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The Complete Guide To Starting An Online Business

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Starting a business is sometimes scary and almost always challenging. It might seem overwhelming at first, but that is completely normal. And we owe you a massive congratulations. You have an idea good enough to share with the world, and that’s a big deal! You’ve officially gone further than most hopeful entrepreneurs. You’ve made the decision to get online and figure out how to turn this idea into a money-making business. So, let’s talk logistics.

When I first started my own business, I panicked over taxes, finances, and marketing. I felt so behind that first year because I didn’t have anything figured out before launching my site. Then, when I did launch, I had to check all these boxes while I was knee-deep in the stress of maintaining my business. I had no idea which holes I hadn’t filled until they imploded and quadrupled my stress, since I had to put out fires that were completely preventable.

To help you avoid the same mistakes I did when I launched my business, we've put together this guide to starting your small business online. Read through our eleven steps below to officially start your business off on the right track.

How to Launch a Small Online Business

Vet your idea
Identify your audience
Choose your business name
Write your business plan
Sort out your branding
Build your website prototype
Test and validate your product
Nail down your processes for delivering your product
Make it legal
Deal with your finances
Launch your business

1. Vet your idea

First things first: you gotta vet your idea.

Before jumping in head first, you need to be 100% confident (or at least 90%) confident that your idea is worth it—worth the time, sacrifice, stress, anxiety, frustration, and ego hits.

It’s worth remembering that no matter what type of business you own (or how good your idea is), you’ll definitely experience ups and downs within the first 10 years. Some of these ups will be sky-high, and some of these downs will be depressingly low.

But if you believe in your idea enough, you will persevere—you can absolutely come out the other side with an awesome business, which is an amazing way to spend your time and earn a living. On the other hand, if you’re shaky about your plans, this will be a tricky first decade for you. To make sure you’re on the right track, let’s talk about how to vet an idea:

While vetting your business idea, ask yourself these five questions:

How big is your potential audience? Are enough people interested in this type of product or service that you have a stable audience for sales?
Is your product or service something customers buy once and move on? Or is there a chance for building a repeat customer base?
Is your business idea going to be a passing trend like low-rise jeans, or does it have a long-term possibility like pencils?
What is your competition? For instance, if you are setting up a fry bread cafe, are there other fry bread cafes in the area? If there are, what unique element will set your business apart from the competition?
Will your business have any legal issues or limitations? For instance, are you creating something with strict regulations that make it trickier to market? Are you passionate enough about your idea that you’re willing to deal with the ups and downs and chaos of starting a business?

Once you’ve vetted your idea by asking yourself the questions above, getting advice from people you trust, and even speaking with an accountant or business banker about your business’s viability, it’s time to move on to the fun stuff—like choosing a name for your budding business.

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2. Identify your audience (or your target market)

Arguably, the most ignored aspect of building a business is identifying a specific audience. A lot of fresh entrepreneurs hesitate to hone in on one demographic because they believe their product or service can and should help everyone. Depending on the product, that might be true—but it still creates a watered-down, generic brand that doesn’t catch anyone’s attention of anyone.

Our advice? Don’t fall for the trap of thinking everyone is your audience. There’s no way you can market to everyone and still have a unique brand.

In contrast, if you are clear on who you are selling to, then you will attract people who actually want your product—which means your business is likelier to last.

To take this a little further, remember that the best brands are aspirational. In other words, while you should start with the people who want your product, you should eventually expand into finding people who want to want your product. This means you will inherently cast a wider net than just your target market—but you will not catch much of anyone without a target market. Start there.

If you can really hone in on exactly who your dream customer is, you then know how to market your product to them. A good exercise to do here is to write your dream customer’s profile or buyer persona:

What is your ideal customer’s name? Age? Occupation? Hobbies?
What food do they like? What food do they dislike?
Do they have a family?
How much money do they make, and how much disposable income do they have? What are their hopes and goals?

Now, ask yourself: Does a person like this actually exist? If so, now you know which social media platforms to target, where to buy ad space, and what tone your advertising should take.

Having a hard time answering the questions above? Start by identifying who is not your audience. List the qualities of the person who is not your target audience, and narrow things down from there.

Again, you can have more than one target audience, but you should try to be as specific as possible for each one.

3. Choose your business name

Choosing a business name is where the fun starts. For one thing, your business’s name is the first point of contact between your business and your consumers. It also gives customers the first glimmer of your personality and is the place where your branding will shine.

Remember, your name is also how the legal world will note your business. It also helps Google determine how to position your website when someone searches for your product or similar product on the internet. If your name is confusing, long or even too similar to other business names, you might be positioned at the bottom of the search results page.

In other words, your business’s name is important.

When it comes to business names, entrepreneurs tend to overthink, overthink, and, overthink some more. Sometimes, it feels like the trickiest part of starting a business, so here are some tips for figuring out the perfect name.

Keep it simple and short

Shoot for one to two words. You don’t want the name to be a chore for your customers to remember. Make it as easy as possible for your customers to think only of your service or product when they hear your name. You also want the name to fit neatly on a price tag or as a hashtag (always keep that social media marketing in mind)

For a good example of a short, simple brand name, consider Macintosh computers and Apple products. When someone says the word “apple,” most people now think of the computers before they think of the fruit. It’s a simple name, but with excellent marketing, the company completely co-opted the fruit.

Dare to get personal

Don’t be afraid to think of something quirky, weird, and maybe even a little kooky. For instance, many small online clothing businesses include the name of the owner’s grandmother in the title, or maybe of the owner’s children who inspired the clothing.

Or if something from your hometown (or even a particular food) means something to you, consider including that as part of the name. This type of personality flair makes marketing the founder’s story even clearer (read: makes you more marketable). It’ll also provide an easy framework for storytelling within your marketing plans.

These personal details will also help customers feel a sentimental connection to the brand. Sentimentality is an effective tool for building loyalty.

Be original

Make sure there are not other companies filed under the same name or an adjacent name. You don’t want to confuse your potential customers or investors, and you also don’t want to confuse Google, which might pull up your company’s name and location while filling in product information from a completely unrelated company that happens to share your business’s name.

Search domain names, URLs, and social media handles for your would-be business name. Don’t forget to simply Google the name either. If you are dead set on your chosen name, consider tweaking it a little just to set it apart.

4. Write your business plan

Your business plan is a structured document that gets all your brilliant ideas down on paper. You’ll show it to investors (like angel investors or traditional lenders like banks) to demonstrate that your ideas are worth investing in. While you can modify your business plan from year to year, try to think about it as your business’s foundational document—this is how you design the path to making your dream work.

You can create your business plan as early or late as you want before launching your business, but I highly recommend doing this early because it will reveal any flaws in your idea. The plan itself might feel redundant, but don’t speed through this. Consider it a proposition for the world to take your idea seriously.

Executive Summary

This is your elevator pitch. Simply sum up what your business is, how it will function, and what success you anticipate. It should be brief and to the point.

Company Description

This section should be a detailed description of what problems your company solves. It should also focus on who your company is serving and how you are serving that population.

Market Analysis

Who is your competition? Your investors will want to know you’ve done the research to find out that yours is a good idea, or that there is even a demand for this service or product. Along with showing that there is competition, this section of your business plan should point out what the competitors are doing better than you—and what you plan to do better than your competition.

Management and Organization

What kind of business is this? Is it an LLC, INC or DBA? How big is your business, and what is its structure? Most any business structure is fine—but remember: remember...stay away from pyramid schemes. (We say this mostly because they’re pretty similar to illegal pyramid schemes, but also because they can take advantage of women and marginalized populations.)

Products and Services

What exactly are you selling? List out each product, including each variation of your main product or service, as well as your pricing. Keep this portion of your business plan as clean and organized as possible (a spreadsheet will likely be a useful tool here). You will probably add to this list as you launch your business and continue to grow.

Marketing & Sales

How do you plan to let people know what you are selling? Many business owners use social media, local newspapers, radio ads, billboards, or even a combination of everything. The point is that you need to have a plan.

Another angle to consider is what medium your audience primarily uses. For instance, if you’re focusing on a product that primarily serves older communities, you’ll want to focus on Facebook advertisements. If you’re focused on a younger population, TikTok ads will probably serve you better. Consider how you can use your audience’s preferred same media to get your message across. And what sort of posts or commercials will you create that both fit your brand and speak to your dream consumer?

Funding Requests

Outline your funding requirements. This is where you get specific on how much you need and how each dollar will be spent. It’s also where you explain the lending and investment terms you would like and whether you are looking for debt or equity. The more specific you are, the better. Answer basic questions like how long you’ll need funding and how exactly you’ll use it. Most importantly, be overly detailed and incredibly tedious with this information—investors prefer more information when making a decision about whether or not your business is worth their time and money.

Financial Projections

Because you haven’t launched your business yet, this is where you will keep track of your monthly and/or quarterly projections. Throw in graphs, charts, and anything else that will tell your financial story as easily and quickly as possible. This section can be updated and added upon after you launch, but you should definitely keep track of your financial projects throughout the life of your business. Set routine goals to keep yourself motivated and on track.

Keep your business plan close by and allow it to remain a living document as you grow and learn new things. Even if you never end up presenting it to anyone, it will keep you focused and aware of when things are not lining up for you.

5. Define your brand identity

Last year, I taught a business class to high schoolers., These were Gen Z brilliant students who knew the internet forward and backward. They used the word “branding” casually, but they didn’t quite understand the ins and outs of branding a company. So we did what I like to call “the Starbucks exercise.”

I asked them to get out a piece of paper and write their answers to my questions: If Starbucks were a person, what gender are they? Do they smoke? What age are they? Do they have a family? A partner? Kids? A dog or a cat? What kind of outfit is Starbucks wearing?

The majority of students had the same answers. To them, Starbucks was a white middle class lady who used to smoke cigarettes. She is a straight cis female with a couple of kids and a cat. She is stressed and she wears yoga pants a lot.

These students were all from different homes and all had different relationships with the coffee brand— but they all had the same general understanding of what this brand was. And that’s the power of strong, consistent branding.

If you can create a set understanding of what your company is if it were a person, you are golden. Creating a brand like this means you know exactly who you are marketing to. And having such a specific focus also means that you can attract the right customers. You will know which aspects of your company to negotiate in order to attract your target audience and expand from there.

What gender are they? Do they smoke? What age are they? Do they have a family? A partner? Kids? A dog or a cat? What kind of clothes do they wear? What is their income bracket? What type of music do they listen to?

Another helpful exercise is to try to describe your company with one word. Examples include: sleek, economical, efficient, retro, conscious, powerful, and rejuvenating. Practice this with your own business, and then make branding decisions based on that word.

Now that you have an understanding of what your brand is, consider your unique selling point, words, colors, and logo.

Figure out your unique selling point

What makes your brand different from other brands? Why should people choose your service or product over others? Is there an emotional reason (for instance, you’re a local, naturally sourced brand), a practical reason (maybe you’re more affordable or offer higher quality products), or a combination of both? Frankly, if there is an emotional pull, run with that—people love an emotional connection to the product they’re buying.

To put it simply, think about your origin story and what YOU bring to the table. Then go from there.

Colors are important! They should work together to make a good story. They should not be in a contest with each other. If you look at your branding and feel confused or disturbed, it means that the colors are not doing you favors.

Not sure what we mean by that? Well, there is an area of study called color psychology. This is how our brain responds to certain colors.

For example, yellow is a trigger for discomfort and red is a trigger for hunger, which is why most fast food places use red and yellow in their branding. These colors are intended to inspire patrons to come and eat a lot (red) and then leave quickly because the yellow is so glaring. Blue is calming which is why most therapy offices paint their walls blue.

Consider what emotions you want your clients to feel and Google which colors best make that happen.

Red - enhances human metabolism, increases respiration rate and raises blood pressure; associated with energy, strength, danger, war, determination, passion, desire, and love -- it attracts more attention than any other color

Green - slows human metabolism and has a calming effect, associated with tranquility and calmness, symbolizes growth, freshness, rebirth, fertility and is associated with nature (all things organic).

Blue - Peaceful, honest, compassionate, authentic and sympathetic

Brown - reserved, dependable and resilient

Yellow - joyful, happy, intellectual, a lot of energy, stimulates mental activity and muscle energy, can bring feelings of anxiousness when overused, and is definitely an attention grabber. Commonly used to mean loyalty and in other settings cowardice.

Pink - calming and vulnerable. Signifies gentleness and youthful innocence, very sweet and tender feelings

Purple - power, nobility, luxury and ambition, wealth and extravagance. Reminds mystery, creativity, independence and magic

White - signifies safety and cleanliness. Reminds of purity, light, faith, innocence and goodness

Black - power, death, formality, fear of the unknown, often feels negative and reminds of grief

Color theory also tells you which color combinations are most pleasing to our eyes. A fun resource is the Adobe color wheel . This site allows you to jump in and look at different combinations of colors that work within these theories of which colors are most compatible.

This is where you get to tell your story. Use words that fit the tones of the colors you choose (or vice versa). Words like sleek, organic, fresh, and honest all feel good with greens, light pinks, and whites. Words like powerful, strong, and forthright match the tones of reds and blacks. Consider which words best describe the mood you are trying to convey.

Unless you have a design background and are good with graphic design, consider hiring someone else to design your logo. Before hiring someone, your job is simply to figure out a basic idea of what you want. This will require you to look at different branding, websites, and fonts to think about what really resonates with you.

When I was trying to sort out my own branding, I came across an Instagram profile that posted old Russian products with pre-1990 branding. My family comes from Eastern Europe and many of my family members speak Slavic languages, so seeing these unique logos and fonts felt familiar to me. I decided to hire a designer who created a font that could have come straight from old cheese cans from Moscow 1955, something with a Slavic touch and retro vibe. You never know where you will find inspiration.

Old branding. Look at old magazines or old boxes and just study those fonts and how the logos were made.
Notice t-shirts.
Whenever you find yourself in a waiting room or watching tv, jump on Pinterest and create different boards of ideas or tones.
Start following different designers on social media. A popular one is Aaron Draplin, and from him you should be able to find an entire community that posts different design and logo ideas. This should inspire you as you figure out what you want.
Album covers. Go to a record store and sort through different old school album covers. You will see some of the best branding there has ever been.
Instagram, Instagram, Instagram. We love to hate it, but if you tap into the design community, you will be blown away by the options.
The grocery store. Andy Warhol found art in advertising and sold his Campbell’s Tomato Soup renderings for millions of dollars. He described the soup can as brilliant art and branding. Go to the grocery store, pretend to be Andy Warhol, and look for art in the mundane.

6. Build your website

Whether you’re offering a newsletter or a physical product, you need to start creating a site so you can fund your business and find customers.

