Almost every new business idea needs to include an online element. Whether the venture is in commerce or business services, the internet will form the foundation of all marketing and advertising functions.
It was announced in February 2015 that digital advertising spending was set to outstrip all other spending forms in the UK. Business is now truly entrenched in the internet.
Launching an Online Business
Many people come up with great ideas; however, the real trick is in knowing how to transform an idea into a successful business. Here we shall share some tips on how you can accomplish this.
Although online startups now make up a significant proportion of new businesses, few businesses are really completely online. For example, the most important aspect of any business is its people, and employees require offices and need to be managed. Businesses require accountants, marketing teams, and customer services. While these may all operate online, they still demand a very traditional office setting.
Commercial businesses that sell a tangible product also need warehousing and packaging departments and are really not too different from traditional shops in the way that they are managed.
Is Online Business Easier?
An online business might seem like an easier prospect than starting another kind of business. However, the reality is that all types of business are hard to successfully launch. The determining factors in the success of a business include both the entrepreneurs making the decisions and the strength of the product. Before the dot-com boom-and-bust years, many traditional businesses failed in their first year.
However, one big advantage of starting online is that there are lower starting costs. Many of the biggest online businesses today, such as Facebook, Amazon, and Google, started in home offices and garages.
Unique and Innovative
Regardless of the type of business, a successful online business must be both innovative and unique. Competition is extremely tough today, and the internet has made the global economy smaller. Manufacturers in the UK now have to compete with Chinese businesses that are selling goods on eBay.
Every new business must have a unique selling proposition (USP). If this is something that appeals to customers, it will beat the competition.
A great example of how an online startup idea can develop into a successful business is that of the former online entrepreneur Robert Bonnier. Bonnier’s parents encourage business thinking, and his first investment was at the age of 13 years when he received compensation for a sporting injury. Rather than spending the money, he invested it.
In 1995, Bonnier joined the internet startup Freepages, which was a business directory. Freepages was floated on the stock exchange and later became Scoot.com, which reached a valuation of £2.5 billion. You can learn more about Robert Bonnier here.
One thing that has not changed is that marketing and branding your online business successfully is central to success. Online marketing should be the first step in building an online business. Build a great website, and make use of social media, search engine marketing, and SEO to drive customers to your web business.
With the right mind-set and an entrepreneurial spirit, it is still possible to develop a great online business idea and drive it forward to become a multi-million pound business enterprise.