Becoming an online start-up might seem like a much easier option than setting up a business with a physical presence. After all, a few clicks and you are up and running right?
Wrong. It may be true that the low start-up costs of ecommerce have made it a viable option for a wider range of entrepreneurs but the work that is involved in making your business a success shouldn’t be underestimated.
To help anyone looking to set up their own ecommerce site, Ben Dale, Managing Director of Modern Rugs, gives his advice for developing a start-up business online.
Do your research
Market research is critical to any start-up’s success. It is important that you are aware of the size of the market you are intending to enter and assess who your competitors will be. A question which you should ask yourself is, “how will my business distinguish itself from others already out there?” You will need to be able to offer consumers something that other companies can’t or don’t already offer in order to be able to compete.
As well as research into your specific ecommerce niche, you should take time to familiarise yourself with online shopping in general. Buy as much as possible online instead of in store, this way you can put yourself into the consumers’ shoes, giving you an insight into what makes a good purchasing experience or highlight things that don’t quite work.
Have a backup plan
When starting a business you should have every confidence that it will work however, keeping a steady source of income in the form of a second job whilst starting out is advisable. Having this wage will help with any money worries and unload some of the pressure that the financial risk which business brings with it. Once your ecommerce site becomes more established, this is the time to think about making it your full time role.
Delegate
It is understandable that you might want to do as much as possible yourself when starting your own business; after all, it is your vision. Although this tactic will help to keep overheads down at first, in the long run this isn’t sustainable. As your business grows, your team should too. Hiring someone else you trust will mean that you won’t be working all hours of the day and gives you time away from the business, something that shouldn’t be overlooked.
Design is key
Treat your website as your shop front, your landing page is the equivalent of a shop window, your opportunity to show what you have to offer and entice customers to search the deeper product pages on your site.
A well designed website which is easy to navigate means that visits to your site are much more likely to convert into revenue. It also gives you the best chances of competing in your market; a good website will give the impression of a large company, even if in reality it is being run out of the shed at the bottom of your garden.
Invest sensibly in your business
Generally, a start-up business won’t have a large amount of finance behind it; therefore it is vital that you keep a close eye on your expenditure. Always search around for the most cost effective solutions, this way you are much more likely to see a return on any investment you do make. This being said make sure that you aren’t holding the purse strings so tightly that you scrimp on resources such as marketing, which done right, could be the key to your businesses growth.
As well as monetary investment, investing time in getting outside knowledge can be just as important. When issues arise, don’t try to tackle them alone, seek help. There is often a lot of free advice and support available through local government schemes which are well worth taking advantage of.