Why Online Businesses Are the Future

Gen Z loves side hustles. With the rising cost of living and job market uncertainty, more young people are turning to online income streams as a way to build financial independence. The best part? Many online businesses require little to no upfront investment, making them a low-risk, high-reward career path. Unlike traditional jobs, these online opportunities allow for flexibility, creativity, and unlimited earning potential, all while aligning with the digital-first lifestyle that Gen Z prefers.

But how do you turn a side hustle into a real business? The right business structure can determine your taxes, legal liability, and growth potential. Some businesses work best as sole proprietorships, while others benefit from being incorporated as a private limited company. Below, we explore ten profitable online business ideas for 2024, along with insights on the best structure for each, so you can start monetizing your skills today and set yourself up for long-term success.

1. Print-on-Demand (POD) Business

What It Is

Print-on-demand allows you to sell custom-designed products such as t-shirts, mugs, phone cases, and tote bags without needing to hold inventory. This business is perfect for those who have an eye for design but don’t want to deal with the logistics of manufacturing and shipping. You simply create unique designs, upload them to a print-on-demand platform such as Printful or Redbubble, and let the service handle printing and shipping. The beauty of this model is that you can focus entirely on branding, marketing, and design, rather than worrying about inventory management or fulfillment issues.

Best Business Structure

For those testing the market, a sole proprietorship is a great starting point. However, if the business starts to scale globally, incorporating as a private limited company provides better legal protection, allows you to open a business bank account, and offers tax benefits. A private limited company also makes it easier to collaborate with larger suppliers and apply for business funding if you decide to expand into new product categories.

How to Start

• Create unique and eye-catching designs using tools like Canva, Adobe Illustrator, or Procreate.
• Choose a print-on-demand platform that integrates with Etsy, Shopify, or Amazon to maximize your sales potential.
• Market your products through TikTok, Instagram Reels, and Pinterest to attract a younger audience that loves unique fashion and accessories.
• Offer limited-edition collections and create a strong brand identity to build customer loyalty.

2. Freelancing (Writing, Design, Coding)

What It Is

Freelancing lets you sell your skills online, such as writing, graphic design, video editing, or software development. The demand for high-quality content and digital services is higher than ever, with businesses constantly looking for talented individuals to support their online presence. Whether you enjoy writing blog posts, designing social media graphics, or building websites, freelancing allows you to work on projects that align with your skills and interests while maintaining flexibility in your schedule.

Best Business Structure

If you’re working solo and only taking on a few projects at a time, operating as a sole proprietor makes sense. However, if you are managing multiple clients, subcontracting work to other freelancers, or dealing with high-income contracts, incorporating as a private limited company offers credibility and tax advantages, making it easier to attract high-paying clients. Many companies prefer working with registered businesses rather than individual freelancers, so incorporation can provide a competitive edge.

How to Start

• Build a portfolio website showcasing your best work and client testimonials.
• Join freelancing platforms like Upwork, Fiverr, Toptal, or PeoplePerHour to gain access to global clients.
• Optimize your LinkedIn profile and actively engage in industry-related groups to network with potential clients.
• Offer introductory discounts or package deals to secure your first few clients and build a reputation.

3. Selling Digital Products

What It Is

Digital products like e-books, Notion templates, AI prompts, stock photos, or online courses are a great way to generate passive income. Unlike physical products, digital assets can be created once and sold indefinitely without additional production costs. This makes them an excellent revenue stream for entrepreneurs who want to leverage their knowledge and skills.

Best Business Structure

If you’re launching a small-scale store with a few digital downloads, a sole proprietorship is sufficient. However, if you plan to expand into a larger digital business with multiple products, membership sites, or automated marketing funnels, a private limited company provides legal protection and better financial structuring for long-term growth.

How to Start

• Identify a high-demand niche, such as productivity tools, AI-powered solutions, or online education.
• Use platforms like Gumroad, Teachable, or Etsy to list and sell digital products.
• Create a lead magnet (e.g., free mini-course or template) to build an email list for long-term marketing.
• Leverage SEO, Pinterest marketing, and social media ads to drive traffic to your digital storefront.

