Is a Digital Agency a low risk business?

When most people consider launching a business, they often need to grapple with the classic conundrum of risk versus reward. Starting and growing a successful business can be life changing but we all know there is no guarantee in business.

Here at iOB Business, we are open, transparent and honest with all potential partners that are looking to start a Digital Agency with us. While the upside is huge when you scale your business, it does take a lot of hard work, commitment and sacrifice to build the business you deserve.

Many people are hesitant to start a business as it often means taking a step into the unknown. When someone is employed within an organisation, they have the structure of their daily tasks, a line manager to monitor their performance and a guaranteed salary at the end of the month. In contrast, life as a business owner gives you the freedom to select the tasks you focus on and also the opportunity to exceed your income goals.

However, most people are not in a position to just leave full time employment and start a business. Life expenses such as a family, mortgage, car, credit cards etc, all need to be accounted for and that’s why most people look to transition to full time business ownership over time, initially starting on a part time basis.

Technology and in particular, the internet, has made it easier than ever to find and select a business within an area that you have a real passion for. After all, any successful business will require time to nurture and therefore it’s important to select a business that is operating within an area that you are passionate about.

In this weeks blog, we wanted to focus on answering a key question we have debated within our office, “Is a Digital Agency a low risk business?”

Every business carries risk
It is true that no business is guaranteed. The very nature of business means you are taking a risk in order to achieve maximum reward. Comparing a digital business to a traditional bricks and mortar business, you can quite easily justify how an online business is lower risk.

Consider a physical business that has a store front. To get this type of business operational, you will need to buy or rent a premises, add in fixtures and fittings, pay monthly bills to keep the premises open, hire staff, source stock, obtain insurance, the list really is endless. All of this needs to be done before you have even opened for business and factored in the marketing costs.

In contrast, a Digital Agency has none of these costs as you don’t need an office, expensive stock, employees or any of the additional costs mentioned above. In reality, to compete in the online world you simply need a laptop/PC, a mobile device and an internet connection. This is what makes a Digital Agency really accessible to both serial entrepreneurs as well as seasoned business owners.

Is there a need for a Digital Agency?
The pandemic has accelerated the need for all types of small businesses to invest in how they market online. Lockdowns and social distancing have fuelled this growth in the digital world and business owners now recognise they need to be engaging their customers on the internet.

With the average adult now spending over 6 hours per day surfing the web, small businesses that don’t focus on their digital footprint risk becoming invisible. The challenge for over 5.6 million small businesses in the UK for example, is the majority of these businesses don’t have the skills, time or experience to market online. This is why many small business owners are turning to Digital Agencies for help.

Are there barriers to entry?
Trying to compete in any industry sector, either online or using a store front, you will naturally encounter barriers to entry. Traditionally, the barriers to entry for an online business are lower than a physical store because the start up/running costs are considerably lower in the digital world. This makes business ownership more accessible and attainable for all types of people.

Having said that, the barriers to entry for a Digital Agency are still high when you think about competing on value rather than price. Sure, anyone can create a basic website and say they offer digital marketing. However, small business owners are value conscious and far too often, they are wary of service providers who over promise and under deliver.

Here at iOB Business, we ensure that all partners that start a Digital Agency with us get access to a full stack of solutions, industry leading training and the support they need to grow long term businesses with us. This professional approach allows our partners to differentiate their Digital Agencies from other providers within the marketplace.

Is risk subjective?
To a degree, risk is subjective and everyone’s definition of risk is different. For example, someone who has experience in the digital marketing world and also business development, will view a Digital Agency as low risk because they already have an understanding of the industry.

In contrast, someone who has been in a non-related corporate environment for the last 20 years and is transitioning to their first business, may deem an online business as risky because their learning curve will be more steep.

As a company, we remove the challenges and barriers of starting and growing a Digital Agency by providing a variety of support mechanisms to bridge the experience, knowledge and skills gap between our partners.

Business is about speed
Ultimately, as a potential business owner, you need to make an informed decision on whether entrepreneurship is right for you. All too often, you can get engrossed in research and deliberation which hinders you from making a decision. Second guessing yourself will generally ensure you under perform as you will always have doubts in your mind.

In our experience, the partners that excel quickest with our methodology are the ones that have a positive mindset and set realistic goals for the short, medium and long term. This allows our partners to focus on the steps they need to take to achieve their overall targets.

Summary
As we have seen throughout this weeks blog, a Digital Agency is a low risk business as you do not have to take on all the costs associated with a traditional business. Moreover, as society becomes more digital, there is a real need for small businesses to invest in their digital footprint.

A Digital Agency is the perfect way to help all types of businesses with in-demand services that can be leveraged to help businesses all over the world to attract, retain and engage their customers.

To find out more about our value-driven Digital Agency model, please contact a member of our team.

Until next time, take care.