Last Updated on 16/08/2022 by Steve Wanjie
This article is for you if you’re trying to figure out how to start a profitable online business.
Then, I’ll show you the steps to establish a thriving and money-making online small business.
There is no one-size-fits-all answer to this question.
The best way to start and run an online business that makes money depends on the specifics of your situation and business model.
However, here are the two vital ingredients to get started:
a) Research your niche
Before starting an online business, it’s essential to know what your target market is and what your target audience requires.
You can do this by conducting market research to help you identify your target audience and what your potential clients are willing to buy.
Niche research tools are listed here.
b) Set up a website.
Once you know your target market, it’s time to set up a website. Many platforms, such as WordPress and Blogger, exist to help you do this free.
But I would advise you have a paid-for website to run a money-making site successfully.
Learn how to set up a website by reading this guide on establishing a blog to make money online.
The 9 steps you need to implement to start an online business that makes money
Here are the 9 steps you need to implement to start an online business successfully:
1. Define your business goals and objectives
It would be best if you took a few critical actions to determine your company’s aims and objectives properly.
First, figure out what you want your business to achieve.
– Are you looking to make a profit?
– Create new customers?
– Increase brand awareness?
Once you have a good idea of what you want, you must determine how to measure success.
It will help you stay focused on what’s important and help you make decisions that will help you reach your goals.
Finally, it’s crucial to create a timeline for achieving your objectives. It will help you stay on track and stay motivated.
By following these tips, you’ll be able to create a successful business plan to help you reach your goals.
How to define your business goals and objectives?
Business goals and objectives are the foundation of any business. They act as the motivating factor in all decisions.
The first step in defining business goals and objectives is to identify what you want your company to achieve.
To achieve this, respond to the following questions:
- What do you want your company to look like in 5 years?
- What do you want the reputation of your business to be?
- What do you want your company to contribute?
- What do you want your employees to feel about their work?
- How will success be measured?
2. Choose the suitable online business model for you
Choosing the right business model for your online business is crucial in ensuring its success.
You need to look at your strengths, weaknesses, and target market.
There are five main types of online business models:
a) Freelance Model
- This is when you work as an independent contractor on a project-by-project basis.
A freelance model of an online business is a form of outsourcing where the client hires freelancers to complete tasks.
The freelancer (you) can choose to work with different clients or just one, depending on your preference.
This business model is popular because it allows freelancers more freedom and flexibility in their schedules.
In addition, it will enable you to choose when you want to work and how much time you want to spend on each project.
It would be best if you were an expert in a field of choice, e.g., social media management.
I am a digital marketing specialist with much search engine optimization expertise. I can bid for SEO projects online.
What are you good at as far as careers are concerned?
b) Agency Model
- This is when you work with clients to provide services such as design, marketing, and programming.
The Agency Model is an online business model in which a company or an individual) provides a service to other companies and charges them for it.
In this model, the company is the client, and the agency is the service provider.
For example, an agency can provide web design, development, internet marketing, social media marketing, SEO, accounting, writing, customer service, online advertising, and many more.
They charge their clients for these services on a time and materials basis.
d) eCommerce Model
- This is when you sell products or services directly to customers through your website or other e-commerce platforms.
An eCommerce model is a business model that focuses on selling goods and services, typically through electronic systems such as the internet.
You can contrast it with a retail business, which does not sell goods online.
There are three types of eCommerce models:
The product-based eCommerce model is popular and profitable. The model runs on the idea that there is a demand for a specific product, and the business will provide it to the customer.
However, this model has some disadvantages too.
The biggest drawback of this strategy is that it necessitates a sizable initial financial outlay to launch the company.
You can accomplish this through loans or enlisting investors. Still, it can be hazardous for small firms because they might not have enough funds to cover costs if they don’t create enough revenue.
The service-based eCommerce model is not a new concept. It has been around for decades, but it is only now on the rise.
Service-based e-commerce models are becoming increasingly popular because they offer a better customer experience.
They also allow companies to focus on their core competencies and expand their product offerings without spending time on logistics or inventory management.
Online shopping is booming with the rise of online retail giants like Amazon and Alibaba.
The e-commerce industry has two types of models – pure-play and hybrid-based.
The pure-play model relies on the company’s website for all sales.
In the hybrid model, companies use their site to sell some products and market other products through third-party sites.
e) Productized Services Model
- This is when you can break down your service into smaller components that you can sell individually.
The Productized Services Model is a business model that provides a suite of services to clients in a standardized way.
You can use it in the digital marketing industry and apply it to other sectors.
Productized Services are characterized by:
Providing the same services for all customers, regardless of their needs.
You give the customer access to many different services without worrying about the details of each one.
You use technology to automate repetitive tasks and provide customer support.
f) Affiliate marketing:
Affiliate marketing is a form of online marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s marketing efforts.
Some of the most popular affiliate programs are Amazon, eBay, Etsy, Rakuten, and Skimlinks.
Thus, an affiliate marketer (like you) thrives on selling other peoples products and service to an a commission.
3. Build a robust online marketing strategy
Any company trying to increase its online presence must start with an internet marketing strategy.
Every company’s digital marketing plan must include it. Your marketing strategy needs a solid understanding of the target market, the product, and the competition.
You have a marketing plan to help you understand how to get your message across and measure its success.
