Working From Home
According to an article in ‘The Atlantic’, an increasing number of individuals are opting to work from their homes. In reality, close to 70% of self-employed Americans work from home, and over the past decade, one out of every three employees with a bachelor’s degree or above has been working remotely.
Starting an online business is more affordable than traditional brick-and-mortar businesses as only a domain name and web hosting service are required to begin, costing less than $100. This translates to an easier path towards realizing your online business concept by developing your own website. You can explore options such as hiring an intern, utilizing free WordPress templates, utilizing free web design platforms, or taking on the task on your own for web design.
‘Startup Desi’ has provided an outline of the projected expenses for managing a digital enterprise, which are laid out as follows:
- Domain name – $10 per year
- Hosting – $15 per month
- Paypal commissions – roughly $2 per transaction
- Web design – approximately $200-$800 (depending on the design requirements)
The advantage of online business is the ability to target a global market since it is accessible from anywhere in the world. Geographical location does not impose limitations, and therefore, you can provide your products or services to any part of the world through the internet, even if you are physically located elsewhere.
Moreover, this can be accomplished from the comfort of your own home and is accessible around the clock, providing convenience for both you and your clients. You get to avoid transportation hassles and can work in your pajamas if you please. Clients also benefit from the flexibility of being able to reach you at any time. Starting an online business only requires a personal computer and dependable internet connectivity.
Nevertheless, similar to any other enterprise, there are certain aspects that necessitate contemplation for online businesses.
Do Your Research
Possibly, you have already come up with your online business concept. Nevertheless, similar to setting up a physical store, the initial step is formulating a business strategy. To guarantee success, you must assess your prospective customers, rivals, financing, tools, and cooperative alliances.
The most critical aspect of commencing your enterprise is determining what you want to accomplish and who your target audience is; hence, it holds a significant value. Lack of clarity in these factors increases the chances of failure; thus, being primed with thorough research is advisable. It’s crucial to bear in mind that…
If you don’t prepare, you’re setting yourself up for failure.
To ensure success with your intended market, it’s crucial to assess the demand for your proposed service and your ability to develop distinctive selling points in comparison to competitors. Thorough research is essential for this undertaking, and you may employ cost-free resources such as the Google Adwords Keyword Tool to determine whether individuals in your area are seeking the product or service you aim to offer.
Suppose you came up with an idea for a “milk dispenser” and created a prototype. Before proceeding further, you may want to investigate if there is a demand for the product. To do so, utilize the Google Adwords Keyword Tool to conduct research.
Prior to commencing your investigation, it is essential to come up with all the plausible words that individuals might use when they search for your item (your personalized “milk dispenser”). Populate any connected terms to it such as “milk dispensers” (Note the “s”! Keywords are regarded as distinct units based on the number of characters and alphanumeric value), “commercial milk dispenser”, “drink dispenser” (Be open-minded beyond milk), and “water dispenser”. Determine your target area and utilize it during your search. Refer to the snapshot below for guidance on how to proceed within the research tool.
Include all the information you wish to look up.
I opted for exact match because it consists of the precise search terms used by people when searching for things on the internet. By using the tool to search for your preferred words and phrases, you can confirm if there are indeed individuals seeking your amazing dispenser. Refer to the screenshot below for reference.
When reviewing the outcomes, ensure to verify the level of competitiveness and the number of searches performed.
Based on the above findings, it appears that the search terms we utilized show a certain level of demand. Consequently, it can be inferred that your product already faces competition, which may not be favorable.
The relationship between demand and interest is perpendicular, so it’s crucial to predict the longevity and popularity of our products or services in the next few months to a year. Google Trends can be utilized to track people’s interest rates over time, not competition or search volume. With Google Trends, we can view the historical interest rates and project interest rates up to a year. The following is an example of the milk dispenser’s interest rate and forecast over time.
By conducting this search, you can establish a specific objective, anticipate the necessary output, and ensure that your business is not stagnant (unless you lack motivation).
Where To Work
After completing all the planning and research, it is important to establish a specific work area. Although online businesses may not necessitate a physical office, it is still crucial to have a designated workspace at home that separates you from the lure of the television, cozy sofa, or comfortable bed. Depending on the type of business you are planning, it may be beneficial to have a serene and distraction-free environment to work in.
Marketing
Afterward, you will need to determine how to promote your enterprise. Many small and some medium-sized businesses attempt to expand their online presence to increase their customer base. You have the option of doing it yourself or enlisting the assistance of a PR Agency or SEO company to handle your online marketing endeavors.
