The internet has made the impossible possible. This is true in business. Today, many businesses operate online. It gives people the opportunity to operate their business right in the comfort of home. Although starting an online business may sound easy, still, there are a lot of things that need to be considered to make sure that your business won’t fail. These are the following:
- Know your target market – It is a must to know your target market and you can only do that by doing market research. Check out the online community and find out what your target market wants and needs. A significant part of market research is knowing how other businesses attract their target market, especially those who are in line with your business.
- Identify your product – Find a highly profitable product to sell; something that is in demand and without too many competitors. You might want to take advantage of Google keyword planner to check what most people talk about in social media. Apart from knowing what your target market wants, you also need to consider your business knowledge, experience, and interest. It is easy to operate a business you are most passionate about.
- Determine the profitability of business – Put your business to test to determine if it will work or not. A feasibility study is important even if you feel like you are only starting a small business. By conducting a feasibility study, you will be able to evaluate various factors that can greatly affect the profitability of your business. some of the things you need to include in your feasibility study include:
o Financial situation
o Purchasing power of your target market
o Business competitors
o Materials, services, equipment, and manpower needed to run the business
o Start-up cost
o Profitability and sustainability of the business
- Write a business plan – You should have a solid business plan. It is a must no matter how small your business is. If you apply for a business loan, the banks usually ask for a business plan.
- Register your business – Just because your business operates online does not necessarily mean that you can get by without registration. By registering your business, you are making it legal to operate.
- Check your finances – You can’t run a business without money no matter how small your business is. You need to have enough start-up capital and a contingency fund. Borrowing money from the bank is good for as long as the interest rate is favorable. It is best start small so that you won’t need to borrow money.
- Have a reliable delivery method – Since you are operating online, you would need a reliable and dependable delivery method. You can do meet-ups too, but as your business grows bigger, you would need to have a courier.
- Build your business website – As your business grows, you would need to have a highly credible website. It is the process of building your store on the internet. It looks more legit on the eyes of your target market.