INSIGHT As I write this blog there is a huge swing to all things AI. Trends come every now and again, no one will ever really know which ones are here to stay. It makes sense therefore to always be prepared to benefit from any recent technology or new product that has recently arrived on the market. To be an early entrance to the market will give you a competitive advantage (others will then seek to find a USP to compete with you). Take being said, ask yourself, how can you take advantage or innovate what’s currently trending, or the next trend in the market?
I realise that this following example is off-line however it presents the idea that I speak of well: If I hadn’t invested into property back when I did, in the early noughties, even though renting was a very affordable, if not a cheaper option than buying, I wouldn’t have an asset that now creates a rental income (truly passive). Investing in this assess allowed me to eventually reduce my working hours to part-time and invest my extra time creating additional passive income sources. Right now, neither renting nor buying property are affordable to the majority where I live, which is the UK. This opportunity has truly gone for now!
If your level of capital at startup is very low but you have a willingness and ability to build up new skills, an option is to look for a clear gap in the market for a certain skill, something you think you might be good at and enjoy, it will make sense to invest your time on an online course (if necessary) and then start practising the skill to master it. Once you start making money using it, you could be making 10x what you paid for any course. See my blog on The Top Online Business to Start as a Beginner or Skill Stacking.
If you are still feeling a little stuck here is a few things you can try:
Taking the First Step, Getting the Facts!
So, you’re at a crossroads and you’re considering starting an online business. When you’re first thought is something like ‘what shall, or can, I do? The aim of this post to you help direct you on answering: Which Way to Turn. Unfortunately, I don’t have a crystal ball to be able to hand you the perfect answer but, I hope this article hands you some guidance and kick starts that entrepreneurial spark in you!
Know that…
"Things don't have to be perfect to start your online business, you just need to be in the space where inspiration hits"
Beyond this, I present 5 facts about starting an online business that everyone in this space needs to know.
Fact No.1
The path from the conception of an idea to launch often takes many twists and turns. Understand that…
…no matter your starting position, feeling a bit lost in the digital wilderness is entirely normal, so before you even open your laptop, aspects outline in the next fact should be recognised.
Fact No.2
The Basic Essentials for Online Business Beginners
As a beginner looking for a business idea in the online space, your level of success will depend on you possessing or acquiring each of the following:
- An inventory of all your skills relating to your chosen business
- An assessment of your current knowledge and understanding of your chosen business (having an innate interest or previous employment history in the sector will work to your advantage)
- Contacts or an opportunity to network within your chosen market
- Adequate time to commit to building and then running your business
If you’ve read my About Me page, you already know what sparked my interest in starting this website. In short, I noticed many businesses claimed to be aimed at online beginners but were actually not! They were more tailored for those with high-level sales or marketing skills and an existing customer base. I also noticed that the businesses often required access to markets that could not be easily tapped into, therefore requiring higher marketing costs. So, without these assets, beginners would need to spend a significant amount of time acquiring skills before they could even think about signing their first client. But don’t despair—this post will show you ‘Which Way to Turn.
Here are a few other concerns some people in this space may hold however there’s a business model that suits most budgets:
Fact No.3
Expecting a Quick Launch?
If you’ve read my About Me page, you already know what sparked my interest in starting this website. In short, I noticed many businesses claimed to be aimed at online beginners, but were actually tailored for those with high-level sales or marketing skills and an existing customer base. I also noticed that the businesses often required access to markets that could easily tap into for leads, therefore requiring higher marketing costs. So, without these assets, beginners would need to spend a significant amount of time acquiring skills before they could even think about signing their first client. But don’t despair—this post will show you ‘Which Way to Turn.
Here are a few other concerns some people in this space may hold however there’s a business model that suits most budgets:
Common Constraints That Impact a Quick Launch
Technical competences, Funds and Skills
Constraints on your finance, the amount of spare time or a perceived lack of skills or knowledge, on how the online market space works, might hinder your progress at the beginning of your online business journey.
On the assumption that you want to create an extra income that is also secure and consistence in the shortest time possible, the best advice is to focus your attention on areas that you already have a lot of knowledge, skills, or talents. This may or may not include interests in your current professional life.
Make a List: As mentioned earlier, a full and honest assessment of your competences is advised (whether you think they are relevant or not). This may spark a few more business ideas; you just don’t know to what extent these skills may be in demand. For more details see my post: Skill Stacking for Beginners.
Utilising your already acquired skill set and knowledge is crucial when you are keen to start earning in the shortest amount of time
There really is potential for a success story for everyone in this space
Read my Beginner's Guide to Step 3 - How to Discover a Abundance of Ideas
Fact No.4
What NOT to Do!
