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How Start An Online Business VideoHow To Start An Online Business \u0026 Brand - Entrepreneur Life
It can help you build clout amongst potential customers and provides familiarity to fall back on as you learn how to manage and grow your business.
You need to be solving some sort of real-world problem and ensure that there are potential customers that are looking for a solution.
And if there are, is there competition already solving that problem? If so, how will you differentiate your business to compete? A unique aspect of starting an online business is determining whether it can solely operate online.
But an eCommerce business, on the other hand, requires physical shipping and distribution and has the potential for a physical location.
But when starting an online business there are additional methods you can employ to test the market. One simple method for gauging current customer interest is looking through competitive reviews.
See how people respond, what they like and dislike and check the overall volume of feedback. It can give you an idea of the active market size and if your business concept avoids the pitfalls of current offerings or features some of the requested additions mentioned in reviews.
Without setting up a full website, you can run a simple preview landing page to tease your business, product, or service. Give a quick rundown of features, pricing, a release window, etc.
Validation here is somewhat up to you. Do you base interest on the number of visitors that checked out your website? The number of email sign-ups?
Social shares? Whatever the case pick a handful of these metrics and set some goals to gauge success. As mentioned before, one of the simplest ways to validate your business is talking with customers.
Similar to driving traffic to a preview website, you can simply run a handful of digital ads promoting your survey to gather responses.
And if you already set up a landing page and started gathering an email list, you can even send out your survey to those that already displayed a level of interest.
This may be even more vital, as you can ask more specific questions with a greater chance of receiving actual feedback.
But now you need to place it in a format that you can use to pursue funding , forecast financials , and regularly revisit as your business grows.
Start with a Lean Business Plan , something you can do in 30 minutes rather than six weeks. A Lean Plan is quicker and easier to write and distills your plan down to the essentials.
But conducting a thorough market exploration alongside a SWOT analysis is necessary to confirm the market for your product and identify your competition.
It can also help you determine pricing models, distribution methods, and other potential competitive advantages you can leverage as you enter the market.
Take some time to identify your startup costs and think through how you plan to fund your business. Review those metrics regularly, comparing what you forecasted with your actual sales.
With your business plan in hand, you can now look to get your website up and running. There are a number of decisions to be made regarding hosting, platform and design to effectively represent your business.
Your website, especially for an online business, is the greatest representation of our business and needs to accurately reflect your products, services, and mission.
An eCommerce site is the most direct form of online business you can start, compared to a business that uses a third party platform or marketplaces like Etsy, eBay, Amazon, or Airbnb.
You retain control. The best part about a direct eCommerce site is the level of control you have over your store.
But this flexibility can make the process of getting started more complicated, too. Focus on user experience.
Your biggest considerations with an eCommerce site will be setting up your website to offer the best user experience. Choosing the right web design is crucial, as is making sure that your shopping cart software is well-suited for your business.
Be sure to check out the various shopping cart options available—from Shopify to X-Cart and many more. Do you need to build from scratch? Also keep in mind that depending on your particular business, it may or may not be necessary to build or pay someone to build a site from scratch.
There are more and more third-party eCommerce marketplaces available, like eBay, Etsy, Amazon, and even Airbnb or Fiverr, depending on your product or service.
Some sites charge by the number of product listings you use each month, and others, like Airbnb, charge you a service fee when you accept a booking.
Evaluate the pros and cons. The fact that your customers will have to visit the third party to buy from you has benefits and drawbacks.
Focus on what makes you stand out. Good product photography can set your listing apart. Pick the right platform. Take the time to research the best one for you.
And read the fine print. Almost every platform has its own list of prohibited items. Deciding on your business name and registering your domain name should be done in tandem.
The last thing you want is to find out that one or the other the domain you bought or the name you chose is registered to some other business.
You want to make it as easy as possible for people to find you when they search for you online. In some instances, it will definitely make sense to build your own site.
Hiring a web design firm is always an option. Test your hypothesis that your product or service is marketable using a lower cost, simpler option at first.
You know the ones. Also, you'll want to be sure that your web host offers WordPress compatability the most popular website CMS software and offers your website to be secure technically an SSL certificate.
