Starting an online business is exciting! A lot of people don’t succeed online even though it is a lot less risky than starting a traditional ‘brick and mortar’ business.
I’ve asked successful online business owners to share what they feel you need to start an online business, and here’s what they had to say…
*** 7 Things You Need To Operate a Profitable Online Business ***
*** 7 Things You Need To Operate a Profitable Online Business ***“Hi John,
“My name is Dave Hermansen and I’m a 13+ year ecommerce veteran. We currently operate more than 50 eCommerce websites of our own, in addition to running our Store Coach eCommerce training course.
“Aside from the obvious things like having access to a computer and an internet connection and other nice to have things like a phone number people can call (preferably a toll free number), there are several things people need in order to operate a profitable online business:
- A sales tax ID and business license
- A shopping cart platform so that you can sell things from your website
- A payment processor
- Products to sell, whether you are buying in bulk or arranging to have them dropshipped directly to customers from your supplier
- The ability to write or access to someone who can
- Knowledge about search engine optimization
- Dedication, hard work and a desire to learn
“Most of the things on the above list can be attained easily enough or, in the case of writing ability, assigned to someone else. The last thing on the list cannot be taught or bought.
“The number one reason we see people who fail with online businesses is that they simply do not have the commitment it takes to see a project through. They look for the easy way to do things, they expect instant results, they quit when they run into roadblocks. Running a successful online business is not hard but there are many steps involved that take time and have to be learned.
“As is the case with anything in life, the people with no-quit mentalities are the ones who truly succeed. A thirst for knowledge, a desire to find a better way to do things, the ability to find answers when none are readily apparent, the desire to learn new skills. Those are the traits we see in all of the most successful online business owners.”
Dave Hermansen, StoreCoach.com
*** A Good Team ***
“You need a good team of people that has particular required skillsets to create and maintain an online business. I think new online owners really try to get themselves to immersed in a particular aspect where they shouldn’t be focusing on.
“Personally, I got lucky and started off as a webmaster in 1998. It was much easier to learn how to master other sides of business such as copyrighting, email, social media, other marketing campaigns. I knew HTML/PHP and was able to tweek things as needed.
“An online business business should have:
- General Webmaster
- Social Media Marketing
- SEO Expert
- Graphic Designer
- Coder for what software your using (WordPress, Shopify, etc)
- Video Editor for Youtube Videos
“Some people can handle multiple roles but rarely would they be an expert of all of them.”
Thomas Wooldridge, Relamark.com
*** Platform, Marketing Plan & Reputation ***
Kevin Jones from Shopblocks.com, a hosted e-commerce platform, shares his tips on what you need to start an online business…
“Picking the right platform
“Picking the right platform at the very beginning is absolutely critical. It is not impossible to switch later, but it can be time consuming and costly headache to migrate once established.
“When you come to look for a platform, consider:
- Costs (of course)
- Flexibility of the system
- Is the platform mobile friendly?
- How does the platform perform from an SEO point of view?
- How fast is the platform?
“Make sure you have a marketing plan
“Whether you plan to leverage banner advertising, social media, word of mouth or any other channels, do have a plan in mind.
“You won’t be seen unless you’re getting your message in front of the right people. Plan your marketing in advance!
“Manage your online reputation
“A potential or existing customer getting upset with your service or products online can impact your reputation. Poor reviews can mean consumers researching your brand can be hugely put off.
“The first step is to make sure your products and service are great, but you can also take steps to try and resolve any customer concerns offline. You need to make sure you are aware of what people are saying about you online.”
Kevin Jones, Shopblocks
*** Experience, Skills, Time and Dedication ***
“Hi John,
I have a range of online businesses, but my E-commerce business receives the most effort and is the most successful.
“For my E-commerce business, Heavenly Hammocks, to get started I just needed some start-up capital ($5-10k), some space (1 room) and a website. That was enough to get a reasonable range of products selling online. The first import was tough, with 9/10 Chinese suppliers turned me down since I wanted a wide range but with small quantities. Now that the business is bigger, there is less issue getting new products and suppliers, since our orders are bigger.
“To make the business an actual success mainly required: experience, skills, time and dedication.
“Experience – I had 3 E-commerce businesses fail before finally hitting success. It’s valuable experience earned the hard way.
“Skills – I finally got the hang of SEO and now the website is #1-2 in Australia for ‘Hammock’, ‘Hammocks’, ‘Hammock Chairs’ and so on. The SEO success was in part because I got the hang of PR. Other skills come in handy, or you could outsource them, such as good photography, improving photos in Photoshop, managing customers, running competitions, improving the website and so on.
“Time – The SEO took continuous work for 1-2 years to reach #1-2 in Australia. Building the range and finding which products are most successful also took years of refinement, even when having competitors’ Ebay and Amazon sales data at hand.
“Dedication – The business was up 400% in its 2nd year and a further 400% in its 3rd year. That is only because I have been continuously improving every aspect of the business that I can think of. Had I stopped improving in the 2nd year, growth would have been far slower and the business would have remained small.”
Daniel Brady, Heavenly Hammocks
Start an Online Business – Have Your Say…
Is there anything not mentioned in this article that you feel is important or helpful for those that are looking to start an online business? Leave a comment below!
When your business is up and running it is important that you have lots of patience to see the results of your efforts come through. Every business goes through a gestation period and most forms of online business also takes a little time to stabilize. When you gain hands on experience with your internet business, you will also learn to extract the maximum mileage from your inputs. What is important is that you start online business and hold the patience and perseverance to enjoy the rewards.
Great insight Robert.
“Picking the right platform” is so important! If you picked the wrong one, then you will lose. By the way, the guide is impressive. I am going to bookmark the site for further assistance. Thanks and please keep posting things like this.