Assess the viability of your new business idea
Although starting an online business may seem easier, it doesn’t necessarily mean that there are no expenses associated. Like a brick-and-mortar business, the initial step for your online venture is to evaluate the viability of your concept.
Your business idea may be extremely innovative, but it may not succeed if the product or service you offer has no demand in the market. Despite having found a solution to a common problem, investing your resources in it will be futile if the problem is not significant enough for people to invest their time or money into solving.
To keep this in consideration, it is necessary to assess your idea. Here are some questions that you should consider:
- Does your product or service solve a problem that enough potential customers have?
- Does your product or service provide a cost-effective solution to that problem?
- Are people willing to spend money to solve the problem?
- How costly will it be to reach the people in need of the solution your product or service offers?
Develop a business plan
After confirming the viability of your concept, it is recommended to create a detailed business plan. Even if securing financial support is not an immediate priority, having a well-organized business plan is essential because it allows you to anticipate challenges and strategize for future success and profitability.
Your effort in the first phase provides a solid foundation to build your business plan upon, and there are numerous online tools and sources accessible to assist you in assembling the key components of a strong plan.
Having an efficient plan will enable you to gain more insights about your target audience, define your objectives clearly, establish a marketing strategy, and aid you in selecting the appropriate choices that could determine your triumph or downfall.
Choose a business name
One crucial part of starting a business is selecting its name. It is essential to ensure that the name you choose is registerable as a business name in your state and online since your business will primarily operate in the digital realm.
You will have to verify if the name you desire is obtainable as:
- Business name in your state
- Domain name
- Username on each of the social media platforms you plan to use
When the name you want as your domain name or username on social media is not available, try different variations of the name, and keep in mind that there are several domain name extensions apart from “.com.” Moreover, it is crucial to verify that your preferred name and domain name do not infringe on any existing trademarks.
Decide on your business structure
Selecting a particular business structure will determine the necessary legal and tax obligations. The following structures are commonly chosen by small business owners.
- Sole proprietorship. This is the simplest form of business structure, but its lack of limited liability offsets its simplicity.
- Partnership. While this form of business structure might appeal to you if you are embarking on your venture with a partner, your liability is unlimited like a sole proprietorship.
- Limited liability company (LLC). An LLC offers limited liability without the additional complexity of incorporation, making it one of the most popular small business structures.
- Corporation. Like an LLC, a corporation provides limited liability, and while it’s more complicated to both setup and maintain, it may be a good choice depending on your circumstances.
Seeking advice from an attorney is recommended to determine the most suitable business structure for your new venture. As various structures have varying tax obligations, seeking the advice of a tax expert may also be prudent.
Take care of all the legal tasks
To establish a strong legal foundation for your new business, you must complete all the necessary business formation documents and submit other essential paperwork, just as you would for a traditional physical establishment. This entails:
- Registering your business with the appropriate government authorities
- Obtaining all the required permits and licenses
- Meeting all federal and state tax requirements, such as applying for state and federal tax ID numbers
It is crucial to conduct thorough research to ensure you meet all the relevant requirements as they differ depending on the state and type of business. Seeking the advice of a business startup lawyer with expertise in your industry is beneficial in confirming you are on the correct path.
Build your website and choose your sourcing and fulfillment methods
Giving equal importance to your online business website as you would to the physical location of a brick-and-mortar firm is crucial; hence, you must dedicate the same level of attention to this aspect of establishing your business as you would while selecting a location and lease.
Take into account the payment processors that are accessible when determining how to construct your website. It is a wise business decision for numerous online enterprises to engage a website developer to aid in site construction.
Giving careful thought to the web host you select is also crucial. While you may have an outstanding website, it won’t benefit you if your host has excessive periods of inactivity or if your site takes too long to load while being browsed.
Apart from reading online reviews, it is worth consulting your personal and professional network connections. Specifically, fellow online business owners can offer priceless insights into a web host’s dependability.
To ensure that your business thrives, it is vital to carefully assess and select your sources of supply and inventory, as well as determine your mode of delivery based on the products or services you will be providing. There are numerous alternatives to choose from. Considering the significance of maintaining a readily available inventory or a reputable on-demand supplier and a dependable fulfillment system, it is essential to dedicate sufficient research time to this aspect, as it makes the distinction between prosperity and defeat.
