How to start up an online business
Thinking of starting a business? Whether you are thinking of becoming an entrepreneur or already have a product or service you are looking to make money from, there is a lot to consider when starting your own company.
While in the past, this would usually entail finding a physical premise such as a store, creating a venture online now has many benefits. Here is an overview why ‘online’ is the way to go and a guide to everything you need to consider getting started with your online venture:
Business is moving online
Most people now have access to a smartphone and the internet and so many people access things online, including social media, shopping, and entertainment. This has contributed to the success of online businesses, as demand has increased so too have the number of businesses being active online.
As of 2022, there are now more than five billion internet users around the world with the highest number of users being in Asia, followed by Europe. Last year, global e-commerce sales added up to more than $5.2 trillion US dollars and this is expected to grow to $8 trillion dollars by the year 2026.
With the success of online, more people are wanting to look at starting their own online business. It is now estimated that there are somewhere between 12 and 24 million stores online and this figure continues to grow year on year.
For many internet users, shopping online has a number of benefits in comparison to traditional retail. For example, free delivery and next day delivery can mean they receive their goods at home in no real time at all.
They are often also able to read reviews and see pictures shared by other customers on the online listing. Furthermore, it is sometimes easier to keep track of loyalty points and find discount codes when on the internet.
This goes to show that there is demand for online businesses and this is going to continue to grow, online entrepreneurs can profit from this. Here is a guide on the top things to consider when starting up your own online:
1. What gap in the market are you going to fill?
You should start by looking at the ‘why’. What is the problem that you are hoping to solve for your customers and why should they come to you rather than another business?
New business owners sometimes make the mistake of rushing into creating their product without thinking about who their target audience is and what their specific wants and needs are.
You should also consider any potential barriers to setting up and operating your business and any legal or ethical considerations that need to be made.
For example, you might want to go into the gaming entertainment industry and if you were to set up as an online casino site, you would be following in the footsteps of many successful casino providers. All online casinos must make sure their site is legal and licensed and follows UK gambling laws, or the laws applicable to their country.
Getting any required certifications and licences may come at a cost so you will need to factor this into your budgeting.
2. Building your Website
Once you have an idea and have drafted a business plan with funding, you can start to think about creating your online site and writing the copy. Depending on your own area of expertise, you might wish to hire copywriters and website developers or have a go at doing this yourself.
Once your easy-to-use website is ready to go live, it is time to start building up your search engine presence and run online advertisements. Also think about how you can build your reach and credibility, a popular method is sending samples to relevant social media influencers and asking them to review your product.
You can then really start to build your marketing strategy, setting up social media accounts and creating engaging content such as social posts, email newsletters and digital advertisements.
3. Fine Tuning your strategy
As the business grows and you start to make sales you will need to fine-tune your operations strategy. Where are you sourcing your materials? How is the product made and how is it being distributed?
Not all businesses have a physical product to sell. For example, an online casino will host digital games developed by casino game developers. These businesses still need to consider site useability, promotion and the customer journey.
4. Payment options
All online businesses that handle payments need to consider safe payment options. An online casino might allow customers to make transactions via debit card and use third party payment providers such as PayPal or Skrill.
As an online business owner, you are also responsible for keeping your customer’s data on the site secure and should have a privacy policy. A cybersecurity strategy is important and you can pay third party providers to manage this if required.
On the whole, setting up an online business may be tough as there are so many considerations to be made. However, the potential rewards could be worth it in the long term.
