{"id":16746,"date":"2020-01-23T09:00:52","date_gmt":"2020-01-23T07:00:52","guid":{"rendered":"https:\/\/www.reliablesoft.net\/?p=16746"},"modified":"2022-01-20T14:23:44","modified_gmt":"2022-01-20T12:23:44","slug":"how-to-start-an-online-business","status":"publish","type":"post","link":"https:\/\/www.reliablesoft.net\/how-to-start-an-online-business\/","title":{"rendered":"How to Start an Online Business (Easy Guide For Beginners)"},"content":{"rendered":"
How do you start an online business from home and with no money? Is this even possible?<\/p>\n
The short answer is yes. There are thousands of successful online businesses that started with no money and today they are making thousands of dollars in revenue.<\/p>\n
In fact, many of them have no physical presence but are operated from home with remote teams.<\/p>\n
To start an online business you don\u2019t need to have prior knowledge on how to run a business. Running an online business is different than managing a brick-and-mortar store.<\/p>\n
I\u2019ve started my first online business 18 years ago without knowing anything about entrepreneurship or how to operate an Internet business.<\/p><\/blockquote>\n
Over the years I\u2019ve had successes and failures but most importantly I created a framework that beginners can follow and increase their chances of establishing a successful online business on the first go.<\/p>\n
In this complete guide, I\u2019m going to give you the steps to follow to start a business online from scratch and from the comfort of your own home.<\/p>\n
While it\u2019s impossible to start a business for free, you don\u2019t have to pay a fortune to get a business off the ground, and I\u2019ll give you all the details.<\/p>\n
Since you\u2019re convinced that you want to become an online entrepreneur and start making money online (hence why you are reading this article now), I\u2019ve added the actionable steps first but towards the end of this guide, you can learn more about how online businesses work and other useful information.<\/p>\n
\n
- How to start an online business (15 Steps)<\/a><\/li>\n
- Is an online business for you?<\/a><\/li>\n
- How much does it cost to start an online business?<\/a><\/li>\n
- How much money can you make online?<\/a><\/li>\n<\/ul>\n
How to Start an Online Business Step By Step<\/h2>\n
These are the 15 steps to follow to start an online business from scratch.<\/p>\n
\n
- Decide what type of online business to start<\/a><\/li>\n
- Find your niche<\/a><\/li>\n
- Evaluate your idea<\/a><\/li>\n
- Analyze your potential competitors<\/a><\/li>\n
- Identify your target audience<\/a><\/li>\n
- Decide on your brand name and register a domain<\/a><\/li>\n
- Setup a website for your business<\/a><\/li>\n
- Learn what digital marketing is all about<\/a><\/li>\n
- Create a digital marketing plan<\/a><\/li>\n
- Optimize your website for Search Engines<\/a><\/li>\n
- Create a content marketing plan and start publishing content<\/a><\/li>\n
- Establish your social media presence<\/a><\/li>\n
- Grow your email list<\/a><\/li>\n
- Optimize your website for conversions<\/a><\/li>\n
- Get professional help<\/a><\/li>\n<\/ol>\n
1. Decide what type of online business to start<\/h2>\n
The first thing to decide is what kind of online business to start. As you\u2019ll see below there are many options and depending on the type you choose, you\u2019ll have different ways to monetize your business and make money.<\/p>\n
The most popular types of online businesses are:<\/p>\n
\n
- eCommerce stores selling physical products (Amazon, Etsy, etc)<\/li>\n
- Websites selling digital products (ebooks, online courses, etc)<\/li>\n
- Consulting \/ Coaching (Personal development coach, fitness coach, etc)<\/li>\n
- Selling Services (digital marketing agencies, software development, web design, etc)<\/li>\n
- (Saas) Software as a Service (online tools, subscription-based model)<\/li>\n
- Online News Publications (HuffPost, etc)<\/li>\n
- Niche Blogs (travel blogs, clothing and fashion blogs, etc)<\/li>\n<\/ul>\n
The most popular methods of making money from your online business are:<\/p>\n
Selling your own products (physical or digital) <\/strong>– Selling products directly to consumers on your own hosted website or through an online store on a third-party marketplace like eBay, Amazon, Etsy, Udemy, Flippa, etc.<\/p>\n
Advertising Revenue <\/strong>– Making money by selling ad space on your website either directly to advertisers or through an online platform like Google AdSense.<\/p>\n
Drop-Shipping <\/strong>– Selling physical products on your own store but shipping and handling is done by the product manufacturer or B2B provider. You get a commission every time a product is sold.<\/p>\n
