Starting an online business is not as easy as many people think it is. You don’t just need a website. Like any other business, you need an overall plan to successfully launch an online business. Research shows that almost 80% of start-ups fail within a year because of a lack of planning. Still, don’t panic! Just start planning now and use the following tips as a guide.
Research Well
Just like you have to research a company before an interview, you have to research your competitors before starting a company. Believe it or not, your unique idea could have been implemented before, which means you already have competition. Still, that doesn’t mean you should give up on your idea. Myspace started the idea of social media first, but it was Facebook that reaped the benefits. So starting first doesn’t mean success; it only means you have a competitor you need to properly research and study.
Choose a Business Model
What kind of business do you intend to start online? Is it a membership site or maybe an online store? If you decide on building a membership site, don’t confuse it with subscription sites as they are different models. Membership sites are more dependent on loyalty as you support a brand or a cause that you like; on the other hand, you pay a monthly subscription for any service on a subscription-based website, so it is not a long-term commitment. For example, Sephora.com is a membership-based service while Netflix is a subscription-based service.
Understand Your Audience
As a business owner, you need to have a certain buyer persona in mind in order to successfully launch your business. Think about who your audience will be, their age, hobbies, work, concerns, monthly income, abilities, etc. The more details you have in mind, the better it is to plan your marketing strategies.
Set Up Your Mission and Vision
Your mission statement is your ‘Why.’ It is what differentiates you from others in your field. Why is what you are doing important to people? Why should people support you? The answer to these questions is what connects people to your brand and sets you apart from others. To help you understand more, read about Coca-Cola’s mission statement and its implementation. The company’s mission statement is to refresh the world and create happy moments, which is exactly the image people associate the brand with.
Set Up A Business Plan
Now that you know your competitors and your mission, it is time to set up a business plan with all the requirements of every aspect of your business. What is your product? Where will you get the funds? Will you need human resources during the first stage? You will also have to think about the legal steps you need to take to register your business in your country. Even online companies require specific procedures for registration, so consult your lawyer or ask for legal help if you need to.
Analyze All Risks
There are many risks you have to keep in mind as an entrepreneur. Perform a SWOT analysis of all the opportunities, risks, threats, weaknesses, and strengths you can think of for your business. Then, think about the insurance policies your business may need to cover some of the risks. For example, if you have a machine that your production process depends on, you might have to buy a machinery all-risk insurance policy.
Calculate Your Human Resource Needs
Usually, start-ups don’t need many resources, so focus on your minimal needs to keep the ship going with minimal expenses. As a business owner, you are not expected to know every aspect of the business; however, you are expected to have the skills to analyze the elements you need help with. For example, search for an accountant if you don’t trust yourself with numbers. On the other hand, if you are good at writing, you might not need a content writer at first.
Additionally, think about the legal aspect of your business. Do you know a good lawyer who can handle things like contracts, business registration, etc.? If not, you might have to ask around.
Set Up Your Website
An online business depends heavily on the website, which means you need to think thoroughly about how your website should look and what resources you need to build it successfully. If you only have one service, then you will need a static website, which means you might not need much help in terms of technology. If so, think about using services that help you set your website easily, like Squarespace, Wix, and WordPress. Still, don’t use their basic themes. A tailored website with a specific logo and design ensures you have an identity that people can connect with. So even if you manage to save up on IT help by using a content management system, hire a web designer and an illustrator to design your logo and site structure.
Ask for Advice
As an entrepreneur, you don’t have to think that you always need to do everything by yourself. It is easy to stumble and fall if you increase the burden on yourself. Instead, relax and look for others who made it and seek their advice when needed. Ask around your industry for successful individuals who can help you and attend their webinars, workshops, and events for some insight. You can also hire a coach to help you if you feel direct advice is what you need.
Finally, try not to be too intimidated by the idea of starting your own business that you end up giving up before you even take your first steps. If you have read this far, there is a good chance you already have a plan in mind. Keep that plan and take notes on how to develop and improve it further. Think of becoming your own boss as a new challenge and do everything to succeed. Have the discipline needed to follow all the steps above, and you will easily map your way to success.