You've made the decision to start a business. You realized your passion and want to share it with the world. Congratulations! Now that you have your mindset on what you want to do, it's time to begin, but you might not know where to start.
If you think about it, large corporations such as Amazon and Google started in a garage! It's possible to start a business from zero.
Don't worry! This step-by-step guide will walk you through how to start a business from zero. The good news is that you won't have to struggle. There are plenty of resources to help you hit the ground running.
Whether you want to create an online store or a local shop, there are some things you need to remember. Every business will require similar steps before being able to operate effectively, efficiently, and more importantly legally.
I've helped startups and businesses grow into large-sized businesses. With my experiences. I want to share with you what I've learned.
The shopping industry is increasing. Despite this, I've seen far too many startups fail to gain traction. It took me years to figure out everything on this page. Set up your site, protect yourself legally, get your finances in order, market and sell your goods, and start building your store with the knowledge provided here.
Nothing beats starting a business from the ground up and watching it develop. No one can take it away from you once you've built it up.
Let's begin!
Step 1: Research Competition and Business Models
The first and most important step is to begin your research. Don't make decisions based on a hunch. Any online business is a long-term investment. As such, treat it as such.
There is no one-size-fits-all company model that works for everyone. The list goes on and on, with service-based businesses, software, digital product sales, and physical products barely scratching the surface.
You must first comprehend the various business strategies available before deciding what to sell online.
It's not rocket science, but it has ramifications for your company's structure.
Types of business models:
B2C – Business to consumer
Businesses that sell to consumers are known as B2C. Because the B2C model is the most frequent business model, it encompasses a wide range of options.
Any purchase you make as a consumer at an online business – think clothing, household necessities, and entertainment — is a B2C transaction.
A B2C purchase has a lot shorter decision-making process than a B2B buy, especially for things of smaller value.
B2B - Business to business
A firm sells its product or service to another business in a B2B business model. The buyer is sometimes the ultimate user, although most of the time the buyer resells to the consumer.
B2B transactions have a longer sales cycle, but greater order values and more repeat orders.
Recent B2B innovators have carved out a niche for themselves by eschewing catalogs and order sheets in favor of business storefronts and better niche market targeting.
Millennials will account for over half of B2B buyers in 2022, nearly double the number in 2012. B2B selling in the online realm is becoming increasingly significant as younger generations enter the age of completing business transactions.
C2B - Consumer to business
Individuals can sell goods and services to businesses through C2B firms.
In this business approach, a company may allow clients to post work they need done and have businesses compete for the job. Affiliate marketing services are also classified as B2B.
By assisting businesses in hiring freelancers, Elance (now Upwork) was an early developer in this concept.
The competitive advantage of the C2B business lies in the price of goods and services.
This strategy allows customers the opportunity to choose their own price or have businesses compete directly for their business.
Recently, this approach has been creatively used to connect businesses with social media influencers in order to sell their products.
C2C- Consumer to consumer
A consumer-to-consumer (C2C) business, often known as an online marketplace, connects customers to exchange goods and services and makes money by charging transaction or listing fees.
In the early days of the internet, companies like Craigslist and eBay pioneered this concept.
C2C firms gain from the self-propelled expansion of motivated buyers and sellers, but quality control and technology maintenance are significant challenges.
Resources:
Step 2: Register Your Business
You need a brand that connects with your identity if you want to launch a successful business. Building a brand is made easier by identifying your identity. If you're marketing products to corporate businesswomen who want to live a more sustainable life, you might want to stay away from girly colors and pictures.
But there are some basic steps you'll need to take before you set up your business and get into the fine gritty of developing a brand.
Choose a name for your firm and register it. Don't forgo incorporating because it offers legal protections and tax advantages.
Step 3: Pick Your Store's Names
Although your website's name and your company's legal name don't have to be identical, keeping them constant has its advantages. You don't want to pick a brand name at the last minute, so be sure anything you choose fits your niche.
Step 4: Get Your Business Licenses
If you're unfamiliar with the procedure, the Small Company Association has a mentor-protege network and small business basics courses to assist you to get started.