Affiliate marketing<\/strong> – You refer clients to the seller\u2019s website (for either physical or digital products) and when a product is sold, you get a commission.<\/p>\n
Revenue from consulting services<\/strong> – You get paid for providing consulting services online (by email, skype or other means).<\/p>\n
Subscription-based model<\/strong>\u00a0– You make money from people subscribing to your monthly services (for example hosting, online tools, etc)<\/p>\n
\nResources to Learn More <\/span><\/p>\n
\n
- How to make money with a blog<\/strong> <\/a>– How to start a blog business and make money from it.<\/li>\n
- How to start a profitable website<\/strong><\/a> – How to make a profitable website without selling anything.<\/li>\n
- Best business courses<\/a> – <\/b>a list of online courses to build your business skills.<\/li>\n
- The B2B SaaS Pricing Masterclass<\/strong><\/a> – if you’re planning on starting a SaaS business based on the subscription-based model, read this report to understand how SaaS pricing works.<\/li>\n<\/ul>\n<\/div>\n
2. Find your niche<\/h2>\n
Now that you have an idea of the different types of online businesses, the next step is to find your niche. In other words, to come up with an idea that can be transformed into an online business.<\/p>\n
From experience, this is the most difficult step because it has a lot of uncertainty. Nobody can tell you in advance if your idea is good or not and no one can guarantee that your business will succeed or fail.<\/p>\n
It\u2019s a risk that all business owners have to take but this should not hold you back. The only way to find out if your idea is good is to try it and even if you fail, there are so many things to learn from failures that bring you closer to success.<\/p>\n
How to find your niche?<\/h3>\n
How to Find Your Niche<\/figcaption><\/figure>\n You should understand from the beginning that you don\u2019t have to come up with a unique idea in order to succeed online. If you can do it, then this will give you an advantage but uniqueness is not a requirement for setting up an online business.<\/p>\n
You can take an existing idea and improve it or create something (a product, blog, service) that is better from what is already available on the Internet.<\/p>\n
Some guidelines to help you out:<\/p>\n
Find what are you truly passionate about<\/strong><\/p>\n
Being passionate about a topic, an activity, a hobby or a product,\u00a0 will help you create a good product or great content that others will find valuable and useful.<\/p>\n
Take a few moments and think about what you like doing for fun and how would you like to spend your time if money wasn\u2019t an issue.<\/p>\n
Find what you are good at<\/strong><\/p>\n
Do you have any skills that you can use to help others accomplish a task, learn something or solve a problem?<\/p>\n
Maybe you like teaching people how to fix things or you like to write good stories to educate people on different subjects.<\/p>\n
Find what you believe you are really good and think of ways you can utilize your skills to create a product that people will be willing to pay money to get it.<\/p>\n
Are you an expert?<\/strong><\/p>\n
Is there an area that you have the right training, qualifications, and experience to be considered an expert? This is a great candidate to explore further and find out if you can build a business around it.<\/p>\n
The Internet is full of \u2018so-called experts\u2019 so if you are a \u2018true expert\u2019 on a topic, you will have an advantage over others.<\/p>\n
Can you spot any gaps in the marketplace?<\/strong><\/p>\n
Are you looking for a solution to a problem and cannot find a good product or online resource to solve your problem? Can you spot any gaps in any industry that you can fill with a new product? Do you find that online content about a topic is incomplete or something that you can improve?<\/p>\n
All these questions will help you generate ideas that can possibly help you find the one idea to turn into an online business. Before, getting too excited, the next step is to evaluate your ideas and decide if it\u2019s good or not.<\/p>\n
3. Evaluate your idea<\/h2>\n
Evaluating an idea means finding out if a particular idea is something that you can turn into an online business that will potentially generate profit.<\/p>\n
Follow the steps below to evaluate the potential business success of your idea:<\/p>\n
Do a thorough Google search<\/h3>\n
Naturally, the first thing to do is go to Google and search for keywords related to your idea.<\/p>\n
Don\u2019t just type in keywords that are directly related to your niche but search for broad terms and terms that are indirectly related.<\/p>\n
Your goal at this stage is to find out what is already available in terms of websites, content, and products.<\/p>\n
