The digital ecosystem provides limitless opportunities for aspiring entrepreneurs who wish to launch a business without the hassle of maintaining a brick-and-mortar location. But while there is plenty of potential to succeed in online business ownership, that success is far from guaranteed. To ensure long-lasting business impact, it’s critical to have a clear strategic plan.
10 Steps for Launching a Successful Online Business
While the steps for launching a successful online business can vary from one entrepreneur or niche to the next, and while no two businesses have quite the same circumstances, there are a few best practices that we can recommend to online businesses across the board.
1) Identify Your Vertical
First and foremost, it’s important to determine what kind of business you will run. In which industry, vertical, or niche do you identify the most potential?
For online business owners, there are plenty of options to choose from. E-commerce presents the opportunity to sell retail products without the need for a physical storefront, while other online businesses focus on service (think freelance design work, accounting, or consultancy).
There’s not necessarily one right answer here. It’s more a matter of determining where your passion and talent intersect with market opportunity.
2) Conduct Your Market Research
Speaking of which, it’s vital to understand your marketplace a little better before launching any business.
The questions to ask include: Who are the main players in this industry? Where do you see opportunities to differentiate your products or services? What kind of demand do you see for your products or services? And what is your target audience like, demographically?
Google data, surveys, focus groups, and other forms of research can all be illuminating here.
3) Know Your Audience
Speaking of demographics, it’s important to have some sense of the people you’ll be trying to reach through your sales and marketing efforts. Create buyer personas that include information like:
- The values of your target audience.
- The pain points your target customers are trying to solve.
- General demographics of your target audience.
- For B2B companies, the titles/positions of the decision-makers you’ll be working with.
Several tools can help you ascertain this information, including online searches, surveys, and focus groups.
4) Create a Business Plan
Business plans are not legally binding documents, but they can provide direction for you as a business owner. You may also need to show a business plan to any lenders or potential investors you bring on board.
Some elements to include in a business plan are a list of your product and service offerings; a general overview or executive summary of your business; information about your proposed sales and marketing methods; financial forecasts and revenue predictions; and so forth.
5) Establish an LLC
Registering your business as an LLC helps provide some protection against litigation, and also allows you to take advantage of benefits such as pass-through taxation.
The general steps for registering an LLC include:
- Find someone to serve as your Registered Agent. This must be someone with a physical address in your state of registry; so, if starting an LLC in Florida, you’ll need someone who actually has a mailing address in the Sunshine State.
- File Articles of Organization with your state, also paying any registration fees that are required. (The amount can vary depending on the state you’re in.)
- Create an Operating Agreement to denote how you will allocate duties and revenues with any business partners you bring on board.
- Ensure you have an Employer Identification Number (EIN) from the IRS.
6) Choose a Business Name and Domain
You naturally want your business name to be catchy and memorable. If you’re registering as an LLC, you also have to pick a name that isn’t already in use by another LLC in your state.
Once you have selected a business name, claim the online domain that matches it. This is where you’ll want to set up your business website or ecommerce store.
7) Set Up Your Website
Speaking of which: Create a business website with a user-friendly design, an intuitive navigation structure, and robust performance. Ensure it’s optimized for search engines (SEO) and includes essential elements like product pages, a blog, and contact information.
Additionally, check your site on multiple browser and device times to verify that it’s mobile-friendly, and that it loads expediently and without sluggishness.
8) Consider E-Commerce Solutions
If you’re selling products through an online storefront, you’ll need to set up an e-commerce platform with secure payment processing and inventory management. There are plenty of e-commerce platforms you can use, from Shopify to WooCommerce, but note that there will be fees associated with each of these platforms.
You might also consider the print on demand model, a great way to offer custom products, especially apparel, without the need for warehousing or major inventory upkeep.
9) Market Your Business
No online business is going to succeed without a carefully-considered marketing strategy. You won’t have the resources to invest in every single marketing channel under the sun, but depending on your audience demographics, you may find it useful to invest in:
- Email marketing
- Regular blogging and content marketing
- Social media (paid and organic)
- PPC ads
- Video marketing, including YouTube
- An ongoing investment in SEO
10) Track Your Data
To ensure your business remains on the right path, it’s important to keep a careful eye on your website analytics, revising your marketing or sales strategies as needed. Some of the main metrics to identify include:
- Attribution channels (e.g., where do your website visitors come from?)
- Total website traffic
- Conversation rates
- Dwell time (indicating which pieces of content are most engaging)
Position Your Online Business for Lasting Success
Online businesses can provide ample opportunity for growth and longevity. Follow these basic guidelines and best practices to get your business up and running, and to position it to make a lasting impact.
