How to Start an Online Business Successfully
Get Ahead by LinkedIn News
We talk about leveling up, about geting ahead in your career and about excelling where you are right now.
Online businesses are a mainstay, but have you considered how they work? Online entrepreneurs still need a business plan, marketing strategies and — perhaps most importantly — an incredible idea. Building an online business takes hard work, but the rewards can far outpace the initial startup costs.
Have you considered starting a business using the internet?
Online entrepreneurship has exploded over the past decade, with more than 71% of businesses creating and managing a web presence. As a result, online business is no longer a “nice to have.” It is a necessity . In fact, by 2040, experts estimate that e-commerce will facilitate nearly 95% of all purchases.
The number of online businesses grows each year, which means that a real opportunity exists for people with great ideas and the gumption to execute them.
What Is an Online Business?
An online business is a business that operates over the internet and sells goods or services digitally. Online businesses offer flexibility to those who run them because they can work practically anywhere. Unlike brick-and-mortar businesses that rely on significant capital investment, most online companies usually require minimal start-up costs. All it takes is an idea, a business plan and a steady internet connection.
Common examples of online businesses include:
How to Start an Online Business
Starting an online business has fewer barriers to entry than traditional models, but that does not mean an entrepreneur needs to rush in. Though the start-up capital requirements and necessary equipment are smaller compared to those models, a half-baked internet business idea still has the potential to fail.
Before embarking on a web-based business journey, consider taking time to walk through the following steps before pressing the launch button on an online operation.
Have a Quality Business Idea and Niche
Many have ideas for a new business, but not all are of the right quality to succeed. To win, consider the business’s target audience and market segment or a niche that needs exposure . What this means for business owners is to find people with the following:
Create a Business Plan
A rock-solid business plan is a must-have foundation for any business. They guide entrepreneurs through the stages of starting and maintaining their businesses. In addition to acting as principles for the business owner, they display a sense of organization and promise to potential investors.
There is no right or wrong way to create a business plan, but some methods are better suited to online businesses than others. For example, a lean startup strategy may take an hour to develop and be one page long. On the other hand, traditional models have more detail, can take dozens of pages and use a standardized structure.
No matter which version an entrepreneur chooses for their business plan, having one is critical in taking their new operation seriously. The Small Business Association (SBA) offers resources and tips for creating a business plan from the ground up .
Create a Branding Strategy
It takes more than an attractive logo or a fun catchphrase to attract customers. A winning branding strategy encompasses everything that lets a business stand out from its competitors. That includes visual identity, messaging, social media presence and the customer experience.
Do not discount the importance of internal culture when building a brand. How people perceive a business from the inside is just as essential. A company that grows financially but lacks an attractive culture will probably fail to pull top talent when the time comes to expand.
The secret to building a brand strategy is to know a niche, factor in business goals and conduct brand research to understand how competitors market themselves. Then, a successful business will take a long look at those factors and do something to differentiate itself .
Understand Legality for Online Stores
E-commerce is a fantastic way to earn money, but anyone who designs or sells a product needs a keen understanding of legal issues that may relate to their business. Every e-commerce seller must be mindful of lawsuits and liabilities that could cause potential harm to their business. The most common issues online businesses face include the following:
Though some of the above problems (like safety and data breaches) are more pressing than others, anyone running a business needs to have a plan in place to deal with the above legal issues.
Build Your Website
It has never been easier to build a website for a business. While the previous process involved buying a domain (and maybe web hosting) from one provider and using outdated tools or hiring a designer, the process is simpler now.
Several companies act as a one-stop shop for a business’s website needs. Customers can choose from several design templates and then customize them in unique ways. The vendor handles the hosting and code requirements, letting business owners focus on what counts: getting their products or services loaded into the website.
Choose Sourcing and Fulfillment Methods
If selling a physical product, business owners need to know how to source and fulfill customer orders. Online businesses have many different options .
An e-commerce company may choose to take things in-house, where the company itself produces goods and ships them directly to customers. This is common for companies with small sales or just starting.
The problem with in-house order fulfillment is that it requires adequate warehouse space, equipment and employees to complete those orders. It also requires companies to invest in an efficient inventory management system.
Third-party logistics providers (3PL) handle order fulfillment for small businesses. This often means using the third party’s warehouse space, staff, and employees to fulfill orders. It is great for prompt delivery but can cost money.
