Launching an online business can be a very exciting time for a company and business owners. As the internet continues to grow as well as opportunity, we see thousands of new businesses launch. Unfortunately, most will fail and never see year one. Over 90 percent of online businesses fail. How can you make sure your online business succeeds?
Starting Your Business In A Profitable Niche
Most online businesses are doomed out the gate simply because of the market and niche they have chosen. This is exactly why you want to start with a niche that is profitable (if possible). There’s a lot of data points and resources out there to get credible information on how certain industries are performing online. Let’s look at the most popular markets in 2016.
- Weight Loss – Health
- Diet – Health
- Nutrition – Health
- Weight Gain – Health
- Dating – Relationships
- Home Entertainment – Technology
- Software – Technology
- IT – Technology
These are only a few of the most profitable markets for 2016.
Sorry, every niche and market is not profitable. If I’m you and I’m starting a new business online, I want to see a demand for my services or products. This puts the odds in your favor. It doesn’t guarantee anything, but it’s better than trying to sell product no one buys.
How Can I Make Sure My Business Doesn’t Fail
Easier said than done, but there’s steps that you can take to give your business the best possible path to success. And if you’re in the right niche and offering the right products/services, you are a step ahead. Let’s look at other ways you can create success for your business.
Know Your Numbers
Most men and women that start an online business have no clue to accounting. That’s fine for now, but you better be a quick learner. The equation you better know, Revenue vs Expenses. It doesn’t have to be complicated. A simple Excel spreadsheet is all you need.
Revenue
- $230.00 (Membership Fees)
- $770.00 (Client Fees)
- $350.00 (Software Sales)
- $1,350.00 (Total Revenue)
Expenses
- $300.00 (Outsourcing)
- $400.00 (Marketing)
- $700.00 (Total Expenses)
- Revenue vs Expenses = Profit (In this case, $650.00 profit)
This is the most simplest form of crunching business data. Revenue has to be higher than expenses. Period. At the very least, you need to know these numbers.
Tracking Everything
Your best friend is your ability to track not only revenue, expenses and profit, but everything. Why track everything? Besides the data benefits, one word, “taxes.” Everything has to be accounted for. If it’s bought for the business, track it. If it involves the business, keep it. You’d be surprised at how many new business owners don’t even calculate revenue and expenses. You have to know your numbers.
I can’t stress the importance of being able to look at your data and plan, as well as making adjustments. You don’t have to be an analytical superstar, but you need to know what your numbers mean. A/B testing is a crucial part of online business. The most successful online companies do it well. We use A/B testing to optimize landing pages, emails and conversions. So get to know A/B testing and how it can help your business.
Creating Revenue Streams
Revenue streams are vital to any business, especially new businesses. Why some of you may be forced to rely on just one revenue stream, your focus needs to be multiple revenue streams that will grow your business. It’s never too early to create revenue. You may want to consider paid content opportunities, advertising on your website. If you’re in the IT field, you’ll have a lot of different ways to create extra income. This can help you build your business.
Always Think About The Customer
No matter what strategies you put together, don’t forget about the end user, your customer. When you think from this front, results tend to get better. Here’s some key points to ask yourself.
- Will this give value to my customer?
- Will this enhance your customer’s lifestyle?
- How can I make site navigation better for users?
- How can I make the purchase process simple?
- What do my customers need?
- Can we provide better customer support?
I know there’s a lot of things we can ask ourselves about our end users. When you think of your customer’s needs first and not your own, the end results are often better.
Focusing On Your Website, Blog And Store
The main gateway to your business is going to be your website. Not only do you need to make sure you have a website, you also need to make sure your website functions as you need it to. The website should look professional and your content should always serve a purpose.
Some of you will have a website, others a blog or eCommerce store. Some of you may have them all. I recommend using them all, if you will indeed have a store. If not, all you need is a website and blog to promote your services.
Get familiar with building landing pages and the strategies used there to convert traffic into sales.
Growing Your Online Business
Digital marketing is one of the most common marketing fronts you see online businesses using. Digital marketing opens your business to the world, it’s extremely effective when used right. For young online businesses, you have two choices. One, you market your business yourself. Two, you hire someone to do it for you.
