What is Virtual Business in 2020?

What is Virtual Business in 2020? - Post Thumbnail

Virtual business is the case when most things are handled online. It implies that there is no need to interact with clients face-to-face or even have an office. When a company is completely virtual, it can outsource activities like shipping, marketing, etc. Let’s find out reasons for and against having a virtual business are and its peculiarities in 2020.

The advantages and disadvantages

There are lots of advantages to having this kind of enterprise. The main 4 are:

  • Cost savings of doing business that include the absence of the necessity to lease an office, pay for utilities, etc.
  • Flexibility is one of the main reasons virtual business appeared. Business owners are now capable of adjusting to changes faster. It’s also easier to plan one’s life without being tight to a certain geographical location.
  • Happier employees, especially those who find working from home to be more enjoyable. It also helps them to build a better work/life balance and be more productive.
  • A chance to hire more workers from any region as long as there is a good Internet connection. A smart business owner can find true gems in this wide pool of potential employees as he’s not limited to one city.

On the other hand, some obvious disadvantages can be summed up into the following list:

  • The lack of face-to-face interactions might lead to certain miscommunication and the absence of team spirit. Sometimes it can be harder to get the deal communicating via email only.
  • Hiring employees from different regions can bring up cultural peculiarities, language issues, etc.
  • Employees that work remotely can have lower productivity due to constant distractions or the absence of self-discipline.

Types of virtual business popular in 2020

First of all, the most widespread is the virtual retailing. Lots of companies offer subscription-based services, online stores, in one word – e-commerce. Amazon, eBay, and other giants continue to thrive.

However, this model can be applied to other businesses. For instance, the IT industry is booming because the developers can hire people from all over the world and collaborate to get the best results.

Even such companies/organizations as IBM and JetBlue let their call center employees work remotely.

Another big industry concerns selling information products. This year, the trend will continue to expand letting many people start their small (or big) businesses. Create a YouTube channel, website, write a book, create a webinar/podcast/online course, etc.

A very similar area that is building its influence is coaching and consultations. There is no need to live near your clients to help them grow and become happy/successful, etc. Using modern technologies, a person can communicate with people in any country.

Conclusion

Virtual business is a very popular business model. In 2020, its popularity will continue to grow as many companies find it cheaper and more convenient to outsource some business and do the rest remotely. It gives more freedom to both the owners and the employees and everyone is happy as long as the work is done.

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