5 Tips to Consider before Starting an Online Business
A lot of Filipinos were laid-off in their current jobs because of the pandemic. Sadly, their outlook for this year is still bleak since there are limited opportunities and unemployment is still on the rise. A lot of industries were affected such as tourism, hotel and restaurants, airlines, and other non-essential businesses. Thus, many of them started online businesses to generate income. Like any endeavor, some found success but others were not as lucky.
If you’re planning to start an online business soon, here are 5 tips that you can consider first before you start your project:
Identify the product you want to sell
Is there a hobby or a thing you’re interested in? Why not revolve the business concept around these things? Don’t be pressured to jump in the trends of what people are interested in currently. Most of the time, it is just temporary and people will lose interest in that after the hype is over. Identify your unique selling proposition then work on it more. Also, make sure you’re interested in the product you’re selling so when they ask questions, it will be easy for you to answer their queries. It helps that you can share some tips too on how to use the product. Remember, it is harder to sell something if you’re not interested or have 0 knowledge of it.
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Identify the product you want to sell
Is there a hobby or a thing you’re interested in? Why not revolve the business concept around these things? Don’t be pressured to jump in the trends of what people are interested in currently. Most of the time, it is just temporary and people will lose interest in that after the hype is over. Identify your unique selling proposition then work on it more. Also, make sure you’re interested in the product you’re selling so when they ask questions, it will be easy for you to answer their queries. It helps that you can share some tips too on how to use the product. Remember, it is harder to sell something if you’re not interested or have 0 knowledge of it.
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Understand your target market
Nothing is more important than understanding your target market. If you’re introducing a new item in the market, research who could be interested in the product and how to introduce it. Create content that would hook the interest of your potential clients to your online shop so you can better understand their behavior like what are the things that resonate with them, the time they are online, and also what are things that capture their attention the most. Once you’ve identified these things, you can create or adjust your content to capture specific markets. In terms of understanding your clients, there is no one size fits all formula!
Understand your target market
Nothing is more important than understanding your target market. If you’re introducing a new item in the market, research who could be interested in the product and how to introduce it. Create content that would hook the interest of your potential clients to your online shop so you can better understand their behavior like what are the things that resonate with them, the time they are online, and also what are things that capture their attention the most. Once you’ve identified these things, you can create or adjust your content to capture specific markets. In terms of understanding your clients, there is no one size fits all formula!
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Find your suppliers
If you’re not personally creating your own product and would require outsourcing, research thoroughly and weigh your options so you can select the best supplier/s. Ask yourself if you’re outsourcing it locally or from abroad? What are the costs associated with outsourcing? How about the quality of the products? Do they give discounts to resellers? What is their turn-around-time in shipping the products? Can you produce your own items instead? Don’t be in a rush when finding the right supplier since it will affect the quality and reliability of your business. Look into your own community, maybe there are people that can outsource from and create your products instead.
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Find your suppliers
If you’re not personally creating your own product and would require outsourcing, research thoroughly and weigh your options so you can select the best supplier/s. Ask yourself if you’re outsourcing it locally or from abroad? What are the costs associated with outsourcing? How about the quality of the products? Do they give discounts to resellers? What is their turn-around-time in shipping the products? Can you produce your own items instead? Don’t be in a rush when finding the right supplier since it will affect the quality and reliability of your business. Look into your own community, maybe there are people that can outsource from and create your products instead.
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Logistics and payment methods
There are a lot of logistics concerns when you put an online business. You need to map out effectively and efficiently your logistics so that your business does not suffer. If your products are bought abroad, technically your clients will wait longer so manage their expectations that their items can not be shipped instantly. Also, your packaging should be good enough to protect your product against the impact of poor handling in the shipping or delivery. Partner with a logistics company that gives you the option for the items to be picked at home instead of dropping them in their offices.
Make sure too that your payment methods are flexible. It is ideal to have at least 2 different bank accounts and at least 1 e-wallet so your customers have move payment options other than cash on delivery.
Logistics and payment methods
There are a lot of logistics concerns when you put an online business. You need to map out effectively and efficiently your logistics so that your business does not suffer. If your products are bought abroad, technically your clients will wait longer so manage their expectations that their items can not be shipped instantly. Also, your packaging should be good enough to protect your product against the impact of poor handling in the shipping or delivery. Partner with a logistics company that gives you the option for the items to be picked at home instead of dropping them in their offices.
Make sure too that your payment methods are flexible. It is ideal to have at least 2 different bank accounts and at least 1 e-wallet so your customers have move payment options other than cash on delivery.
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Identify the right platform
The key to selling effectively online is identifying the right platform for you. Should you choose Instagram? Shopee? Lazada? Facebook? Or a combination of platforms? It is easier for you to craft content if you know how to navigate the platform and are familiar with the behavior of the customers there. Put some keywords in your bio and the name of the product/s so that you can appear on top of searches. Plus, don’t forget to use hashtags on Instagram and Facebook so they can search you immediately.
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Identify the right platform
The key to selling effectively online is identifying the right platform for you. Should you choose Instagram? Shopee? Lazada? Facebook? Or a combination of platforms? It is easier for you to craft content if you know how to navigate the platform and are familiar with the behavior of the customers there. Put some keywords in your bio and the name of the product/s so that you can appear on top of searches. Plus, don’t forget to use hashtags on Instagram and Facebook so they can search you immediately.
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We are all still in the middle of the pandemic and don’t know when we can go back to our normal lives. A lot of people will continue to be unemployed and will try to find alternative ways on how to generate income. Starting an online business is a great alternative to generate income and support one’s daily needs. Just remember, don’t rush yourself in starting your online business since there are challenges too. You need to do a lot of research to understand how online business works and the risks involved to manage your expectations. Make sure that you can meet your needs first, before pouring out all your savings in your new online business.