To start creating your ideal website, start by asking a few key questions. What is the purpose of your site? Are you selling or just giving information? Does your site include a call to action like signing up for a newsletter or service? Or do you need an e-commerce site to collect credit card information and shipping?

A ton of different website building platforms are built for small online business owners like you. With services like Wix , Squarespace , and Weebly , you can create a site and keep it dormant before launching for testing.

Not sure how to build a website from the ground up? Find other websites that are doing similar things to you and follow their lead. It is okay to gain inspiration from multiple sources. (Just don’t copy and paste an entire site. Plagiarism will not go well for you.)

Start simple. You don’t have to have a perfect product right away. Create a basic website, then have a friend go through it and tell you what they would love to see or use.

As you start creating your site, Just make sure you have these basics:

A site map
High-quality images
A call to action on each page (“sign up for our email,” “click to purchase,” etc.)
A contact page

You’ll also want to use proper SEO ( search engine optimization ) for any blogs and sites you create. If you’re not sure what that means, no worries—most website builders include some sort of SEO recommendations that will help optimize your content.

SEO is an acronym for “search engine optimization.” It is the method in attracting a higher quality and quantity of traffic to a site.

The goal of SEO is to make it easier for Google to recognize what your site pages are about and then help users find the best solutions to their needs.

Figure out where your site stands in terms of Google rankings. Use the Google toolbar or other monitoring tools (there are a lot).
Use keywords or phrases organically throughout your pages. Use keywords that people might be including in their searches. Feel free to Google your topic and see what other people are posting or searching.
Include these search terms in your URLs.
Attach descriptors to your images.
Use internal links to guide users to another page on your site.
Link to other sites or the site you are sourcing information from.
Make sure that your website is updated regularly and actually has high-quality information.

7. Test and validate your product

Test your product.

Before launching and advertising, you must test your product and see if it is actually meeting the needs it is setting out to meet. You can do this in the form of focus groups, which means sending the product to a few choice people who you know will be honest about their impressions. Then you can start sending and giving to others. Find a bigger audience by inviting people from your focus group to pass your product along to their friends and ask for their feedback as well.

Validate your product

Before really going crazy with scaling and production, you must validate the product . This means setting up pre-orders and selling in person (read: starting off small before you buy 6.000 scrunchy leopard print bracelets that will just sit in your garage). Produce a few items and try to sell them. If you can’t move those few, there is no way you will move 6,000.

Validating your product tests whether your idea actually does have legs and whether you are the right person to move it forward. This can also be done by setting up pre-orders, launching a crowdfunding campaign, or selling person to person. Each of these tactics can act as a thermostat of where you are in meeting a need or want of your dream customer.

If your product is not a tangible thing and is content– or service-based, start promoting it through advertising. Consider offering a free service to get feedback before you start to sell. See what happens. Once again, if no one bites, it’s time to find another idea for your small business.

8. Nail down your processes for delivering your product

By now, you should have a good sense of your business’s organization, branding, and purpose. Now, it’s time to dig deeper into the nitty gritty part of building a company.

Let’s start by asking a few questions.

If you are using an online store to sell a product, ask yourself:

Where are you going to store your inventory?
Would you rather mail each product yourself, or should you outsource via dropshipping ?
Who is making your product?
Are ethics and sustainability a part of your brand?
Do you need design help and how long term do you need the help to be?

If you are selling a service, ask yourself:

Exactly what service are you offering?
What are your price points?
What size of jobs are you accepting?
What are you willing to negotiate with clients?

Whether you’re selling a product or service, we recommend getting support that can help you save time and money as you hammer out the logistics of running your business. Here are some of the most crucial tools to consider:

Accounting software. We live in a wonderful time when there are trillions of options for different accounting apps. Different programs are tailored to different needs and include different price points as you grow. Check out our list of the best accounting software for small businesses .
Email marketing. Email marketing benefits your SEO and builds trust with your customers—potential, past, and current. This is the one chance you have to speak directly with the people you are hoping to impact with your service. This is where you can ask them questions and remind them that you exist.
Project management. If you are anything like me, you tend to procrastinate and get frazzled when things get off track. Just like accounting apps and software, finding the right project management tool can make a huge difference. We all work differently, so find the tool that makes the most sense for your brain and also your company’s needs.

9. Make it legal

Research licensing and government regulations.

Different states have different laws on what’s legal to sell, where, and how. These regulations can be quite complex, and there may be legal problems if you make a wrong move.

Go ahead and Google your state laws. If you find any regulations that might affect your business, definitely reach out to your county officials and they can guide you. If you feel like your business is in a gray area, consider investing in a lawyer as you set up your business.

Pick a business structure

A business structure is integral both for filing your taxes and your own liability.

10. Get your finances in order

Dealing with finances is usually where first-time entrepreneurs start panicking. They have an awesome idea, but they didn’t major in accounting and have no idea what to do about money .

The first move is to figure out what accounting software you want to use(hopefully you figured that out in step seven).

Next, we need to draw the line between your personal self and your business self. Your business profile needs to stay distinct from your personal finances.

How do you separate the two? Just like how you have a social security number, your business needs its own identification number (this is called an employer identification number , or EIN) and bank account. Not only does this make sure you are not going to get into a jam with the IRS, but setting up a business EIN and bank account helps prove that your business is, well, yours. You will get your business identification number when you register your business with your state.

Next, you need to get a business bank account and credit card . Open an account that will work best for you, whether that is through using a high yield savings account or an account with limited fees. Make sure that you are checking your credit card statement and your bank account weekly so you can stay on top of cash flow.

Go to your bank and speak with someone about opening the right account for your needs. Your business banker will be your best friend—they can offer much better advice on different accounts and their benefits than anyone else.

Be mindful that most of your money will go quickly in the beginning. You will be spending it on building your inventory and trial and error with marketing. If those startup costs are too big for your pocketbook, consider finding angel investors or crowdfunding .

Starting at $0/month, Lili offers a checking account with time-saving tax optimization and accounting features specifically built for entrepreneurs.

11. Launch your business

You’ve done it! You’ve gone through all the major steps to get your business off the ground, and now you’re ready to launch. Publish your website and start getting the word out by leaning into social media and other advertising methods-. Using your brand identity and chosen colors and logo, be liberal in sharing your new project with the world to find customers.

Most importantly, be confident . There will undoubtedly be ups and downs, but remember—you are providing something that people want. You’ve been through vetting and product testing and you know yours is a good idea. Hold onto that while you are weathering these early storms because yes, the initial phases are hard, but you’ve got this!

Phew, you made it to the end—nicely done! Thanks for sticking with us, and best of luck to you with your small business. We know you're going to do great.

Market Research

Business planning, website development, product or service selection, marketing and promotion, is it a good idea to start an online business, can i start an online business with $100, what are different types of online marketing strategies, the bottom line.

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Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations.

If you want to get into the online business game, it’s a good time to start. The COVID-19 pandemic reshaped online consumer spending, including how people shop online and how they research products.

Today, 76% of Americans buy products online. Furthermore, roughly a third of people purchase items online weekly. From setting up an ecommerce business to offering web design services, there are countless avenues to explore as an entrepreneur.

Below, we’ll walk through each step to building an online business.

Key Takeaways

When starting an online business, comprehensive market research is critical for identifying your target audience and learning how to resonate with your customers and understand their needs.
Creating a business plan is an important step for outlining your business goals. It also includes your product description, target market, and financial projections, among other core components.
Building your website involves setting up a domain name, finding a hosting company, and designing a strong website with consistent branding that allows your customers to navigate it intuitively.
Choosing the right product or service to sell is essential. It’s important to think about how you’re addressing an unmet need.
Several digital marketing strategies can be utilized, from content marketing to paid advertising, to help your business grow.

Successful online entrepreneurs study hard in order to have a thorough understanding of their market. This is important for knowing exactly how to reach your target market , because these are the people who will buy your products and drive your business growth.

At its core, market research is about understanding your customers’ needs, pain points, and solutions. It is designed to help your business better meet these needs.

Steps to Conduct Market Research

Market research involves understanding key aspects of your current and future customers. To get a clear sense of your target market, outline the characteristics of your audience—for example, age, location, gender, income, job title, and key pain points.

Once you have identified your target audience, conduct research on the following topics, which will tell you about how they make decisions and how you can better position your business:

What are the challenges that your target market faces?
Where do they research a given product or service?
What are their views on pricing for this product or service?
What factors influence their decision to make a purchase?
Who are your competitors?

To put this market research into action, there are a number of different avenues you can take:

Focus groups
Competitive analysis
Brand awareness research
Market segmentation research

Consider the following questions that may be asked in an interview or focus group to learn more about your audience:

“How do you search for that product?”
“How useful was it?”
“What words do you use when you search on Google?”

When you have completed your market research, identify what you have learned as well as your next steps based on these insights.

Creating a business plan is a key first step for all business owners . It is important for companies looking to secure funding resources. It also serves as a blueprint to summarize your key business objectives and goals.

To write a business plan , incorporate these eight main sections, which are often found in traditional templates:

Executive summary : This is typically a one-page section that explains your objectives and includes your mission statement, core team, and why your company is positioned for success.
Company description : This describes what you offer, your competitive advantages, and your business goals.
Market analysis : This is where you explain your target market, market size, market trends, and competitive landscape.
Organization and management : Explain who is working on your team and their professional background and experience.
Service or product line : Describe the product or service you are offering, including any copyright or plans for patenting.
Marketing and sales : Discuss your marketing and sales strategy. Discuss your pricing, key metrics, and sales plan.
Funding request : If you are a company looking for funding, here is where you outline the capital you are requesting and where it will be allocated.
Financial projections : Include projections for your company’s revenue and expenses. Consider including an income statement, balance sheet, and cash flow statement in this section.

A business plan is important because it helps clarify your action points, who you are, and what you offer, all in a coherent template.

Getting your business online is the next key step. In an ever-changing environment, it is important to know the tools, trends, and strategies for building a strong online presence to allow your business to grow.

Registering Your Domain

The first step is registering your name, or your website address. This can be in the form of your business name “.com.” To purchase your domain name, you can go to sites like GoDaddy or Namecheap . If you decide to build your website using WordPress, you will need to use a site such as these to host your website.

Web Hosting Companies

Alternatively, you can buy your domain name at a hosting company. These are companies like Shopify , Wix , or Amazon Web Services , that may also offer tools to build your website and release content on them.

Website Design

A well-designed website is important for many reasons. Using a website builder, such as Mailchimp or Squarespace , can allow you to choose a theme, customize your pages, create relevant content, and set up a payment page.

Other key aspects of your website design include its functionality, simplicity, and ease of use. Allowing your potential customers to navigate the site intuitively will be key to their experience. Brand consistency—in your logo, colors, and typeface, for example—is also key to creating a unified brand.

Another essential part of website design is its mobile application. You’ll want to ensure that your website runs smoothly on mobile, that images load properly, that the text is legible, and that buttons are intuitive to click.

This step focuses on how to choose the right product or service to sell. At the heart of this choice is the goal of solving a customer’s problem. But there are a number of strategies you can use to identify your product idea.

For example, you might consider analyzing companies with high-profit margins, products that align with your passion, burgeoning trends, items trending on online marketplaces, and/or customer reviews.

With this in mind, analyze how this product will get to your customers. Additionally, you may consider products that are not available in stores in your local market but are offered in communities such as Europe or Japan, for example.

Marketing strategy and promotion is an essential driver of business growth. As the digital landscape evolves, it’s important to have an effective marketing plan that resonates with changing consumer preferences and needs.

Here are questions that companies can consider as they create their marketing strategy, navigating today’s environment:

Impact, value, and growth : What are the goals and key performance indicators (KPIs) that will measure success for your business? How will you explain the value that the business provides to its customers and/or society? Create an “elevator speech”—a 30-second description of what you offer and why it’s special.
Customer need and brand promise : How does the brand meet a customer’s need through its products and services?
Customer experience : How will the business deliver the best experiences at each stage of the customer journey?
Organizational model : How will the business operate to serve the customer with the most impact?

These will help you understand what types of strategies can have real impact.

Types of Marketing Strategies

Consider the following digital marketing strategies that can be used for your online business:

Email marketing
Social media marketing
Paid advertising
Search engine optimization (SEO)
Content marketing
Influencer marketing

Each of these presents a different way to reach your target audience, drive conversions, or build brand awareness, depending on your marketing goals.

You need to determine that for yourself. But before starting an online business, it’s important to assess the time, investment, and resources you’ll need to get it off the ground. While the barrier to entry can be quite low, it’s worth considering your goals and strategies for making it a reality.

However, compared with starting up a traditional brick-and-mortar business, the risks of launching an online business may be reduced due to lower upfront costs such as rent, staff, and materials, among others.

The short answer: yes. While it depends on the type of business you hope to pursue, there are many ways to set up an online business at very little cost. For example, you could offer your services doing freelance work, photography, bookkeeping, or personal training. The primary costs involved include setting up your business website, which can cost as little as $2 to $20 each year with companies such as GoDaddy.

There are a number of digital marketing strategies that online businesses can use, such as content marketing, email marketing, paid advertising, SEO, and influencer marketing. Each of these strategies can be useful, depending on your product and goals.

Starting an online business can be a powerful way to launch a new product or service while reaching a wider audience. With market research, a solid business plan, a strong website, and a digital marketing strategy, you can get started in growing your company effectively. As customers increasingly make decisions virtually, building an online business is vital to any business owner’s success.

Pew Research Center. “ For Shopping, Phones Are Common and Influencers Have Become a Factor—Especially for Young Adults .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Write Your Business Plan .”

Ogilvy. “ Getting Future Ready with Marketing Transformation ,” Page 15.

GoDaddy. “ How Much Does a Domain Name Cost? Find Out! ”

How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
How to Do Market Research, Types, and Example 2 of 25
Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
Marketing in Business: Strategies and Types Explained 4 of 25
What Is a Marketing Plan? Types and How to Write One 5 of 25
Business Development: Definition, Strategies, Steps & Skills 6 of 25
Business Plan: What It Is, What's Included, and How to Write One 7 of 25
Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
How to Write a Business Plan for a Loan 9 of 25
Business Startup Costs: It’s in the Details 10 of 25
Startup Capital Definition, Types, and Risks 11 of 25
Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
Starting a Business with No Money: How to Begin 14 of 25
A Comprehensive Guide to Establishing Business Credit 15 of 25
Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
Best Startup Business Loans 17 of 25
Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
Partnership: Definition, How It Works, Taxation, and Types 19 of 25
What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
Corporation: What It Is and How to Form One 21 of 25
Starting a Small Business: Your Complete How-to Guide 22 of 25
Starting an Online Business: A Step-by-Step Guide 23 of 25
How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

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How to Start an Online Business in 2023

Starting an online business isn't easy. There are so many important decisions to make. What should you sell ? Who should you sell to? How will you get customers?

