreneurs are their own.

One of the big stories of the pandemic, especially in the uncertain early days, was the rise of entrepreneurship. Millions of Americans started new businesses and side hustles, experimented with working from home, and were open to new ways to create economic value. Recent data from the U.S. Census Bureau of Business Formation Statistics showed that the pandemic entrepreneurship boom was not a one-time fluke; Americans formed more than 5 million new businesses in 2022, representing a 44% increase in new business formations over 2019.

It looks like the 2020s entrepreneurship boom is here to stay, and that’s good news for the digital economy. Despite the recent gloomy headlines from Silicon Valley and Wall Street and some painful stock market declines, there are strong signs that 2023 could be a better year for entrepreneurs to start a business, especially in the online small business space.

Let’s look at some big reasons why 2023 will be a great year for digital entrepreneurs.

Related: 4 Reasons Why An Online Business Is The Best Investment You’ll Ever Make

Big tech cuts lead to new opportunities

Just in the last few weeks, we’ve seen thousands of job cuts at Big Tech companies like Google, Meta, Microsoft, and Amazon. Of course, these job losses are painful in the short term for the affected employees and their loved ones; nobody likes to be fired. But this temporary pain can lead to greater opportunities in the future.

Thousands of entrepreneurs with valuable, in-demand tech skills are now looking for their next gig. Some of them may want to start their own business and some may join together to start a new startup with their partners; some may want to consult while others may want to invest in acquiring an existing online business.

There will be an unleashing of human capital and ingenuity that was concentrated in a few large companies; This will ultimately drive new growth in digital entrepreneurship. Many large companies start operating during an economic downturn, when customers are looking for new innovations and there is less competition and noise in the market.

I’m excited to see what new ideas and innovations emerge from today’s Big Tech layoffs. There are people getting fired today who could become the CEOs of the biggest success stories of the next decade.

Related: Quit your big tech job? It can be an ideal time to be an entrepreneur.

Strong Opportunities for Main Street Online Businesses

Publicly traded Big Tech companies have attracted a lot of hype and massive investment over the past few years, but the digital economy isn’t just about these big public companies. There is a huge under-appreciated area of ​​the digital economy that we call “Main Street” – businesses with revenues under $10MM, including blogs, apps and e-commerce stores.

There are many ways for entrepreneurs to make real money with online businesses, and it can often be done with limited initial investment and minimal overhead, such as starting a Fulfillment by Amazon (FBA) business. Starting a content-driven website or blog can help digital entrepreneurs serve a unique niche and build a loyal audience of fans, followers and repeat customers. Mobile applications continue to be at the center of people’s daily lives, and there are great opportunities for useful, profitable mobile applications that can provide a useful service.

The next wave of innovation in the digital economy will come from small online businesses. They often generate steady income and offer great growth potential. Look for more entrepreneurs to explore the high street of the digital economy.

The freedom to be your own boss

The continued boom in new business formations, labor shortages in many industries, and the rise of telecommuting are all strong signs that entrepreneurs are tired of the traditional corporate workday. They want to create value on their terms, be productive on their own schedule, enjoy a better work-life balance, and unlock opportunities for themselves in new ways.

Online entrepreneurship can be a huge force in this larger transformation of how people work and live. When you own a digital small business or other digital assets, you can work from anywhere in the world. You don’t have to punch a clock or report to a manager or be monitored by an employer. You don’t need to ask for permission to go on vacation. You can discover new business ideas, try new things, launch new products and explore new markets without the bureaucracy and constraints of a traditional employer.

The pandemic has forced millions of people to reevaluate what they want from life, where they live and how they work. The freedom and flexibility of owning a digital business can be a good fit for many new entrepreneurs.

Related to: 5 steps to start an online business and live a much better life

High Growth Online Business Categories

Digital small businesses offer many flexible models to help entrepreneurs capitalize on the latest trends and changes in consumer lifestyles. No matter what customers demand now, digital small businesses are adaptable and well-positioned to deliver it. A few high-growth online business categories I’m hearing about from digital entrepreneurs right now include fitness, travel, health, finance, and pets.

Consider how consumer behavior has changed over the past few years. People want to focus on their health and wellness. they want to exercise and feel better; they want to go on vacation; they want to improve their financial situation; and they want to pamper their pets.

All of these consumer needs lend themselves well to owning an online business. There are many creative ways to build relationships with customers in these categories through valuable products, consulting and professional services.

Acquisition of existing businesses as an investment

2022 was a terrible year for the stock market, with many investors getting burned by overhyping meme stocks and alternative asset categories. What if there was a better way? Investing in online businesses by purchasing an existing website or other small business can be a great way to invest, and these digital small businesses have never been overvalued or overvalued. In fact, some digital small businesses generate annual returns of 30% or more.

Acquiring an existing business is often faster, easier and less risky than starting an original business, and acquiring a business gives you the confidence to know that this business is generating real revenue and has a base of users, customers and web traffic to build on. to build Look for more investors, individual entrepreneurs and larger aggregators and institutional investors, to buy online small businesses as an investment category in 2023.

Bottom line: Despite some gloomy headlines on Wall Street and the short-lived pain of Big Tech, the future is bright for the digital economy. One of the biggest technology growth areas in 2023 will be Digital Main Street in small online businesses such as mobile apps, SaaS solutions, e-commerce stores, blogs, content-driven websites and other digital assets. Small online businesses can generate huge growth and usher in a new era of digital entrepreneurship.

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