Several decades ago, starting a business was a privilege only a few could afford—those who had access to large sums of capital investment, either courtesy of their family wealth or a high-paying corporate job. This changed drastically with the dawn of the digital age. Now, anyone with a great idea can start at least an online business, and with the way eCommerce has been booming, an online business can be far more lucrative than a brick-and-mortar business. It is estimated that by 2025, global eCommerce retail sales will reach US $8.5 trillion. But how do you decide which online business is right for you? The spurt in online shopping isn’t the only thing driving people to become online entrepreneurs. To run a business online, you most often need a computer, a solid internet connection, a domain name, and a website. Moreover, when you are online, you can find customers and clients, even employees, anywhere in the world.
The ease with which one can set up an online business makes the field competitive. To succeed, you must make sure that you have a winning online business idea that you can execute flawlessly and for which you can find paying customers.
How to decide which online business idea is for you
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The right business idea lies at the intersection of your skills, resources, and demand. Here are five ways in which you can arrive at that intersection.
Determine how much money you can invest in your online business.
The more you can invest, the more solid a business foundation you can build and the faster you can grow. If you have inherited wealth or worked hard in a corporate job to save tons of money, you can choose a high-investment online business idea. You will have more money to buy equipment, purchase software, hire and train staff, and therefore, you can increase your work output. You can, for instance, run a full-fledged digital marketing agency online, employing social media, design, and SEO specialists. Or you can create a super high-quality YouTube channel with professional content creators.
On the contrary, you may have no money to invest and only your skill, your computer, and your Wi-Fi at home to rely on, and that’s okay. The beauty of starting an online business is that you don’t always need a significant capital investment to get started. You can go solo with what you already have and become, for instance, a freelance content writer, a programmer, or even an online yoga instructor.
Determine how much time you are willing to invest in your online business.
Are you going to quit your full-time job and invest yourself completely in your online business? Or will you keep your current job and let your online business be a side hustle? Consider the time you are willing and able to devote to your online business when deciding what to do. Most online businesses start as a side hustle to pursue a passion or make extra income. If this is the case with you, you will have to put in additional hours apart from your usual 9-5. You will need a business that you can handle in the time you can spare, so go for something nice and easy. For instance, if you are teaching a course online, you can conduct live classes in the evening or on the weekends. Or you can record lessons and upload them online for students to download, which means your business will run itself.
Whatever you choose to do, you must avoid burnout. Remember that your well-being is key; with it, you will be able to focus on your business and perform well in your regular job.
Take your existing skills into consideration.
Starting an online business that utilizes your existing technical skills or professional experience will help you get your business off the ground more quickly. For instance, if you have a decade’s experience in finance, you could become an online financial consultant. Or, if you also have a flair for writing, you can become a freelance content writer focusing on the financial sector. If you have an IT background, you might feel more at home working on your computer with the software and tools you are familiar with.
Learning a new skill from scratch isn’t impossible. It is relatively easy now with many learning resources available on the internet. But it will delay the beginning of your online business or lead to slower progress. If that is the case, prepare yourself for those scenarios.
You can also consider acquiring a skill related to your expertise. Building on your existing skill set or experience is always a good idea. For instance, if you have worked as a journalist, you can take an online course on SEO or Analytics to better understand the content that works on the Internet and become an expert in content writing and marketing.
Take your passion into consideration.
Working with your existing skills is excellent, but being passionate about what you do is a must when starting your own business. Most online entrepreneurs start as solopreneurs, working from home on their personal computers. You will be working long hours on your projects, and when you have free time, you will still be on the internet looking for new clients or ideas on making more money. Your online business is likely to consume your life for the next several years. You must enjoy what you do because how much money you make depends entirely on your determination as opposed to a 9-5 job where you are required to do a set amount of work for a fixed income.
Once you have created a list of online business ideas based on your skill set, rank them according to what you are most passionate about. For instance, if you want to be an influencer, do you see yourself clicking photographs and religiously posting on social media even five years from now, or is it something you might grow out of when the initial excitement has started to fade? Or, you might enjoy clicking photographs, but are you passionate enough to be able to keep up with new trends and technology to be the best in your profession?
Whatever you choose to do, make sure it is a forever passion of yours and not just a passing fancy. Your online business should give you a reason to get out of bed every day and do your best, not be a punishment.
Study the demand for your potential online business idea.
After your skills and passion, the third and most important aspect is whether your online business idea is profitable. You might find something that you are great at, but if people are willing to pay you for what you do, your business idea is designed to succeed.
A business idea is profitable if:
- It provides a solution that no one else does.
- It provides a solution that others do, but your solution is better and/or more affordable.
- Enough people care about that solution and think it is worth paying for.
A profitable online business idea does not necessarily need to be something that markets your skills but something that you can simply market well. For instance, you might find someone who sells rare vintage comics in Japan, so you buy them from the seller and sell them on your online store. The real challenge here would be finding and connecting with vintage comic collectors online and convincing them to buy from your online store at a price that earns you at least some profit. Your passion for vintage comics will be a plus, but it is optional.
What to do when you have decided on your online business idea
Once you have narrowed down your online business idea, you can start visualizing what it will look like and planning for it. Here are a few things you should get in order before you begin:
Decide your business name.
Take time to decide your business name because you want one that is the right fit and can serve your business for life. Think of words that define what you do as well as your personality, words that summarize what motivates and inspires you, and words that will get people interested. Get creative by trying different combinations of those words to create a catchy and marketable name for your online business.
Register your domain name.
When you think of your online business name, check if it is available as a domain name. Your domain name is an essential part of your brand, especially if you run an online business. It needs to be as close to your business name as possible or use relevant keywords so that people can understand what you do. Short, simple, and meaningful domain names are catchier and more memorable, better suited to allow potential customers to find you easily and portray you as a credible business to build trust.
Use a relevant domain extension to find an easily available domain name that is closer to your business name and helps you establish your niche. For instance, if you sell rare vintage comics online, go with .Store (rarecomics.store). If you are a web or application designer, you can go with .Tech (easyapps.tech). If you are teaching online, you can choose .Online (learnfrench.online).
Creating a step-by-step business plan will help you look at the entire picture and ensure you are not missing out on anything important. It will also help you focus on the right thing at the right time. There is so much involved when starting out that it is easy to get distracted by something that doesn’t need your immediate attention. Keep your business plan simple, to begin with. Here are a few sections you could include:
Conclusion
The right online business for you motivates you to wake up every day feeling positive and ready to do your best. When your clients or customers can feel your drive and passion, they are more likely to be drawn toward you and buy what you are selling. The going will get tough now and then, as it does with running your own business, but if your online business is a good fit for you, those challenges will seem less daunting.