If that's not enough, every other week there seems to be a new business trend online. There's chatbots, cryptocurrencies, Facebook ads, Instagram influencers, and many more. What should you pay attention to? What actually matters?

If you want to know how to start an online business in 2023, we've got you covered. In this quick and simple article, we'll take you through how to start a small business online, step-by-step. Consider this as a starting an online business for dummies guide, as we cover everything in plain English and list simple, actionable instructions to help you start.

Start selling online now with Shopify

How to Start a Business Online (From Scratch)

#1: don't start building yet.

When looking to start a business , it can be tempting to jump into action.

So, if you're feeling the urge to build a website, choose a business name, or create a logo , hold off for now.

If you want to start a successful online business, first, you need a strategy. And steps two, three and four of this article will show you how to create your online business strategy.

#2: Choose a Business Model

When learning how to build an online business from scratch, it helps to know about some tried-and-tested online business models.

Here are six types of online businesses to consider:

Affiliate Marketing : Promote other business's products and services online, and receive a commission for each sale you make with this passive income idea .
Freelancing : Provide a service to other individuals and businesses using a skill that you have, such as advertising, writing, designing, or programming.
Coaching and Consulting : Become a coach or a consultant and sell your expertise, advice, and guidance.
Information Products : Package and sell your expertise in ebooks, worksheets, templates, and online courses .
Software as a Service (SaaS) : Create a piece of software or application, and charge users a recurring subscription fee.
Ecommerce : Use a service like Shopify to set up a website and sell physical products online.

Want more online business ideas to help inspire you? Check out our guide, "25 Small Business Ideas to Make Money".

#3: Identify Your Target Market

Next, you need to get clear on your target market. In other words, who are you going to serve?

This step is absolutely vital.

As the marketer Philip Kotler once said , "There is only one winning strategy. It is to carefully define the target market and direct a superior offering to that target market."

Here's the trick: Make sure you are part of your target audience.

Think about it. If you've been camping your entire life, you'll understand the problems, desires, and language of other campers. As a result, it'd be much easier to sell camping products online.

Plus, your marketing will be more successful because you'll have a better understanding of how to communicate with other campers.

On the other hand, if you've never been camping in your life, you'd probably struggle – a lot – to sell camping products online.

So, when choosing a target audience, ask yourself:

What are my hobbies and interests?
Is there anything that I know a lot about?
What do I spend most of my time thinking, talking, and reading about?

#4: Find a Problem to Solve

When learning how to start an online business, it's important to note one key thing: all businesses solve a problem.

Plumbers fix leaking pipes. Hollywood movies fulfill people's boredom, curiosity, interest, and the need to escape and relax. Clothing brands help people express themselves and feel attractive.

Here's the golden rule: The bigger the problem you can solve – and the better you solve it – the more money people are willing to pay.

For example, take healthcare services. They solve a big problem, which is why almost everyone is willing to spend a lot of money on it.

On the other hand, not many people will pay you to stop their table from wobbling. It's not a big problem, and they don't need help solving it.

Bottom line: If you want to identify how to start an online business, you need to find a good problem to solve.

Here are three examples:

Target market : Fashion-conscious teenage boys
Problem : The fashion-conscious want to stand out from the crowd without spending too much money.
Solution : Create a clothing line that's flamboyant and budget-friendly.

Target market : Marketing managers at multinational software companies.
Problem : Businesses need to drive traffic to their websites.
Solution : Write articles that rank on the first page of Google to drive traffic.
Target market : Working Moms with young children.
Problem : Many moms want to work out regularly, but they don't have much time.
Solution : Create a time-saving fitness program and schedule.

How can you find a problem to solve?

Join Facebook groups and online forums and ask people what they need help with.
Use Google Keyword Planner to find out what people are searching for.
Find successful online businesses and identify the problem they solve, then look for ways to do it better.

#5: Analyze The Competition

Anyone learning how to open an online business shouldn’t sleep on competitor analysis .

Analyzing your competitors helps you stay on the cutting edge of what’s working in your niche, identify successful tactics and new trends, and anticipate shifts in the market. It also helps define your messaging, positioning, and overall business strategy.

So how do you conduct a competitive analysis? Here are some tips: Subscribe to your competitors’ blog

Buy a product they sell
Abandon a product in their shopping cart
Sign up for their newsletter
Follow them on social media

While taking these measures, make sure to document your findings with notes on each approach. You want to be able to find relevant insight when you need it.

By analyzing their customer experience and looking at how they engage people via content, you can identify tactics that your competitors are using to drive sales.

Pro Tip: Consider doing a SWOT analysis to accompany the findings from your research. It’s a blueprint that leans into your competitors’ strengths and weaknesses to define areas of improvement. To learn more about this tactic, check out our guide, “ Everything You Need to Know About SWOT Analysis .”

#6: Cover Your Legal Bases

Any business you start must be properly aligned with the laws and regulations in your region. So make sure to read up on online business legal requirements when starting a new internet business.

Just some of the legal aspects you’ll need to consider include:

Business structure

Register as an LLC or sole proprietor for online business? You can research and decide on your own, but it pays to get input from a tax specialist.

Licenses and permits

Depending on what type of business you start, you may need a license to operate it. This varies depending on where you live, so contact your local state department to find out more.

Tax obligations

Most online business owners are required to pay income tax. Additionally, you might have sales tax obligations if you sell products to consumers in certain countries. So before starting your business, consider speaking to an attorney to learn about the applicable taxes and the list of online business documents you’ll need to file them.

You’ll want to cover these legal elements to avoid trouble down the road. For example, registering your trademark will prevent others from using your brand name, saving you the hassle and cost of rebranding.

#7: Select Your Sourcing Strategy

If you’re interested in starting an online ecommerce business, you’ll need to find reliable and trustworthy sources of inventory.

There are several ways to do this:

Search for product manufacturers on websites like Alibaba or directories like Kompass , Sourcify , and ThomasNet.
Discover dropshipping suppliers on platforms like DSers .

The last option is highly accessible and gives you a chance to start your business without making a huge upfront investment.

With dropshipping, your product supplier ships and fulfills an order only after a customer has made a purchase; they handle the storage and logistics part of the business while you handle marketing and customer support.

Check out this list of the best dropshipping suppliers to find valuable partners you can count on for order fulfillment.

#8: Set Up Your Payment Methods

You’re almost there! Now is the time to decide how your business will accept payments and how you as business owner will receive payouts.

There are several online payment options available to you. The most popular ones include accepting credit cards, PayPal, Apple Pay, and Google Pay.

If you’re planning to use Shopify to start an ecommerce business, you can activate the provider’s integrated payment solution called Shopify Payments . It sets you up to accept all major payment methods and comes with 0% extra transaction fees.

For a service-based web business like freelance writing, be sure to check out Transferwise, Payoneer, Stripe, and 2Checkout.

Regardless of the payment method, you should be able to set your payout schedule. You can choose to receive your money daily, weekly or monthly — depending on your preferences when it comes to cash.

#9: Build Your Sales Platform

Once you've identified your business idea and covered your legal bases it's time to build your platform.

Well, if you plan to start an ecommerce business, build a website with Shopify and then find products to sell with DSers.

If you plan to start freelancing, coaching, or consulting, Shopify has the option of plugging in many popular tools like Digital Downloads to sell digital products online , ReCharge to sell subscriptions online, and SendOwl to sell videos online.

Keep things simple.

At this point, your business is still in the realm of theory. So try not to invest too much money, time, or energy into building a perfect website.

Instead, test your business idea and make sure it works before you invest.

Eric Ries , the author of The Lean Startup, said, "We must learn what customers really want, not what they say they want or what we think they should want."

#10: Choose a Marketing Method

When you’re ready to start promoting your online business, you need to choose a marketing method.

There are many different online marketing methods out there. However, when it comes to learning how to start an online business, some are better than others.

Here are four online marketing methods that you can use to land sales relatively quickly:

Social Media Marketing : Use social media to create and share content, engage with your target audience, and drive traffic to your website to land sales.
Direct Outreach : Reach out to individuals at companies to pitch your services .
Paid Advertising : Advertise on platforms like Facebook , Instagram , Google , and YouTube to increase brand awareness and drive sales.
Influencer marketing : Team up with influencers to promote your products directly to their existing followings.

Summary: How to Start an Online Business?

Wondering how to start an online business in 2023? Here are 10 steps to starting an online business:

Create a good business strategy before you start building things.
Choose an online business model that suits your skills, interests, and preferences.
Identify your target market – and make sure that you are part of it.
Identify a problem that your target audience has, and find a way to help solve it.
Study your competitors to identify opportunities for improvements.
Fulfill the legal requirements, including getting a business license.
Choose a sourcing strategy that streamline your order fulfillment.
Set up your payment gateway and payouts to collect and receive payments.
Build a basic sales platform to test your business idea.
Choose a marketing method and start promoting your business.

Finally, it can take a while to learn how to start an online business successfully. So don’t worry if your first online business doesn’t take off immediately. Many of the most successful entrepreneurs failed multiple times before achieving success.

As the co-founder of Apple, Steve Jobs, once said , “I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.”

→ Click Here to Launch Your Online Business with Shopify

Bonus: additional resources to help you build and start your online business .

How to Build Your Own Brand From Scratch in 7 Steps
9 Best Shopify Tools for New Entrepreneurs
How to Get Free Media Coverage for Your Business
Decoding Product Life Cycle Stages (And Optimizing For Them)
15 Ways to Increase Social Media Engagement Quickly
What You Need to Know About Pricing Before You Launch
Ecommerce Shipping Solutions: Guide to Ecommerce Delivery
Product Page Tune-Up: 9 Timeless Ways to Increase Conversions
10 Tips on How to Handle Customer Complaints
9 Ways to Earn Customer Trust When You Have Zero Sales

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How to Start an Online Business: 8 Steps to Follow

Bryce Warnes

Reviewed by

April 8, 2021

This article is Tax Professional approved

Starting an online business can set you up with a lucrative source of passive income, or even plant the seeds of your next career. It can also be a lot of work: Planning how to get your online business off the ground and making a profit is no mean task.

I am the text that will be copied.

Luckily, if you follow these eight straightforward steps, you’ll be well on your way to starting your own online business.

1. Consider low-cost small business ideas

Take some time to consider inexpensive business options. There are plenty of business models that let you get started for less than $1,000. Add a little elbow grease and a spark of inspiration, and you could well be on your way to a digital empire.

Traditional ecommerce

Certain ecommerce business models come with low initial investments and potentially massive payoffs. For instance:

Vintage stores, which often resell inventory hunted down in thrift shops or at estate sales
Online courses, consisting of self-produced instructional videos and live teleconferencing sessions
Handmade jewellery, created using inexpensive materials and tools
Stickers or enamel pins, which can be produced inexpensively in bulk using remote services
Handmade pet treats, which you can make and sell without the use of a commercial kitchen

These are just a few ideas to get you started. When it comes to low-investment ecommerce, there are plenty of ideas waiting to be put into action.

Shopify, Amazon, Etsy, and eBay are four of the most popular platforms for operating an online store.

Shopify : Highly customizable, Shopify comes with tons of plugins, and lets you run just about any type of ecommerce store you can imagine.
Amazon : While it has more stringent limitations on what you can sell and how, Amazon also has a global reach. And their Amazon fulfillment plan can take warehousing and shipping off your hands.
Etsy : A thriving marketplace for handmade and vintage items, Etsy is nonetheless host to many large scale ecommerce businesses—so there’s plenty of room for growth.
eBay : An old mainstay of online stores, eBay is also a great place to sell vintage wares, and may potentially reach a wider audience than Etsy. That being said, eBay has less of a community focus—it may take longer for you to build credibility as a seller.

Further reading: Bookkeeping for Amazon Sellers

Drop shipping

The drop shipping business model completely outsources all your inventory and shipping. It’s up to you so set up a store and market products. The orders themselves are fulfilled by suppliers who you’ve established working relationships with.

So, as soon as a buyer clicks the checkout button, the sale is out of your hands. You collect your profit, and the rest of the money goes to the supplier. After that, you just need to be available to provide customer support if something goes wrong—like the package getting lost, or arriving late.

The drop shipping model is appealing because of its extremely low startup costs; with a laptop and less than a thousand dollars, you can start a business from a table in your favorite coffee shop.

But, because of that easy accessibility, drop shipping is competitive. And you’ll still need to jump through the usual hoops to set up your business, get your financials in order, and pay taxes.

Affiliate marketing

Similar to drop shipping, affiliate marketing lets you profit from selling products without ever handling a piece of inventory.

With this business model, you embed affiliate links on your website, blog, and social media posts, or else in a newsletter you send out to your email list. When customers click the affiliate link and make a purchase from the affiliate’s store, you get a cut—typically a 5-25% commission.

If your strong points are content marketing or social media, life as an affiliate marketer may be right for you. And if you’re already a blogger whose content appeals to a certain niche, you may be able to turn your WordPress pastime into a source of passive revenue.

So long as you’re putting out content your followers value—and attracting traffic through search engine optimization (SEO) and ads—you’ve got all the infrastructure you need to jump into affiliate marketing.

Startup costs are low—all you really need to get going is web hosting, a domain name, and a WordPress account, plus a little know-how when it comes to blogging for your target audience.

Keep in mind, though, the infrastructure you need may take time to build; search engine credibility, large follower counts, and archives full of high quality content don’t show up overnight. If you’re planning to start affiliate marketing, be prepared to invest time and energy building up your online assets.

Pay-per-click (PPC) ad revenue

PPC earns you money every time a visitor comes to your website and clicks an ad. It’s often used in tandem with affiliate marketing. And like affiliate marketing, you’ll need a strong base—such as a popular blog or website—to work from.

So, while PPC isn’t a business model per say, it can supplement your revenue from existing online content. That’s worth taking into account as your put together your business plan, mapping out revenue streams and creating financial projections .

Working as a freelancer

Ready to quit your day job? Online freelancing may be the answer. If you’re already doing work that can be handled remotely—coding, design, marketing, accounting, copywriting—then you’ve got a valuable asset that can earn you cash as an independent operator.

Even if your job is hands on, you can still use online freelancing platforms like Upwork.com or Fiverr.com to set up a consulting business . For instance, maybe you already run your own successful wedding photography business. You can earn side income by marketing yourself as a photography consultant, helping mentor other business owners.

Whatever you specialize in, be prepared to set up a website for your freelancing business, as well as profiles on any freelancer platforms you choose to use. Also, assets like an active social media presence, blog, or newsletter can help you build credibility and stand out from the crowd.

