ep 26 Have you ever had a question you could Google but didn’t want a textbook answer? Sometimes, you just want a real-life businessperson to break it down for you in a way that actually makes sense.

Well, that’s exactly what I’m here to do today!

One of my readers recently asked:

“I’m a 9-to-5er learning about the business world and just getting my feet wet. I know I can Google this, but I don’t want a textbook answer—I want to hear from someone actually doing the thing! What’s the difference between a service-based business and an online business?”

Oh, this is a great question! And I love it because it’s one that a lot of people wonder about but don’t always ask. Let’s break it all down in the simplest way possible.

Service-Based Business vs. Online Business: What’s the Deal?

At first glance, these two types of businesses seem pretty similar. And that’s because they can be! But there’s a key difference: the deliverable.

In a service-based business, you’re offering a service and getting paid for that service.

In an online business, you can offer a service or a product, but the key difference is that everything happens online. The deliverable—the thing your customer is paying for—is digital.

Let’s take a closer look at how this works.

Example: Coaching Business

Let’s say you’re a business coach. You offer one-on-one coaching sessions and also sell an online course that teaches people how to grow their businesses.

• The one-on-one coaching is a service-based business because you’re personally offering your time and expertise as a service. This can be done in person or online, but the key thing is that it’s a service.
  
• The online course is an online business because people purchase a digital product and receive access to it without you having to physically be there.
  

Another Example: Car Repair vs. Web Design

• If you own an auto repair shop, you provide a service (fixing cars), but you have to be physically present to do it. This is a service-based business that cannot be done online.
  
• If you’re a web designer, you might design and build websites for clients. You can do this completely online, meaning your service is delivered digitally. This could be considered both a service-based business and an online business depending on how it’s structured.
  

The Key Difference: Physical vs. Digital

A service business can be online or offline.

• If you’re a hairstylist, your customers come to a physical location to get their hair done. That’s a service-based business with a physical deliverable.
  
• If you’re a graphic designer, you create logos and branding materials that you send to clients over email. That’s a service-based business with a digital deliverable.
  

An online business, however, is always digital.

• If you run an online store, selling ebooks, templates, or courses, everything happens online.
  
• If you’re a YouTuber or influencer making money from ad revenue and digital products, your business exists entirely online.
  

Can a Business Be Both?

Yes! Some businesses are a hybrid of both.

For example:

• A hairstylist who does hair in a salon (service-based business) but also sells online courses teaching hairstyling techniques (online business).
  
• A personal trainer who works with clients in a gym (service-based business) but also offers a subscription-based fitness app (online business).
  

A lot of service-based business owners eventually add an online component to expand their income streams, and it’s a great way to scale!

Why This Matters (And How It Helps You Decide What to Start)

So now that you understand the difference, how do you choose what’s best for you?

• If you love working with people directly and providing hands-on services, a service-based business might be a great fit.
  
• If you want to build a business that operates entirely online, selling digital products or offering remote services, an online business might be better.
  
• If you want the best of both worlds, you can create a hybrid model that combines in-person services with digital products or courses.
  

One Last Recap

Let’s break it down one more time:

• Service-Based Business: You provide a service and get paid for it. This can be done online (like a virtual assistant) or offline (like a nail salon).
  
• Online Business: Everything happens online. You might sell a service or product, but your deliverable is digital (like an ebook, course, or membership site).
  
• Hybrid: A mix of both, like a personal trainer who sees clients in person but also sells an online fitness program.
  

Final Thoughts

I hope this clears things up! Whether you’re starting a service-based business, an online business, or a mix of both, the most important thing is to choose something that aligns with your skills, interests, and lifestyle goals.

And remember—if you’re still unsure, that’s okay! The best way to learn is to start. Business isn’t about having all the answers upfront; it’s about taking action, figuring things out as you go, and making adjustments along the way.

If you found this helpful, share it with someone who’s trying to decide what type of business to start! And if you have a burning business question, drop it in the comments—I’d love to answer it in a future post!

Until next time, keep dreaming big and taking bold steps!