Are you planning to start your own business and want to earn online?
Starting a business is an idea that appeals to many of us, but figuring out how to start a business online can sometimes be so overwhelming and scares people away.
If you are thinking to convert your skill-set to real wealth or want to learn a new skill to start an online business but you have no clue or idea how to start and where to start and confused at times,
then let me help you to make a decision to start your online journey.
In this article, I’ll take you through how to start a business online in 2022.
“Ideas without action are worthless”
Starting a business involves planning, doing market research, making decisions, and acquiring knowledge and skills in areas you never thought you would learn about before.
I created this guide to help you put your best foot forward to start your online journey.
It is also important to note here that there is no one size fits all model to starting a new business, but these steps will help you organize your thoughts,
and give all important details so when you start your business you have answered all the important startup questions including advices from the business experts.
Step 1- Are You Mentally Prepared?
When it comes down to deciding if you’re ready to start a business, it’s more about mindset than timing. We all want to be an entrepreneur but lack the mindset.
People have a bunch of ideas but do not dare to leap from an employee mindset to an employer mindset.
There will never be a right time to start a business, but there is a right mindset.
The reality is saying you’re going to start a business is easy. But doing it, turning nothing into something that makes money, can be a whole lot tougher.
So you need to be mentally prepared to cherish success and handle failure at the same time.
Step 2- Determine Your Purpose Of Doing A Business
The next step of starting a business is to figure out why you want to start a business?
Are you looking for a business that you actively work on or just own? Or are you looking to turn your hobby into a business?
There are four questions you need to ask yourself before starting a business.
- Do you love what you want to do?
- Are you great at it?
- Do you get paid or want to be paid for it?
- Does the world need your product or service?
If your answer is YES, then you got the correct purpose – where your Passion, Mission, Profession & Vocation intersects at a point – that’s your purpose of starting a business.
This is known as IKIGAI, a Japanese concept that means “a reason for being.”
Step 3- Find Your Business Niche
Niches means, a specific product for a specific segment of people.
This is the most crucial step to find the product or the services you would sell or create a system around it.
There could be multiple Niches that you can select based on your target audience.
Select your niche wisely that fulfills your purpose, solves the problem of the people and at the same time, it should be profitable.
You need to know which niche is right for you based on your interests and the demand in the market. A profitable niche will make you more successful as an online entrepreneur.
Also Read: 5 Step Formula To Find Your Profitable Niche
"Money drives passion, more than passion drives money!"
Step 4- Find Your Target Market /Customer
Next, you need to get clear on your target market. In other words, who are you going to serve? You just need to find people who need your product or services.
User Persona or the Customer Avatar is basically your target customer to whom you will sell your product or the services, based on the research you have done in the previous steps.
‘Maslow’s Hierarchy of Needs’ will help you find the need and the market for those needs.
“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself."
Step 5- What Problem Your Business Will Solve?
When learning how to start an online business, it’s important to note one key thing: all businesses solve a problem.
So what problem will your business solve?
You need to understand the problem that people are facing and provide solutions through your products or services.
The only legit way to make money is to provide people with the product and services that are needed and useful to them and solve their problems.
Your product should bridge the market gap and help move your customer from the current state to the desired state.
Here’s the golden rule: The bigger the problem you can solve – and the better you solve it – the more money people are willing to pay.
Step 6- Create a One-Page Business Plan
Now create your one-page business plan based on the previous steps. Make sure to include the following:
- Problem your business solves based on the market gap identified.
- A one-sentence elevator pitch (what does your business do)
- A list of your target audiences (e.g. people -man or women of XY age group with ABC interest)
- SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats to your business)
- Marketing plan (list of ideas on how you’ll promote your business)
- Financial plan (list of business costs, how you’ll make money to pay for the business in the beginning, and how your business will make money).
Step 7- Choose a Business Model
The business model is the strategy on how you’re going to provide value to your customers with your idea and make money out of it.
This the execution and implementation phase of your business ideas.
Here are eight types of business models to consider:
1. Manufacturing– In this model, you are the owner of the product. This is not a completely online business model; however, the manufactured product can be sold using the online medium.
Like, pepperfry.com is a well-known brand in furniture manufacturing. Its marketing and sales are made entirely through online mode.
2. Distribution– This is the middle-man business model. You do not create and own the product. Similar to the offline traditional model, you can facilitate or refer the product online from the manufacturer to the consumer and get a commission for the same.
Affiliate Marketing falls under this category, where you promote or refer other’s products and services online and receive a commission for each referred sale.
Dropshipping is also based on the similar model, where you facilitate product fulfillment from the manufacturer to the consumer without holding product inventory. There are numerous platforms available that let you create your own dropshipping stores. You can try it for free for one month on BigCommerce and 14 days on Shopify.
3. Retail Business– Online retail or e-commerce business lets you sell physical products online. Like, Amazon.com, Aliexpress.com are the giants of the eCommerce retails business. You can also create your own eCommerce retail business on Shopify or WooCommerce & WordPress.
4. Franchise Business– A franchisee buys the rights to use the franchisor’s business proprietary knowledge, process, trademarks, and to sell products or provide services under the franchisor’s name.
This model is more popular in offline and hybrid modes, like food chain franchise businesses- McDonald’s, KFC.
There are educational and coaching businesses like WhiteHat Jr. and Byju’s offering franchisees to those who are interested in online coaching and teaching.
5. Aggregator Business– Aggregator Business Model is a network model where the aggregator firm collects the information about a particular offering provider, sign contracts with such providers, and sell their services under its own brand. Like Uber, Ola, Trivago, Zomato etc.
Be it taxis, hotels, groceries, food, or travel, the aggregator business model has entered into almost every industry now. You can also explore more to get an idea if your business can deliver value through aggregation.
6. Freelancing / GIG Business– To provide a service to other individuals and businesses using a skill you have, such as web designing, content writing, programming, etc. These freelancers are called gig experts based on their skills.
A gig is referred to as a temporary job and paid as pay-per-task or pay-per-project basis. So it is also known as the on-demand business model. Upwork.com, Fiverr.com, Freelancer.com are some of the sites that provide a platform for these gig experts. You can register here as a gig expert to provide your services or hire a gig expert to take their services.
7. Software as a Service (SaaS)– Create a piece of software or application, and charge users a recurring subscription fee.
SaaS products types of software that are hosted on a central provider and offered to customers through the internet. Rather than installing or downloading a copy of the application, users can access the product from a web or mobile browser.
Few examples of SaaS products are- DropBox, Canva, Shopify, Zoom, Wix, GSuite, etc.
8. Coaching and Consulting– Become a coach or a consultant and sell your expertise, advice, and guidance. You can even package and sell your expertise in ebooks, worksheets, templates, and online courses.
You can sell your courses on Udemy.com or even create your own coaching platform on teachable.com.
Over To You
Now that you know how to start a business online, there’s an exciting adventure of creating one that awaits you.
There is more to do once you start executing your business plan. You may need the funds based on your business model. The capital and operational cost may vary as you scale your business.
There will be challenges and roadblocks along the way, but as long as you push ahead and learn from mistakes, there’s nothing that’ll block your success.
Good Luck & Cheers 🙂