Finally, if you’re used to working for someone else, becoming a freelancer will change the way you do taxes. Our independent contractor’s guide to taxes has everything you need to know.

Starting a podcast

Podcasts brought in almost $500 million in revenue in 2018; by 2021, that number is expected to hit $1 billion. If you’ve memorized the weekly release schedules of all your favorite podcasts, and you figure you recognize the ingredients to an addictive program, then the microphone could be your path to stardom.

Podcasters typically earn their income through affiliate marketing. Obviously, embedding links isn’t the way to go—it’s up to you to promote businesses on your program. Podcasting platforms like Podbean and Buzzsprout connect you with affiliates from day one, so you never have to go hunting for a sponsor. They’ll also host your podcast, and help you promote it and track your progress.

Besides the cost of hosting, be prepared to spend most of your startup budget on promotion through ads and sponsored posts. There’s also the matter of your studio; entry level professional microphones range in price from $100 to $500.

2. Write a business plan

Your business plan is a roadmap for your online business. It describes where you are now, and where you’re headed. As your business grows, you can return to your business plan for help planning growth or anticipating future challenges.

Having a plan in place before you get off the ground is key to building a successful online business. It keeps you centered on your goals—so you know what’s important and what isn’t when it’s time to make important decisions.

A few questions your business plan should be able to answer:

What need is your online business fulfilling for customers?
Who will you be competing with?
What assets will your business draw on? These can include startup funds, your professional skills, or intellectual property (like the exclusive podcasting rights to a juicy crime story).
What will your financials look like in your first year? How about your second year?
How long can your business go without making a profit?
What sort of sweat equity will it take to get your business established?
What will you need to earn each month to break even?

Your business plan can follow either the lean model (quick and dirty) or the traditional one (extensive and deeply researched). And don’t forget to include a cover page that can catch people’s attention.

3. Choose your business structure

How you elect to structure your business will determine how you will file and pay taxes. It also determines your liability—whether your personal assets are on the line in case your landscaping business can’t pay its debt or gets sued.

The five main types of business entity recognized by the IRS are:

Sole proprietorship
Partnership
S Corporation
C Corporation

As soon as you start earning money from your own business, the IRS considers you a sole proprietorship. Meaning, you and your business are identical for tax purposes.

In some ways, that makes life easy—you don’t have any extra paperwork to deal with. Partly for this reason, the sole prop structure is popular with freelancers. On the other hand, it doesn’t offer any liability protection—so your personal assets are on the line in case you get sued or default on a loan, for instance.

A single-member LLC structure is the next step up. It gives you liability protection, while still functioning much like a sole proprietorship. Many small business owners start out as sole props, then become LLCs .

Our guide to business structures lets you compare your options, and see the strengths and weaknesses of each. And even if you opt for the simple sole proprietorship, you may need a business license to sell online .

4. Register your business name

If you freelance under your own name as a sole prop, there usually isn’t any need to register a business name. But as soon as you begin operating under a different name—"Greg’s Graphic Design,” instead of "Greg Jackson”—you’ll need to register it. Also, if you’re using any business structure other than sole prop, you’ll probably need to register your name.

Here’s how you do it:

Make sure no-one else is using your name

Do some research online to make sure no-one else is using your business name. To be extra thorough, you may want to hire a patent and copyright attorney to check for you.

File a doing business as (DBA) form

To run your business as a sole proprietor under a name other than your own, you’ll need to file a DBA with your state.

LLCs, corporations, and partnerships register their business names when they elect their business structure for federal and state tax purposes. However, you’d like to operate under a name different than the one you’ve registered, you’ll also need to file a DBA.

5. Snag a domain name

Once you have your business name, it’s time to register a domain name. Even if your main marketing platform is social media, and you don’t need a website, it’s best to register a domain now. There’s always the chance that once your business takes off, someone else may try to register your domain for their own business, and that lower your standing on Google search results page.

Plus, while you may not absolutely need a website to run your business, even creating a small, simple one could benefit you in terms of SEO, helping you come out at the top of Google’s search results when someone searches for you.

Google Domains is a good one stop shop for your new domain. They make the process easy to navigate, without the upselling techniques used by other providers (“For just $9.99, add YourCompany.biz !”). Once you decide to build a site, you can automatically import your domain into Squarespace, Wix, Wordpress, Shopify, or Weebly.

6. Sort out sales tax nexus

If you’re running an ecommerce store, you may be required to collect sales tax in multiple states. If and when you do is determined by your sales tax nexus. Sorting that out can be a bit tricky, but our introduction to sales tax nexus makes it simple.

7. Launch your social media presence

Maybe you’re planning to use Instagram as your number one sales channel for your vintage clothing store. Or maybe you’re launching an online consultant business, and hadn’t considered using social media at all. Either way, one of the first steps you should take after launching your online business is to create a social media presence.

Even if you’re not selling through social media, having an active account shows potential customers the lights are on: It proves that you’re engaged and accessible as a business, and can serve as a point of contact for customers who have questions.

The most important social media platforms for marketing your small business are:

When it comes to younger demographics, like millenials and zoomers, Facebook has seen a decline in popularity. Nonetheless, on a global scale, it’s still the most popular social media platform overall. Maintaining a Facebook profile makes your business easier to find by improving your SEO score.

Especially among younger cohorts, Instagram has seen a surge in popularity for marketing products. Hashtags let you research and target specific groups of users, as well as seeing what your competitors are up to. And since it’s primarily a visual platform, it’s the perfect place to showcase new products.

If you offer your services as an online freelancer, Instagram may not be your first choice in terms of social media—after all, you don’t have any glitzy products to sell. But keeping a tastefully maintained personal account can help prove to people researching your services that you’re a “real person,” and trustworthy.

If you’re publishing blog posts, videos, or podcast episodes, Twitter can be an excellent platform to keep your followers updated. It may also give you the chance to network with other businesses in your industry. But unless you’re publishing regular content—or launching a quirky brand identity —you can probably skip it.

A visual platform similar to Instagram, Pinterest is a good fit for niche businesses, especially ones dealing with handmade products. It’s a popular source of inspiration for crafters, decorators, and hobbyists. Pinterest may be perfect for promoting your Etsy store, but if you’re starting a software company or hiring yourself out as a business consultant, you probably don’t need an account.

Even if you’re not much of a networker, having a LinkedIn page for your business is valuable. It proves you’re legitimate: You may be your company’s only employee, but it lets potential customers put a face to a name. If you’re running a drop shipping or affiliate marketing business, where fly-by-night operations are all too common, a simple LinkedIn profile can make you more trustworthy.

You already know the biggest search engine in the world is Google. The second biggest? YouTube. With one billion hours of video watched every day, YouTube has massive reach. And the sky’s the limit when it comes to what kind of content you can create: From educational mini-documentaries on your industry, to interviews with thought leaders, to step-by-step overviews of your products. Try entering search terms relevant to your business—"motorcycle parts” or "stain remover”— and see what’s out there. You may find a new fan base just waiting to be targeted.

8. Get bookkeeping right from day one

Organized bookkeeping means an organized business. When your financial records are in order, you’re able to anticipate the future and make smart business moves. And it’s especially important to have tidy books come tax time ; the more organized you are, the faster it is to file, and the easier it is to take advantage of tax deductions .

Bench is especially suited to online businesses. We automatically import your bank statements, and transaction records from payment services like PayPal. If you’re already operating a paper-free business —with all your financials online—then Bench integrates seamlessly.

The best part? You get a professional team of North American bookkeepers who handle your bookkeeping—so you don’t have to. Try one month of bookkeeping free .

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How to Start an Online Business (All-in-One Guide for Dummies)

How to set up online store (All-in-one Guide-or-dummies)

Starting an online business can be overwhelming – a thousand questions may pop up in your mind. No need to lose sleep asking yourself where to start, which platform to host your website , or do you need to use a CMS or hire a developer to create a whole site with hand coding.

Don’t sweat it; we’re here for you to guide you from start to end. From choosing your niche to some amazing online business ideas, from choosing the best online hosting to setting up your website, from setting up payments to optimizing your website – in this article, we tried to cover everything you need to know to start an online business.

People tend to fail when they’ve doubts. Are you having second thoughts on –

How to start planning the roadmap?
Confused about the business that will suit you the best?
Which platform to choose for building the website?
How to organize content and set up the store?
Setting up the best payment method for your niche?
Extending your website with appropriate tools?
Optimizing your site for speed up and SEO purposes?

Whether you are a beginner or an expert, read to get the whole picture of creating an online store from scratch and learn to optimize your site for better performance.

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Step 1: Choosing the niche for your online business

We hope you did your research well and know the potential market for your product or service. Knowing your customers and competitors is very crucial to becoming a successful online business owner.

Are you struggling to determine the niche you want to work in? Or are you out of business ideas? We’re here to give you some ideas to think over.

Before that, you need to ask yourself some questions to find out your strong suit, such as,

What am I really good at? What knowledge, skills, and talents do I possess that can help me make money?
What are the things I enjoy doing? What work and tasks do I love doing and can do every day?
How much fund I can invest initially? Do I need other investors, and how long can I last without earning a dime while my new career finds its footing?
What resources do I own that can be used to build my online business? Laptop, HD camera, popular social accounts?

Got the answers? If not, take your time to think through every step before jumping into it. No need to hurry first to find the answers. It’s a big decision, and you must give time to planning.

Let’s look into some of the best business ideas for beginners with zero or small investment.

Top 5 online business ideas (small or no-investment)

Looking for the best innovative ideas for an online business ? Here’s a list for you to take inspiration from and learn what you need to start your dream business.

eCommerce: selling physical goods

Online business tools to increase revenue

Selling your own product is one of the more obvious ideas. If you have a good product in hand, you’re a step closer to becoming a successful entrepreneur. Now you just need the motivation and the right marketing plan to sell your product. Make a professional-looking eCommerce website with all the required pages and payment methods available.

As you make your own product, you can give it your own touch to meet the market demand. One thing you should keep in mind, unique products pique more interest than other common ones.

However, there are things you should do carefully to run a successful eCommerce business. Like creating your online store, warehouse setup, shipment process, payment methods, returning policy, and so on. Making short money and staying in the game for a long time are totally different things. Stay focused, stay hungry!

Capital investment : cost of production, cost of supplies, cost of shipment, cost of the website
Necessary resources : trade tools, warehouse (depending on the scale of production)
Skill set : expertise in whatever you’re making, marketing your product

Start affiliate marketing

Affiliate marketing is nothing but referring your traffic to different products or services. And if the user makes a purchase, you get a commission for that. Though it comes in many forms today, it comes as sponsored content, like a blog or video.

Running a successful channel online could give you a headstart to becoming an affiliate marketer. Suppose you manage a popular blog with a handsome amount of traffic – with more leads, you’ll get more clicks means more conversions.

Moreover, other companies would like to pay you to promote their product or post articles about themselves. Sponsored contents are one of the most subtle approaches to advertising online. That’s why the affiliate marketing business is huge and has a bright future for sure. Take Wirecutter , for instance; it’s a multi-million-dollar company doing affiliate marketing for some time now.

Capital investment : making a website and hosting it (for social media, no investment is needed if you grow it organically)
Necessary resources : nothing but a successful online channel
Skill set : marketing and advertising

If you’re interested in amazon affiliates, you can read this article on amazon affiliate marketing for beginners .

Social Media Influencer

People want to be social media influencers without understanding the work aspects. Using social media for fun is one thing; doing it professionally is a whole other thing.

You may have the natural talents for trending. But when you do it professionally, there are some technical aspects you need to know, like researching your traffic volume, finding the right timeframe to get more interactions, choosing perfect hashtags and knowing their impacts, and knowing your traffic’s demographic to promote the right product.

However, having a strong interconnection with your niche is important—sponsors usually try to reach your follower’s group to promote their product, so the more specialized you are, the better.

Capital investment : initially, very little.
Necessary resources : successful social media account, decent device to take pictures and videos.
Skill set : social media skills like knowing what to post and how often to post, how to link the products or services, post scheduling & editing, how to reply to comments, etc.

Do you know 51% of US adults listen to podcasts daily ? Podcasting is the modern and better alternative to talking on the radio. If you’re good at talking, it could be your perfect career choice.

To be successful in this arena, you must create something worth listening to, which requires amazing speaking skills to glue your audience. Good podcasts are informative, entertaining, and emotional, so find out our perfect niche where you can achieve all these. Collaboration with celebrities and experts will lure more audiences and help you become a successful podcaster.

Capital investment: media hosts, marketing funds, etc.
Necessary resources : recording and editing software, professional-grade microphones, etc.
Skill set : speaking skills and presentation power to connect with the listeners

Blogging

It is said that content writing is the spiritual successor of print journalism, and such relies on the same skill sets. Bloggers create different content for their websites to grow their leads and eventually monetize their blog through affiliate links, ads, sponsored content, or selling their own products.

You need good writing ability to engage your audience to stay on your website and some SEO skills to rank higher in the search engines. Writers are hotcakes on digital platforms as many people search for ideas and solutions on Google daily. If you write useful content with interesting facts and people find the answers in your blog helpful, you will likely get more traffic to your site.

You can specialize in certain topics (advice, DIY & how-tos, industry news) or certain writing styles (i.e., dry legal copy, humorous essays).

Capital investment : little (hosting and creating your site. Pro tip: WordPress sites are the best for blogging)
Necessary resources : laptop/pc or tab, whatever device you love to write
Skill set : researching keywords, writing and proofreading skills, search engine optimization (SEO)

But that’s not all. You can explore a few other avenues other than the ones mentioned above. Some profitable and zero-cost business ideas for dummies would be:

Dropshipping eCommerce
Photography and Videography
Selling services online
Freelancing and designing
Social Media Marketing
Teach an online course
Become a virtual assistant
Online agency business
Music or voiceover service

Now, you need a website to present your service or product online as you have some business ideas . For this, you must choose the right platform to make your website without hassle.

Step 2: How to choose the best website builder for online business

If you aren’t a website developer and don’t have a team for yourself, it won’t be wise to hand code the whole website for yourself. Website builders are the best solution for entrepreneurs, business owners, or even individuals to create a website without hiring a developer.

Nevertheless, finding the perfect website builder can be tricky for you, as hundreds of them are out there. If you trying for a magical one-fits-all approach to choosing the best website builder, you’ll be lost in eternity!

To narrow things down, you should ask yourself these questions:

Will you manage your site yourself, or will you hire a third-party service provider?
How much customization do you need in terms of design and layout?
Do you need to store a lot of data, or do you need special features for your site?
Do you just need to display things, or should your visitors be able to interact with the pages?
How much are you willing to pay for the extra features?

