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Ways to Build a Profitable Online Business

Ways to Build a Profitable Online Business

Only a select handful could establish their own business back in the day.  Getting money from investors was hard (unless you had a ‘rich family’), so you needed a lot of money to get started.

Granted, that won’t be the case in 2022. Anyone, regardless of their professional background or previous entrepreneurial experience, may now establish and build an online business.
However, while the barrier to entry has significantly decreased, it is not completely gone. You must still come up with a credible product concept, choose your sourcing or production plan, and then develop a sales strategy.

Steps to starting a business online

Here are some of the steps to build a profitable online business 

Step 1.  Determine your niche and business idea. 

Building an online store starts with honing the idea for the products you would like to sell. When deciding what to sell, start by deciding on an overall concept by establishing which niche or industry you want to target. Personal interests or market prospects may inspire this concept.

Rather than selling a large range of general stuff, it is easier to target people with a certain interest and sell products that specifically appeal to them. Choosing a focus will also provide you with a clear starting point and make it easier to build a strong brand. Your niche is broken into parts: price, audience, market opportunity. 

For example, a car enthusiast might want to open an online store that sells car products. However, a better business concept is to fill a market void or need, such as add ons or parts for a particular brand of cars like Tesla or Ford.

Step 2.  Choose a business model

Once you have an idea of what you want to sell, you need to decide how to sell it. Some business models include:

  • Start a dropshipping business (instead of stocking inventory)
  • Develop and manufacture custom products
  • Start a private label brand
  • Pack and ship orders yourself
  • Use a third-party fulfillment company to store inventory and fulfill orders

Start by calculating how much time you want to devote to your eCommerce business. How much storage space do you have or are willing to acquire for inventory? If your internet business is a side project, it’s possible that you’ll only be able to sell and stock a few items. Alternatively, you can only sell dropshipped products, so you don’t have to fulfill orders or pay for a third-party service.

If you want to expand your online business, though, you’ll probably want to create custom or private label products and stock a lot of them yourself. This strategy entails having a dedicated garage, room, or storage space for handling inventory and packing orders, as well as outsourcing fulfillment to a fulfillment company if your business grows and you can no longer fulfill orders yourself. 

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Step 3: Source products to sell online. 

You’ll need an efficient approach to acquire products to run a successful eCommerce business, but like so many things in life, this is easier said than done.
Before you can source products, you must first identify a product sourcing strategy that works for you, then analyze various product sourcing companies before deciding on a supplier to work with.

Product sourcing is the act of acquiring products that you can sell. Today, most businesses source products online via B2B marketplaces, but you can also source products locally or at trade shows.

Basically, there are 3 main product sourcing strategies — you can source products from:

  1. Dropshipping suppliers, for a hands-off experience
  2. Wholesalers, to sell third-party goods
  3. Manufacturers, if you want to create custom products

Each of these product sourcing methods will affect virtually every aspect of your business operations and sales efforts, so it’s vital to choose the best one for you.

Step 4. Define your brand and image. 

In order to cut through the noise, you must have a strong brand image. Brand Image is how customers think of a brand. It can be defined as the perception of the brand in the minds of the customers.

This image develops over time. Customers form an image based on their interactions and experience with the brand. These interactions take place in many forms and do not necessarily involve the purchase or use of products and services.

To build a strong brand image, you’ll need to start with understanding who your brand is and what it stands for. This foundational work helps you to position yourself in the market and win the hearts of your target customers.

Determine your mission, vision, and values

It’s important to start with defining your mission, vision, and values because everything your company does (and every experience you deliver) should line up with your mission and values. Inconsistency in values will hurt your brand image, so you must define your purpose before promoting your brand.

Create a brand positioning statement

A brand positioning statement can help you stand out from the crowd by describing how you meet a need for your target audience. To do so, do some research on your competition and figure out what makes your brand stand out. Perhaps you excel in an area where one of your competitor’s struggles. Create a one- to two-sentence statement that communicates your distinctive value to your customers once you’ve figured out what sets you apart.

Create a brand personality

Each brand, like a person, needs its own personality, voice, and attributes. Begin by deciding on a tone and listing at least 10 brand features. You can also write a list of what your brand is and what it isn’t. Your marketing and brand image will be more consistent if you define a brand personality.

Identify your key audiences using persona research

You can’t create a marketing message tailored to your target clients if you don’t know who they are. To begin, you must conduct research on your target audience and compile demographic and psychographic information on them. After that, you segment them into three to five fictional versions of your target clients. Understanding your customer profiles and target groups is critical to projecting the proper brand image.

Benefits of starting an online business 

If you’ve ever fantasized about starting your own online business from the comfort of your own home, you’re not alone. In fact, the United States has 38 million home-based enterprises. Many of these entrepreneurs claim reasons such as wanting to be their own boss, pursuing their passion, and dealing with the loss of their job due to unforeseen life occurrences, such as the coronavirus, as the key motivators for them to get creative and turn to online methods of generating revenue.

If you work a full-time day job, both your field and your experience can limit your earning potential. For example, you can obtain all the expertise and qualifications you want as an educator, but you’re unlikely to ever earn the same million-dollar salary as investment bankers and lawyers. However, the sky is the limit when it comes to an online business.
If you can sell one product online effectively, you can train yourself to sell five, ten, or even fifty! You won’t need to haggle over every raise; instead, you’ll have the power and expertise to produce that extra cash on your own.

Remember, you have what it takes to turn your dreams into reality, and an online business can be the missing link between you and your goals!

At Her Money School, we teach female entrepreneurs how to become rich—led by Oliva Jares, a world-renowned thought leader and coach on financial empowerment for women. 
Oliva is considered one of the top resume experts in the United States. Her work has been featured by Forbes, BBC, CNN, MSN, and hundreds of other media sources all over the world. She has helped tens of thousands of women all around the world through my close-knit community, proven frameworks and high-value programs.
At Her Money School mission is to close the gender wage gap and teach women how to become wealthy beyond their wildest dreams. Start your journey today towards wealth.