How to Start Your Own Business Online
These past few years, more online businesses are starting to pop up. Many people are beginning to invest in this kind of venture since it offers various benefits like being your own boss and having to work from home. It also costs less than setting up a typical business with a brick-and-mortar store.
Although it may seem more accessible, starting an online business is not that simple. Before anything else, there are a few things you need to do. Remember, it’s still a business, so you need to treat it as one. To make things easier for you, and using my own past experiences, I’ve put together a quick 3-step plan that can help you launch your new business in a more seamless way:
Pick a Niche
The first thing you need to do is pick a business idea. This may seem like a no-brainer, but you’ll be surprised how many people jump the gun and start building a website without even being sure of what they want to do in the first place. Your business won’t go far if you don’t have a solid foundation.
A good business idea is made by finding the right niche that would work best for you. Some people prefer to build their business around a hobby or skill since it provides particular expertise and leverage. This can be something you can consider, but don’t stop there.
Just because you have a particular skill set or hobby, it doesn’t mean that there will always be a market for it. Apart from your interests, you should also look for a real-world problem and make sure that there are people who want a solution.
Conduct Market Research
Market research is one of the most crucial steps you need to take. It’ll help you determine the competitiveness and profitability of your chosen business plan. It also helps validate your product idea and pricing.
Once you’ve picked a niche that would work best for you, your next step is to determine if you have competition. If there are some, how can you differentiate yourself from them? It’s crucial to have a defining factor since you’ll need something that can set you apart. For example, you might have the same type of products or services, but yours uses a better material or can do a better service.
Moreover, it would help if you gauged customer interest. There are many ways to do this, but one of the simplest is checking your competitor’s reviews. Look through what they like and what they don’t. This way, you’ll know what to mimic and what pitfalls to avoid.
Determine the Start-up Cost
Having a rough estimate of your start-up cost can help you stay on track and avoid unnecessary risks. Every industry or niche needs different expenses, so there’s no single formula, but this doesn’t mean you can’t make an educated guess.
You might wonder how you’ll start to compute everything. To estimate a realistic online start-up cost, you’ll need this simple list:
Expenses or upfront costs are the amounts you need to pay before launching and getting revenue. These should be divided into one-time expenses and ongoing expenses. You can get a better estimate of what it’ll take to start your business.
– Website design
– Logo design
– Hosting service
– Permits and licences
– Marketing costs
Meanwhile, some costs can be associated with the long-term assets you buy to start your business. While cash in the bank can be considered one of them, there are others you still need to invest in.
– Starting inventory
– Equipment for production (if necessary)
Now, why do you need to separate your expenses from your assets? A quick answer is that expenses are deductible against income, meaning they can reduce taxable income while assets are not. By doing this, you can potentially save yourself more money on taxes.
Now that you’ve laid out a good business plan, you should take the next step to implement it. Start by creating a good website that can help you build and establish an excellent online presence. After that, it’s just left to business maintenance.