Online Business
Did you know that there are now 1.95 billion websites on the internet? (Internet Live Stats, 2020)
And it’s estimated that 95% of all purchases will be via e-commerce by 2040 (Nasdaq, 2020).
The power of online business is only going to grow, and if you’re thinking about setting up your own ecommerce site - the time is now.
If you already have a brick and mortar business and are wondering if you should make the transition online - you should certainly be exploring your options.
The fact is that 35% of small business owners think their business isn’t large enough to warrant a website.
This is a real shame, as online business allows you to capitalise in areas that you wouldn’t be able to otherwise (but more on that a bit later).
What is online business?
An online business is a business that primarily operates, engages with people and trades in products or services over the internet.
Why are the advantages of online business?
If you’re toying with the idea of starting an online business and need some extra convincing, here are some of the advantages:
- Low barrier to entry
- More affordable than other business models
- Flexible work arrangements
- Wider customer reach
- More economical
- More environmentally friendly
- Ability to leverage customer data
What are the disadvantages of online business?
Like all business models, there are of course some disadvantages of doing business online such.
- Increased competition
- Lack of physical connection customers and clients
- Customer service challenges
- Customer data and privacy risks
- Increased advertising and marketing costs
- Harder to build credibility and trust
It's important to weight up the pros and cons to decide if it's the right business model for you.
What makes a successful online business?
If you want to run a successful online business, here are some traits you should aspire to achieve:
- Prioritise customer security and online cyber risk management
- Invest in online reputation management
- Take advantage of the latest tools and technology to save time where possible
- Try to establish some sort of offline presence as well as online
- Know when to outsource and hand things over to the experts
What are some online business ideas?
There are endless opportunities in online business - you can practically buy anything online nowadays.
Here some online business ideas to inspire you:
- Drop-shipping: The beauty of dropshipping is you don't need a warehouse or a big inventory for your ecommerce business. Suppliers ship it straight to your customers, which means smaller investment upfront.
- Build an app:Apps are the medium of choice nowadays with many glued to their phones. Look at how traditional industries and old ways of doing things and see how you can offer convenience and cost effectiveness to consumers.
- Capitalise on content:This digital world calls for exciting, relevant and useful content. Whether you build a business on blogging, YouTube, Vlogging or podcasting, content is king today.
- Build a personal brand:Bring your unique branding and take on hot topics in beauty, games, entertainment to rake in the big bucks. Reviewers, social media influencers and personal brands are huge money these days.
- Sell niche handmade items: Leave big catalogues and generic items to giants like AliBaba and Amazon. Focus on niche audiences and handmade items that scream authenticity and identity.
- Offer virtual services:Professionals such as personal coaches, lawyers, bookkeepers, writers and designers can work virtually, opening a wealth of opportunities for an online business. You can try established platforms such as Upwork and Freelancer or you can pave your own way
- Sell online courses and training: Everybody is learning things online so why not pounce on this growing trend? There are popular platforms to get your feet off the ground such as Udemy and Skillshare. All it takes is to bring your expertise to the table.
- Specialise in online marketing and advertising:This is a major area that is only growing as most industries are going digital. With markets quickly getting competitive, there is a strong need for experts who can cut through all the noise and reach the right eyes.
- E-commerce stores:You can set up an online store easily thanks to website builders like Wix and Shopify. Whether you have your own handmade products to sell or you’re buying from a wholesaler, setting up an ecommerce store can be a profitable side hustle or primary income stream.
What is the best online business to start?
There is no set answer to this question. Any type of online business can be successful if it’s built with the following pillars:
- Your WHAT and WHY:Clearly define your business idea and what you’re setting out to achieve, and then define why you’re doing it. Is it to close a gap in the market? Is it because you can see much room for improvement in the current market?
- Knowing that passion isn’t enough to thrive:Having a burning fire in your belly is of course the driving force to start an online business, but get comfortable with knowing it’s going to be a bumpy ride with many trials and errors.
What do you need to start an online business?
Like any new business venture, you need to ensure that you’ve worked your way through a checklist.
In terms of the legalities of starting any type of business, it’s important to do things by the book.
Here’s a checklist of what you need before you can even start to think about trading.
- Choose your business structure: There are four business structures in Australia - sole trader, partnership, company and trust. Each structure has a direct impact on various factors such as tax, control, health and safety and liability. Learn more abouthow to choose a business structure.
- Apply for an Australian business number (ABN): This 11-digit number is what you need in order to lawfully trade in Australia. You can register your business name when you apply for your ABN - it’s much quicker.
- Review your funding options: Unless you have a lump sum of capital to cover the costs of starting a new business, it’s a good idea to look into the various funding options for startups and small businesses ahead of time. Check out your eligibility forgovernment grantsor get advice from business loan brokers.
- Register for tax:It’s important to register for the appropriatetaxes to avoid penalties by the ATO. A tax accountant can advise you on all tax matters and help you minimise your tax exposure.
Once you have covered all of the legalities and you’re set up to start trading in Australia, the real fun begins.
How do you start an online business?
Starting an online business isn’t as straightforward as it may seem and there’s a lot that goes on behind the scenes.
You will have to consider and address issues such as secure payment gateways, terms and conditions, server reliability and customer data protection.
While the spectrum of starting an online business is extremely broad, it goes a little something like this:
- Create a business plan:Lay a solid foundation for your business by creating a business plan that outlines your objectives and how you will move forward.
- Choose a web hosting service: Every website needs to be hosted by a server. Determine the right type ofweb hosting servicebased on your budget and needs.
- Design your website:Goodweb design is crucial. Create a user-friendly and highly functional website that looks great and is responsive across different devices.
- Test and launch:Test the website before you go live for things like copy errors, usability, browser compatibility and site navigation.
- Digital marketing:Promote your business on differentdigital channels and start building your online presence.
- Optimise your site for search engines: PrioritisingSEOis fundamental to help your website rank organically on search engines.
- Maintain your site for optimal function:Getting your site up and running is only half the battle. Invest time and resources inweb developmentand site maintenance to ensure your business smoothly with minimal technical issues.
You should note that this is just a very brief snapshot of how to start an online business and it doesn’t account for the cracks you will need to fill (many of which will be unique to your business).
Luckily, we have hundreds of resources (and experts to help you) right here on SavvySME - from digital marketing agencies andweb designers toweb developers.
Whether it’sapp development, web analytics, how tosell online or inventory management, we’ve got you covered.
As you can see, there’s certainly a lot of work involved with running an online business, but the good news is you don’t have to do it alone!
Read more aboutdigital agencies, the services they offer and how they can help you.