Digital marketing can include the following marketing strategies;
- SEO (Search Engine Optimization)
- SMM (Social Media Marketing)
- Email Marketing
- Content Marketing
- Paid Marketing
- Influencer Marketing
Since most online business owners start a business to make money, budgets can vary. If you have a tight budget, you may find yourself in the role of CMO. If you’re doing your own marketing, you need to learn how to perform such techniques and strategies.
These 6 digital marketing techniques would be exactly what I’d focus on first and yes, I would use all 6 starting out. Let’s break these down further.
- SEO – SEO uses a wide range of strategies to rank specific keywords in search engines such as Google, Yahoo and Bing. Organic traffic is typically your top converting traffic source online, meaning organic traffic is very profitable. Although SEO is a long-term strategy and should be applied that way, you can see short-term success as well. You need to focus on exact match keywords that relate to your business. Make sure these keywords are targeted on one main page. Keywords should be relative to the business and have search volume. Content should be planned prior to ensure each individual keyword you want to rank for is mapped out.
- SMM – Social media marketing can be very effective growing your online business. Likely, few people know of your business. Start a Facebook page for your business. Make sure the content you share serves a purpose. It should be useful and valuable to your audience. You can join other social platforms, but don’t over do it. You should test your social platforms on performance. It’s ok to start with multiple social media websites to start with, just make sure you know the results they bring. If you need to decrease social output, you can take away the accounts that are not performing to your standards.
- Email Marketing – Email marketing can be extremely effective. Most times, your email list will be your second top converting resource. Email marketing is effective because those who sign up already have an interest in what you do. Plus, you can use creative ways to get emails, such as drawings, free giveaways, prizes and more. You can use platforms like Mailchimp and Aweber to optimize your website to create leads. You can use automation to send potential customers emails. Creating the perfect email system takes time and testing. However, it can be very effective when used properly.
- Content Marketing – Content marketing is the most used marketing strategy in the world. Content works with SEO and visa versa. But remember, I’m not just talking about articles. Content can be infographics, landing pages, videos, audio, webinars, slideshows, ect. Due to this, content marketing can have many purposes and uses. It gives you every possibility under the sun. And I go back to what I’ve said in this article, ALWAYS make sure content has a purpose. Don’t just produce content to produce it, make all your content on point to achieve a goal. In the end, you’ll save time, money and effort.
- Paid Marketing – Again, it all depends on your budget. Paid marketing is extremely effective and I recommend using it out the gate. Google Adwords is one paid option, but it can cost a lot of money. This is exactly why I recommend investing in Facebook. Using paid Facebook ads will help your young business gain exposure, credibility, traffic and results. Any type of paid advertising option can help you with A/B testing. I recommend Facebook and it can depend on your niche. But when you look at Facebook having 1.5 billion users, pretty much anyone can see success there.
- Influencer Marketing – This may be the most important out of all 6 digital marketing strategies. Influencer marketing relates to reaching out to those who influence the markets. Exactly as described. You can never have enough friends in business. When you’re fresh out the gates, you need to earn trust, awareness and credibility. High quality content is one way of earning such elements, but you have to get your content in front of the right people. Start from day one, go out and connect with those within your industry. A network of associates can produce results once thought imaginable. Be genuine with the relationships, that’s the main turnkey.
Think Growth, Think Big
It’s easy to get caught up in the actual work of your business than business management, which deserves your full attention. For you the “one man (or woman) show, this can be tough to juggle both roles. If you’re doing all the work for your business, you may find it hard to manage your business. However, one of the biggest needs for your business at this stage is growth.
No business can succeed at a beginning level, there has to be growth. You need growing traffic, growing revenue and growing exposure. While digital marketing can get you there, you still need to think growth and you should thing BIG.
Your online business will go through transitions as markets change. Being prepared for this could be the difference between success and failure. How you adapt to these changes is up to you. The better you handle change and incorporate it into your business model, the more you’ll be able to achieve. So think short-term and long-term solutions.
