An online business can be a lucrative way to start your own company and make money from home. Online businesses take planning and some understanding of online commerce, but are easier to start than traditional businesses in many ways. Craft a business plan for your online business by carefully working through each aspect of your offerings, web presence, marketing, and overall strategy.
Choose an idea or product. The first step in planning a business is deciding what you want to sell. Consider selling a product or service related to your current field of work, because the knowledge you’ve gained on the job will help you start your business. Or, your business could be an extension of a hobby or interest that you have outside of work. If you’re still drawing a blank, try brainstorming ideas using one the following guidelines:
- Create an business that solves a problem for someone. In many cases, this a problem that the founder has that they are unable to find a good solution to. This also includes things that may become problems in the future.
- Make something cheaper, easier to use, or of higher quality than existing products/services.
- Simplify people’s daily lives.
Define your business type. Web-based businesses can take many forms, from part-time designers operating through a freelancing website to full-blown e-commerce sites. If you’re selling goods, you may choose to operate through a site like Amazon, Etsy, or eBay. Or, you can create your own website to sell your products. Businesses offering services have the same choice.
- Working through an established website gives you the credibility that comes with an established name, but also limits your freedom and may take a bite out of your bottom line.
- Weigh the costs and benefits of your options before deciding where to run your business from. Remember that you can always expand to your own site later if needed.
Examine your strengths and weaknesses. Another way to guide your thinking is to perform what is known as a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. Start by identifying your own strengths and weaknesses as they apply to the business. For example, perhaps you’re talented and skilled in providing your service, but lack the ability to effectively promote yourself.
- For opportunities , consider your competitive advantage over other businesses. Is your product/service cheaper, better, or easier to use than existing ones?
- For threats, look at competition and regulatory issues that may affect your business. Are there barriers to entry in your market?
- By considering these qualities, you can understand your place in the market and build a plan to take advantage of your strengths, sidestep your weaknesses, and address threats and opportunities head-on.
