The Internet has clearly changed the way we live, work, and do business. While brick-and-mortar stores were once the norm, many innovators are now creating companies that exist solely online.
As new businesses embrace the digital environment in ways that traditional enterprises never could, outdated barriers are disappearing and a whole new world of possibilities opens up for ambitious entrepreneurs.
What is digital entrepreneurship?
Digital entrepreneurship is the practice of starting and running a business that operates entirely online. This represents a new model of entrepreneurship tailored to the digital age in which we live.
Well-known examples of digital entrepreneurs include e-commerce platform Shopify, software-as-a-service (SaaS) company Slack, online home-sharing marketplace Airbnb, and AI innovator OpenAI. All of these companies use technology to deliver digital experiences to customers around the world 24/7.
Although these companies are large today, they all started small. In other words, you don't have to be a billionaire diamond heiress to jump into digital entrepreneurship. Sarah Blakely built Spanx into her billion-dollar shapewear empire by first selling online before expanding into retail. Ben Silverman co-founded Pinterest and led the visual discovery platform to more than 400 million users worldwide. Michelle Phan leveraged her YouTube to launch a beauty and makeup line that was acquired by L'Oréal.
They each built their companies from the ground up by leveraging the global reach of the Internet, allowing them to launch and quickly scale their online businesses.
What does a digital entrepreneur do?
Digital entrepreneurship leverages always-on technology to create new business models powered by the Internet. So who will build that business model?
Digital entrepreneurs, of course.
Location-independent and globally capable, digital entrepreneurs rely on laptops, smartphones, and the internet rather than brick-and-mortar offices.
But what will day-to-day look like for the next generation of 100% digital entrepreneurs?
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They build digital products such as customized courses and platforms that run online.
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They use the Internet to market globally, sell products and services such as e-books, and distribute them digitally.
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They manage operations through automated web-based tools rather than in-person processes.
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They analyze metrics and data to optimize things like website traffic and business performance.
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They stay on top of new technologies and hone their latest technical skills.
In other words, digital entrepreneurs focus on leveraging technology to build, manage, and grow innovative online businesses that fully embrace the digital environment. No longer do you need a dedicated brick-and-mortar store or inventory warehouse. Even if your company has a physical product, your operations are all 1s and 0s and can be completely managed online.
What are the characteristics of a digital entrepreneur?
Starting a digital business requires a clear mindset and some useful skills. Here are some characteristics of successful digital entrepreneurs.
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technical know-how — You don't have to be a programmer, but having a working knowledge of digital platforms, tools, and emerging technologies is very helpful.
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Adaptability — Technology is advancing rapidly, and digital entrepreneurs need to move with it and evolve with the constant changes and innovations in the digital world.
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global vision — Digital founders need to think globally from day one, as the internet allows startups to reach customers around the world.
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knowledgeable about marketing — Marketing across social, SEO, email, etc. is extremely important for digital entrepreneurs who don't have a physical presence in their business.
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problem solving — When technology breaks down or strategies stall, digital entrepreneurs often need to quickly pivot to keep their businesses afloat.
Those are the characteristics that make the difference. More importantly, digital entrepreneurs have the creative drive to find fresh ideas, the resilience to overcome challenges, and a global vision that appeals to audiences around the world.
How is digital entrepreneurship different?
Starting an online business has some important differences from a brick-and-mortar startup. Here are some of the things that make digital entrepreneurship stand out.
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Lower barriers to entry — Digital businesses often require less start-up capital, as companies offering digital products don't need a physical storefront or inventory. This makes booting easier.
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Lean operations — Digital companies can stay lean and agile without having to manage in-person logistics. Automation helps streamline many processes.
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remote work — Digital tools give entrepreneurs more flexibility by allowing them to manage their operations and collaborate with team members remotely.
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Accessible 24 hours a day, 365 days a year — Websites and apps give customers anytime access to digital businesses around the world. There are no business hours.
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Scalability — Online platforms make it easier to scale up quickly by reaching a wider audience and automating workflows.
The opportunities presented by digital entrepreneurship have fueled an explosion of new business ideas, from mobile apps to AI to quantum computing. To succeed in this environment, digital entrepreneurs must: A ready-for-anything business that can stay one step ahead of the latest technology.
But there's still a place on Main Street
Traditional businesses with physical sites can also become digital entrepreneurs. Remember the popular Starbucks mobile app? With this mobile app, you can order drinks on your phone and have them waiting for you as soon as you arrive at the store.
Starbucks is just one example among many. Take Apple's retail stores and Today at Apple sessions, which blend the in-store experience with the online ecosystem. Or perhaps Eataly is leveraging digital tools to expand its brick-and-mortar culinary schools globally.
In fact, such a traditional business has its own advantages that are still very relevant.
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local connection — Brick-and-mortar stores build loyal communities and networks locally in tangible ways that cannot always be replicated digitally.
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human touch — Face-to-face customer service and interaction creates relationships and experiences that simply aren't possible online.
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specialized space — Custom brick-and-mortar stores and restaurants offer an experience that goes beyond just purchasing products and food.
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Real World (IRL) Skill Set — Commercial real estate management and in-store operations require a different skill set than digital operations.
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Hybrid possibilities — Many traditional businesses are now successfully implementing digital tools for marketing and sales while maintaining their physical space.
The growth of digital entrepreneurship does not make traditional enterprises obsolete. As Starbucks, Apple, and Eataly demonstrate, brick-and-mortar companies can often scale beyond their physical limits.
Thinking about digital entrepreneurship?
You may be thinking this by now. “Digital entrepreneurship is great!” How do I get started? ”
There are so many possibilities for aspiring entrepreneurs to build an online business that choosing the best one may seem difficult. The key may be to focus on proven business models that match your skills and interests, considering well-established options such as:
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Become a content creator If you love creating content and connecting with your audience, check out Instagram or TikTok.
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Building a SaaS company If you are passionate about solving real-world problems through technology and software
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Launching an e-commerce store If you love creating unique products and curating your online shopping experience
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Providing web development services If you have strong coding skills and understand how to build a website
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Start a digital marketing agency If you are good at data-driven advertising and promotions
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Create an educational online course If you have deep knowledge to share about the topic
By identifying the digital business model that is right for you, you can turn your specific ideas and abilities into your own digital business. The only thing you need to do to get started is validate your idea and build something digital that people want her IRL.
Are you ready to go digital?
The rise of digital entrepreneurship represents an exciting range of possibilities for today's innovators. With the barriers to launching an online venture lower than ever, entrepreneurs are leveraging emerging technologies and digital tools to build, manage, and scale their businesses to a global audience from anywhere in the world. I have been able to do that.
As with any business, whether traditional or digital, the key is to find what best suits your particular skills and interests. Because the promise of digital With a strong business narrative and a focused game plan, anyone can turn their dreams into a successful digital business.
Want to talk about how to strengthen your business idea or grow your company? Contact us Track Business Banker Today. We are always here to help.