If you’re still confused or don’t know all the answers, you can take inspiration from your competitors. Considering these questions and comparing the builders, you’ll soon find the best fit for you.

The touchstones for the best website builder

Usually, most website builders come with an intuitive drag-and-drop interface to build a website and offer trial accounts, free plans, or a generous money-back guarantee. You can take this advantage to test drive before making your final decision.

Criteria to be the best website builder:

Check out these criteria to choose the best website builder to make your online

User-friendliness

To be the best website builder, it needs to be user-friendly for beginners. Customizable drag-and-drop, easy no-code designing options, powerful editing tools, and scope for customizing via codes are essential to building a website easily.

Pricing

As you’re looking for the best website builder for your online business, you should consider which builder fits the bill. Find out if it offers some extra benefits like free domain, free business email, free SSL, or free eCommerce features. If not, consider how much it will cost to get these extra features. However, offering extra features doesn’t make it good; price along with the functionalities make it the bang for the buck!

Design and features

Another thing to remember while choosing the best website builder is that it has a great array of professional website templates and the option to add additional features like CRM, Google tools, third-party marketing tools, and so on.

Customer Support

A vast range of features and low cost aren’t the only things to look for. You need to make sure the website builder has 24/7 customer support available when needed. You never know what kind of issues you’re going to face while making your online business website. That’s why a dedicated and friendly customer support option should be on your priority list.

Data ownership and portability

Another thing you might overlook as a beginner, even people with experience in website building sometimes forget about this. Make sure you read the policy before purchasing, especially the data ownership. So, you can take all the necessary data whenever you change or want to shift your website.

That being said, let’s look at the best website builder to create your online business website.

WordPress.org

Do you know over 40% of all websites on the internet are powered by this amazing platform?

WordPress is a free, open-source, powerful website builder that tops the list in the website builder market. With WordPress, you don’t need coding knowledge to build your website. It has a huge community, powerful features, scalability, and ease of use.

Moreover, you don’t need any third-party control; you have full website ownership, which gives you maximum privacy.

Many big fishes made their websites with WordPress, like Microsoft News, The Walt Disney Company, Vogue, Whitehouse.gov, Etsy Journal, Yelp Blog, and other small and medium businesses.

However, you need to choose a WordPress hosting account to host your website, and you have a bunch of great hosting platforms available with different plans for your online store.

WordPress gives you full authority over your online presence. You can build any kind of website like an eCommerce store, blog, membership website, corporate website, portfolio website, social network, community forum, affiliate website, landing pages , and whatnot.
If you don’t want to make your website from scratch, there are thousands of high-quality pre-made WordPress templates you can use for your website’s design and layout.
No matter how big or small your company is, a page builder can help you easily create amazing pages for your online store. Elementor, Divi, Oxygen, and Beaver Builder are some popular page builders with multiple functionalities and drag-and-drop features to help you make your site without zero coding.
WordPress is limitless; you can extend your website functionalities with plugins and themes . Plugins are software for WordPress that lets you add additional functionality to your websites, such as contact forms , social media reviews and testimonials, CRM (customer relationship management), live chat, shopping carts, payment methods , Google Analytics, and more.
Another big reason to be the most popular website builder in the world is that they allow you to create multilingual websites that can be translated into over 75+ languages .
Additionally, WordPress comes with some robust SEO tools that search engines love that help you to outrank your competitors.
The WordPress community is huge . If you face any issues running your website or unfortunately come across WordPress bugs , there’re available resources to fix your problem.

There aren’t so many cons of WordPress. Still, we’re mentioning some to give you a full view of the platform.

With WordPress, you need to manage your own website . For that, you have to familiarize yourself with the system. You could easily overcome this slight learning curve within a few days.
Also, you need to update the WordPress version, plugins, and create backups regularly . All of these can be automated by your WordPress hosting provider.

Wix is another powerful cloud-based website builder that offers ease of use and freedom to create, design and manage your web presence as you like. Almost 2% of all websites online use Wix as their website builder. Though some amazing professional templates and features are available on Wix.com, you also need to consider some aspects before using Wix as your primary website builder.

Wix itself is a fully hosted platform , so there’s one thing you can take off your mind – paying for hosting. You’ll get access to a bunch of pre-built templates to choose from for your website. You can fully customize your website with their intuitive drag-and-drop builder.
Wix also offers some free and paid apps that you can install and add new features and functionalities to your site. All of them aren’t created by Wix; other developers can build Wix apps and sell them online (Here is another online business idea for you!)
It offers a free plan with limited bandwidth and storage . But it doesn’t include a domain name, if you want to keep the website, you need to upgrade to a premium plan. However, this is a good option for a test drive.
You will also get a free SSL certificate if you buy the premium plan.
If you use free or Connect Domain plans of Wix, they will show the branded ads to your website . To avoid those irritating ads from your website, you need to upgrade your plan to Combo or Unlimited plan, which is pricy.
You might hear that Wix hides the complexities. This isn’t necessarily good. People sometimes feel overwhelmed by seeing many settings and options on their dashboard, but you won’t get the full exposure if you cannot properly manage your site’s backend.
It’s very difficult to migrate your Wix website or data , which is another major setback for it. Once your business is outgrown, you may need more authority or design differently, which requires moving your site to a different web builder platform. Wix isn’t friendly in website migration.
Spoiler for you – Wix isn’t FREE ! It costs more than you think. Premium plans start at a mere $4 or so per month, so it’s not expensive by any means, and they go up to $24 per month.

Shopify.com

Shopify is a popular eCommerce website builder specifically designed for online stores and eCommerce. You can build and customize your online store and sell in multiple places, including the web, pop-up shops, mobile, multiple social channels, etc. Shopify is powering millions of online stores across 175 countries, and 4.4% of all websites on the internet are using Shopify as their eCommerce website.

With Shopify, you don’t need to worry about managing different software , installing updates, or keeping backups. Shopify handles all for you.
This also offers the famous drag-and-drop feature to help you make your own website without coding. You’ll also get hundreds of designs to choose from and also make adjustments as you please.
It offers its own integrated payment solution named Shopify Payments which allows your customers to pay via their credit cards. However, you can also add a third-party payment gateway if you want.
Unlike other eCommerce website builders, Shopify comes with better inventory management, powerful analytics, unlimited products, and simple marketing and SEO solution , all wrapped in one package.
If you want to migrate from any other eCommerce builder, you can do it swiftly with Shopify. Moreover, a free SSL certificate, versatile shopping cart management, mobile app, and 24/7 customer support are available on Shopify.
They force you to use their payment gateway, which will charge you an extra 2% transaction fee .
If you compare it with other platforms, Shopify is on the high-price product side. You have to pay some extra cash to add more functionalities and features.
Moving from Shopify can be difficult sometimes , so people who start with Shopify usually don’t take the hassle of changing the platform.

Step 3: How to set up your online business

Setting up your online business gets much easier when you choose the right platform. WordPress is the best solution for you if you think long-term and scalability. This section will illustrate how to set up your online business step by step.

What do you need to set up your online business

Starting your online business is easier than ever. You can get tons of resources online to get started. Anyone with a PC/Laptop can create their online store within a few hours.

Here are the things you need to start your online business:

A domain name (name of the website like www.example.com)
A web hosting account (this is where your site will be launched online)
One or two hours to set up

Yes, this is as simple as it gets.

Let’s walk you through every step to starting your online business.

The things you will learn in this section are:

How to register your domain name, and from where
How to choose the best hosting platform for your website
Learn how to get a free SSL certificate
How to install WordPress
How to choose themes and page builder
Customize and extend your website with plugins

Registering domain name

Registering your domain name and choosing the hosting provider for WordPress typically happen around the time of the web creation process.

Think of your domain name as your home address – it’s how your users will locate your website on the internet. And your hosting provider is just like the piece of land you built your house on – where your website’s files are located. Without a good hosting provider, your site wouldn’t have any space on the server to show content online.

There are many WordPress hosting providers in the market. Choosing the best fit for you is a major key point you should remember.

Picking the best domain and hosting provider for your website

If you choose WordPress.org, you need to create your own domain and get a third-party hosting provider for your website. WordPress.com takes care of the hosting, but you need to choose whether you want a custom domain or not. You need to give extra attention while choosing the hosting provider because it impacts your website’s speed, security, management, and reliability.

When choosing the hosting provider, all you need to do is keep these simple criteria in mind to pick the best one for your website:

PHP version 7.4 or greater
Different plans for scalability as your business will grow and you’ll need more room
MySQL version 5.6 or greater Or MariaDB version 10.1 or greater
A good hosting provider must take reasonable steps to protect your data
HTTPS support
A good WordPress hosting provider should have a solid reputation within the community
The best pick should provide top-notch 24/7 live or chat support at every turn

When choosing a hosting provider for your WordPress website, ensure it meets all of the above criteria. Some providers offer free domain name registration; if not, you can always register your domain name through domain registrars.

Namecheap is an accredited domain registrar that has been around since the start of the century. It serves over two million customers with an affordable $8.88 price for .com domains, including WHOIS privacy protection (pronounced “who is”- short for the question, “Who is responsible for this domain name?”) privacy protection, which makes for a solid deal.

First, you need to go to namecheap.com . Choose a unique name for your domain and search it to check if it’s available or not. Namecheap is a great marketplace where you can buy or sell domains and offers 24/7 live chat support if you need assistance.

Now, if you want domain+hosting+free SSL in one place, Bluehost is the platform you are looking for.

Let’s build your beautiful online business store in a jiffy!

Choose your hosting plan

First, head to Bluehost’s website and click the Start Building button to choose your plan. Once you’ve chosen your plan, click on the Select option, and you’ll be redirected to a new screen to sign up with a domain name.

If you don’t have any domain name registered, type your unique domain name in the Create a new domain option and hit next. Or you can select Use your own domain if you already have a registered domain name.

After selecting your domain name, you’ll be brought to the Billing and Accounting information page to complete the purchase.

Once you confirm your account and purchase your domain, you’ll have access to your hosting dashboard (cPanel) via email. This is where you can manage your website files, emails, support, and so on. Pro tip: Always ensure your hosting provider has a cPanel or File Manager option in its dashboard.

When you log into your cPanel, you’ll notice that Bluehost has already installed WordPress for you, and you can just click on the login to WordPress button to access your website’s backend.

After that, you’ll get access to the dashboard of your WordPress website. Though we prefer to log in via the www.example.com/wp-admin URL. If you have a WordPress site, you can log in to the dashboard by putting the “/ wp-admin ” text after the site’s URL. Type your username and password to log in to the dashboard.

Install and set up WordPress

If you choose a hosting provider outside of WordPress, you’ll need to install the WordPress CMS to connect your new domain to your website.

Unlike a managed WordPress hosting service like Kinsta or WP Engine, if you pick GoDaddy for hosting, you have to go through the process of installing the CMS.

First, log into your GoDaddy account, and click Web Hosting, then Manage. You’ll be redirected to a page with your account details.

Now scroll down, and you’ll see an area named Popular Apps under Options & Settings. To install the WordPress app, you need to click on it.

After finishing the installation, you have to answer a few questions about the domain you want to use, your admin information, and the location where you want to install WordPress.

It’ll take about 24 hours for your website to be installed on your hosting account, and GoDaddy will send you the confirmation email.

Now, as you have set up your domain and installed WordPress, you’ll need to set up your primary domain within WordPress so that your visitors see your website when they search your domain.

From WordPress, go to My Site and click on Domains . Then select the custom domain you want to make your primary domain.

Click the Make Primary button and confirm the change by clicking Update Primary Domain .

Now you need to make some adjustments to your WordPress site to run smoothly. First, go to Settings » General page to set up your WordPress site title and description

Select a nice site title (name) for your online store, and give a catchy tagline for your site to stand out. This part is optional, so there is no need to worry if you cannot come up with something immediately.

Some hosting provider offers a free SSL Certificate; if not, you need to purchase it separately. With Bluehost, this certificate comes pre-installed to your domain name. However, you need to configure your WordPress site to get the HTTPS (Hypertext Transfer Protocol Secure) in your URL.

Activating an SSL certificate makes your site secure and enables a padlock icon before your site’s URLs. On the same Settings » General page, you just need to change your WordPress Address (URL) and Site Address (URL) HTTP to HTTPS.

After the modifications, don’t forget to scroll down and click the “Save Changes” button to store your settings.

Congratulations, your basic WordPress setup is complete. Next is to set up your online business store.

Choose your theme and page builder

Whenever you create a site with WordPress, a default theme is pre-installed on your site. You can keep it if you want, but your visitors won’t be impressed and may quickly leave the site. Whether it’s free or paid, you need to choose and customize your theme that should look professional and appealing to your buyer personas.

You can easily design beautiful pages with these page builders, no coding knowledge is needed. But if you have basic HTML and CSS knowledge, it can be a cherry on top.

Head to your admin dashboard to find the compatible theme for your online business site. Now click on Appearance, then Themes. Another page will appear where you can browse available themes or search for a specific one you have in mind.

Choosing the theme for your online business site

Once you find the perfect theme for your site, simply install it to begin customizing. Check if the theme has a website or not, and check the documentation and tutorials if available as you work through the customization process.

Add posts and pages to your site

A website needs content, and it’s usually displayed in the form of posts or pages. Content are great to give your website exposure that’s why you need to learn how to add post or pages to your WordPress website.

Posts (which are dynamic) are typically used for blogs or portfolios because they automatically appear on top of your featured content. Whether you run a blog site, affiliate site, eCommerce site, or service-providing site, blogs play a crucial part in lead generation.

On the other hand, pages are static; whatever content you put on the page stays in the same place. Landing pages generate sales, give visitors a tour, and appeal more business owners to your site.

As you know, Posts and Pages are the main post types in WordPress, but there are other native post types and custom post types too. To add a post to your website, simply go to the admin dashboard, click Post and then Add New.

With WordPress, it’s quite straightforward. You can add a title, body, buttons, images, embed videos, and insert different elements via blocks and shortcodes like forms, tables, social proofs, etc., to make your post visual, more functional, and attractive. You can see two buttons in the upper section of the page, one is Save Draft, and another is Publish. You can either save it in the draft or publish it immediately. There are a bunch of options like scheduling the post, adding the author name, category, and then some.

You can add a title, photos, content, forms, shortcodes, and different blocks your page builder offers. You can customize and style the blocks to your liking, follow the same steps and make multiple pages for your business site. It’s good practice to have some landing pages on your website.

Setting up Woocommerece to your site

WooCommerece is undoubtedly the best online store builder in the market. As it’s built on top of WordPress, that gives it all the flexibilities of WordPress with the freedom to sell anything you want.