Another option for businesses is to explore registration as an Amazon seller. In this scenario, the business ships its wares to an Amazon fulfillment center. Amazon employees will store, pick, pack and ship those items to customers. Fulfillment by Amazon (FBA) also provides customer service and eligibility for Prime shipping.
领英推荐
Dropshipping, one of the newest methods of customer fulfillment, allows customers to receive their orders directly from a distributor or manufacturer. The business only pays for those items it sells. Many new businesses like dropshipping because it offers low overhead costs. The downside is that companies need to be highly vigilant about product quality.
Conduct Product and Market Research
Determine how feasible it is to manufacture and ship physical goods as part of your business. Physical goods can make a lot of money, but profit margins can suffer due to mismanagement.
Alternatively, it may make more sense to distribute a product as a digital download . EBooks, audio courses, podcasts, online learning programs and website or resume templates are examples of digital goods that can sell well and make significant money.
Develop Marketing and Content Strategies
How a business markets and communicates its benefits to customers is just as important as what it sells. And with small startup companies, inefficient marketing could sink the business before it even gets off the ground.
Before setting out to make the first sale, consider the following questions:
Anything a business creates to help sell its products or services is content. Understanding that content includes more than written words is crucial in creating a marketing plan.
Create an E-Commerce Store
Whether it is the sole focus of a website or just one component, having a functional e-commerce store is vital to businesses that sell physical or digital products. Luckily, it does not take much technical ability to start one. Various website builders exist that handle the heavy lifting of backend development while business owners focus on what counts: running their businesses.
In many cases, some e-commerce vendors even collaborate nicely with existing website platforms. Shopify, WooCommerce, and BigCommerce are three examples of leading e-commerce platforms that can create storefronts.
Launch Your Store
With product designs ready to go or actual physical goods in hand and ready to ship, it is time to launch the store. Ensure all social media feeds prepare to share the business and test multiple payment options before launch. If everything runs smoothly during the test, feel free to start promoting.
Benefits of Starting an Online Business
Starting an online business offers several benefits, especially for people with a wide digital outreach through platforms like TikTok, email, or Instagram. But what specifically draws online entrepreneurs?
Relatively Low Operating Costs
As noted, online businesses have low overheads, especially at the beginning. Dependent on web traffic, it is possible to purchase web hosting and a domain name for less than $200 in the first year . Of course, as the business scales, more investment may be required. But that is a bridge to cross well after a person’s first sale.
Lots of Potential to Grow
Speaking of scalability, online businesses offer growth potential. Consider this: a brick-and-mortar business that needs to expand often has to either lease a new space or build onto its existing footprint. In addition, it may need to buy additional warehouse space to house its products.
Online businesses do not share this problem. Designing new print-on-demand products and using a third-party partner eliminates that concern.
24/7 Availability
E-commerce businesses are available to customers at all hours of the day. That means serving customers scrolling through Instagram over breakfast and selling to TikTok users who are up in the morning.
Quality Customer Support
Online businesses make it easy to offer customer service, especially when outsourcing production and fulfillment. Starting a web-based company allows a person to provide personalized service to their initial customer base. As the business scales, hiring third-party support can help ease the strain.
Global Reach
A physical location in a neighborhood or office park might have a local or regional reach. Still, internet-based businesses which sell digital goods and services allow their owners to serve customers across the globe.?
Operate From Anywhere
The same flexibility afforded to customers benefits business owners, too. Web-based businesses make it possible for someone in, say, Missoula, Montana, to break into industries previously only accessible to people in major coastal cities. In addition, the right online business (like digital products or online learning courses) can provide passive income that frees up the business owner to pursue other passions.
Final Thoughts on Starting an Online Business
Online businesses are an exciting opportunity for entrepreneurs, but are not the simple endeavor many YouTube or TikTok personalities make them out to be. A web-based business still requires plenty of forethought and energy, not to mention a willingness to do difficult things. But for the right person, an online store or career can foster even more flexibility and freedom than they thought possible.
Top Takeaways
(Reporting by NPD)
Netpreneur | Financial Blogger | Real Estate Enthusiast & Youtuber |
4 个月Online Business is all you need to reach Financial Independence fast. Find Related Content: https://www.zerox24.com/how-to-create-an-online-business/