How to Run a Virtual Business? + Top 3 Challenges and Suggested Solutions
In today's tech-driven world, having an online business isn't just an option – it's a must. Currently, around 28% of business transactions happen online, and this number is only expected to grow.
So, as an entrepreneur, what does this mean for you?
Let’s take a deeper dive.
What Is a Virtual Business?
A virtual business is a company that does almost all of its work online. This means they use the internet to sell products or services, market themselves, work with team members from different places, and help customers without needing a traditional office or store.
Advantages of a Virtual Business
Curious how virtual businesses can scale up fast? Let's discuss the benefits they get to enjoy.
Cut traditional store expenses
Can you imagine how much money you get to save just by changing where you work?
You can save about $11,000 for each employee per year by allowing your staff to work remotely half the time. Think how much you stand to save if they work from home permanently. You get to avoid overhead costs like office space and utilities. You just have to worry about growing your business.
Connect with experts worldwide
When you run an online business, the whole world becomes your talent pool. In other words, you’ll have more potential candidates for the roles you’re looking for.
Traditional companies often have to hire the best person they can find nearby, but virtual companies can find the best person for the job, no matter where they are. The only question is, how much are you willing to pay for skilled talent?
If you want to save on labor costs without compromising the quality of work, casting a wider net isn’t the solution. Instead, it’s connecting with remote staffing experts like MultiplyMii that can help you tap the top 5% of Filipino remote professionals.
Enjoy work-life balance
Remote work doesn't just save you money. It offers bigger benefits than that. Did you know that companies that offer remote work have a 25% lower turnover rate?
In a survey by Buffer, 98% said they would like to work remotely for the rest of their careers at least part of the time.
Besides, according to an Owl Labs survey, 90% of remote workers get as much (or more) work done at home as they do in the office. This is likely because they have a better work-life balance, which makes them happier and more efficient at their jobs.
Expand to international markets
The number of online shoppers has grown. There are 2.71 billion digital buyers today, 70 million more than last year.
Moreover, the global eCommerce market will reach over $8 trillion by 2027. With the help of the internet, connecting with your customers halfway across the globe is now easier.
Scale up with ease
Growing a virtual business is much easier and less expensive than expanding a traditional one.
Without a physical store, virtual businesses can add new remote team members and use remote management tools to manage them. This makes it easier for these businesses to grow quickly and adapt to changes in the market.
Virtual businesses are looking at an exciting path forward with fewer costs, more flexibility, and incredible growth opportunities.
How to Run a Virtual Business
Operating a virtual business can be an exciting and successful venture. Here’s a quick guide to get it off the ground.
Step 1: Determine your focus
Figure out what kind of business you want to run. Answer these questions:
- What are you passionate about?
- What are your skills?
- How can you offer value online?
Whether it's selling products, offering services, or something else entirely, knowing what your business will focus on is crucial.
Step 2: Research your competitors
Take a look at your competition. Are they doing something similar? This will help you understand the market you want to penetrate, see what works and what doesn't, and find ways to stand out.
Step 3: Study your target market
Knowing who you're selling to is as important as knowing what you're selling.
Spend time studying your potential customers. What do they need or want? What problems can your business solve for them?
Understanding your audience will help you tailor your products or services to meet their needs.
Step 4: Organize your finances
Set up a system for tracking your income and expenses. Even businesses operating online need a solid financial plan.
Decide how you'll price your offerings and consider the costs of running your business, such as website hosting, software subscriptions, and marketing.
It's also a good idea to create a budget and financial goals.
Step 5: Decide whether to outsource or hire a remote employee
Do you want to hire remote employees or outsource tasks to other companies?
Outsourcing is hiring experts for help when you need it. It can save money because you don’t have to hire them full-time. But, having full-time remote employees dedicated to your business can be more beneficial than outsourcing. You get more control, and you won’t have to worry about sharing your resources with other companies.
Carefully choose what works best for your operations and goals.
Top 3 Challenges and Suggested Solutions in Virtual Business
A virtual business comes with its unique set of challenges. Explore the most common ones and how you can overcome them.
Communication and collaboration
Running an online business comes with a challenge: making sure the team can communicate and collaborate smoothly, even in different time zones.
Unlike in a regular office setup, keeping everyone informed and collaborating can be tricky.
Solution:
Take advantage of various tools designed to bring teams together, no matter where they are.
Project management software, like Asana, Monday.com, and ClickUp, helps keep track of deadlines and assignments. Video conferencing platforms and instant messaging apps, such as Slack, Google Meets, and Zoom, make it easy to have real-time conversations and check-ins.
Security and data protection
Can you imagine how much data breaches cost businesses? According to IBM, the global average cost of a data breach in 2023 was $4.45 million.
As more business operations move online, the more they are at risk of cybersecurity threats and data breaches. Online businesses rely greatly on digital platforms, making them particularly vulnerable to these dangers.
Solution:
Use secure, encrypted connections, regularly update software to patch vulnerabilities, educate team members about cybersecurity best practices, and employ tools like firewalls and antivirus programs.
These efforts can reduce the risk of cyber threats and safeguard your business's and customers' data.
Workforce management and productivity
Without the structure of a traditional office environment, some of your team members may struggle with managing their time effectively or feeling connected to the team.
Solution:
Establish remote work policies, set specific performance goals, and provide regular feedback. You can also offer support for time management and provide productivity tools.
But more importantly, foster a culture that values open communication, celebrates achievements, and encourages work-life balance. This can help you keep morale high and maintain productivity.
By addressing these challenges head-on with thoughtful solutions, virtual businesses can thrive, offering flexibility and innovation that traditional firms often can't match.
Kickstart Your Online Business with Top-Notch Remote Talent
Start your online business journey right by teaming up with MultiplyMii!
With a solid decade of staffing experience, we have the expertise to help you make your business goals a reality.
We're not just any remote staffing firm—we're the ones who get the job done.
Choose MultiplyMii, and let's make your remote workforce the powerhouse your virtual business needs.
Initiate the journey with a FREE consultation today and turn your business dreams into a thriving reality!
