Starting an online business is not easy. There are so many important decisions to make. What should you sell? Who should you sell to? How will you attract customers?
As if that weren't enough, there seems to be a new business trend on the internet every other week. There are chatbots, cryptocurrencies, Facebook ads, Instagram influencers, and many more. What should you pay attention to? What is really important?
If you want to know how to start an online business from home in 2021, we have a solution for you. In this quick and easy article, we will show you step-by-step how to start a small business online.
#No. 1: Don't start just yet
If you want to start a small online business, it can be tempting to get started right away.
So if you feel the urge to create a website, choose a business name, or design a logo, hold back for now.
If you want to start a successful online business, you first need a strategy. And steps two, three, and four of this article will show you how to create your online business strategy.
#No. 2: Choose a business model
When learning how to start an online business from home, it is helpful to know some proven online business models.
Here are six types of online businesses you should consider:
- Affiliate marketing: Promote other companies' products and services online and receive a commission for every sale you make with this passive income idea.
- Freelancing: Offer a service to other people and companies by using one of your skills, e.g., advertising, writing, design, or programming.
- Coaching and consulting: Become a coach or consultant and sell your expertise, advice, and guidance, e.g., in the form of a mentoring program.
- Information products: Package and sell your expertise in ebooks, worksheets, templates, and online courses.
- Software-as-a-Service (SaaS): Create software or an application and charge users a recurring subscription fee.
- E-commerce: Use a service like Shopify to set up a website and sell physical products online.
#No. 3: Identify your target market
Next, you need to get clear about your target market. In other words: Who do you want to serve?
This step is absolutely crucial.
As marketer Philip Kotler once said: „There is only one successful strategy. It is to carefully define the target market and direct a superior offer to that target market.“ Here is the trick: Make sure you are part of your target audience. Think about it. If you have been camping your whole life, you understand the problems, desires, and language of other campers. As a result, it would be much easier to sell camping products online. Plus, your marketing will be more successful because you better understand how to communicate with other campers. On the other hand, if you have never been camping in your life, you will likely struggle a lot to sell camping products online
So, when choosing a target audience, ask yourself:
- What are my hobbies and interests?
- Is there something I know a lot about?
- What do I spend most of my time thinking, talking, and reading about?
As management consultant Peter F. Drucker said: „The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.“
#No. 4: Find a problem you can solve
When learning how to start an online business, it is important to note one key thing: All businesses solve a problem. Plumbers fix leaky pipes. Hollywood movies satisfy people's boredom, curiosity, interest, and need for escape and relaxation. Clothing brands help people express themselves and feel attractive. Here is the golden rule: The bigger the problem you can solve – and the better you solve it – the more money people are willing to pay. Take health services, for example. They solve a big problem, which is why almost everyone is willing to spend a lot of money on them. On the other hand, not many people will pay you to help them stop their table from wobbling. It is not a big problem, and they don't need help to solve it. Bottom line: If you want to figure out how to start an online business, you need to find a good problem you can solve.
Here are three examples:
Target market: Fashion-conscious teenage boys
Problem: The fashion-conscious want to stand out from the crowd without spending too much money.
Solution: Create a clothing line that is extravagant and budget-friendly.
Target market: Marketing managers in multinational software companies.
Problem: Companies need to increase traffic to their websites.
Solution: Write articles that rank on the first page of Google to increase traffic.
Target market: Working moms with small children.
Problem: Many moms want to exercise regularly, but they don't have much time.
Solution: Create a time-saving fitness program and schedule.
How can you find a problem you can solve?
- Join Facebook groups and online forums and ask people what they need help with.
- Use the Google Keyword Planner to find out what people are searching for.
- Find successful online businesses and identify the problem they solve, then look for ways to do it better.
#No. 5: Build your sales platform
Once you have identified your target audience and the problem you want to solve, it is time to build your platform. How to do that? Well, if you plan to start an e-commerce business, build a website with Shopify and then find products you can sell. If you plan to work as a freelancer, coach, or consultant, Shopify offers the ability to integrate many popular tools like Digital Downloads for selling digital products online, ReCharge for selling subscriptions online, and SendOwl for selling videos online. Keep things simple. At this point, your business is still in the realm of theory. So don't try to invest too much money, time, or energy into building a perfect website. Instead, test your business idea and make sure it works before you invest. Eric Ries, the author of „The Lean Startup“, said: „We must learn what customers really want, not what they say they want, or what we think they should want.“
#No. 6: Choose a marketing method
When you are ready to start advertising your online business, you need to choose a marketing method.
There are many different online marketing methods out there. However, when it comes to learning how to start an online business, some are better than others.
Here are four online marketing methods you can use to make sales relatively quickly:
- Social media marketing: Use social media to create and share content, engage with your target audience, and drive visitors to your website to generate sales.
- Direct outreach: Reach out to individuals in companies to offer your services.
- Paid advertising: Advertise on platforms like Facebook, Instagram, Google, and YouTube to increase brand awareness and boost sales.
- Influencer marketing: Partner with influencers to promote your products directly to their existing followers.
Summary: How to start an online business?
Are you wondering how to start an online business from home in 2021? Here are six steps to start an online business:
- Create a good business strategy before you start building things.
- Choose an online business model that fits your skills, interests, and preferences.
- Identify your target market – and make sure you are a part of it.
- Identify a problem your target audience has and find a way to solve it.
- Build a basic sales platform to test your business idea.
- Choose a marketing method and start promoting your business.
Finally, it can take a while to learn how to successfully start an online business. So don't worry if your first online business doesn't take off immediately. Many of the most successful entrepreneurs failed multiple times before they found success.
As Apple co-founder Steve Jobs once said: „I'm convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance.“
