If you have an entrepreneurial spirit but currently lack the funds or ability to establish your own business the traditional way, then starting an online business may be right up your alley. It could also be a good choice if you’re looking for more freedom in your career, although it’s important to understand that freedom must be respected.
Like any business venture, starting an online business will require a great deal of discipline and hard work, and you’ll need to accept the possibility that it could fail. If you’re willing to take the risk, then the empowerment of controlling your own business and the flexibility of working online may be the best investment you make in your life. Just be sure to avoid some of these common mistakes.
Insufficient planning
Just because you may not need to secure investors for an online business doesn’t mean that you shouldn’t have some sort of online business plan. While the formal 20-page business plan may be going out of style in the minds of many online entrepreneurs, you still need to be thinking about how you’re going to succeed from the start.
You aren’t just trying to start a business; you’re trying to start a successful business. In order to ensure your business is successful, you need to consider a few key points. What products or services are you selling exactly? Who are you selling to? Why should customers come to you instead of the competition? For example, If you’re working with experienced vitamin manufacturers to release your own line of products, you might also hire a marketing agency to focus on providing more personalized services to stand out to your target audience. Having a solid business plan and brand identity from the start will make it much easier to establish yourself and grow in the long run.
Poor budgeting
You need to carefully consider money from the beginning. Since online businesses generally have cheaper startup costs than other alternatives, it can be easy to underestimate just how much money you’ll need for initial inventory, equipment, professional accounts, servers, or any other expenses. Many new businesses will come close to running out of money before they actually start to turn a profit, so it’s vital to know how much money you can “burn” and estimate how long you’ll need to break even. Once your business is established, you may be able to hire an outsourced finance department to handle this area.
Wayward focus
You’ll also need to make sure you don’t become too distracted by smaller details when you’re starting your business. It may sound simple, but you need to focus almost exclusively on the basics of your business in the early days. Worry about getting off the ground first, and then you can focus on making a nicer logo, printing your perfect business cards, and improving your online presence. These are all things that will help your business grow, but they won’t do you any good if you go out of business as soon as you start.
Poor value judgments
It’s crucial that you value both yourself and your customers appropriately. Many business owners undervalue their own products or services in the beginning, especially when they are looking to offer cheap prices to attract customers. You need to charge an appropriate amount to make a worthwhile profit from the beginning because your business will never survive if you’re scraping by on pennies.
On the other hand, you need to value your customers in your online business just as much as you would value face to face customers. They’re more likely to return to your site if you provide them with a good experience. Your site should be easy-to-navigate on all devices, and your checkout process should be as convenient as possible. You might consider special offers or incentives for returning customers, as well.
With a drive to excel, practical expectations, and proper planning, a successful online business can be within your reach. Be sure to have a deep understanding of who you plan to target and what your product is worth to ensure you can supply your items to people who need them at the perfect price point.
