Four Areas to Think of When Building an Online Business
“If you build it, he will come.” That may be how things worked for Ray in the cornfields of Iowa, but it sure doesn’t work that way on the Internet.
If you’re planning to launch a business online, you need more than a website and a great product or service. An online business needs many of the same requirements a brick-and-mortar operation does.
Here are some often-overlooked aspects of starting an online business:
Funding
You want to make money online, and that’s great; you probably can. There’s plenty of opportunity if you plan properly.
But you’ll also need to spend a buck to make a buck. Right from the start, make sure you have proper funding for web presence and the content involved. Oh, and don’t do it yourself unless you really know what you’re doing, because that may end up costing you success, not just money.
Gather a safety net of cash for at least three months of operation, too. Assume that you won’t be earning income from your online startup for some time.
In fact, be prepared to wait a long time for the money to roll in. The virtual world may move like lightening, but generating good, steady revenues takes about the same time as any other business these days.
Offline Promotion
Your website works 24/7 to highlight your business. But what about offline promotion? You’ll meet plenty of people everywhere you go who ask, “What are you up to these days?” You’ll meet even more who could be interested in your services.
Seize the opportunity and pass them a business card.
Wait a minute – what are you going to put on that business card? Do you have a catchy logo? Have you thought of a tagline? Can you adapt your website content to a print brochure? Your web presence may look great, but you need to have something to show offline as well.
Make sure that your contact information on your card gives people everything they need. Your email address isn’t enough. Add your telephone number. If you omit a telephone number, you’re limiting potential contacts and leads for business.
Also consider that plenty of people don’t have Internet access yet or are still stuck on dialup. Exclude those consumers, and they’ll shop elsewhere.
Flexibility
Perception is very different on the Internet. Eyes move fast, people read quickly, and they skim and scan while searching for something – anything – that catches their interest.
Be ready to make changes to your business to help people notice you. Flexibility means you need to be ready to tweak your business constantly. Adapt to what people want. Don’t try make them adapt to you, because they won’t.
An online business morphs continually until that first impression is perfect – and even then, expect trends to change within six months.
Your business might open shop with one image, but in a short while, your web presence might end up looking outdated. Try different things to attract business. Change the colors of your website, alter the text, and test different navigation.
Build a Business, not a Job
A huge mistake many people make with their online business is that they build themselves a job; they don’t build a business.
To determine the difference between building a business and a job, ask yourself questions about your exit strategy. If you step out of the business, will it live on? Will it completely crumble without your presence? Can you be replaced? If you can’t be replaced, you can’t be promoted, and that’s no good at all.
Much of building an online business is location – and that’s it. You have a wider client base potential and you have lower overhead, but the actual operations and marketing are almost the same as any offline business. Build your online business the same way you would as if you were opening shop on the main street of your home town.
If you believe that the virtual world isn’t part of the real world and that the rules of business are very different… Well, you might as well be out in that cornfield of Iowa. I hear they have great baseball games there.
29 Responses to “Four Areas to Think of When Building an Online Business”
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I had an off-line business and am now building an online one. The big difference I find is the number of people you can reach for free (or cheap) online is much larger than off-line.
With my organizing business, I had about an 18 month sales cycle where I had to work hard to get each person from interest to purchase. With online, even if the 18th month cycle is the same, I’m doing it all at once instead of person by person.
Yes, I will make less money off each online sale than with my organizing business, but I’m also spending a lot less, and with the wider audience I can reach clients around the world and go for economies of scale.
Of course, ask me again in six months once I’ve gotten fully into the online thing…
Alex Fayle’s last blog post..The Return of the Victim
Great points!
I especially like the fact that you highlighted the difference between a business and a job. They really are two different things and many freelancers do not understand the difference.
This is a great look at some areas that are often ignored, particularly by those who develop online businesses.
Laura Spencer’s last blog post..Murphy’s Law and Blogging
“Build a Business not a Job”
This is something that I find myself struggling with sometimes. If I’m not paying much attention to it, I find that I tend to gravitate to building a job. Thanks for the reminder.
Steven Snell’s last blog post..Blog Navigation and the Ongoing Challenges that Arise
James,
Hooray for offline promotion! So many people forget that the closest connections you can make—all around you in the real world—are often the best connections. Why chase jobs across the world when there are folks across town who need you just as much? I think it’s a combo of the grass is greener elsewhere, and “shyness.”