4. Affiliate Marketing

What It Is

Affiliate marketing involves earning commissions by promoting other companies’ products. You don’t need to create your own products—just recommend existing ones and earn a percentage of sales. Popular affiliate networks include Amazon Associates, ClickBank, and ShareASale. Bloggers, YouTubers, and social media influencers use affiliate marketing as a major income stream.

Best Business Structure

A sole proprietorship works well for beginners, especially if affiliate income is supplemental. However, for those who build a full-fledged business around affiliate marketing, such as operating SEO-driven content sites or running paid ad campaigns, incorporating as a private limited company helps with financial organization and tax structuring.

How to Start

• Choose a profitable niche (tech gadgets, beauty products, finance).
• Start a blog, YouTube channel, or social media account dedicated to reviewing and promoting affiliate products.
• Use SEO and keyword research to create content that ranks on Google.
• Optimize conversion rates by using compelling call-to-action strategies.

5. Online Coaching and Consulting

What It Is

Online coaching and consulting have become increasingly popular as professionals seek guidance in various areas such as career growth, business strategy, health, and personal development. If you have expertise in a specific field—whether it’s fitness coaching, business consulting, career mentoring, or mindset coaching—you can monetize your knowledge by offering personalized coaching sessions or consulting services. Platforms like Zoom, Google Meet, and coaching-specific platforms such as Kajabi and CoachAccountable make it easy to offer virtual sessions and build a scalable coaching business.

Best Business Structure

For those offering one-on-one coaching on a small scale, a sole proprietorship is an excellent way to start, as it allows for quick setup with minimal legal requirements. However, if you plan to expand by hiring additional coaches, offering online courses, or setting up a subscription-based membership program, a private limited company is the ideal structure. Incorporation offers financial and legal protection, enables business scaling, and provides opportunities for tax advantages.

How to Start

• Define your niche and determine your area of expertise, whether it’s business coaching, personal development, fitness training, or financial consulting.
• Create a professional website showcasing your expertise, testimonials, and service offerings.
• Offer free value through social media, blogs, or webinars to establish authority and attract potential clients.
• Utilize platforms like LinkedIn, Instagram, and YouTube to build your personal brand and reach a global audience.
• Set up automated booking systems using tools like Calendly to streamline session scheduling and payments.

6. Subscription Box Business

What It Is

The subscription box model has become a thriving online business concept, allowing entrepreneurs to curate and deliver specialized products to customers on a recurring basis. Subscription boxes can cater to niche markets such as beauty products, gourmet snacks, fitness gear, book lovers, pet supplies, or eco-friendly items. Customers enjoy the convenience of receiving curated products at their doorstep while business owners benefit from predictable revenue through monthly or quarterly subscriptions. With the growing trend of personalized shopping experiences, the demand for unique and tailored subscription boxes continues to rise.

Best Business Structure

A sole proprietorship is suitable for those starting with a small-scale subscription service, especially if you are personally curating and packaging the products. However, if you plan to expand, work with third-party suppliers, or scale the business into a national or international brand, incorporating as a private limited company is the best option. A private limited company ensures legal protection, streamlines partnerships with manufacturers, and offers credibility when dealing with larger vendors and payment processing platforms.

How to Start

• Identify a niche market with strong demand, such as sustainable products, self-care boxes, or hobby-based kits.
• Source high-quality products from wholesale suppliers or local artisans to create unique subscription experiences.
• Build an e-commerce website using Shopify or WooCommerce with a seamless subscription payment system.
• Offer various subscription tiers to cater to different budgets and customer preferences.
• Market your box through influencer partnerships, unboxing videos on social media, and referral programs to grow your subscriber base.

Turn Your Side Hustle into a Legit Business

Starting a side hustle is easy, but turning it into a profitable, long-term business requires proper registration, tax planning, and legal protection. A sole proprietorship is ideal for those testing the waters, but for entrepreneurs looking to scale, a private limited company provides financial and legal advantages. No matter which business idea you choose, ensuring you have the right structure in place from the start will make growth smoother and more sustainable.

Are you ready to take your side hustle to the next level? Turn your idea into a legitimate business today by incorporating in just a few minutes.