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Starting a business has never been easier. If you’re planning to start an online business, you might only need a laptop, an internet connection, a great business idea, and the will to work hard. However, even if you start with a basic setup to get your business up and running, you should keep your business growth in mind. Once your business goes into operation, you will likely be occupied with running it day-to-day. So, it’s essential to focus on building a solid foundation and planning for the future.
Here are 5 small business tips for new businesses to help you grow and be profitable in 2024.
1. Come up with a winning business idea
A great business idea is an amalgamation of various considerations. Start by making a list of ideas that excite you and those you know plenty about already. Shortlist those that fall in both categories.
Next, research what’s working in the current environment and what are the best businesses to start in 2024. Use tools like Google Ads to find out how many people are looking for businesses like yours. Study market trends to see what’s currently in demand and select a niche with fewer players so that there is less competition.
Several notable e-commerce niche trends are emerging for 2024, including a growing consumer demand for sustainable and ethical products as shoppers seek out brands that align with their values and prioritize environmental responsibility. The health and wellness niche also continues to expand as consumers spend more on products that support their physical and mental well-being. In addition, the rise of subscription services across categories like meal kits, beauty products, and streaming reflects the popularity of subscription models that offer convenience and predictable access. Other trends include the increase of personalized and customized products, a shift toward spending on experiences over material goods, and opportunities in print-on-demand niches such as clothing, home decor, stationery, and phone cases.
Capturing multiple niche trends can help e-commerce businesses meet diverse consumer interests and needs in 2024. Yet the best businesses to start are the ones that require low investment but can generate high demand. Consider online business ideas such as online teaching, remote consulting, freelance content creation, or online retail.
2. Create a tangible business plan
There is so much that goes into starting a business that it’s easy to forget things you need to focus on. For instance, you may get too fixated on your marketing plan and, as a result, you could overlook having a solid operations plan in place. Or, you have a customer acquisition strategy but no idea how to retain customers.
To avoid this, you should put your business plan down on paper. When you have a written plan of action, you have something to refer to periodically and make sure you’re on the right track. You will also need one when you approach potential investors for business funding.
Writing up a business plan is pretty straightforward. Search for a business plan template online that best covers the information you want to convey. Then fill out those sections with details about your business. A business plan typically includes:
- Executive summary
- Customer analysis
- Competitive analysis
- Operations plan
- Marketing plan
- Business funding plan
- Management team
A well-written and concise business plan will help you and others better understand your business and ensure it runs like a well-oiled machine. However, your business plan needs to be flexible, so don’t consider the business plan template as something set in stone. Entrepreneurship is all about embracing changes, adapting, and learning new things.
3. Do your market research
Several market forces and the social and economic environment come into play to determine whether a business idea has the potential to be lucrative. Two of the most imperative indicators of business success are demand and growth potential. Before you sign off on your idea, ensure it is backed by thorough and credible market research.
If you have a business degree, use that knowledge to dig deeper into the psyche of your target audience and study your competition in great detail. However, you don’t necessarily need a business school stamp to become an entrepreneur. If there is any aspect of business that you think you are not well-versed with, there is enough information on the internet, mentor programs, and short-term courses that can make you better equipped.
Armed with the research tools you require, it’s time to go to the customer analysis section of your business plan template. Start by creating a buyer persona, a fictitious person who mimics your ideal customer. Identify their demographic characteristics such as age, gender, income, how they think, and their values and dreams. It’ll allow you to put your finger on their pain points and identify gaps in the market, giving your business a competitive edge.
4. Explore business funding options
Don’t let money stand in the way of your entrepreneurial dreams. There are several viable funding options available to budding entrepreneurs in this day and age. Pick one or a combination of several that best meet your present needs and do not put an unmanageable burden on your future finances.
Personal investment
If your business doesn’t require an extensive physical setup, you can use your savings to fund your business. This frees you from future liabilities and is highly viable for most online businesses that you can operate from the comfort of your home.
Friends and family
Your loved ones know and trust you, so it may be easier to convince them to invest in your business. It may also give you greater freedom when paying off the money you owe.
Business loans
Consult your financial institution to find the best loan option for you. Check for tenure and interest rates that allow you to pay off the debt without feeling financially burdened.
Crowdfunding
Crowdfunding websites like GoFundMe and Kickstarter have emerged as popular platforms for acquiring startup funding. But be aware of their advantages and disadvantages. They may help you acquire funds easily, as long as you can effectively sell the idea to a large number of people. Moreover, if you fail to meet your business goals, any financial pledges will be returned to the investors, leaving you in the lurch.
5. Build your brand identity
Coming up with a winning business idea isn’t enough. You need to spark the interest and curiosity of your target customers so that they gravitate towards you rather than your competitors. There are thousands of businesses and random websites vying for the business of the same people as you. Until you have a significant number of customers who have tried and tested your product, you must rely on building a brand that is different and exciting to attract business.
Branding in 2024 will likely emphasize creating customized and immersive experiences for customers through the use of AI, AR, VR, and data analytics. Brands will likely leverage technology to provide personalized recommendations and tailor content to individual customers. There will also likely be a focus on sustainability, with brands using eco-friendly materials and minimizing environmental impact.
Authenticity and storytelling have proven to be key for making connections in 2023, as brands build narratives that align with audience values. Going forward, design-wise, simplicity and minimalism will likely continue to rise in popularity. Overall, human-centered and values-driven branding that forges emotional connections will rise to the fore.
Several aspects go into building a brand identity.
Business name
Your business name is what builds a lasting first impression on customers. Does it pique their interest and encourage them to learn about you? Does it spark confidence that your business is relevant to their needs?
Make a list of all the words representing who you are and what you do. Try different permutations and combinations till you find something that clicks. For inspiration, you can use a business name generator such as Wordlab, Namify, or the Shopify Business Name Generator.
Domain name
As you think about your business name, check if it’s available to use as a domain name. Your domain name is your brand identity in the online world. Having one that is as close to your business name as possible makes it easily recognizable. Using relevant domain extensions such as .store (for an online store) or .tech (if you’re selling tech products such as software) makes your domain name more informative and can also be more cost-effective.
Brand visuals
Think of how you want to present your brand visually. How can you create a visually appealing presence for your target audience and represent what you do and stand for? Consistency is vital when it comes to brand visuals. Decide upon the colors, fonts, and other elements you want to use and keep them uniform across different properties such as your logo, website design, and social media posts.
Conclusion
Starting your business is like entering a new phase of your life. On paper, you can be as well-prepared as you possibly can, but that does not make your entrepreneurial venture risk-proof. The important thing is to stay focused, flexible and confident. Embrace challenges as learning experiences, and don’t be afraid to try new things. All the best!
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