physical business represented by a woman in a retail store arranging blouses for sale

Is It Worth It to Launch a Physical Business in 2023?

Featured image by Mart Production via Pexels

Don’t be too hasty in relegating physical businesses to the past. After all, some businesses require in-person interaction—don’t they? If you’re not sure whether your business dream is well-suited to having a physical location, read on for some helpful guidance.


The internet has played such a pivotal role in how the world has developed in the last 30 years that it is impossible to imagine how society would be without its presence. It has allowed small companies to develop into international titans, created entirely new industries, and consigned some former household names to the history books.

This is a once-in-a-century innovation, and the full effects of the internet continue to reverberate throughout society today. One of the critical areas it has revolutionized is the world of business.

Although many industries currently face uncertainty due to a combination of economic variables, such as a cost of living crisis and high inflation rates, physical businesses aren’t disappearing from popular shopping areas. It wouldn’t be smart to say that the internet has changed every industry and corporation forever, as this blanket statement doesn’t apply to all of them.

For example, if you live in a city, consider your local car mechanic, your nail salon, and your hairdresser. Consider cafés and restaurants. Although some of these companies have used the internet to their advantage, they are all excellent examples of physical businesses. Moreover, many of them have managed to ride the wave of disruption caused by the internet and keep their businesses profitable and active.

The Physical Business of the Future

Many traditional physical businesses have started to downsize their land-based operations. However, some examples, such as the ones we have mentioned, are still thriving.

The banking industry, on the other hand, seems to be making a sector-wide switch toward digital-first solutions. Some banks are gradually shutting down their outlets, not accepting physical cash, and pushing away customers in the senior age bracket who are unwilling or unable to use the latest technologies.

Some experts have said that they believe physical bank branches will completely disappear from American downtowns within the next decade.

The banking sector will undoubtedly weigh all the positives and negatives before making such a crucial decision. The effects of this decision may be harsh, as it may involve laying off employees.

Nonetheless, many business owners in a variety of industries are moving their companies to a digital-first approach. Meanwhile, supermarket chains and other industry behemoths continue swallowing smaller companies and local shops.


Physical Businesses Versus Online Companies

The crucial question that you must be able to answer for yourself is whether your business dream is better suited to being a physical business or an online company.

Setting up in a physical location involves a great deal of overhead spending before you have even started to establish your brand. For example, you will have to pay commercial rent, which is usually higher than residential rent. You will have utility bills, too. And you must factor in supply chain costs to deliver physical goods to your store.

If you run a barbershop or nail salon, it doesn’t matter what advances people see in digital business. Except for marketing, these two industries are practically immune to any advancements in internet business and e-commerce.

In other words, launching a physical business will be worthwhile if you can justify why people must travel to your store physically. If they can go elsewhere or online, you need to see how you can make changes. You must ensure that they choose you over the competition.

It becomes more complex if you open a store that specializes in clothing, for example. Customers can purchase many items of clothing online. Moreover, if you open a physical business specializing in this field, you must be aware that digital online clothes shops usually do not have any staff to pay. They have no rent or utility bills, either. And they often use their home as their office, so you are immediately at a disadvantage.


There is still a market for people who want to travel to a shop, however. Many just want to get out of the house and try clothes on without having to send them back by mail.

However, digital companies have fewer costs, so they can afford to spend more on logistics and delivery.

In a sense, if you own a physical business, you are fighting against online companies with one hand tied behind your back. This doesn’t mean it can’t work, but you need to make sure your business model has the potential to turn a profit before you invest your hard-earned money in your startup.


Launching a physical business in 2023 is a risky move. It is so broad that it depends entirely on the sector you want to enter. If you are entering a robust area such as a barbershop, you will stand a better chance than a bookstore. They must compete with the best prices globally.

However, the bottom line is that you need to stay true to the business you understand. If you believe your business model will work, you should weigh all the factors before taking the plunge and starting your business venture.

Are you preparing to launch a new business? Then you may be looking for advice and inspiration. Be sure to bookmark the Business Opportunities blog and browse for new articles often.