Simply install and activate the WooCommerece plugin as any other plugin. From the plugin section, go to Plugins and then to Add New page, search for WooCommerce.

After finishing the installation, click on Activate to get started.

After activating the plugin, there will be a setup wizard, which will walk you through the important WooCommerce settings.

First, you need to provide the basic information for your online business stores, such as an address, region, and country. If you own a retail shop, you can add your retail location to match the same address.

Now, click Continue and move on to the next step.

Choose a store industry closest to your niche and hit Continue.

Select the types of products you’ll be selling to your online store. For instance, if your product needs shipping, you should choose physical products, or you can choose other options like subscriptions, downloads, memberships, etc. too. You can sell more than one type of product in your online store, but selling one niche product/service on one site is better.

You’ve to click Continue again to move to the next section.

In this part, you’ll be asked to provide some business details, such as how many products you plan to display on your site and if you are selling elsewhere or not.

Switch to the Free Features tab now, and you’ll see a box pre-checked to install free features for your website. Uncheck this option, as it will install some WooCommerece extensions you may not need. You can install them later according to your need.

Next, if you don’t choose any theme, you’ll be asked to choose one for your online store. You can continue with your current theme or choose any free option on the page.

Congratulations, you’ve successfully set up WooCommerece to your site.

Note : If you don’t want to sell products on your site, you can avoid this WooCommerce setup section.

You may not need to set up WooCommerce from scratch but rather a simple form for a recurring subscription, one-time payment , or even a donation . For instance, you can create a T-shirt order form with Fluent Forms with many payment options. We’ll discuss Fluent Forms in the later section.

Payment option configuration

Now you need to set up payment methods to accept online payments in your store. WooCommerece provides a bunch of payment gateways that you can set up easily.

Just go to WooCommerce from your dashboard, then the Settings page, and switch to the Payments tab. By default, you can choose from PayPal Standard, Checks, Cash on Delivery, and Bank Transfers.

Payment configuration for your business site

If you scroll below, you will see the options to install PayPal, Stripe Checkout, and WooCommerce Payments.

You need to set up your payment option by providing some information like API key, ID, etc., that are provided to the payment gateway’s site. For instance, if you want to connect stripe payment, you need to open a stripe account, and you’ll be provided with an API key and ID, copy them to your site, and you’ll be able to receive payments via Stripe.

Before exiting the payment setting page, don’t forget to Save the changes you’ve made.

Step 4: Extend your online business site with plugins

Plugins are like apps that add different functionalities to your WordPress website and can enhance the user experience. As you already know, there are over 60,000 plugins available in the market. To create a successful online store, you must add more functionalities to your website, and that’s why you’ll need some must-have plugins for your WordPress site.

However, the abundance of choices also makes it difficult for the dummies to choose the right plugins for their website. That’s why we have listed some essential plugins to add dimension to your online store.

Fluent Forms

Fluent Forms is one of the best secure form builders in the market. It’s lightweight, fast, and full of functionalities. From contact form to booking form, survey form to conversational form, user registration form to payment form, you can make whatever form you want with Fluent Forms.

This market-leading plugin has an intuitive drag-and-drop builder to help the non-coders create beautiful, functional forms within minutes.

More than 200K businesses are powered by this amazing form plugin that offers 25+ free input fields (more than other’s premium versions).

If you don’t use heavy plugins like WooCommerce on your site yet want to sell products and get payments, you can easily make product order forms with Fluent Forms. Give it a try, and you’ll never switch back for sure.

WP Social Ninja

To gain your customer’s trust, sometimes you need to show your social media feed, display business reviews, and connect chat widgets with your WordPress website. It helps you to make a social presence, and customer engagement and ultimately helps to grow sales.

For that, WP Social Ninja is the all-in-one social media plugin that offers 4+ social feeds (like Facebook, Instagram, Twitter, Youtube) to show your social activities, 9+ review platforms (amazon, yelp, GMB, AirBnB, etc.) to show live reviews of your customers, 15+ chat widgets (Whatsapp, Telegram, Snapchat, Line, WeChat, Skype, and so on) to connect with its customer base.

Taking care of every social feed, review, and showcase in one place can be a game-changer. Install WP Social Ninja and make a strong customer base to take your business to the next level.

FluentCRM - for email marketing automation

Without a smooth customer relationship, you cannot have a profitable business. Customer Relationship Management (CRM) systems are powerful tools that help you understand your customers throughout their entire customer lifecycle.

FluentCRM is the best self-hosted email marketing and CRM solution for WordPress. Manage customer relationships, build email lists and run sophisticated campaigns, automate email sequences, manage learner and affiliate, monitor user activities, and much more without leaving your WordPress dashboard. A free version of FluentCRM offers many features to increase your conversion rate!

This is a must-have plugin if you want to become an amazon affiliate. Exhibit your products the way your audience likes to see them. Make your visitors compulsively click on the Buy button!

From product tables to geo-targeting, bestseller lists to customizable layouts, shortcodes to automatically tracking affiliate links, all can be done with AzonPress .

You need to list more products on your site to get more exposure. That should be the main motto of your affiliate site. With quality content, you need to showcase more products to get redirect users to amazon.com. That’s how you’ll earn a handsome amount. AzonPress will help you with everything you need to become a successful amazon affiliate.

Ninja Tables

Adding and managing data can be frustrating; tables can be the perfect solution if you want to show them differently.

Showing data in diagrams, charts, or tables on a WordPress site with different layouts and designs will attract more visitors. Ninja Tables is the plugin you should consider, as it has a user-friendly interface, customizable design features, several cool integrations, the most affordable pricing plans, and others.

So, what are you waiting for? Make some beautiful tables with Ninja Tables to unleash the untouched potential of your business without any coding knowledge!

Optimizing your post and pages is as important as creating the whole site. Rank Math is a handy tool for content analysis, on-page optimization, breadcrumbs, redirects, rich snippets, and so on. You should not rely solely on an SEO plugin; having one in your dashboard is helpful.

It helps you to find out the basic and advanced on-page SEO issues. You can insert targeted keywords like other SEO plugins, but some extra features like schema markup, rich snippet, no-follow enable button, and things like that make this emerging plugin to make a standout.

Don’t wait up; install a search engine optimization plugin for your online business site that can make it easy for anyone to optimize content with built-in suggestions based on widely-accepted best practices.

FluentSMTP - making email deliverability easier than ever

A business site needs to send emails regularly to its users. Email deliverability is WordPress users’ most common issue when handling bulk email.

By the textbook definition, SMTP (the simple mail transfer protocol) is an internet standard communication protocol for electronic mail transmission.

SMTP plugin uses a robust SMTP mailer service which solves the WordPress email going to spam issue and increases overall email deliverability.

FluentSMTP is a free, feature-rich, and lightweight SMTP plugin in the WordPress market. With FluentSMTP, you can set up multiple SMTP servers, keep track of every email sent from your WordPress site, view them all, get a detailed report, view email logs, resend emails, and so on. So we recommend downloading FluentSMTP to solve any WordPress email deliverability issue.

Other tools you should try

Semush : While thinking about site optimization, images are a key culprit in slowing down your website. Optimizing every image is a tedious, time-consuming task. Thankfully, Smush, the image optimization plugin, comes to the rescue. This plugin automatically compresses images across your website as you upload them to your media folder, which helps to load images quickly for users, keeping them engaged and converting.

Yoast SEO : This is arguably the most popular SEO tool in the WordPress arena. If you want any alternative to Rank Math, this is the plugin you are looking for. Not only it can help you to improve your SEO, but also it can analyze the readability of your content. With this amazing SEO plugin, you can add focus keywords, manage metadata, URLs, excerpt, and many more.

WP Rocket : WP Rocket is a powerful caching tool that helps to speed up your loading times by creating cached copies of dynamically-generated pages of your site. Load times are crucial for your conversion, and this plugin can decrease your load times by a whopping 43%!

Akismet : If you want an extra layer of protection from spam, Akismet is a lightweight but effective solution for you. It checks your comments and forms submissions, keeps your blogs clean, and helps your site to be spam-free.

Pro tip : Never bloat your site with unnecessary plugins, as it will drain your site’s speed.

Step 5: Tips and tricks to optimize the site for better performance

There are a bunch of WordPress tips and tricks to make your website as user-friendly and impactful as possible. We’ve listed some of the important ones for you to optimize your online store.

People tend to forget to add Image Alt Text which can be used to improve your SEO and SERP position.
Enable browser caching to improve your website performance. Browser caching temporarily stores your website’s data on visitors’ browsers and helps load pages faster.
You need to back up your website regularly so that if you ever lose access or have any technical difficulties, you have everything to restore your content completely. Several plugins, such as Snapshot Pro, are made specifically for backing up your WordPress content.
Don’t forget to include an “About Us” page on your website to show your visitors you have a trustworthy business. This page is known to be the second most visited page on any website after the homepage – so introducing yourself is important.
Create a custom navigation bar to access different pages to give a smooth user experience. You need to organize your footer and add copyright to the footer as well.
Make sure your site is secure from hackers and DDOS attackers. Add CAPTCHAs to your form to avoid spamming. Plenty of plugins like Sucuri and WP Defender help you with the security and firewall available in the market.
It’s no secret that people search the internet on their tablets, phones, and other devices. A major portion of your visitors may come from these devices. That’s why you need to consider the mobile-friendliness of your website. While designing your page, click on the mobile icon to see how it will look on mobile devices and make changes accordingly to look good on phones. You can also use plugins like WPtouch to make it happen.
You should keep an eye on your website’s performance and learn what is and isn’t working for your visitors. You can look up Google Analytics and Google Search Console , as well as some plugins , to observe the performance of your website.
Try to update the WordPress version and plugins regularly. WordPress will remind you when updates are released. This will help your website stay fresh and work efficiently.
You must structure your business website according to your business model, visitors, and buyer personas. For instance, use posts if you’re a blogger and pages if you own a conventional business.
While organizing the sidebar, stick to the essentials and think about what your website visitors and buyer personas need easy and quick access to. Make the CTA buttons visually attractive to get more clicks.
WordPress will provide you with a default homepage, but you need ot create a custom homepage for your online store. Even if you choose a theme, do not copy the whole website design and layout from the theme. Customize the site to get brand recognition.
To boost your conversion rates and reduce the bounce rate, learn SEO basics and understand the optimization process carefully.

Just the moment you thought about starting an online business, your daunting days began. Thinking about the challenges and outcomes is necessary, but you don’t need to overthink anything. That’s why we tried to give you a full overview of how to start your first online business and set up an online store to make sales.

Having a great website and synergizing with your thinking matters. From business model to choosing the hosting plan, choosing a niche to optimizing your website, capturing leads to increase conversion rates, all linked to the road to success.

To sum up the whole story:

Choose your niche, and strong suits to start your online business.
Organize your thoughts about how to initiate your project and register a domain name for your website.
Next, you need to choose the hosting platform to host your website.
Learn and choose the best website builder for your site. Take your time in this part; switching the whole website to another one is not easy if you choose the wrong platform.
Set up your WordPress site and get an SSL certificate to make your site secure. We suggest WordPress as it’s the most popular and the richest website builder you’ll ever come by. A great community, more flexibility, and tons of extensions made it powerful to create any type of website you want.
Customize and organize your website as per your need to enhance user experience and exposure in the SERPs.
Add different plugins to extend website functionalities.
Optimize pages to enrich site health and speed.

Hope this guide will help you to make your dream website and be a successful business owner.

He loves to play in the arena of WordPress and learn new things every day. Whenever he’s not writing, he’s playing billiard or spending quality time with his family.

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How to start a business

Business plans for beginners: a step-by-step guide

Have you ever put together a business plan before? It’s no joke. There are a lot of factors to consider as you start to build one, and there’s often a nagging feeling at the back of your mind: is my idea good enough? Will anybody be as excited about this business as I am?

Don’t worry; we’re here to help.

If you’re ready to start a small business, a business plan is the way to take your idea and put it into action. As you’ll see, it’s not just for the investors or the bank’s benefit. When it’s done well, a business plan can serve as your very own road map to a successful, sustainable new business.

The good news is, there’s no one right way to write a business plan, but there are some tips and tricks that can ensure you include all the important information any lender or investor will want to see before they go into business with you.

Today, we’ll share:

4 guiding principles for a successful business plan

8 common mistakes in writing a business plan
Choose your own adventure: which business plan is right for you?

Build your own traditional business plan in 8 steps

Build your own lean business plan (sample plan included!)

BONUS: Add depth to any business plan with these sections

7 tips for a killer business plan pitch deck
Tools to help you build your business plan
More resources: helpful books for starting a small business

We have lots of in-depth advice ahead on how to craft a business plan that’s specific to your small business idea. But first, here are some broader guidelines that should help you get in the right headspace:

1. Be objective

We know this idea is your baby, your pride and joy. It’s hard to stand back and evaluate it without the rose-colored glasses. But the better you are at seeing your idea’s strengths and weaknesses, the better you’ll be able to improve and see issues coming before they snowball into problems, both before you launch and as a business owner.

2. Be realistic

Some new small business owners think they need to pad the numbers and set lofty expectations for the first few years of a business. But when you overpromise, you’re bound to underdeliver, and that impresses nobody. You also should avoid sandbagging, or underpromising on purpose just to look extra successful. Be honest as you build your plan. Investors and lenders understand the first five years of a small business can be tough with limited to modest profits.

3. Be specific

You might be a big-idea person who doesn’t love the details, but this is the time to take a deep breath and dive into the details. The more details you understand about your business, the better you can respond to the questions and concerns of lenders and investors.

4. Ask for help

While most of the pieces of your plan might come from your own heart, soul, and brain, there are sure to be sections that aren’t as easy to rattle off. A business plan takes a lot of different skills, and it’s uncommon that anyone is good at all of them: market analysis, financial projections, strategic thinking, supply chain… the list goes on.

Don’t hesitate to reach out to your community and find some experts to help make your plan sing. This could mean engaging a market research analyst or an accountant to help with financial projections, or even a fellow small business owner who’s been through the new-business wringer before and can help you navigate the red tape and share what investors appreciate most in a plan.

If you don’t know anyone who can help you yet, we’ve got you covered. The Small Business Administration offers free, local counseling for entrepreneurs that can point you in the right direction.

Pro-tip: A business plan isn’t just for your investors or loan officers. It’s a guide for you and a great way to attract top talent to your business. A well-written and researched plan helps you best understand your own idea and its viability so you can sell that idea to all important stakeholders. Put in the time to make this document a reliable resource; we promise you won’t regret it.