I was going to say you can’t be shy, but I am! So how about, you can’t let shy stand in your way, if you want to be in business for the long haul. Let the heart thump. Nobody but you can hear it. Then find ways to work how you can help into “real” conversations with the same grace you do on the Internet. It gets easier with practice.
Good advice here for any business owner.
Regards,
Kelly
Kelly’s last blog post..Dreaming BIG when you still feel small
It’s nice to see someone writing a realistic for a change. It is true that some people have made money really quick, but most haven’t. This is a great how to article. Thanks
nick’s last blog post..An amazing story of one person making a difference
Taking notes…
steph’s last blog post..Brainstorming Names
Fourth point is the biggest. If you can’t nail that than you’re just creating another time trap for yourself (and then it sucks to be you).
Been there. It sucked!
Dave Navarro’s last blog post..Live Coaching & A Free Book If You Want It ?
Of all the factors that matter, being cash rich is the most important. How often, one misses opportunities because of dearth of cash.
Nicole Price’s last blog post..Make Your Party a Roaring Success
What’s this? You mean I can’t just whip up a free website and put an ad on craigslist for writers willing to work for exposure? (Surely they’ll understand I’m just a startup!)
Doh!
You told me just in time!!!
Amy Derby’s last blog post..Dear Potential Client: Your Copy Sucks!
James,
I have to remember to send you pictures of the real Iowa cornfield from when we were there. They DO have fun baseball games there. Everyone plays together. Strangers just jump right into the game, filling in positions as others leave and the game goes on and on….
Such good advice. I’ve always been an Off-line business owner. I think those business skills will be there for me as I move to on-line as well. I think it’s remembering that It’s a Both/And not an either/or that is important for me as I go forward…and for everyone. Business is business.
I really like your comments on building a business not a job. I have made this mistake before. Don’t want to do that again. I’ll be giving that a LOT of thought.
Thanks.
Wendi Kelly’s last blog post..Big Erasers
Unless you have all the time in the world, starting a web business certainly does take money and planning. Less money than opening a shop on Main Street, granted, but it’s not unexpected these days to spend over $1000, all told.
I understand how “build a business, not a job” is a revelation to many and the comments show that. But what stood out to me was this line about getting a web presence:
What’s insidious about this is that you will never know why your business failed.
Also, web designers who don’t know anything about SEO or conversion are huge waste of money.
Michael Martine’s last blog post..Client Success Story – The Wealthy Freelancer
Can I just ditto what Michael said and get credit for the amen brother?
Janice C Cartier’s last blog post..Where The Wild Things Are
@ Alex – I think what I liked most about your comment was the “building” aspect that came through. You demonstrated that it’s not something that gets slapped up overnight and that there are differences to consider.
@ Laura – The difference between a business and a job is crucial for freelancers. What happens when you burn out? You can never leave – you’ve built a job. If you build a business, you open up your options for all sorts of things.
@ Steven – It’s very, very easy for us to build jobs for ourselves. However, I think you’re doing a good job of branding your business and not yourself, which is important. When I think of you, I think of Vandelay first. Not Steven. Yes, I think of Steven but I associate Steven with Vandelay.
Likewise, everyone knows James Chartrand – but they also know exactly which business James has and the name of it as well. And when they refer to us, they refer to Men with Pens more often than not.
A suggestion for you, Steven – start tacking Vandelay onto your name wherever you go. What’s your Twitter ID? Should be Vandelay. What do you leave in the Name section of blog comments? Should be Steven Snell – Vandelay Design. Your guest posts? Etc etc. Make Vandelay figure more than Steven – and voila. You’ve built a business.
@ Kelly – I have a love/hate relationship with offline promotion. Love my business cards. Hate saying, “You know… web content writer… no, I don’t have a novel. I write website content. Like… you know. The stuff you see on websites when you Google… Yeah?”
These days, I fall back on, “I’m an online entrepreneur.” People go, “Woooo… really?”
@ Nick – If you want realistic, you’re in the right place. We don’t blow smoke around, trust me.
@ Steph –
@ Dave – Mmhm. See what I said to Steven. Cuz you need to do that too, Mr. Rock Your Day.
@ Nicole – Ahhh cash… Yes. Being rich is important.
Kidding. I know what you mean.
@ Amy – Only if it’s slapped full of Adsense.
@ Wendi – I want to go there so bad now it isn’t funny… I can picture that hopping into the game thing.
@ Michael – YES. We used to get so many people coming to us asking for us to change their copy. For a pink and green site that had blocks of white and navigation missing. They never considered that their looks were killing any potential – and they were ready to pay to fix something else that didn’t need repairs.
