5 Advantages of a Virtual Startup Business

By Evan Puhala

Not that many years ago, it was inconceivable to most consumers that they could take a tour of the Parthenon from the comfort of their couch, have a high-quality selection of wine delivered to their home on a monthly basis, or use a mobile app to teach their children to multiply fractions. Yet today the landscape of nearly every sector in the business world is filled with virtual brands and companies competing with their brick-and-mortar counterparts.

A virtual business is one that conducts all (or nearly all) of its business via the internet, without any kind of central physical location. Virtual businesses can be easier to launch than traditional businesses, and do not have the kinds of startup costs that companies with physical offices or retail locations do.

If you are thinking of starting a new business, should your startup be completely virtual? Let's look at some of the benefits of running a virtual business.

5 benefits of a virtual startup business

1. Your online version is better in key areas

Let’s be honest: online business models can never replace certain in-person experiences. You can’t test ride a bike if you buy it online or drive through the surrounding neighborhood during a virtual real estate tour. But bringing your startup online can offer plenty of advantages to your customers.

The added convenience is obvious, but an online business comes with more flexibility—a simple tweak of your website and social media channels is all you need to alter the way the public sees your business. Virtual services are more personalized and customizable because they can gather users’ digital data in ways that offline relationships can’t. At the same time, a virtual business can feel less invasive because customers aren’t dealing with irritating in-person salespeople. And speaking of those customers ...

2. Your virtual business can do without the bells and whistles

Traditional retailers have a massive amount of things to worry about aside from the products that they offer: the design and ambiance of the physical space, the way products are organized, the uniforms employees wear, and the music that plays in the store. For an online business, however, these concerns evaporate and are replaced with greater focus on the product, price, and supply chain. Your business saves time and money paying attention to what you’re actually selling rather than worrying about the experience surrounding it.

Take, for example, ghost kitchens, a food trend that grew quickly into a huge industry. Rather than setting up a dining area in a physical location, ghost kitchens operate entirely virtually, with multiple “restaurants” sharing kitchen space at an undisclosed location (hence the ghostly name) and delivering food to customers through third-party meal delivery services.

Consumer demand for ghost kitchens has proven that the product itself is king, rather than the physical trappings that surround it; a customer may not need a professionally trained waitstaff or an impressively decorated dining room to have a quality eating experience. For those customers, “a burger I like is delivered to my house” is enough.

3. The pandemic has changed the game

Even though the pandemic has ended, it has left behind permanent reminders of its influence. Teachers have learned more about virtual learning; corporate leaders have learned more about virtual meetings. Food delivery apps underwent a revenue boom during the pandemic, with many customers likely to continue using them due to newfound convenience or lingering fears of disease.

If a barrier to your startup’s online entry has been consumers are unfamiliar with or unsure about your product in an online environment, there’s a good chance today that your consumer base is a lot less hesitant to do business with you online.

4. You can trust your customers to get creative

An online business model means your customers lose opportunities for face-to-face interaction, something you might consider a drawback. However, persistent consumers who care about your product can create their own interaction opportunities through channels such as social media discussions and online groups.

What if you rely on video previews of your products, and you’re worried they might not have the same appeal as seeing the products in person? Encourage users to upload photos or videos using them, either on your site or elsewhere (once you’re big enough, they’ll probably do this on their own).

Indeed, you too can harness the creative power of social media to help reach more customers. During the pandemic, high-end fashion brands replaced some of their traditional ads with virtual games, cooking tutorials, and fitness classes—and it worked. This type of engagement advertising can only happen online, and if you manage to do it right, it will pay serious dividends in terms of brand loyalty and positive associations with your product.

5. A virtual business can easily go global

While some companies may find international growth daunting, if you’re part of the online ecosystem where anyone in the world can access your site, international reach becomes much easier. While shipping physical items overseas may be an early hurdle for an online venture, if you offer an online service, you can easily expand into international markets without having to establish a physical presence.

A business that operates without a physical office can also easily integrate new employees into the company from anywhere in the world. Employees based in different countries can offer unique perspectives to the business as well as provide opportunities for expansion.

Make your startup a virtual business success story

Many startups have found success by bringing more and more of their operations online, and even by becoming entirely virtual. You might just be the next virtual success story, but you’ll never know if you don’t give it a shot.

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