How many websites can you find on the specific topics, what type of content do they have, do they sell their own products or do they display ads?<\/p>\n
Go beyond the first page of Google and look for the second page as well. Some businesses don\u2019t pay the required attention to SEO and while they have good products and content, their search engine optimization techniques are not good enough to rank high on Google<\/strong><\/a>.<\/p>\n
How would you rate the overall user experience when searching for this information? Can you offer something better to the users?<\/p>\n
Search Facebook, YouTube, Instagram, Pinterest<\/h3>\n
Perform the same search on Facebook, Youtube, Instagram, and Pinterest. Try to figure out what kind of content is being published on those networks. Is it high-quality videos, is it images, articles, products? How many interactions (likes, comments) do the posts get?<\/p>\n
Can you spot something that is missing or that it can be improved?<\/p>\n
Perform keyword research<\/h3>\n
Evaluate your Business Ideas with Keyword Research<\/figcaption><\/figure>\n The term keyword research<\/em> might be unknown to you at this stage but it\u2019s an important step to find out if there is a search demand for your idea.<\/p>\n
Through keyword research, you can find out how many people search for particular keywords on Google (and other search engines<\/strong><\/a>) per month.<\/p>\n
If your chosen topic doesn\u2019t have a decent amount of search volume, then this is a sign that people have no interest in.<\/p>\n
Use the resources below to find out how to perform keyword research step by step.<\/p>\n
\nResources to Learn More about Keyword Research<\/span><\/p>\n
\n
- Keyword research<\/strong><\/a> – The 10 steps to follow to perform keyword research.<\/li>\n
- Keyword research for eCommerce websites <\/strong><\/a>– How to find keywords to use on an eCommerce website.<\/li>\n<\/ul>\n<\/div>\n
Get to know important Google rules<\/h3>\n
Another thing to know is that for some topics Google has strict rules on what websites they show in the search results.<\/p>\n
This can have a big impact on the success or failure of your online business because organic traffic<\/strong><\/a> is by far the most important form of traffic you can get and without it, your chances of online success are minimal.<\/p>\n
For example, if your idea is around health-related topics and this includes weight loss, fitness, nutrition, exercise and any other advice or product that is generally suggested by doctors or other certified professionals, you might want to reconsider it.<\/p>\n
Unless you are a certified and recognized doctor, Google will not show your website or products for health-related searches.<\/p>\n
So before you continue is good to revise the most important Google rules and make sure that what you have in mind is not against any known Google guidelines or rules.<\/p>\n
Resources to Learn More about Google Guidelines<\/span>
\nGoogle Search Rates Guidelines<\/strong><\/a> – A comprehensive document that explains in detail what Google looks for when assessing the quality of a website.<\/div>\nDo a search on Amazon<\/h3>\n
Performing keyword research on Amazon<\/figcaption><\/figure>\n If you are considering opening up an online store<\/strong><\/a> selling physical products, then you need to search on Amazon and see what others are selling.<\/p>\n
Use different keywords to search for products and also look at amazon\u2019s best sellers<\/strong><\/a> to get an idea of the popular products per category.<\/p>\n
Do a search on popular marketplaces<\/h3>\n
There are many popular marketplaces you can use to find out what products are being sold online.<\/p>\n
Udemy<\/strong><\/a> – if you\u2019re thinking of creating an online course you can search Udemy to find out how many courses there are on the chosen topic, how many students they have, their comments, ratings, content, etc.<\/p>\n
Codecanyon<\/strong><\/a> – If you\u2019re thinking of creating a software product, you can search Code Canyon to find if there are similar products and how many sales they have.<\/p>\n
Flippa<\/strong><\/a> – Flippa is the most popular marketplace for buying and selling new and established online businesses<\/strong><\/a>. Browse through the listings and look at the provided information.<\/p>\n
Find online business ideas on Flippa<\/figcaption><\/figure>\n Online businesses that are set for sale have to provide evidence of their sales and traffic and this information can be very useful for you at this stage.<\/p>\n
Who knows, maybe you can find a business to buy and grow instead of starting from scratch.<\/p>\n
Do an affiliate marketing search<\/h3>\n
