We all know that the pandemic hit many small businesses in the U.S. hard. Many businesses have closed down permanently, and those still open have their revenues cut in half. It’s devastating for physical retailers and companies who rely on daily business operations to keep themselves afloat. However, when physical businesses are at an all-time low, digital businesses are at an all-time high.
This makes since everyone during the pandemic is looking for services that aren’t easily provided physically. Services such as food delivery, tutorial, and marketing are all accessible through the internet. They also tend to be relatively cheap.
More and more businesses are transitioning to digital. E-commerce is booming, and many other digital businesses are accelerating the growth of the digital economy. There are many more advantages to be found in a digital business when compared to brick-and-mortar retail stores. Digital companies are efficient due to the existence of AI and other programs that can support business operations. They are also more customer-friendly and are more accessible because of chat-bots.
They are also easier to manage because you’ll only have a handful of employees working for you. These employees are usually core employees, so you wouldn’t have the clutter of part-timers and freelancers. Overall, digital businesses are great, but where should you start? Here are some simple digital businesses that you can start during this pandemic.
Digital marketing services are at an all-time high. Since people can’t go outside and see the massive advertisements on billboards and LCD screens during the pandemic, many companies have resorted to digital marketing to advertise their products.
Currently, the industry is valued at $300 billion with a compound annual growth rate (CAGR) of a staggering 12.8%. A CAGR unheard of in such a big industry. Many experts expect that the market will grow even more prominent because of the pandemic, with an estimated CAGR reaching between 17% and 20% between the forecast period of 2020-2027. This a great market to be in right now as you can get yourself a piece of that $300 billion pie. However, choosing the right kind of digital marketing company isn’t easy because there are many choices to be had.
If you’re looking for a cheap start-up that you can outsource to other already existing companies, you can go for search engine optimization services (SEO). If you’re looking to build your brand from the ground up, you can go with digital media. Although you wouldn’t be essentially doing marketing, you’ll be right in the very middle of it. If you have prior experience in marketing beforehand, you can always choose to be a marketing consultant. All these forms of digital marketing are available online.
If you’ve been around YouTube or any other video streaming site, you would have seen the rise of tutorial videos lately. Everyone is getting their hands into the tutorial services market, either by starting independently or starting their own company.
The current home tuition services market is valued at $4.81 billion with an astonishing CAGR of 16%. This growth is in line with governments worldwide, suggesting that online learning is the best way to go during the pandemic. Additionally, when everyone is learning a new language, English as a second language service (ESL) is at an all-time high. Many ESL companies and English language tutors in the U.S. are looking to penetrate the Asian market alongside other markets in the world. Being a part of this growth is beneficial for your company to set itself up in the future, especially when the virus has been eradicated.
Ultimately, your digital business doesn’t have to be ESL. It can be any other online tutorial service. You can start off by having your own blog regarding some skills you might want to teach others. You can also start by being part of online learning sites such as SkillShare who can market and sell your tutorial services for you. All of these are possible avenues for you to get within this billion-dollar market.
E-commerce is the traditional digital business. It is also the biggest and most valued digital business.
The US’s e-commerce market size is valued at $476 billion in 2020 and is expected to grow at a modest rate of 4.7% between 2020 and 2025. This modest rate is attributed to the fact that the market has reached its peak. However, that doesn’t mean that you should get into this $400 billion pie.
There’s a lot of space in e-commerce, and the fact that you can sell anything online nowadays is more of the reason you should try it out. Unlike other digital markets out there, e-commerce relies on an already stable foundation with no signs of falling apart. Everyone needs to buy something, and chances are they are going to pick you. There is no real guide to start an e-commerce business. Just look for something to sell, build a website, and sell your products.
Digital businesses are becoming the new norm during this pandemic. If you’ve lost your physical business due to the pandemic, then you have an avenue to start again, this time, you’re going to do it digitally. All of the markets in this list are at an all-time high, and chances are, you can get your money’s worth in five years. So get out there and start your digital business.