Building an effective online marketing strategy is essential for any business.
However, it can be challenging to know where to start. This website will do a blog post on tips for building a robust online marketing strategy soon.
a) Understand your target market
First, you need to understand your target market.
What the client needs and wants?
What are their concerns?
Once you have this information, you can start developing marketing campaigns specifically tailored to your audience.
b) Develop lead generation strategies
Lead generation is the process of generating leads (potential customers) for your business.
It is one of the most important aspects of any business because it can differentiate between a successful and unsuccessful business.
Lead Generation Strategies:
i) Generating Leads From Social Media
ii) Generating Leads From Email Marketing
iii) Generating Leads From Content Marketing
iv) Generating Leads From mobile marketing
v) Generating Leads From Referral Marketing
c) Plan your budget
Allocating your online marketing budget helps meet your online goals to ensure success.
It is vital to achieving digital marketing objectives for business growth and sustainability.
It would be best if you considered the costs of your campaigns and the ROI (return on investment.)
A marketing budget is the soul of your online business because your business will fail without it.
4. Launch your online business confidently
Although launching your online business can be intimidating, you can do so confidently with the right tools and approaches.
When launching a business, it’s crucial to have the following in mind:
a) Pick a business strategy that works for you.
Online company owners can access various business formats, such as franchises, joint ventures, and sole proprietorships.
Selecting the model that best fits your abilities and professional objectives is critical.
b) Establish a credible web presence.
Your business must establish a solid web presence, but internet enterprises require it more than others.
You need to attract potential clients with a well-optimized website, and you can find new customers through internet marketing tools.
5. Measure and track your online business progress
Measurement is an integral part of any successful online business.
Tracking your progress, you can understand where you are succeeding and where you need to improve.
There are many different ways to track your online business progress.
For example, a website analytics tool can measure how many people visit your site.
You also know how much traffic you receive and how long people stay on your site.
You can also use a social media monitoring tool to measure how many people share your content and how much engagement you get.
Measurement is achievable in various ways, such as:
a) Number of visitors
b) Number of clicks
c) Number of shares
d) Referral traffic
By tracking your online business progress, you can identify where you are succeeding and where you need to improve.
For example, keep track of page views, time on site, and bounce rate to help determine what aspects your website visitors find the most engaging content.
6. Stay motivated and focused on your online business progress
Motivation is critical when it comes to succeeding in any business venture.
However, it can be challenging to stay motivated when things get tough.
One way to stay focused is to establish a personal goal for your business.
It can help you stay motivated even when things are going tough.
Setting small, achievable goals can help you stay focused on your business.
When you have a clear goal in mind, it’s easier to stay motivated.
Finally, set regular time aside to check your business progress.
It will help you stay on top of your business and make necessary changes.
What are the benefits of staying motivated?
a) Staying on track with your goal:
The first benefit of staying motivated is that you will be more likely to stay on track with your goals.
There are many reasons people lose motivation, but the most common is that they don’t see any progress in their work.
When you see how hard you are working and how much progress you are making, it is easier to stay motivated and keep working hard.
b) Helps increase your productivity:
Another benefit of staying motivated is that it can lead to an increase in productivity.
If you don’t feel like doing anything, getting anything done at all can be challenging.
But when you feel like doing something, finding the motivation to accomplish your goals is more manageable.
7. Take action to improve your online business
If you want to improve your online business, you can do a few simple things.
a) Optimize your website for search engines
Make sure your website is fully optimized for search engines. It includes ensuring your title, metadata, and images are all correct and keyword-rich.
b) Write high quality and relevant website content
Write compelling blog posts that attract readers and promote your products and services.
You need to produce new content regularly to keep and grow your site visitors numbers.
c) Make use of social media
Use social media to build relationships with potential and current customers.
d) Stay updated with online business trends
Keep up with the latest trends in online marketing and advertising to stay ahead of the competition.
Taking these simple steps will help you build a successful online business.
8. Monetization Strategies for your online business
There are many different ways to monetize your online business.
a) One way is to sell products.
b) Another way is to sell services.
c) You could offer content like e-books, articles, or videos.
d) You could also offer membership programs, such as a premium membership site or a subscription service.
e) You could also provide advertising, such as banner ads or text ads.
f) You could also sell products through affiliate programs.
g) You could also sell products through e-commerce sites.
h) You could also sell products through social media sites.
i) You could also sell products through video sites.
j) You could also sell products through mobile apps.
k) You could also sell products through virtual reality sites.
9. How to Make Your Site Attractive and Increase Conversions
The first step to making your site attractive is to make it easy for the user to find what they require.
You can do this using a straightforward navigation menu and a search bar.
The second step is to ensure that your site’s content is relevant and up-to-date.
Again, it will help you increase conversions because people will trust you more.
The third step is to focus on a relevant monetization strategy.
For example, if your site’s content is about golf, your monetization ought to sell golf products, services, and adverts.
Starting an online business can be a lucrative move.
However, starting a business without any upfront cost to make money is difficult although possible.
Thus, you need to invest to realize your online business dreams.
In this article, we have shown you how to start an online business that makes money.
Steve Wanjie is a digital marketing specialist, SEO Expert, expert article writer, blogger, sex educationist, and businessman. He is the founder of Dijito Marketing and Laikipo.com. He works and lives in Nairobi Kenya.