What is a digital business and what are the opportunities in the area?
The concept of digital entrepreneurship involves all new businesses and companies that use digital media to negotiate products and services, be it physical or virtual. Companies in this field are characterized by the intensive use of technologies such as: social networks, big data, mobile and cloud solutions to improve processes, invent new business models, improve business intelligence and engage with customers and shareholders.
Opportunities in digital entrepreneurship
No matter your profession, there is probably an opportunity for you to establish an online business in your specialty. The Internet is driven by enthusiasts, that means that if you manage to find a market niche of thousands of people who love what you do and want to reward them, you can make a living selling products and services for them.
Sale of virtual products
One of the cheapest ways to start a digital business, without investing a lot of money, is to sell virtual products. That is, something that can be delivered directly to the consumer online after purchase.
An advantage of trading goods online is that there is no need for physical stock. Once the product is created, you can sell as many as you want and satisfy the needs of your consumers instantly.
Virtual products and services encompass a wide range of businesses such as: selling online courses, music streaming, newsletters, discounts in restaurants and applications that connect the customer with the service.
Selling physical products
On the other hand, another great opportunity in digital entrepreneurship is the sale of physical products and services through the internet and smartphones, the so-called e-commerce. There are endless market opportunities in this area. You can sell products that you manufacture or produce (from handicrafts to frozen food), buy products directly from the factory and sell them through a website, market imported products or negotiate merchandise used by third parties.
Finally, almost everything that you can sell in a physical store can now be sold online, it depends on the capacity and logistics of your company when delivering the merchandise.
Challenges of digital entrepreneurship
One of the great problems of digital entrepreneurship is that many companies start only with an idea, without the founders being able to respond for the costs of its operation or having how to show their product or service, which makes it difficult to attract investors, partners and other forms of financial aid. With the popularization of digital companies, this problem is aggravated by the appearance of many businesses based on simple ideas without the accompaniment of efficient business models. Having a good idea does not guarantee that a person is a great digital entrepreneur.
Without their own capital, it is necessary for investors to believe in the concept, in the description of the project and see the interest of a large number of people in acquiring your product. Therefore, to be a digital entrepreneur it is essential to have a structured business model and not start developing the product without knowing if there is an interested audience.