Face-to-face transactions vs online business
A fully online business, in a nutshell, is a business entity conducted entirely on the Internet which may generally encompass selling goods and services solely in cyberspace with no inventory. A traditional business entity means one which doesn’t operate in the online space at all, while a Hybrid business is being a business having an online presence surpassing the physical operations.
How to get prepared to start an entirely online business?
Do you have an idea of commencing up an online business? If so, it’s unquestionable that you’ve arrived at the best decision if you always wanted to be an entrepreneur, as starting up an online business is one of the best ways to get your foot in the door. In this era where we see mushrooming of start-ups in every corner of the world thanks to the digital infrastructure, you may think it’s an experience full of tranquillity to establish an online business as this concept offers a wide range of perks over traditional businesses. But it’s essential to be conscious about the precise approach to follow up as benefits don’t conclude at all that commencing and running an online business is a walk in the park.
How do you choose a product to sell?
Suppose you think your product necessarily needs to be a sophisticated endeavour to be profitable. In that case, first, you need to put that counterproductive idea into the trash bin as it restrains your success.
Next, you need to think of a productive yet straightforward idea. But you wouldn’t be able to think of a good idea if you just think of a good idea. Instead, you are required to find out a solution to a problem that you see in your life. Tylenol (a pain relief medicine) wouldn’t be a business if literal headaches didn’t hurt. Likewise, your desired progress will not be attainable if your product doesn’t solve customers’ pains/problems. To identify those problems and solutions, you can browse online platforms such as social media, journals, websites, or market surveys and many more ways.
Making these solutions available for customers to purchase in your cyber market space will differentiate you from the majority who are first searching for a product and, secondly, a market. Suppose you’re choosing either an existing product or a new one to sell on your online platform. In that case, you are required to consider the demand, competition, customer reviews, size, weight, packing, shipping, delivery and selling price into consideration to drop down costs while lifting profit.
How to Secure a Business Location?
After finalizing the product/service, you must pay attention to reserve a Domain/ Domain Name that brings out an endemic identity to the business and is similar to the physical business address of a traditional business.
What is a Domain Name?
A Domain Name is an easy-to-remember name associated with a physical IP (Internet Protocol) address on the Internet. Ex; Google.com, Wikipedia.org.
How to select a Domain Name?
Rank proposed names in a list and select an appropriate domain name for your business, considering the business name plus keywords related to the business. Double-check if your favourite already has been picked up by someone else.
Note: Seek the service from a consultant/expert to select a name and handle the servers if you don’t have adequate knowledge.
Set up your Business Premises
As to how physical showrooms are being the business premises to traditional businesses, the website is the only business premises within which a fully online business operates. Hence, it is of utmost importance to create your business website in a solid manner that attracts and retains customers as you just have few seconds to persuade a customer to revisit the business via the first impression given by the website. Keep in mind; the case is not like in traditional businesses; if customers are gone; they’re gone, you wouldn’t have second chances to bring them back to the place. Hence, creating multiple pages on the site consisting of a detailed catalogue of your products and services in a customer-convenient manner is of foremost significance to sustain the retention of customers.
Note: Hire a skilled web designer if you don’t have resources on your own.
Own an online payment system
If it was a traditional business, yes, you can obtain the price of your product in terms of cash right after the product is delivered to the customer in a face-to-face transaction. But the scenario is way different when it comes to an online business. You are an entrepreneur who delivers your product even to the customers living in the next end of the world without any physical interaction. In this context, you’re required to have a partnership with an online merchant account service such as PayHere, PayPal and Google Checkout. You have the space to sign up for free under the condition of pay a per-transaction fee to the facilitator unless you own your own Internet merchant account.
Now you may realize that it requires you to insert a significant effort to start an online business as same as how a traditional business needs. Hence, better to bear in mind that you will reach targets only if you dig deeper into the process to see the actual depth of the task without relying on the glitz and glamour of the overview.
What you should do after reading this blog
Let’s begin to prepare your business plan for a new business or converting your existing business into an entirely online or hybrid model. Whatever business model you chose requires you to gain knowledge to process your business idea into an online business. Thus, it is advisable to seek advice from an expert unless you are equipped with the knowledge and internal resources.
Preparation of business plan provides you with the right direction and avoid technology hiccups. The business plan should be your knowledge platform where it provides you with much information such as marketing, product pricing, competitive products (competition), expecting market share, financial projections, technology applications, HR, and legal prerequisites etc. GOOD LUCK!
Be Safe – Stay at home
By Team SCB Corporate