Even if you don\u2019t plan to follow the affiliate marketing model, you can still use the different affiliate marketing sites to find out which products are being sold, their price, the number of providers and much more useful information.<\/p>\n
Visit the following sites and if necessary create a free account to login to their marketplace area:<\/p>\n
\n
- Clickbank <\/strong><\/a>– for digital products<\/li>\n
- Share a Sale <\/strong><\/a>– for both physical, digital products and software<\/li>\n
- Rakuten Affiliate Network <\/strong><\/a>– all kinds of products and known brands<\/li>\n<\/ul>\n
4. Analyze your potential competitors<\/h2>\n
Once you evaluate your idea using the above techniques, the next step is to do an analysis of your potential competitors.<\/p>\n
A potential competitor is one or two companies that are already selling products or services that are similar to what you want to sell.<\/p>\n
For example, let\u2019s say you decided to make an online business selling custom made parrot cages through an online store.<\/p>\n
You already evaluated your idea and found out that there is enough demand from users, and that there is room to create a better product.<\/p>\n
The next step is to find out more information about your potential competitors. Using different tools you can figure out how much traffic they get, which channels they use to sell their products and how much they spend on online advertising.<\/p>\n
You can use the following tools:<\/p>\n
SEMRUSH<\/strong> <\/a>– To find out how much traffic they get and how much they spend on Google advertising.<\/p>\n
Do a competitor analysis to find out how much money they spend on ads and other useful info.<\/figcaption><\/figure>\n SEMRUSH is a paid tool but you can register for an account and get a 7-Day Free Trial.<\/p><\/blockquote>\n
Facebook Ads Library<\/strong><\/a>\u00a0 –\u00a0 You can use the Facebook Ads Library tool to check what kind of campaigns and ads your competitors are running on both Facebook and Instagram.<\/p>\n
Find out what types of ads your competitors run on Facebook and Instagram<\/figcaption><\/figure>\n 5. Identify your target audience<\/h2>\n
The final step before actually setting up an online business is to identify your target audience and create buyer personas.<\/p>\n
This step is critical because the outcome of this exercise will determine how you will approach the next steps.<\/p>\n
What you are looking for at this stage is answers to the following questions:<\/p>\n
\n
- Who can potentially visit your website?<\/li>\n
- Who can potentially buy your products?<\/li>\n
- What is their gender, age?<\/li>\n
- Where do they live?<\/li>\n
- What languages do they speak?<\/li>\n
- What is their education level?<\/li>\n
- What is their ethnic background?<\/li>\n
- Which social networks are the most likely to use?<\/li>\n
- Who are the online influencers of your target audience?<\/li>\n
- Which other websites are the most likely to visit?<\/li>\n
- Which online forums or groups do they use?<\/li>\n<\/ul>\n
Getting straight answers is not always easy at this stage because you don\u2019t have any data of your own, but nevertheless, you should do this exercise before you get started and enhance it as you go along.<\/p>\n
Don\u2019t forget that you can use the findings from Step 4 (competitor analysis) to create a first version of who your target audience is.<\/p>\n
At a later stage when you set up your website and start getting traffic, it will be easier to answer these questions. You can ask your customers and community directly via surveys or analyze your social media followers using various tools.<\/p>\n
\nBEFORE proceeding to the next step, you should ensure that:<\/strong><\/p>\n
\n
- You know your niche and evaluated your idea<\/li>\n
- There are enough people who are interested in your chosen niche<\/li>\n
- You made an initial decision on how you will make money from your business i.e. which model will you follow? Is it affiliate marketing, creating your own product? selling physical products?<\/li>\n
- You created an outline of your target audience and buyer personas<\/li>\n
- You know the social networks your audience is using<\/li>\n
- You have a clear idea of who your competitors are and their online marketing practices.<\/li>\n<\/ul>\n<\/div>\n
6. Decide on your brand name and register a domain<\/h2>\n
Once you get to this point, it\u2019s time for the exciting part and is no other than selecting a name for your brand and registering your domain name.<\/p>\n
Things to consider when choosing a brand name\/domain name:<\/p>\n
\n
- Find something catchy that people will remember<\/li>\n
- Keep it as short as possible<\/li>\n
- Make sure it\u2019s easy to read, type (examples: yahoo.com, x.ai, apple.com)<\/li>\n
