10 Things To Watch Out For Before Starting An Online Business

An online business is not much different than any other offline ventures at most levels; the same ground rules of business apply to it, after all it is a business- just that the business is moved online.

So in addition to the same important factors, a few more things (things that are associated with the fact that the business is online) should be considered before venturing into an online business.

Everybody, everything is 'online' these day, the world is 'online', thanks to the internet and the advances in technology. And it has made online retailing a lucrative business.

Setting up an online store is ridiculously easy but starting an online business is not just setting up a website. Before jumping into it, a few things are needed to be kept in mind to avoid making the worse of foundational mistakes.

Here below are some factors you need to consider before starting an online business.

1. Know your market.

Before you venture into any kind of business, it is mandatory that you know your market first. Whether it's product or service you plan to sell, knowing how much of that will actually sell dictates your business flourishes or eats dust.

It is plain simple- if there's no market, you don't have any business. Evaluate the strength, weakness, opportunities and threats (this is popularly known as SWOT analysis in business) and plan accordingly. In business, it is the market that dictates everything.

2. Lay out a business plan.

Just as much as it is necessary to have a business model for any offline venture, a full-fledged business plan is equally essential to ensure successful online enterprise. Having a properly documented business plan helps you to look at your strategies logically and understand the managerial aspects of your business.

Research and formulate a business plan about where, when, how to run a business. Thanks again to the internet, there are plenty of guides available online to help you build your own business.

3. Design and build an easy to navigate website.

An online store is the soul of online business, therefore, it cannot afford to be clumsy. You loses valuable customers if it is not easy to steer around your website. A good online store has all kinds of features of an offline store; a good search functionality, proper display of products to make it easy for the customers to find what they want.

It should be easy to check in and out at convenience and payment methods should be simple and easy. There are handful of website builders out in the market that offer total ecommerce solutions to build your own customer-friendly store or you can hire a professional as your budget allows.

Compare among the different ecommerce platforms available, let's say BigCommerce vs Shopify, to find out which one is best suited for your needs.

4. Choose an appropriate domain name.

There's a lot in the name than you might imagine when it comes to business- a lot more when it is actually an online business. It is by the domain name that we are identified on the web.

For start-ups online ventures, having a good domain name that is short, unforgettable, easy to remember and spell and that represents your business accurately could prove to be highly beneficial (even the domain name itself sells big on the internet) to drive customers to your store.

5. Formulate a financial plan.

The first rule of business is that there should be investment. If you don't have a clear financial plan, your business plan might land hard on its back even before it takes off. There will obviously be some start–up costs to cover the overheads such as the cost of building your website, marketing, storage etc.

Determine your start-up cost and look for suitable funding. Banks, Venture Capitalists, Small Loan Firms etc. are among different options available who could finance your business. Make sure to include unforeseen expenses in your financial plan and also take in account your living costs.

6. Choose the right web host.

It is absolutely essential that you host website through the right host. An online store should be able to handle a lot of traffic and should have maximum uptime. Website down time is one of the major reasons for losing search engine ranking.

There are many web-hosting companies out there that offer you free and paid webhosting services. Since free hosting services provide limited features, a paid webhosting is advised for a reliable service. Choose the right webhost that allows growth and flexibility. Some webhosting companies also offer domain registration service and tools to build website.

7. Make marketing plans.

Your online store needs to be accessible to as many people as possible, therefore it is necessary that you have a marketing plan to maintain a favorable online presence. Register your site with the major search engines like google, Bing, Yahoo etc. to drive potential customers to your site.

Blog about it, create content. Have business accounts on social media, advertise there. Capture email addresses of your customers, send promotional emails. Exchange links with other websites.
Use SEO techniques. The key to success on the internet: it's all about getting your name out there.

8. Have a reliable banking.

Reliable banking is a must in any kind of business. It is better to have a business bank account rather than a regular one with a bank that understands your business. You risk losing the sales if you don't have a reliable payment system in your online store.

Make use of good and prompt methods to accept credit cards and take orders. Online payment systems like PayPal, google checkout are usually preferred.

9. Know your competitions.

What can you offer that you competitors cannot? That is business. The market today is brutally competitive. It's likely that someone else has already started the same thing that you want to start.
Needless to say, you need to have strategies to secure your market. To stay in the market, your business should have some element of uniqueness to stand out from the rest. Knowing your competitions gives ideas to be unique and to be noticed.

10. Legal matters.

All said and done, your business will seize to exist if it is not in compliance with the law. It is necessary to understand the regulations, registration, licensing, taxing, trademarks, all other legal matters concerned with your business.

Consult with a lawyer and accountant to align your business with the rules of law. Setting up a successful business is hard enough. The last thing you need is some technical legality to stand in your way.