…for the majority. The words ‘An Online Business’ can encompass a wide range of meanings. So, as a starter in this landscape, be prepared if you are planning on one of the following routes
E-commerce businesses
You may be tempted to sign up for one of the many e-commerce businesses. Typically, the promises made is that you could start making a profit in 3 – 6 months. What is missing is the few conditions that will make this statement true. If (1) you have an existing product with some distinctive component (2) you have skills in marketing and sales (3) you have available funds for marketing (4) be prepared to respond to your customers inquiries within a reasonable timescale.
Pre-packed Business Models
There are also called packaged businesses or a ‘business-in-a-box’: the ones where you purchase a package which is a business formula along with the blueprint of building a tried-and-tested business. Beware. For many of the reason listed above, these are rarely suitable for beginners. For many of these business models the only person getting rich is the entrepreneur selling the packages. Unless you have a range of pre-existing business skills, including a massive advertising budget (if you do not have a preexisting relevant customer base) these are highly likely to fail and should be avoided.
Fact No.5
What You CAN Do!
If your goal is to get started in the shortest amount of time:
Utilising your already acquired knowledge and skills is crucial if you are keen to start earning in the shortest amount of time. Typically, these are service roles and less likely to make passive earnings. Determine how much time you can spare to get skilled. This will help you assess time you have to fulfil your clients’ orders. Think about how you can provide added value to this (or set of) knowledge and skills; this will be your Unique Selling Proposition (USP), how you can differ from what it already out there?
If many businesses are already offering what you plan to, your USP (Unique Selling Proposition) will set you apart from the competition. Study the market closely: Is there anything missing? Where can you fill the gap? Do you have the capital for the necessary marketing campaign?
But What if I Don't Have Enough Funds!
Here’s what I suggest. Find a business that acts as a seed-funder, or that acts as a springboard to your desired business. This can also help you to build necessary skills or help make connects or act as part of your profile.
Summary
In an ideal world, and as a first attempt, your best plan is to find something you find fulfilling or, something you can get great level of satisfaction from doing. However, first have a realistic look at how much time you can commit to building and then running a business. You can direct your focus on a passive income: one where the exchange of time for money is uncorrelated, for instance, selling stock photos or the many creative art works. Your next challenge is then to find an evergreen business. Here is a personal insight into a lesson I learned:
One of my business ideas, about five years ago, was to pivot my current business and start building on my skills to help small business with their online market. A venture where I still hold a couple of clients BUT, bad luck happens. Who could have foreseen the country locking down for two years, just as I was ready to launch! My lesson, I should have kept my previous business running at the same time.
But…at the end of the day, all skills learned in that period were utilised in other ventures, so whatever you do, most skills in this space are transferrable to other business and will set you on the path to your ultimate desired business and many other businesses.
Lastly, do not waste too much time looking for that something you think you might be good at or enjoy. If you cannot find anything you especially want to do, spend time on studying skills that are transferable ‘online skills’ like content creation, SEO, website design, logo creations; there are tons of free online how-to videos on YouTube. These skills can come in handy no matter what path you decide to follow for your future as a venture, they can be used in multiple online businesses. All education in this area is good. Treat every skill as an investment, eventually you will get some kind of return on it, it is always worthwhile learning.
INSIGHT As I write this blog there was a huge swing to all things AI, maybe two years now. Trends come every now and again, no one will really know if they are here to stay. Be prepared to benefit from any recent technology or any new product that has recently arrived on the market. To be an early entrance to the market will give you a competitive advantage (others will then seek to find a USP to compete with you). Ask yourself, how can you better prepare yourself to be able to take advantage of this or the next trend in the market?
I realise that this following example is off-line however it presents the idea that I speak of well: If I hadn’t invested into property back when I did, in the early noughties, even though renting was a very affordable, if not a cheaper option than buying, I wouldn’t have an asset that now creates a rental income (truly passive). Investing in this assess allowed me to eventually reduce my working hours to part-time and invest my extra time creating additional passive income sources. Right now, neither renting nor buying property are affordable to the majority where I live, which is the UK. This opportunity has truly gone for now!
A second option for a business. If you have a Willingness and ability to build up new skills and your level of capital at start-up is very low
If you notice a clear gap in the market for a certain skill, something you think you might be good at and enjoy, it will make sense to invest your time on an online course (if necessary) and then start practising this skill to get even better at it. Once you start making money using this skill you could be making 10x what you paid for any course. (see my blog on The Best Online Business to Start as a Beginner).