- Add a keyword that\u2019s relevant to your niche (examples: teachable.com, healthline.com)<\/li>\n
- Don\u2019t use hyphens or numbers \u2014 reading it out loud will be a nightmare<\/li>\n<\/ul>\n
You can use different tools to check if a domain name is available but before proceeding, you also need to ensure that:<\/p>\n
No other companies are using the same brand name on a different domain<\/strong> – Search for your \u2018to be\u2019 brand name of Google and look at the results. If there are other companies using the same brand name that could be a big issue and it\u2019s better to come up with something unique.<\/p>\n
Check all social media networks to ensure that the name (handle) is available<\/strong> – you don\u2019t want to register a domain name to find out later that you need to use a different name for your Facebook or Instagram page.<\/p>\n
Check that all variations of your domain (i.e. .com, .net, .info, etc) are available<\/strong> – if there is already a company that is using the .com domain, it\u2019s not wise to register a .net domain with the same name. This will confuse both your customers and search engines.<\/p>\n
Avoid choosing a country-specific domain<\/strong> – avoid registering a country-specific domain i.e. reliablesoft.co.uk unless you plan to start a local business specific for that region. It is recommended to go with a .com or .net domain.<\/p>\n
How to register a domain name for your business<\/h3>\n
Register a Domain Name for your Business<\/figcaption><\/figure>\n Once you have found the perfect domain name for your business, the next step is to secure it. To do so you need to create an account with a domain name provider.<\/p>\n
The process is very easy, all you have to do is provide your personal details, choose your desired domain name and register it.<\/p>\n
To get started click here to register a domain name<\/strong><\/a> with Bluehost (or you can choose the domain provider of your choice such as GoDaddy, Inmotion Hosting, etc).<\/p>\n
PRO TIP<\/strong>: Make sure that you secure your brand’s reputation by registering all the different domain extensions (.com, .net).<\/p><\/blockquote>\n
7. Setup a website for your business<\/h2>\n
The next step is to bring your business to life by setting up your website.<\/p>\n
If you plan to set up an eCommerce business selling physical products then you have two choices.<\/p>\n
Start an online business using WordPress and WooCommerce.<\/figcaption><\/figure>\n The first choice is to set up your own self-hosted website and use WordPress and WooCommerce to create your shop and the second choice is to use a website builder<\/strong><\/a> like Shopify or BigCommerce.<\/p>\n
The second choice is faster but as your business grows you will need more flexibility and customization options so it is highly recommended to start with your own WordPress \/ WooCommerce website.<\/p>\n
For other types of businesses i.e niche blogs, websites selling services or digital products (like this one), Amazon affiliate websites, the best solution is to use WordPress.<\/p>\n
WordPress is flexible and user-friendly and there are a plethora of read-made themes you can buy for less than $100 and set up a professional-looking website in minutes.<\/p>\n
I highly recommend checking out Studio Press Themes<\/strong><\/a>. They have great themes that are also optimized for Search engines, something that can prove very valuable as your website grows. I use a studio press theme on this website and on many client websites.<\/p>\n
Resources to Learn More about Website Setup<\/span>
\nHow to make a website<\/strong><\/a> – a comprehensive guide on how to set up a WordPress website for beginners.<\/div>\n8. Learn what digital marketing is all about<\/h2>\n
Coming up with an idea, registering a domain name and setting up a website is one thing, promoting your business online to get traffic and make sales, it\u2019s a totally different story.<\/p>\n
This is where digital marketing comes to the rescue. In short, digital marketing<\/strong><\/a> is the process to follow to promote your business online<\/strong><\/a> using all available digital channels.<\/p>\n
Digital Marketing Components<\/figcaption><\/figure>\n The most important digital marketing components are:<\/p>\n
\n
- Website Marketing<\/strong><\/a><\/li>\n
- Search Engine Marketing<\/strong><\/a><\/li>\n
- Social Media Marketing<\/li>\n
- Email Marketing<\/li>\n
- Content Marketing<\/li>\n
- Video Marketing<\/li>\n<\/ul>\n
Why is it important to have a good understanding of digital marketing? <\/strong><\/p>\n
There are two reasons why it\u2019s important to understand what digital marketing is all about.<\/p>\n
First, you\u2019ll get to know how to get traffic, customers and grow your business.<\/p>\n
