Thinking about starting a business but want to skip the hassle of managing a physical storefront? Digital entrepreneurship could be just what you’re looking for.

As a digital entrepreneur, you get the freedom to work from anywhere, set your own schedule, and reach customers across the globe—all while keeping overhead costs low. It’s a flexible, scalable way to build something of your own in today’s connected world. Here’s how you can get started:

What is a Digital Entrepreneur?

A digital entrepreneur is someone who builds and runs a business entirely online. From podcasters and bloggers to digital shop owners, course creators, and even freelancers like virtual assistants or graphic designers—all fall under the digital entrepreneur umbrella.

What sets them apart is their reliance on digital tools to power their businesses. They might launch an online store, promote their services through platforms like Facebook or Instagram, and track customer behavior using tools like Google Analytics. It’s all about leveraging technology to reach audiences, streamline operations, and grow—without ever needing a physical storefront.

Digital Entrepreneurship vs. Traditional Entrepreneurship

Both traditional and digital entrepreneurship come with their own sets of challenges and rewards. At their core, both types of entrepreneurs work to promote their offerings, build a loyal customer base, and grow their businesses.

The main difference lies in where and how they operate. Traditional entrepreneurs typically run brick-and-mortar businesses, relying on face-to-face interactions and physical storefronts to sell their goods or services. These setups naturally lend themselves to in-person relationship building.

Digital entrepreneurs, on the other hand, run their businesses primarily online. While they might work from a home office or coworking space, most of their customer interactions happen virtually. And although they may not have as many opportunities for face-to-face connection, they can tap into a global audience and scale more quickly thanks to digital tools and platforms.

Why Become a Digital Entrepreneur? 6 Great Reasons

One of the biggest perks of being your own boss is having the freedom to choose when and where you work—and how you grow your business. If you’re deciding between launching something online or going the traditional route, here are a few compelling reasons to consider digital entrepreneurship:

1. Scalability

One of the biggest advantages of digital entrepreneurship is how easy it is to scale. You might start by serving a niche audience, but once your business gains traction, expanding to reach a wider market is often simpler—and more cost-effective—than with a traditional setup.

Sure, you might eventually need to bring on extra help or boost production, but a digital business gives you flexibility. You can hire talent from anywhere, and you won’t necessarily need more physical space to grow. And if life shifts and you want to scale things back? That’s usually easier to manage online, too.

2. Easy Access to Consumers

Unlike a physical storefront that’s limited by geography, a digital business can connect with customers across the country—or even around the world. With a smart digital marketing strategy in place, your reach goes far beyond your local neighborhood.

Social media platforms, email marketing, and other online tools make it easier than ever to meet your audience where they are. Whether you're selling handmade products or offering expert advice, you can build relationships and grow your customer base without ever leaving your home office.

3. Flexibility

One of the biggest perks of running an online business is the flexibility it offers. You get to set your own schedule—whether you're a night owl, an early riser, or juggling family responsibilities, you can work when it suits you best.

Need to travel? No problem. As long as you have an internet connection, your business can go wherever you do. This kind of freedom makes it easier to maintain a healthy work-life balance and build a lifestyle that works for you—not the other way around.

4. Potential for Part-Time Work

One of the great things about digital entrepreneurship is that you don’t have to dive in full-time right away. With lower overhead costs and the freedom to work whenever it fits your schedule—even late at night or during nap time—it’s easy to start small.

This makes it a perfect option if you’re not quite ready to leave your day job or need something that works around your family life. You can build your business at your own pace, testing ideas and gaining confidence without taking on too much risk upfront.

5. Lower Costs

Starting an online business is often much more budget-friendly than opening a physical shop. While you might need a home office setup and a few software subscriptions, you won’t be shelling out for rent, store fixtures, or full-time staff just to keep the lights on.

Digital entrepreneurs have more flexibility to cut costs when needed. You can explore options like dropshipping to avoid inventory expenses, sell unsold stock at a discount to free up space, or pay team members based on the work that directly drives revenue. It’s a leaner way to launch—and grow—your business.

6. Potential for Growth

While digital businesses have been around since the late ’90s, the real boom came during the COVID-19 pandemic, when shoppers moved online in record numbers. In fact, eCommerce sales jumped 43% in 2020 alone—a clear sign of how quickly the digital market can grow.

Although online sales saw a slight dip in early 2023, the industry continues to show strong resilience. By 2024, it’s estimated that one in five retail purchases will happen online, up from one in four in 2022. For digital entrepreneurs, that means the opportunity to grow is not only real—it’s growing.