Look for mentors proactively - even for little matters like obtaining business permits, their counsel can be invaluable. Finding someone who could teach me the ropes was one of the best decisions I've ever made.
Step 5: Get Your Identification Number
Even if you don't plan on hiring anyone, you'll need an Employer Identification Number (EIN) to create a company bank account and submit your taxes in April. Your EIN is similar to your company's social security number: it's a one-of-a-kind number that identifies your company and aids in the filing of crucial paperwork.
Step 6: Logo Creation and Branding
Don't sweat it too much, but make sure it's not already in use by another company in your industry. However, a logo design does not have to be very unique (and in fact, should not be). If you're not that great at design, I'd recommend these two websites to build a logo.
You can hire a freelancer for less than $50 to design a great and original logo for your brand. Canva has pre-made templates and logos you can use to create something from scratch. The best part about Canva is that it's free.
Step 7: Get Visual
Think of Mcdonald's or Nike. What are their colors and logo? Your branding is your message and how your customers see you.
Think carefully about the colors of your brand, the artwork you'll use, and the typeface or fonts you'll use. If you have the funds, you may pay a marketing firm to generate a design brief for your business. You can make your own if you don't have one. Simply keep it constant and read marketing advice to help your brand grow.
Your branding should be consistent across a number of platforms.
Step 8: Building a Website for Your Business
In today's world, firms must have a well-designed and functional website.
Keeping your website up to date with the newest digital trends is critical for business growth, whether you're a small startup or a well-established corporation.
Owning a business website, on the other hand, aids in the management of your internet presence and improves your consumer base.
As a result, you can engage freelance web developers or a web design business to establish a website.
I propose using freelancing platforms like Fiverr and Upwork for individual experienced developers or designers. You should engage an agency to solve your problems if you want continual work.
I've included a list of developers you can reach out to who are both inexpensive and great at what they do.
Resources:
Step 9: Marketing
Once your business is launched, it's time to spread the word. I have a few recommendations you can start out with.
Will you rely on sponsored content, social media, PPC ads, or a combination of tactics? How will you track which campaigns are bringing customers to your store? Will you seek support to market your website if it seems too difficult?
You don't just need to drive visitors to your website. Your marketing budget must also cover the product(s) you choose.
It is not your goal to increase traffic, but to sell items. To sell things, you must think outside your website and look for new areas to expand into.
By sending coupons and material to customers via email, you can keep your brand in their minds, increase sales, and develop credibility.
Keep your communications interesting by frequently soliciting feedback from your customers, including reviews. Also, provide them links to your most recent blog posts. It's critical to mix in useful content rather than bombarding them with sales pitches.
Work on creating relationships while responding rapidly to customer service and product quality complaints. It's never about the first transaction in a sales contact; it's always about the next one.
Additionally, if you are not interested in marketing, try looking into outsourcing it to either an agency or a freelancer. Freelancers can offer quick, cost-effective solutions to marketing your business effectively.
Resources:
Step 10: Managing Your Finances
The financial side of a company is the most significant. Determine your break-even point in terms of both unit sales and time (in months).
Any meaningful business is a financial investment. During my time as a Marketing Director, I learned that managing finances and budget is crucial for a business's success.
Unfortunately, many entrepreneurs neglect to forecast their revenue and expenses. You will fail if you are unable to calculate your profit margin.
During the business planning stage, you should also iron out issues such as your employees, product sourcing, logistics, and marketing budget. Make sure you're aware of all the financial options open to you.
The Bottom Line
So, what exactly are you waiting for? It's time to think big and create your own business, especially with so many successful businesses. You could sell almost anything on the internet!
Was this article helpful in answering your questions regarding beginning an eCommerce business? If that's the case, please share it. I've spent years assisting entrepreneurs like you. It doesn't have to be difficult or expensive to run a successful eCommerce website.
You might start a thriving online store for a few hundred dollars each month if you put in the effort and time.
I am concerned about your success. You'll save hundreds of hours of effort and know where you're more likely to receive your money's worth in business if you read through the information above.
I sincerely hope you found the information on beginning an online business useful. Let me know if there's anything else you'd want to see covered in the comments.
Best of luck with your e-commerce venture!