8 common mistakes in writing a business plan

Before we dive into the different ways to build a business plan, let’s start with some of the common traps that new business plans fall into:

1. Financial projections that don’t add up

Loan officers and most investors know money and the realities of new-business revenue and spending, and they can smell fishy numbers from a mile away. Your financials are not a place to fudge it. Make sure you get some expert advice and assistance to ensure your projects are as airtight as can be.

2. Unfounded claims

Three words to live by when building a business plan: do your research. The research you do into the markets, potential audience, and competitors will inform your projections and instill confidence in the assumptions you make. This is another area where it might help to have a professional assist you, if you’re new to the entrepreneurial game.

3. Unclear goals

Don’t leave your investors guessing about your key milestones and objectives. Use your research and financials to create realistic, specific goals. These will be especially important to investors, who are looking to make a return on their investment and want a trustworthy timeline on when that could happen.

4. Ignoring the competition

Unless you’ve invented something the world has never seen before, your business idea will have competitors. And even if your idea is completely novel, chances are you’re looking to better fill a need that other businesses or industries are currently serving. What we mean to say is: you’ve got competition, no matter your business idea. Investors know this, and they want to know that you can clearly see who your competitors are and how you’ll set yourself apart.

5. A blind spot for your business’s weaknesses and risks

You might think that you should avoid talking about the risks to your idea when you’re building your business plan. And while you don’t need to harp on them, you should fully understand what your weaknesses are and acknowledge them somewhere in the plan, along with potential solutions to compensate for them. If you don’t show your awareness of risks and weaknesses in the plan, investors might think you’re hiding something.

The better you know your own weaknesses, the better you can address lender and investor concerns about them.

6. Overhyped impact

Your little bookstore doesn’t have to change the world. We know you’re excited about your business idea, and you should be; that passion will take you far. But a common pitfall of new entrepreneurs is to overstate how their idea will impact the market or the community. Remember, you’ll have to live up to what you put down in your plan, so be sure you can make good on the statements therein.

7. Not enough outside insight

If you’re the only person looking at your business plan, you might be heading for a “no” from lenders or investors. It’s critical that you get other people’s eyes on your plan before you present or submit it.

Even if the people in your life have no experience in business, your plan should be easy enough for them to read, understand, and critique. And if you want expert feedback, there are several free resources available to hopeful small business owners, including the Small Business Administration’s network of counselors .

8. Poor readability

Spelling and grammar matter. If your investors and lenders can’t get through your plan because of easy-to-fix mistakes, they might question your attention to detail. If grammar isn’t your thing, have a friend proofread your plan before you share. It can also help to read your plan aloud to catch these kinds of errors.

Choose your own adventure: Which business plan is right for you?

Business plans aren’t one-size-fits-all. There are lots of ways to create the right plan for you, depending on what your financial backers and other stakeholders need to see in order to have confidence in your idea. But overall, most plans fall into one of two models:

Impress with a traditional business plan

A traditional business plan is the more in-depth of the two, full of fleshed-out financials, market analyses, risk assessment, and other nitty-gritty factors. This is the model to use if you’re looking for a small business loan from a bank and some investor situations.

The pros: This comprehensive plan is extremely detailed and, if done properly, is sure to make your investors feel safe putting their funding into your new venture.

The cons: These plans take a longer time to pull together, which could slow down your timeline. Plus, the traditional model is more granular and tends to leave out more high-level, strategic ideation that some investors might find important.

To follow the traditional business plan model, click here .

Inspire with a lean business plan, or business model canvas

If a traditional business plan is the trees, a lean plan is the forest. The one-page approach, also known as a business model canvas, is more about the concepts and big picture of your future business and is focused on relationships, key activities, and your overall value proposition. This type of plan is popular for startups or super-simple and small business ventures looking for independent investors.

The pros: This version might get you out the door first, since it usually involves less upfront analysis. It can also be the more inspiring and visionary of the two models, since it focuses on the big ideas and broader impact than the nuts and bolts.

The cons: Investors kind of love the nuts and bolts, most of the time. After you’ve sold them with your high-level concept, chances are you’ll have to dig in on the details, which might feel like you’ve doubled your work.

To follow the lean business plan model, click here .

Start your remote-ready business in 10 steps

It’s time to get those facts and figures together and floor your potential investors!

Here are the main sections of a traditional business plan that you should include:

1. Executive summary

Whether it’s a bank loan officer or an investor reading your business plan, chances are they’re short on time and need the fast facts up front. The executive summary opens your plan, and it’s where you share your overall mission statement, along with important market analyses and financial projections.

A top-notch executive summary will give readers the most important details in the first few pages of your plan so they feel confident in your idea and interested in reading on.

Pro-tip: Write your executive summary last. You’ll be able to see the full picture of your plan more clearly, and that means you can sum it up more effectively.

2. Company description

In this section, give all the specifics about your business, and don’t be afraid to brag. The more tangible and sure-footed you can make the company feel, the more confident your investors will be in the concept.

Here are some of the questions your company description should answer:

Who are you? What’s your business’s name?
What are you selling?
Where and how do you plan to sell it?
How does your business solve problems for customers?
Who do you plan to serve? Individual customers, other businesses, or both?
How is your business unique from its competitors?
What makes this business a successful idea… or, why should someone give you money to pursue it?

3. Market research and competitive analysis

Here’s where the nitty-gritty details come into play. It’s time to do some research on your future market and analyze that data to make decisions on how to structure your business, and what you can reasonably charge for goods and services.

Not a huge fan of data? Don’t sweat it. You can hire market research analysts who will do the heavy lifting for you. We highly recommend finding a professional to help with the research if it’s not in your wheelhouse, since it’s really important to get the numbers right.

Here are some areas of analysis you’ll need to include in your business plan:

Where does your business fit in the world?
How large is the current market?
How is the market currently structured?
What does year-over-year growth look like in this market?
Is the market trending in a positive direction? If not, how will a business like yours pick up the slack and reinvigorate the market?
What are consumers clamoring for in this market today?
How have businesses adjusted to customer demand? Where have they fallen short?
Are businesses themselves setting trends that have taken off? What are they and how will your business respond?
How does your business answer the call for these trends and themes?
How does your business anticipate trends on the horizon?
Who’s currently doing what your business plans to do?
What are these other companies’ strengths and weaknesses?
How will your business outdo competitor strengths and pick up the slack on their weaknesses?

Pro-tip : Be sure to include ways your business idea disrupts the status quo of the market you’re targeting, if it plans to do so. Disruption is the name of the game today, and investors who are looking for the Next Big Thing might be excited and impressed by this potential.

4. Company structure and operations

This section is where you detail the people and processes that will keep your business profitable.

In the company operations section, it’s a good idea to include:

Your proposed business’s legal structure: LLC, nonprofit, sole proprietorship, etc.
An organizational chart for easy reading and understanding
A detailed breakdown of who is responsible for which aspects of the business
Bios of your team members: showcase the expertise and experience your team has, especially in this market, since that can instill confidence in your idea
Projected staffing needs and onboarding process, as well as the cost to compensate these team members
Your approach to building relationships in the community and market to promote business growth
Plans for growth: how will you scale up efficiently while offering the same level of service to your customers? What might need to be outsourced to third-party partners as you grow?
Zoning permits, licensing, rent (if applicable): nail down the brass tacks of what it costs to keep your doors open in this section, so your investor knows you’ve thought of everything.

5. Your service and product line

You’ve mentioned what you plan to sell in your executive summary. Now it’s time to, you guessed it, dig into the details.

In your service and product line section, be sure to include:

A list of the initial products and/or services you plan to sell
The initial pricing for each of these items
The product life cycle (if applicable): how are your products made, how long does it take, and what does it cost?
Third-party services (if applicable): do you engage outside help for the development of your products? For example, if you sell perfumes, do you fill vials yourself or do you work with a bottling company?
Intellectual property plans (if applicable): where are you in the patent process?
Research and development details (if applicable): What is the R&D process for new products, who is involved, and what does it cost?

6. Sales and marketing plan

The data is all well and good, but how will you take action on it and move your products and services? Having even a tentative sales and marketing plan in place that discusses how you’ll position yourself in the market and attract customers can go a long way to proving you have a game plan beyond getting the doors open.

Here are some key elements to include in your sales and marketing plan:

Sample messaging : How do you plan to talk about your company in the market to attract customers? What solution are you selling, and how will you convey that?
Sample design work : How will you grab the market’s attention? Decide on the “look and feel” of your business: the website, packaging, and advertisements.
Promotion strategy : How much do you plan to set aside for advertising and other promotions? Where will you advertise, and how will you measure success?
Sales process : How will your team nurture a new lead until they become a customer? How will they upsell/cross sell to them? Where will they look for new leads and relationships?
Customer service and retention : Marketing doesn’t stop when a customer buys from you for the first time. Keeping customers happy is a huge piece of growing a small business. Be sure to outline your plan for proactive, delightful customer experiences.

7. Your ask

Even if you have to close your eyes while you do it, you’re going to have to write down the exact amount of money you’re asking for from investors or the bank. If you’ve done the rest of this business plan with great attention to detail and objectivity, the number should be pretty clear and based on your projected overhead.

The Small Business Administration recommends asking for the amount you’ll need to keep the doors open for the first five years, so be sure to think ahead when calculating that number. And whether you’re working with a bank or an investor, clearly outline the terms you seek for repayment.

Be specific in this section about how you will spend this particular funding. If you’ve already nailed down a loan for business supplies, for example, be upfront with your investors about needing their support to compensate your team and keep the lights on. People are likely to feel more comfortable investing if they know exactly how their money will be used.

Pro-tip: Don’t sell yourself short. When looking for investors, ask for what you need, not what you think someone will give. You never know what someone is willing to invest until you ask, so give them the opportunity to pleasantly surprise you!

8. Financial projections

You might see some investors skip right to this section of your proposal, after seeing the highlights in your executive summary. While everything else in your business plan is important, you can’t blame them for wanting to know how financially sound your idea is… and how much money they might stand to make as a result.

This piece is also crucial to you as the potential business owner. Numbers don’t lie, so make sure you listen; if the projections aren’t positive, you might need to rethink your plan.

Here’s what your financial projection section might include, depending on your position as you launch a new business:

Projections for the first five years: Provide detailed, quarterly financial outlooks for the first year or two, and annual projections after that. Total operating expenses: Be explicit about what exactly it will cost to run your business for the next five years. This includes everything from office space to supplies to salaries. And be sure to account for inflation and business growth!
Break-even analysis: The amount of revenue you’ll need to cover costs and, well, break even. This should be pretty accurate for the first year, given your projected operating expenses, and should be adjusted for increased expenses in the next four years, depending on your projected growth.
Forecasted income and expenses: What can you reasonably expect to bring in over the next five years? What ongoing expenses can you plan for or predict?
Projected balance sheets: Balance sheets tell investors what financial resources you’ll have on hand after your expenses to re-invest into growing the business: basically, how healthy do you expect your business to be in five years’ time?
Projected cash flow statements : This tells your investors how much cash will be coming into your business from sales and how that cash is being spent in a given year.
Potential collateral: If you’re looking to get a bank loan, be sure to include any additional collateral that you can put up against the loan.

Pro-tip: Don’t skimp on the expert input. Find a great accountant you trust to help you develop the financial projections for the first five years of your business, so you know they’re sound enough to share with your investors or bank. If you want help calculating costs, try the Small Business Administration’s startup calculator here .

Build your own lean business plan

It’s time to polish up your vision and inspire those potential backers to believe in your idea with a high-level, conceptual plan. Some startups are able to accomplish their lean plan in one page, but feel free to add the amount of detail that makes you (and your investors) most comfortable.

Here are the usual sections of a lean business plan that you might want to include or adjust as you see fit. We’ll lay it out in the traditional lean plan format, based on the Small Business Administration’s suggestions, to show you just how high-level it can be. But remember: a lean plan can be whatever you need it to be, so don’t be shy about adjusting the structure and content to suit your investors’ needs.

Here’s an idea of what you can include in your one-sheet lean business plan, using an online flower delivery service as an example:

Pro-tip: An appendix can really come in handy if you’re doing a lean business plan. Attach some more concrete financial projections and any other background research you’ve done to bolster this more conceptual, strategic plan model.

Here are a few extra sections you can sprinkle in to either plan format to give your investors even more peace of mind:

Your story. Paint a complete picture of your business’s journey up to this moment. Tell the story of how your idea was born, why it’s important to you and the world, and what your vision is for the future.

Product development and distribution plan. If you’re selling products, this is a great piece to add within your product line section. A distribution plan shows exactly how your products go from concept to customer. Seeing that flow chart clearly is helpful for both you and your investors.

Risk assessment and mitigation. Are you looking to break into a high-risk industry like construction, cannabis, or even owning your own restaurant? Chances are your investors want to see that you are aware of the risks and have plans in place to manage them.

Early wins. Do you already have proof that your business is in demand? Maybe you’ve been selling your products informally to family and friends to gauge interest, or other investors have already ponied up because they love your idea. It’s a good idea to include these wins in your business plan. Seeing that others already believe in you will make it easier for new investors to make that leap of faith, so include these facts and figures to invigorate confidence.

7 tips for a killer business plan pitch deck

As you do research for writing your business plan, you’ll probably hear about a pitch deck. This is a slide-show version of your plan that might come in handy. You’re likely to need a pitch deck if you’re looking for investors. Most banks’ small business loan officers just want the facts on paper and don’t expect to see a pitch deck.

Here are some pointers to help you create a dynamic, easy-to-follow pitch deck:

1. Include overview and conclusion slides

This is a classic teacher technique: tell the audience what you’re going to show them, show them what you promised, and recap what you’ve shown . This gives your listeners an experience that has a beginning, middle, and end… and you’ll see in #2 that this might be more important than you thought.

Take a moment at the top of your presentation to tell your investors exactly what you’ll cover in your allotted time, so they know what’s coming. Then include a wrap-up slide at the end, with a few of the key points from the presentation, to tie it all together.

2. Tell a story

Since the beginning of humankind we’ve loved and gravitated toward storytelling, from cave paintings to binge-watching the latest season of our favorite show. And it’s not just for entertainment purposes; a classic Stanford study once showed that people retain information when delivered in the form of a story six to seven times better than they do when the same information is given as dry lists or statistics.

This doesn’t mean you need to open your presentation with “Once upon a time.” Just focus on the story of you and what brought you to this big idea: what roadblocks were you running into when you saw the solution? What product did you need that didn’t exist? Share the cold, hard financial facts, of course, but don’t leave out the you of this journey. Use storytelling to build trust in your vision and inspire passion in this new business venture.

3. Hit the high-level points of your business plan

A pitch deck should stick to the most important pieces of information that investors need, in order to hold their attention from beginning to end.