Some popular web hosts include:. Generally speaking, most web hosts offer the same services, features, and benefits; and all generally cost around the same amount.
No mom and pop hosting companies recommended! You have two options for site creation:. There are at least three options for creating your own site.
Hiring a professional designer may be a simpler option. There are several websites where you can find freelance professionals including CraigsList.
You may even consider hiring a local high school or college student inexpensively. In addition to the visual design work, you'll need to give significant thought to your site content.
Again, it's important that if you outsource the design of your website, you actually purchase and own both the domain name and hosting account; the web designer is simply designing your website.
If you're not good with technology or don't have the time or patience to learn how to build your website then you're better off outsourcing it to a pro so you can focus on the important things like product creation, marketing and promotion, and other higher value activities.
The key is you absolutely want to prevent any of the technology holding you back from getting started and running your business. You're in the business of online marketing and selling, not becoming a professional coder.
The days of printing and faxing an order form, or mailing a check are long gone. It's absolutely critical that you have the ability to accept payments and process transactions directly on your website.
This allows customers to act on an impulse and get immediate gratification. Two of the most popular options for accepting online payments include:.
Once you get a little more advanced and decide to create more advanced sales funnels, upsells, and other shopping cart experiences, you may consider upgrading to a shopping cart software like:.
Be sure to check for required features and their terms. Minimum monthly fees can affect start-up businesses. It's best to choose a capable service provider that allows growth, so you can start with basic services and low cost and upgrade as your volume increases.
Most people will start out with a less feature-rich lower cost solution when starting up; then upgrade to a more robust shopping cart solution as their business grows.
Unless you are an e-commerce store with hundreds or thousands of products, you can probably avoid a more complex shopping cart solution and use as a simple payment processor to take payments online like PayPal.
Depending on your product type, your delivery methods can range from very simple downloadable information product or an online service to more complex shipping of goods via courier, using a fulfillment company.
For downloadable products consider an electronic fulfillment company like E-junkie. If you aren't already, you should seriously consider promoting digital information products as an affiliate.
If you're dealing with a physical products business you may want to consider going with an online drop shipping business model so you're not actually dealing with any inventory.
In order to generate sales online, you have to drive massive amounts of website traffic. Consider these basic methods of promoting your new site:.
While there are several ways to drive traffic to your website, you don't want to get overwhelmed by all the choices. Focus on just a few methods initially, maximize these sources of traffic, then continually add more ways to drive massive amounts of traffic to your website.
If you're already involved in this market than you really should know where your market congregates, what websites they visit, which magazines they read, etc.
If not then you'll want to spend a good amount of time doing market research to know exactly what platforms you should be advertising on.
If you're on a budget then start with free methods of driving traffic to your website. Once you start generating profits you'll want to reinvest into paid methods of driving traffic such as pay-per-click ads because paid methods are much faster and scalable than free methods in general.
Capturing the email addresses of your website visitors is critical to the growth of every online business. However, a large and growing list is only valuable when useful and relevant information is sent on a regular basis to these individuals.
Try to keep in regular contact with your email list, emailing them at least once a week with an update, information, or some type of offer.
A great email marketing service provider is AWeber. The best way to get people to subscribe to your list is to offer some type of valuable free offer.
These types of offers work better than a plain 'subscribe to our newsletter' offer. It's absolutely critical that you implement an email marketing strategy into your business as email marketing is still the highest ROI activity you can use to market and sell your products online.
Easy and free tools are available that allow you to see who clicked where and when. Many Web hosting companies offer traffic analyzing tools.
Google Analytics is a free tool — which tracks, among other things:. These reports can be customized with a plethora of variables including date range, page views, and length of time on site.
Other things you may want to consider tracking is how many people are opening your emails and clicking on the links back to your website.
While visitor traffic provides an interesting gauge, what you are really looking for is transactions. Whether you are selling a product or a service, success is measured in sales.
It's absolutely critical that you track and analyze these key metrics on your website; otherwise, how will you know what's working, what's not working, and what you need to do to improve conversions?
Notice these items are listed last. Although important, you don't' want to let doing these things hold you back.
The idea is to pick your market, get a domain name, build your website, and start generating revenue as quickly as possible and work out the details along the way!
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