Wendi,
I went there when I lived in Iowa. It was a remarkable scene, and it made the movie (which I already adored) so much more vivid.
James,
If you’re getting the “tell me more,” then you have the hook. Next sentence: make it relevant to them—something they have a problem with or can imagine having a problem with. Last sentence: be the Solution.
“I’m an online entrepreneur.” (Oh, yeah? That might be interesting. Tell me more, James.)
“Did you ever look at a site and wonder, why’d they bother? I can’t figure out what they’re saying and it seems like they don’t want to solve my problems.” (Yes! I’ve seen a lot of those. Hmm, maybe my site’s like that.)
“Well, my partner and I clean up the look and the writing so the message stands out on your website and you make more money from it.”
Hired.
Later,
Kelly
Kelly’s last blog post..Dreaming BIG when you still feel small
LOL Kelly… Don’t worry about me and my self-promotion; I do just fine!
The blank stares usually come from people who don’t even have a computer, have never seen a website and wouldn’t know what one was if it fell on their head.
What *was* I thinking of?
Kelly’s last blog post..Dreaming BIG when you still feel small
I know what you mean about business cards – my dad recently handed me a business card for the webcomic http://www.nicky510.com that would compel any reader to immediately check it out (it was the creative uses of black and white that grabbed my attention).
Offline marketing is a superb skill that still escapes many bloggers. I remember when I took my kids to a karate party; one of the moms who attended was a realtor and handed out refrigerator-magnet sticky pads. I still have that on my refrigerator door and have her name in mind whenever anyone asks about a realtor. Great marketing, that.
Data points, Barbara
Barbara Ling, Virtual Coach’s last blog post..2008 Animal Planet Hero of the Year
@James –
Thanks for the tips by proxy.
Checking Twitter now to see if I can change my name …
Dave Navarro’s last blog post..Live Coaching & A Free Book If You Want It ?
Hi James these are really great points. It can be really tough to attract new customers online, yet some people just expect to stick up a website and wait for the traffic to flow in.
I would add that many people will need far more money saved than just three months living expenses though. You built up the popularity of this blog amazingly quickly but it would take many people longer – 12 months would probably be safer for most people.
Cath Lawson’s last blog post..131 Star Bloggers and Their Best Posts
@ Catherine – Financial consultants advise three months of padding, and since I’m not one of them, I’ll trust their expertise. It also took us three months to have enough work for both of us to manage when we started out a few years ago, but of course, everyone’s case is different.
I will not that blog popularity has *nothing* to do with an online business. If you have no business to offer readers and are just popular because you write good stuff, that gets you nowhere. If you are blogging to attract business, then you shouldn’t be relying solely on that to get money coming in.
Does our popularity help our business? Of course. But we made sure our business was successful before we started blogging, because blogging is just one aspect of many marketing strategies.
I especially like the idea of real worl or offline promotion. Too many people expect their website to do all the heavy lifting. Business cards and personal contacts still bring in the business. Just get out and meet people then seal the deal with a business card.
http://www.businesscardtobusiness.com
A business is a business. Whether it be online, or elsewhere. Sure, there are differences, but the essence remains the same. And many of the same strategies that work for brick and mortar business will work with ones that make themselves home – in the matrix.
Bamboo Forest’s last blog post..Realizing You’re a Magician Can Create Magic in Your Life
If you want to break that idea down even further, most entrepreneurs consider 5 key components that make up their business:
You
Your market
Your marketing
Your systems (and)
Your people
Take care of those and your business will really start to fly…
Great information and feedback
I’ve always thought of creating an online business as a replacement or an alternative to a regular day job. Your ‘Build a Business, Not a Job’ argument brought me much insight.
My question is, should you start an online business based on the trends or (I’m being a bit of a romantic here) should you start one based on your passion?
MJ Ces´s last blog post…How Many Keywords Should You Consider in Your Keyword Research
@ MJ Ces – That all depends. Is there demand for the business that involves your passions? I might have a passion for blue sneaker laces, but if no one is buying, then it’s not worth my time or investment, right?
James,
My daughter looked all over the mall yesterday for blue shoelaces. True story. Where were you?
Until later,
Kelly
Kelly´s last blog post…Inspiration Points: Reality Is Not on a TV Show
Thanks, James. I’ll start with fully understanding what I am passionate about and see if there’s a business that can be made out of it.
MJ Ces´s last blog post…How Many Keywords Should You Consider in Your Keyword Research