What Type Of Business Address Fits An Online Only Business?

Running an online business is completely different from running an offline business. While running an offline business (or brick and mortar business) means having a physical shop, store, or office where people come, see, or browse through products and services, running an online business (e-business or e-commerce) means making money through content-based websites, product affiliate marketing, or selling products on the Internet.     Each one of these two types of businesses require different strategies and business plans. Many start-up owners who are running online businesses are aware that they must build meaningful relationships with customers even if there is no personal interaction. To build credibility and earn more customers, their businesses must look legitimate and have a professional image. This is the main reason why the business address that an online business uses can make a big difference.   Business owners who are planning to lead an online business to success will find a list of options (below) that they have when choosing a business address for their companies (and the reasons why not all of them are suitable for their businesses).

What business address is suitable for an online only business?

• Home address 

In Australia, entrepreneurs and business owners are allowed to use their home address as their business address. However, this option is risky and can have negative consequences. First, because a home address cannot build credibility and attract clients and customers. A trustworthy brand must have a professional business address. This is the main reason why it is less likely that business owners who use their home address as their business address can earn customers and maintain a strong relationship with them. Moreover, since registered business addresses are public in Australia (it is possible for anyone to check ASIC’s public records), this is not a great option as far as personal safety is concerned. Business details should be kept separate from personal and family details.

• Physical address (eg, traditional office)

In this context, a “physical address” indicates the address of a physical office that a business rents and operates from. As far as the business reputation is concerned, this can be a better idea than using the home address as a business address (because a physical address can ensure a more professional image). However, most of the time an online business does not need to operate from a physical office. Renting a traditional office would be a waste of money due to high overhead. Also, leasing a serviced office (or any other type of office) may be a waste of money as well: typically, an online business is designed to run remotely without the physical presence of managers and employees in an office. Of course, entrepreneurs who run online businesses may need to meet important customers and suppliers every once in a while. But would not be worth renting or leasing a physical office only for this reason.

• Virtual address 

A virtual address is actually a physical business address that an online business can rent monthly. The only difference is that the company does not operate from that location. The purpose of a professional virtual business address is to give a business a professional appearance and make clients and customers believe that the company operates from a specific location.    A virtual address is the most suitable option for an online business for several reasons. Firstly, it helps a company build a legitimate image and earn customers. Secondly, it does not provide a physical office that an online business may not actually need (however, premium virtual address and office providers offer rentable meeting rooms for important face to face meetings). Thirdly, it is extremely affordable – the price for a virtual address can start from $1 a day. And fourthly, it allows a business to scale-up: as the company grows, business owners can pass from a simple virtual address to a virtual office that includes more services, such as mail forwarding, permanent landline number, virtual receptionist, etc.    Conclusion – A virtual address fits an online business best. Otherwise, an online business should use a home address as a business address (which may have negative consequences on the business’s reputation and the personal safety of the business owner) or the address of a physical office (which means wasting a high amount of money since online businesses typically run remotely).    Images source: jumpstory.com