How to Start an Online Business? [with 10 Innovative Business Ideas]
The advent of the digital age has made online businesses a sought-after entrepreneurial venture. A study states that about 71% of people believe they will get better deals online for almost any product than in a physical store, highlighting the popularity of online businesses.
Hence, if you want to be free from the monotonous 9 to 5 job without engaging in the humongous task of setting up a physical business, an online venture might be the right match for you. This blog will explore how to start an online business along with various popular online business ideas so that you can leverage the power of the internet and start an online business today.
What is an Online Business?
An online business is a venture that does commercial transactions entirely over the Internet. It encompasses a variety of business models where buying and selling products or offering services is the primary focus. Websites, social media platforms, and other digital marketing channels are used for operating business online.
How to Start an Online Business?
Starting a business was never as easy and quick as it is today. If you are wondering how to do online business, here are the steps simplified for you.
- Develop Your Business Idea: Explore the following questions to find the perfect business idea to build a fortune. What product or service managed to grab your attention the last time you surfed the internet? Is it something you are skilled at yourself?
- Conduct Market Research: A small business owner with trendy products might beat you in the game even before you have begun competing. So skim through various online platforms and check who you are competing with. Know where your customers are spending their time. Study the latest statistics to identify popular digital media platforms.
- Create/Source Product or Service: Let us not forget who the main lead in your business story is, it’s your product or service. Therefore, decide well in advance if you want to make your own products, use a drop shipping method, or work with a wholesaler.
- Develop a Business Plan: Though powering your online business with free resources and tools is a viable option, ensure that you have a business plan ready for the future when you scale up and seek funding.
- Decide Business Name and Structure: Choose a name that resonates with your brand and follows the current internet trends. As for the company structure, depending on your products and the people involved, you can choose a sole proprietorship, a partnership, a corporation, or a limited liability company model.
- Sort Legal Formalities: Legal rules for establishing an online business are slightly different from the regular business. Go through all the rules thoroughly, especially the ones related to licensing and taxes, to avoid problems at a later stage.
- Finances and Funding: Setting up payment options online is pretty simple. You can use e-wallets for safer transactions. You do not have to worry much about the funding to start an online business because an online store can be started without investing much. But if you wish to seek funding for expansion, you can apply for a loan or get on board a venture capitalist. Crowdfunding is a popular source of funding these days.
- Build and Launch a Website or Online Store: Plenty of platforms will provide templates, built-in e-commerce features, SEO-friendly features, security features, etc., to build your website or an online store. Shopify and WordPress are go-to platforms for online business owners.
- Create a Strong Marketing Strategy: What is an online business without an online presence? Now that you have launched your online store, let people know about it. Learn about various digital marketing methods such as paid ads, social media marketing, influencer marketing, SEO, etc., and promote your brand.
- Grow Your Business: One person can begin a business but it is hard to run it alone in the long run. When you are ready to scale, hire more employees for a smooth workflow. Remote employees are a hit in the online business game, so, post jobs online to hire them.
To know more about setting up a new business, read this guide on how to start a business.
Online Business Ideas
Now that you know how to start an online business step by step, are you ready to set foot in the game or are you waiting for the right idea? Don’t worry, we have you covered. We have compiled a list of popular online business ideas just for you.
1. Ace the Digital Space: Influence and Earn
Influencer marketing has pretty much become a norm due to a considerable percentage of potential customers on social media. You will find more and more businesses hiring influencers to promote their brands. Being an influencer is not very easy, but it is not too difficult either. Influencers with fewer followers also earn well through collaborations and promotions if their engagement rate is high.
2. No More Storage Anxiety: Let’s Dropship!
Save that money for something better because dropshipping will reduce your business budget drastically. The dropshipping process simply requires you to place the order you receive for a product with a supplier who will handle the packaging and delivery for the same. You do not have to worry about managing an inventory because that is the supplier’s responsibility as well.
3. Got That Style? Build Your Online Clothing Store
Do you love to design and create your own style? Then opt for an online clothing store where you can create designs digitally and have them printed on clothes such as t-shirts, shorts, sweatshirts, etc. The printing is done through a third-party manufacturer. You can create your own clothing brand out of it and sell it on your online store.
4. Be Your Own Boss: Write, Develop, Design on Your Own Terms
There is nothing better than being your own boss. Freelancing is the perfect online business idea for creators who work alone. You can be a writer, developer, designer, or someone with other skills. All you have to do is reach out to potential customers who need your services. To begin with, you can register on freelancing marketplaces and gain experience or do work from home content writing jobs. Later, you can shift to having your website or blog where you offer creative services in return for a said amount.
5. Monetize Your Knowledge: Create Your Online Course Today!
Do you possess a skill that is in demand? Then stop procrastinating and get started with building an online course to teach. Be it physics or cooking, blogging practices, or developing a code, you can teach anything through these courses and sell these to gain a profit. You do not need to make a big setup for this. Instead, focus on the clarity of concepts and reaching the correct customer base.
6. Join the Digital Momentum: Create and Sell NFTs
The latest addition to the league of popular business ideas is creating and selling NFT or non-fungible tokens. It is easy to learn, create, and even sell these. Bonus points for you if you were already creating physical art because you can skip the basics and create fun and attractive NFTs. It is a great way to reach a wider digital audience while generating an income.
7. Let’s “Talk” Business: Launch Your Podcast Today!
If you love to talk and have an opinion or knowledge about things, then there is no better idea for an online business than launching a podcast. But how can you make an online business by podcasting? You will need a microphone and audio recording software to begin. To sustain content creation, try collaborating with prominent personalities since having a guest like that on your podcast can boost your popularity. Always encourage your listeners to leave reviews to increase profits through engagement.
8. Adding Personal Touch to Your Artsy Business: Make, Sell, Profit, Repeat!
From digital art to physical paintings, you can sell all your creations on your online store or other online marketplaces. Handicrafts make appealing gift options as anything handmade is well-received by people who love hand-crafted things. Handmade goods include furniture, jewelry, photo frames, journals, etc.
9. Recommendations That Profit: Affiliate Marketing
Are you wondering how to start an online business for free? Well, sharing your recommendations has now become a business idea. Traditional word-of-mouth practice is now on the internet and you can reap profits from it. Affiliate marketing is all about sharing recommendations for products or services on your blog, social media accounts, email list, etc. You earn a commission each time a customer purchases something through your referral link.
10. Boast Your Exquisite Choice: Curate Subscription Boxes
Do you find the festival hampers lying around in your home boring? Well, you can turn them into something fun and exquisite and earn a decent amount of money. Curating subscription boxes is an online business idea that lets you earn while simply putting things together in nice packaging. These boxes can be made around any theme or occasion, a festival, a book club meet, and more. All you have to do is collaborate and purchase products from brands and artisans, curate them according to a theme, bundle them in packaging, and finally sell them on your online store.
Conclusion
If you have explored how to start an online business through the steps shared above, a business idea might already be lingering in your mind. It is time to brainstorm and work out a strategy to expand your business online. You can further promote it by posting work from home digital marketing jobs and hiring marketers. So, are you ready to kick-start your entrepreneurial journey? Tell us the online business idea that inspired you in the comments below.
