Why Founders Don’t Need to Look For Strong Online Business Success
The Mogul Message Newsletter 1 June: What I learnt from a successful offline and local business.
Hi there!
How did we all do this week? Good? Bad?
Either way, take the lesson from it and grow.
In this issue, I’m going to share about my run in with a local business. It’s made me have a rethink about starting a business that is offline.
Yup, offline. No website, no Facebook ads, and no social media! Is it possible?
Afterwards, I’ll be sharing some good Substack finds.
Enjoy!
I sometimes feel like every business must be online to succeed.
You’ll likely see a lot of threads on X and even here about it, but it's not always true.
Trust me, I’ve seen firsthand that some founders thrive without an online business.
Anyhow let’s rethink the necessity of being online and see if your business truly needs to make the digital leap.
The common belief in digital necessity
We all know the benefits of an online:
Scale
Broader reach
Easier customer access
Streamlined operations
You might think that not having an online business puts you at a significant disadvantage.
However, let's pause and consider this more deeply.
For me, I don’t believe it's a universal solution (well now that is).
Last week, I got proof that businesses can flourish offline by leveraging their local presence and strong community ties.
Now, I am not saying that online businesses aren't good, but it's crucial to recognize that it’s not the only path to success.
Moreover, by understanding your business's unique needs and strengths, you can determine if an online presence is necessary for your success.
My run-in with a local business
My story begins at the start of last term when my daughter started maths tutoring.
For those of us with kids, you know how it goes - a little bit of extra help is sometimes needed.
So, I enrolled her at a local tutoring business that is run out of a modest apartment.
It’s a short bus ride away, and is what you’d define as a local business.
My daughter's friend's mother gave the recommendation, "XXXX math has improved so much! She loves going to tutoring!"
Oh and one other thing, I'd like to mention here that there is only one tutor, the business owner.
Moving along, with the term now coming to an end, the tutor hosted an end-of-term event in the local sports club. It was fun, lots of games and snacks.
To my surprise, over 150 students attended!
I mean, whoa!
Can you please help me do the math here?
My daughter attends once a week (for an hour). My investment is 65 USD a month.
Now, let’s say each of 150 students attends once a week.
The tutor's revenue is 9750 USD.
Not bad, considering this is a side hustle (turns out the tutor is a full-time teacher)!
This business thrives purely through word-of-mouth and strong community connections.
We often assume that such success requires a robust online presence, but here, it’s all about personal relationships and reputation.
You see, the tutor has built a loyal client base without a website or social media.
Having worked in the digital space for almost my whole career, I was dumbfounded.
This experience made me realize that some businesses can prosper offline, relying on direct, personal engagement and exceptional service.
What are the challenges of founding an offline business?
Seeing the success of the local math tutoring business made me reflect on the unique challenges offline businesses face too.
The first challenge I thought would be the limited customer reach compared to online counterparts.
Obvious right?
Without a website or social media, it’s tough to attract new clients. But this tutoring business shows that strong community ties can fill that gap.
However, maintaining visibility could be challenging. One would need traditional marketing strategies like flyers or word-of-mouth. I can only imagine that these require more effort and consistency. Then again, the tutor had her students selling for her, neat right? The parents pay and then the students sell! A genius move in my opinion.
I’ve always thought that without online reviews or digital ads, gaining new customers would be almost impossible.
Did, this really matter to me as the tutor’s customer?
Not really, let's consider the high trust factor with word of mouth. I can only imagine how high the conversion rate must be. Simply put, once I heard the recommendation, I was sold - converted!
Another possible issue is staying adaptable. In a rapidly changing world, do offline businesses need to innovate continually? This tutoring business, for example, is likely not.
Why?
The tutor works hard to ensure top-quality service delivery. I am not going to say this is easy to maintain but again it's a reminder that there's no need for online shenanigans to stay relevant and appealing.
Lastly, What are the financial implications? I'd say this one person tutoring business is at its peak. There is only limited space in the apartment you see and with that, there is no way to scale.
This to me seems to be the only main challenge.
Now I am thinking what a business this tutor has!
Final thoughts
Reflecting on the success of that local tutoring business, it’s clear not every business needs to be online.
If you can get your word of mouth marketing happening - it’s more than possible to drive growth.
Furthermore, have you assessed the local opportunities around you?
Always consider your unique situation and strengths before jumping into the digital world.
Remember, success isn’t one-size-fits-all, so start where you are, use what you have, and embrace the path that best suits you.
I am confident that your journey can be just as rewarding offline, as any online business (likely more).
Some useful posts I read during the week.
Here are some new posts from others that I’m sure you’ll like:
On soloprenuership
If You Want a Chance at Success, You'll Need a Key Ingredient from
Is Your Offer a Vitamin or a Painkiller? from
On startups
Other cool things
The Sun Isn't Forcing the Rain to Pass, so Why Are You Forcing Light To Come? from
What to think when it seems like there’s no point creating new things from
Thank you for reading!
Until next time, take care and stay well.
Got any thoughts? I'd love to hear from you! Share your experiences in the comments.
Every business is different. But I think an online presence surely boosts it further. But then in tutoring business scale is an issue, and may not necessarily be an intention. What do u think?
Thanks for the feature of my newsletter post 💪🏻