7 Steps to Starting a Profitable Online Business as an Entrepreneur

As an entrepreneur, there has never been a better time to start an online business, thanks to cheap and accessible data and technology. These days, almost everyone has access to smartphones that they can surf the internet with. Starting an online business is one of the most exciting things you can do in this age and time especially if it is something you are passionate about. Here are the 7 steps to follow when considering starting an online business.

  1. Find a Niche:

In setting up an online business as an entrepreneur, you need to find a niche. In finding a niche you should be able to identify what problem is your product/services providing solutions to? Being able to identify a need as an entrepreneur will give you an edge over your competitors and the ability to identify your customers and know what their pain points are will go a long way to ensure the success of your business.

2. Evaluate Market Viability:

As an entrepreneur, you need to understand that the failure of a product/service can produce a negative impact, so in order to prevent such calamity, you need to conduct research to determine if the product/services you intend to promote actually appeals to your target audience or not. Information like these would save you the cost of spending on a project that may likely be unsuccessful or make you see the mistakes your predecessors in the business have made in time past and how you could correct such mistakes before venturing into such business.

Spending more time to evaluate the market can save you a ton of money and put you in the right part. There are many archives out there just like AmafestUK where successful entrepreneurs have been interviewed and they share their wealth of experiences, tips, and insights. You will discover tips and advice that will help you get started easily.

3. Conduct Market Research:

When starting a business as an entrepreneur, you don’t wing it, instead, you take time to study the market and map out your strategies before you jump into the market. Before diving into the market or switching up a strategy, you need to conduct research. Else, your business could sink within a twinkle of an eye. As a business person who wants to remain relevant within the online space, it is pertinent that you make proper analysis before you take a deep dive if you want your business to stay afloat.

4. Conduct Competitive Analysis:

When building an online business as an entrepreneur, it is important that you research your competition. What are those things that make your competitors unique, how are they promoting their products/services, what channel are they using to promote their brands online, who are their target audience and what problems are they providing solutions to? Providing answers to these questions will inform your decisions on how to go about your business and find loopholes in the way your competitors run their campaigns and how you could leverage their shortcomings to promote your business.

5. Analyze your Target Market:

As an entrepreneur, you should be able to analyse your target audience and identify who they are, their demographic information like; age, gender, interests, and so on. This information will give you an insight into how to target the right audience. Let’s say sell pet foods online and you would like to target pet lovers; demographic information like the interest of your target audience would determine who to target. This means that you get to target people that own pets. What this will do for you as an entrepreneur is that it will save you the cost of wasting money on campaigns targeting the wrong set of people who may not be interested in your products/services. When it comes to targeting the right audience, there are very good digital consulting agencies in Lagos that would help target the right audience to improve your ROI. There are several consulting companies that could help you target the right audience: One of such consulting agencies is DSMC, to mention a few. Digital consulting companies help set up promotional campaigns on social media that would drive wallet-in-hand customers to your offers and also optimize your sales/landing page to improve your ROI.

6. Source your Product:

Before starting any online business, you need to arm yourself with adequate information on where to source your product at a cheaper rate in order to break-even. It is advisable that you make proper research before venturing into any online business, like where to source your product from at wholesale prices. For instance, if you are into a mini importation business, you get can a reasonable deal on some of these e-commerce sites like Alibaba, 1688.com, and so on. These sites are simply some of the largest go-to wholesale and sourcing websites in the world with fairly cheap prices for quality products.

7. Choose the right Platform to Promote your Product/Services:

After you have been able to identify your target audience as an entrepreneur, you need to be able to identify where your customers spend most of their time online. Social media platforms like Instagram and Pinterest are very good for visual products, so if you sell female accessories like shoes, bags, clothing, makeup, and so on, you should consider promoting your products on these platforms. By doing this, you get to plan your budget and know where you should be focusing your marketing efforts online in order to increase return on your investments.    

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