Second, even if you decide to outsource some of the activities to digital marketing agencies or freelancers, you\u2019ll know what to ask from them, how to monitor their performance, and what to expect in terms of results.<\/p>\n
You don\u2019t have to become a digital marketing specialist<\/strong><\/a> but as the CEO you need to have some basic knowledge of what digital marketing is and how it works.<\/p>\n
\nResources to Learn More about Digital Marketing<\/span><\/p>\n
\n
- Digital marketing checklist<\/strong><\/a> – The complete digital marketing checklist for online businesses<\/li>\n
- How to learn digital marketing at home<\/strong><\/a> – A detailed guide on how to get learn digital marketing at home and for free.<\/li>\n
- Best Digital marketing courses<\/strong><\/a> – A list of the best online courses to teach yourself digital marketing.<\/li>\n<\/ul>\n<\/div>\n
9. Create a digital marketing plan<\/h2>\n
Now that you have a better idea of what digital marketing is all about, the next step is to come up with a plan.<\/p>\n
At this stage, you don\u2019t have to make your plan very detailed but it\u2019s enough to outline which digital marketing channels you will use and in what order.<\/p>\n
Some tips to help you out:<\/p>\n
Start with Paid Ads<\/strong><\/p>\n
Paid advertising channels like Google Ads, Bing Ads, Facebook Ads, and Instagram Ads work faster than any other channel.<\/p>\n
Getting targeted traffic from these channels is immediate but you have to pay every time someone sees (pay per view) or someone clicks (pay per click), on one of your ads.<\/p>\n
For these channels to be profitable, you need to sell products that have a high-profit margin and optimize your paid campaigns to keep the customer acquisition costs as low as possible.<\/p>\n
The best way to find out if you can make money by selling products or services through ads is to run pilot campaigns and analyze the results.<\/p>\n
As a general rule of thumb, increase your ad spending as long as you make a profit from your campaigns. If you find that you\u2019re spending more than what you can make in profit, then consider using other more-cost effective channels to find customers.<\/p>\n
Test one channel at a time<\/strong><\/p>\n
Don\u2019t rush into creating campaigns on all channels at once. This is not a good practice even for experienced marketers.<\/p>\n
Start with Google Ads and then gradually add Facebook, Bing, YouTube, and Instagram to the mix.<\/p>\n
Build brand awareness<\/strong><\/p>\n
One of your digital marketing goals should be to build brand awareness. This means spending time and money at the beginning to make your brand known to as many people as possible.<\/p>\n
Facebook brand awareness ads<\/strong><\/a> are a great tool to introduce your brand to potential customers.<\/p><\/blockquote>\n
Build a community<\/strong><\/p>\n
When crafting your promotion plan, you should always remember that building a community around your brand is the best way to guarantee long term success.<\/p>\n
Having people that follow your brand on social networks, searching for your brand name on Google and signing up for your newsletter is what will generate constant growth, loyal customers and more sales.<\/p>\n
The tools to use for this are Facebook Ads (with the objective of page likes), SEO (more on this below) and email marketing.<\/p>\n
\nResources to Learn More<\/span><\/p>\n
\n
- How to get followers on Facebook <\/strong><\/a>– A case study on how to get your first 10,000 followers on your business page.<\/li>\n
- How to run profitable PPC Campaigns<\/strong><\/a> – Lessons learned after spending more than 1 million dollars on Google Ads.<\/li>\n<\/ul>\n<\/div>\n
10. Optimize your website for Search Engines<\/h2>\n
Search engine optimization<\/strong><\/a> or SEO as it is widely known is by far the most important process to grow an online business.<\/p>\n
SEO is suitable for all kinds of websites, all kinds of online businesses and all platforms.<\/p>\n
People use search engines on a daily basis to find answers, products, and ideas and the way to increase the visibility of a website<\/strong><\/a> on search engines is through SEO.<\/p>\n
SEO will help you get more targeted traffic that will lead to more sales, build a community around your brand and establish your business as one of the leaders in your niche.<\/p>\n
SEO is not complicated but it takes time. It may take months to a year for a new website to show up on the top positions of Google but it\u2019s something that you need to do if you want not to be dependant on paid traffic.<\/p>\n
The best way to get started with SEO is to follow a step-by-step approach. As you can see below, SEO has three main