How To Start An Online Business In 2022

If you want to start an online business, read on for all the crucial pointers you need to make a decision and make your dream career come true.

1) Determine The Type Of Services You Want to Offer

Start with this question in mind. Are you going to be offering services that you might already have? Do they require any significant capital investment or are you able to earn a passive income stream from these ventures? Are you looking for something that is completely new to you?

In these cases, it’s likely to be best to find out as much as you can about them beforehand so you don’t spend too much time researching for the right option. This will save you time and money.

2) Find A Profitable Niche And Focus On It

This step is particularly important when starting an ecommerce platform that doesn’t sell anything similar to what you do. Before choosing the niche, I say choose rather because you don’t want to waste resources searching for a “perfect” product, only to find yourself spending more money and less time marketing to those who already know of the product. Instead, consider using Google Trends before deciding about the most relevant ones to get started with.

3) Research the Market

A vital ingredient of success in starting an online business is knowing how the market has evolved over the years. With a little research on the topic, take note of how well established competitors like Amazon, eBay, Etsy and other sites rank websites. These rankings can help determine whether a site should create a listing as part of their core competency or if they should focus solely on selling products that you like.

4) Invest In Your Own Information Technology (IT) Systems

Another aspect that makes or breaks an online store is its IT system. Without an efficient information technology infrastructure, your online store won’t be able to compete on a level playing field against the likes of Amazon, Ebay or Etsy. So before you decide on your own systems, take stock of which one you feel will make the most sense. There are plenty of platforms available but I like Shopify, BigCommerce and WooCommerce. Each site has different features and costs but can all provide benefits for both customers and businesses alike which means there is no point in being picky.

5) Choose Between Freelancing Or Becoming A salaried employee

There are numerous reasons why some people end up working as freelancers instead of employed by companies. But for many more reasons, the idea is still enticing. For example, if you love cooking, becoming a cook with zero hours of work per week might be your ideal mode of achieving a steady income. Alternatively, if you have a knack for crafting, making good quality products might be within reach. While becoming an employee would often mean a higher salary, that might not be enough to justify what you hope will be a life changing career move. Don’t expect the job satisfaction and financial rewards that only come with your own hands-on experience.

6) Take Some Time Away From Work

If you’re lucky enough to work for a company that gives you flexible hours, this might just be the thing you needed to change your career trajectory. Unfortunately, it isn't an easy thing for people to adjust to being able to work whenever they like because they were used to sitting at home until 9pm each evening till 8am the next morning. This might also be a factor with having children and raising them during weekends and holidays. Getting enough time away from work would help make a big difference in terms of mental health and your ability to adapt to it. If you work in retail or service industries, taking a short break from work once every two months might be the perfect amount of time to re-evaluate your views of that industry by reflecting on how much time you actually have on weekends and holidays. As long as you are able to afford the time and opportunity, it could benefit your overall wellbeing.

7) Stay Active In Social Media

If you aren’t active on social media before you decide to become a business owner, then chances are that you’ll struggle to stay engaged. Studies show that, on average, we spend around six hours per day online. We’re busy doing different things that are unrelated to our primary passions. Our Facebook accounts, Instagram posts and Pinterest feeds aren’t all engaging content, and when we check email instead of checking them, we’re missing great opportunities for potential clients and prospects to see that we actually have a solid list of stuff to sell. When you are actively investing in social media, and it's promoted enough, you become a brand. Just by being available to your followers and seeing your name appearing on theirs, your sales will increase with a huge multiplier effect. It’ll be great to know that you have somewhere to spend more time promoting your business and putting out new content, even if you don’t have any plans to run or run your own shop.

8) Go Off The Grid

This may sound silly but when you are constantly running from one thing to another, it can lead to burnout. Not only does running from place to place make you stressed and bored inside out, it can also cause serious relationships problems that make it hard for you to connect with people who love what you have to offer. One way to combat this is by creating a side hustle or side project that pays for itself quickly without needing to rely on additional income streams or external validation. By simply creating a passive income that allows you to pay yourself while on holiday or resting, you can put the power back into your hands and give yourself the confidence to truly invest in yourself and your own dreams without taking too much risk.

9) Make Use Of Automated Tasks

While it was really important to talk about finding the right type of task, it’s equally important to make use of automated tasks. That’s where customer service comes in. When you are handling orders and dealing with customers, an automated task like order tracking software is necessary. Having someone to look after your business 24/7 can make all the difference when starting your first business. If you are managing everything themselves it is possible to have some peace of mind knowing that if something goes wrong or some unforeseen problem arises, you aren’t on your own and instead have a support team round the corner.

10) Look At Costing Methods

Costing methods are a big deal when trying to figure how to start an online business. There are various ways to approach this from a cost perspective and that is exactly why I have put up a table below that shows the four main options available. This is not the same as a full costing of your whole enterprise. That process would include lots of calculations and figures but it wouldn’t be comprehensive enough for the first time buyer hoping to go off budget.

Costing Method 1: Dropshipping

When considering how to start an online business I have found the easiest path to take. Starting with dropshipping as opposed to developing a dedicated physical shop is very lucrative and affordable. However, it requires some upfront capital expenditure but offers a lot of flexibility. Plus, it provides you with a lower barrier of entry and access to a wide range of items than you would if you wanted to build your own storefront.

Costing Method 2: B2B Courses

There have been many books written about building a successful, sustainable online business. They cover the entire gamut from blogging as an online course and monetizing through affiliate sales. The truth is there is no such thing as a standard business model because every entrepreneur has a unique setup that makes personalization and customization challenging. Many startups provide courses with free resources that allow aspiring entrepreneurs to build their own website, set up their own domain or even buy a prebuilt template to reduce the stress of starting an online business.

Costing Method 3: Affiliate Marketing

Affiliate marketing involves paying a commission for each sale that results from a referral. Because the commission isn’t charged directly on the item sold, most affiliates use other online sources to generate commissions and earn an income. This doesn’t work for everyone even though it is one of the biggest revenue generating approaches. Those who use a specific tool like SEO Hub or Adzoo can get thousands (or tens of thousands) of clicks per day which can lead to hundreds of dollars worth of earnings but it takes a long time to become profitable while others may have built a following and can get up and running faster.

Costing Method 4: Direct Selling

The term direct selling is self explanatory. Essentially, you sell a product or service to someone that can’t afford to buy them on their own. Most of us can’t afford to buy a car, get insurance for ourselves or even let anyone else pay for our meals. Fortunately, a person that can’t afford buying a product does not necessarily mean a person with no income. Often, it’s an individual or family member who’s seeking assistance with purchasing their own product. More common than just sharing your product or service as long as it isn’t a major expense like a car hire, is selling second hand goods for instance. Once the purchase occurs, you continue to receive payments from the seller throughout the process.