Skills Needed for Digital Entrepreneurship

Every digital entrepreneur’s journey is unique, but those who thrive often share a few key skills and qualities:

• Digital skills. Setting up an online store, processing payments, and running social media ads are more accessible than ever—but feeling comfortable with these tools and being willing to learn is essential.
• Creativity. Making the most of limited resources and finding smart solutions is part of the game. Whether it’s crafting a budget-friendly SEO strategy or standing out in a crowded market, creativity keeps your business moving forward.
• Adaptability. The digital world is always changing—from new technologies to shifting customer tastes—so being able to pivot and adjust your approach is a must.
• Leadership. Whether you’re managing a remote team or planning to scale globally, strong leadership means having the confidence and vision to guide your business through growth and change.
• Networking. Building genuine connections—with employees, peers, and customers—not only boosts your brand but can open doors to new opportunities and partnerships.

Together, these skills help digital entrepreneurs navigate the online landscape with confidence and creativity.

How to Start a Digital Venture in 6 Steps

Here’s a straightforward roadmap to help you launch your online business with confidence:

1. Generate Ideas and Identify a Market

Every successful business begins with an idea—whether it’s something completely new or a fresh take on an existing concept. When brainstorming, weigh the pros and cons of each option. For instance, digital products like online courses often come with low overhead and high profit margins, but you’ll want to consider how to protect your content from intellectual property theft. Once you’ve found a promising idea, take time to evaluate if it’s a smart investment worth pursuing.

2. Research Your Market

Market research is all about understanding your customers and what they really need. This insight helps you create the right products and craft a marketing plan that hits the mark. When researching, consider:

• Customer base: Who are your ideal customers? Are they young or older? Budget-conscious or luxury seekers?
• Market size: How many potential buyers are out there, and is this market growing?
• Customer location: Where your customers live can impact shipping, taxes, and even what products they prefer.
• Competitors: What are other businesses offering, and how will yours stand out?
• Pricing: Set your prices by balancing your costs with what the competition charges.

Digging into these details early on gives your business a stronger foundation to build on.

3. Set Goals and Make a Business Plan

Your business goals define what you want to achieve, while your business plan lays out the roadmap to get there. Beyond outlining your product and marketing strategies, be sure to include these important elements as well:

• Funding. Where will your startup capital come from? Whether it’s local lenders, angel investors, the Small Business Administration, or support from friends and family, having a clear plan for funding is essential.

• Costs. Be sure to outline all the expenses involved in running your digital business—things like web hosting, production, and shipping fees should be part of your budget.

• Tools. The right tools can make a big difference. Whether it’s project management software, communication apps, or website hosting platforms, having the right resources helps keep your operations smooth and efficient.

• Sustainability. Burnout is real, especially for entrepreneurs juggling multiple roles. Building in time for rest and self-care is key to maintaining long-term productivity and passion.

• Team. Depending on your needs, you may want to hire contractors or full-time staff. Managing your team well not only drives results but also helps prevent overwhelm.

• Security. Protecting your online business is essential. From understanding cybersecurity basics to preventing eCommerce fraud and investing in data breach insurance, these steps keep your digital shop safe and trustworthy.

4. Establish Your Brand

Building your brand is all about shaping how people see your business. This might include choosing the perfect name, connecting with your target audience, defining your company culture, and designing a memorable logo.

For online entrepreneurs, branding also means creating a user-friendly website or digital store and maintaining active social media accounts. These tools help you engage with customers, tell your story, and build lasting relationships.

5. Launch and Promote Your Venture

Once your website is ready and your payment, manufacturing, and shipping systems are in place, it’s time to launch! But going live is just the beginning—you’ll need a smart digital marketing strategy to attract visitors and turn them into loyal customers.

Content marketing is a budget-friendly and effective way to reach your audience. Using SEO tactics, you can create engaging blog posts, videos, and social media content that draws people in. Don’t forget to add clear calls to action (CTAs)—like a “Buy Now” button—that guide visitors toward making a purchase or signing up.

6. Scale and Grow Your Company

Growth is exciting, but it’s important to keep it sustainable. Growing too fast can strain your budget, while growing too slowly might leave you unprepared for a surge in demand. Scaling thoughtfully and deliberately helps you avoid these pitfalls.

Start by creating a clear plan and bringing on the right people to help execute it. To keep costs in check, consider outsourcing certain tasks or using automation tools. With the right approach, you can expand your business steadily and confidently.

Digital Entrepreneurship FAQ

What does a digital entrepreneur do?
A digital entrepreneur runs their business online, typically through a website or eCommerce platform. This can include bloggers, online retailers, and service providers like web designers or even food delivery contractors—basically anyone building a business in the digital space.

How do I identify a market for my digital business?
Start with what you want to sell, then dive into market research. Ask potential customers what they like or don’t like about similar products, study your competitors, and think about who else might benefit from what you offer. Use these insights to craft a marketing plan tailored to your various customer groups.

How do I manage the growth and scale of my digital company?
You’re ready to scale when you have the time, resources, and a clear plan. Set realistic revenue goals and outline how you’ll expand your marketing and operations. Then, assess your sourcing and production needs, decide if outsourcing or hiring is the right move, and explore funding options if necessary. Growing thoughtfully helps keep your business steady and successful.