Here’s where you should spend your time in a pitch deck:

Who you are and why you’re the one to run this business
What problem the business solves
How you’ll spend the investment money
When investors will see an ROI, or return on investment

4. Make your data more digestible

In both your business plan and your pitch deck, make sure your market research and financial projections are easy to read and understand. Use the tools at your disposal to make the numbers sing: charts, graphs, statistics spelled out big and bold.

5. Keep it simple

The more uniform and clean your pitch deck is, the easier it will be to read and retain. Stick to one font, one color scheme, throughout the deck. Make sure the graphics you decide to use—images, charts, graphs, other designed pieces—are high quality and sprinkled in. Do your best not to clutter slides with multiple graphics, as this can make your presentation harder to follow.

6. Brevity is your friend

Speaking of holding your audience’s attention: pare down the text on your slides to the most essential points. A good pitch deck is usually 10 to 15 slides, with around a minute spent on each slide. Be sure you’re only tackling one topic per slide to keep things focused.

Your pitch deck is for the investors’ engagement, so if you need more detailed reminders about what to cover, create separate notes for yourself instead of crowding the slides with text. If you need to provide your audience with more context, you can always add an Appendix at the end of the deck, which investors can review on their own time. (And don’t forget your business plan! It should answer most of the more detailed questions your investors have.)

7. EXTRA: Present your deck

The way you present your pitch deck is as important as its contents. Here are some

Be clear on your time frame, and stick to it. If someone has money to invest in your business, odds are good that they’re a busy person. Show that you respect their schedule by ensuring your pitch fits into the timeframe they’ve carved out for you.
Practice, practice, practice. The smoother your presentation can go, the better. Give your potential investors added confidence by knowing your facts, figures, and slides backward and forward. Set a timer while you practice, so you know if you need to pick up the pace or speak more slowly.
Make eye contact. Have you ever sat through a presentation where someone stood at the screen, reading off their slides without any acknowledgement of the audience? It’s not exactly the most dynamic approach to a pitch. It’s okay to glance at your notes when needed, but make sure you also engage with your listeners. When you look at your audience, you can see questions bubbling up on their faces. Stopping to ask for understanding before a question is even asked might encourage more people to speak up and interact with you, which builds trust. Practicing your material ahead of time goes a long way toward this important step.
Stop for questions. It can be hard to remember to ask for listener input while giving a presentation, especially if you’re nervous. Work this important piece into your practice, so it becomes part of the presentation itself. Also: even if you stop for questions, you might get interrupted with them at other points. Let it happen, and answer their question fully. Finding out where people are either confused or looking for more detail will also help you tweak your pitch deck if you plan on presenting to multiple audiences.
Stay on your toes. No matter how well you prepare, live presentations can always surprise you. As you prepare and practice, remember to expect the unexpected and not get tunnel vision on your pitch. Handle whatever is within your control with grace and a sense of humor.
Watch the clock. Pace yourself, and make sure to stop at your given time. Depending on the number of questions you’ve taken during the pitch, you might be behind when time’s up. It’s better to stop and ask if the investors have time for your final slides than to potentially make them late for their next appointment.
Wrap up with earnest thanks. Don’t forget to say thank you! Your conclusion is also a good time to remind your investors why you’re the one who should run this new business. Leave them with the memory of your passion for the venture.
Save sharing your presentation until the end. Whether it’s via email or hard copies, you’ll retain people’s focus better if they don’t have something to flip through while you’re talking. Pass around or send out your presentation once you’ve concluded, so folks can peruse on their own time.

Tools to help you build a business plan

If you need some help organizing your ideas and building your first business plan, here are some tools that can assist:

The Small Business Administration’s startup calculator. Not sure what to project as your initial costs? Download this editable worksheet , plug in your categories and numbers, and you’ll get a better idea of what funding you need to ask for.
LivePlan. This online business-planning tool helps you write your plan (either in-depth or lean) and comes with industry benchmark data that can help with your market research. You can also track your funding progress right in the app. Multiple review sites have named LivePlan the best software for help writing a business plan.
RocketLawyer. Get legal assistance on your documents without having an attorney on retainer. RocketLawyer has an entire section of their website dedicated to helping folks launch businesses, and you can breathe easy knowing the legal side will be handled.
SCORE free business resources. SCORE is a resource partner of the Small Business Administration and offers free business counseling to entrepreneurs. Visit SCORE to find a mentor, download business plan templates, and explore their library of resources.

More resources: helpful books for starting a small business

Starting a business is a big undertaking. If you want to do some more research before you start making your plan, here are some helpful reads:

Mind Your Business: A Workbook to Grow Your Creative Passion Into a Full-time Gig (Ilana Griffo, 2019). In addition to covering all the basics of starting a business, including the legal and tax hurdles, this workbook-style guide has checklists and other writing activities to help you put the theory of starting a business into practice.
Starting a Business QuickStart Guide: The Simplified Beginner’s Guide to Launching a Successful Small Business, Turning Your Vision into Reality, and Achieving Your Entrepreneurial Dream (Ken Colwell, 2019). This book comes backed with the author’s 20 years of experience working with entrepreneurs and will help you sort out how viable your business idea is and how to get it off the ground.
Side Hustle: From Idea to Income in 27 Days (Chris Guillebeau, 2017). This book takes a more entertaining, conversational approach to launching a new business, and it’s backed up by hundreds of case studies and written by a New York Times bestselling author in the entrepreneurial world.
Legal Guide for Starting & Running a Small Business (Fred S. Steingold, 2017). This book is in its fifteenth edition, and we can see why. It breaks down the legal intricacies of starting a business that most new entrepreneurs aren’t familiar with: taxes for small businesses, structuring partnership agreements, creating an LLC, and more.
Small Business For Dummies (Schell & Tyson, 2018). From the classic how-to series comes the fifth edition of their popular book on starting a small business. You’ll get all the basics you need in the no-nonsense approach the Dummies series always provides, from authors with decades of experience in launching businesses. And if you’re specifically looking to start an online business, try Starting an Online Business for Dummies .

Your business plan: the hard work will pay off

Creating a business plan can feel overwhelming at first if you’ve never made one before. And we won’t lie; it does take a little bit of elbow grease to put one together.

But a business plan done well, be it traditional or lean, will either reinforce how great your idea is or help you find ways to make it even better. Take the time to do it well, and you’ll have a much easier time securing funding for your new small business venture.

Got your plan in hand? Read on to learn about key business fundamentals for success.

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Starting a new business? Be remote-ready from Day One with this free checklist.

Online Business for Dummies: A Beginner’s Guide

December 18, 2023
Office of Outreach and Relationships

Starting an online business can be a daunting task, especially for beginners. The world of digital ventures may seem complex, but with the right guidance, anyone can navigate it successfully. This beginner’s guide is here to help aspiring entrepreneurs take the essential steps to start and scale their own online businesses.

Whether you dream of launching an e-commerce store, offering digital services, or monetizing your passion, this guide will provide you with the knowledge and tools needed to turn your ideas into a thriving online business. From brainstorming business ideas to establishing a strong online presence, we’ve got you covered.

Key Takeaways:

Starting an online business is achievable for beginners.
Proper guidance is crucial in navigating the world of digital entrepreneurship.
Brainstorming business ideas is the first step towards building an online business.
An online presence is essential for the success of your digital venture.
This guide will provide you with the knowledge and tools to establish and grow your online business.

Starting an Online Business From Home

Starting an online business from home is an ideal way to venture into entrepreneurship, even with limited resources. With the right framework and determination, anyone can create a successful online business without the need for a physical location or initial investment. Many thriving online businesses today started from home and have grown to generate significant revenue. In this section, we will outline the essential steps to help you start your online business and pave the path to success.

1. Brainstorm Business Ideas

The first step in starting an online business is to brainstorm business ideas that align with your interests and skills. Consider your passions, hobbies, and expertise when generating potential business ideas. This will ensure that you embark on a venture that you are truly passionate about and will enjoy working on.

2. Find Your Niche

Once you have a list of potential business ideas, narrow down your options by identifying a niche in the market. Research the competition, analyze market trends, and identify gaps that your online business can fill. This will help you differentiate your offerings and attract a specific target audience.

3. Evaluate and Validate Your Idea

Before diving into your online business , it’s important to evaluate and validate your idea. Determine the feasibility and profitability of your business concept by conducting market research, validating demand, and assessing the potential for growth. This step will help you refine your business idea and increase its chances of success.

4. Set Up Your Online Presence

Establishing a strong online presence is crucial for the success of your online business. Create a professional website that showcases your products or services and provides an easy-to-navigate user experience. Utilize reliable website builders like Squarespace or Shopify to simplify the process of setting up and customizing your website.

5. Learn About Digital Marketing

As an online business owner, it’s essential to understand the basics of digital marketing. Familiarize yourself with strategies such as search engine optimization (SEO), social media marketing, email marketing, and content marketing. Learning these foundational concepts will help you effectively promote your online business and attract potential customers.

6. Create a Marketing Plan

Developing a comprehensive marketing plan is crucial for driving traffic and generating sales for your online business. Identify your target audience, set clear marketing objectives, and outline the strategies you will use to reach your audience. Incorporate both online and offline marketing tactics to create a well-rounded approach.

7. Optimize Your Website for Search Engines

Ensure that your online business website is optimized for search engines to increase its visibility and organic traffic. Focus on improving website speed, incorporating relevant keywords, optimizing meta tags and descriptions, and providing high-quality content. Implementing solid SEO practices will help your website rank higher in search engine results.

8. Establish a Social Media Presence

Social media platforms offer a powerful way to connect with your target audience and build brand awareness. Choose the social media platforms where your audience is most active and create engaging and shareable content. Regularly posting relevant content, engaging with your audience, and running targeted online ad campaigns can help boost your online presence.

Starting an online business from home requires careful planning, dedication, and effort. By following this framework, you can lay the foundation for a successful online venture and achieve your entrepreneurial goals.

Choosing the Right Product or Service

Choosing the right product or service is a crucial step in building a successful online business. To begin, aspiring entrepreneurs need to consider their passions, skills, and expertise. What are you genuinely enthusiastic about? What are your areas of expertise that could translate into a profitable online venture? By aligning your business with your passions and expertise, you can create an online business that you are genuinely interested in and motivated to grow.

Additionally, identifying gaps in the market is key to selecting a viable product offering. Analyze the industry and find niches that are underserved or have room for growth. Look for opportunities where you can provide a unique value proposition or improve upon existing solutions. This market research will help you identify the most promising product or service ideas that have the potential for success.

Once you have a clear understanding of the product or service you want to offer, it’s important to select the right platform for selling online. Consider factors like ease of use, available features, and scalability when evaluating different platforms. Choose a platform that aligns with your business needs and goals, whether it’s a user-friendly website builder with built-in e-commerce functionalities or a specialized platform tailored to your niche. This will ensure a smooth and efficient online shopping experience for your customers.

By carefully choosing the right product or service and selecting the appropriate platform for your online business, you can lay a strong foundation for future success. Remember to continuously assess and adapt your product offering to meet evolving market demands and customer preferences.

Building an E-commerce Website

Building an e-commerce website is an essential step for any online business. An effective website will not only showcase your products or services but also facilitate seamless transactions and provide a positive user experience. In this section, we will explore the best website builders and e-commerce platforms available to help you create a successful online store for your business.

When it comes to website builders, two popular options are Squarespace and Shopify. Squarespace offers a user-friendly interface with stunning design templates that you can customize to reflect your brand’s identity. Shopify, on the other hand, is a comprehensive e-commerce platform that provides everything you need to build and scale an online store.

To guide you through the process, we will use Squarespace as an example. Here’s a step-by-step overview of building an e-commerce website:

Choose a template that aligns with your branding and industry.
Add your products or services to the website, including high-quality images and detailed descriptions.
Customize the design elements, such as colors, fonts, and layouts, to create a unique and appealing visual experience.
Set up payment processing to enable smooth transactions, ensuring your customers can securely purchase from your online store.
Add shipping rates and options, providing clarity on delivery costs and timelines for your customers.

By following these steps, you will have a functional and visually appealing e-commerce website that can help you drive online sales and grow your online business. Remember to periodically review and update your website to ensure it stays relevant and meets the changing needs of your customers.

Marketing and Promoting Your Online Business

Marketing and promoting your online business is crucial for attracting customers and generating sales. To help you make your first online sales, here are some effective strategies:

Tapping into your existing network: Reach out to friends, family, and colleagues to spread the word about your online business. They can become your first customers and help you gain valuable feedback.
Leveraging social media: Create professional profiles on popular social media platforms such as Facebook, Instagram, and LinkedIn. Engage with your target audience by sharing valuable content, posting regular updates, and running targeted ads.
Organizing a launch contest: Generate excitement around your online business by hosting a launch contest or giveaway. Encourage participants to share your business with their network for a chance to win a prize. This can help increase brand awareness and attract potential customers.
Utilizing established online selling platforms: Consider selling your products or services on established online marketplaces such as Amazon, eBay, or Etsy. These platforms already have a large customer base which can help you reach a wider audience.
Investing in online ads: Allocate a portion of your budget towards online advertising, such as Google Ads or social media ads. These targeted ads can help drive traffic to your website and increase your chances of making online sales.

Remember, having a comprehensive online sales strategy and planning is key to succeeding in the competitive online market. Continuously analyze the results of your marketing efforts, adapt your strategies, and keep improving to maximize your online sales potential.

Expanding Your Online Business

Once your online business starts generating sales, it’s important to focus on expanding and scaling. This section will discuss strategies for growing your online business, including diversifying product offerings, expanding into new markets, optimizing customer experience, and leveraging data and analytics.

Diversifying Product Offerings: One way to fuel the growth of your online business is by diversifying your product offerings. Consider expanding your product line to cater to a wider audience or introducing variations of your existing products to meet different customer preferences.
Expanding into New Markets: To capture new customers and increase your online business’s reach, explore opportunities to expand into new markets. Conduct market research to identify potential target markets and adapt your marketing and product strategies accordingly.
Optimizing Customer Experience: A key factor in the growth of your online business is providing an exceptional customer experience. Continuously optimize your website’s usability, speed, and navigation to enhance customer satisfaction. Invest in excellent customer service to build loyalty and encourage repeat purchases.
Leveraging Data and Analytics: Data is a powerful asset for driving growth in your online business. Utilize analytics tools to gain insights into customer behavior, buying patterns, and market trends. Leverage this information to make data-driven decisions that can optimize your marketing campaigns, product offerings, and overall business strategy.

To ensure long-term success, it’s crucial to adapt to changing market trends and customer preferences. By diversifying your products, expanding into new markets, optimizing the customer experience, and leveraging data and analytics, you can propel the growth and scalability of your online business.

Managing Finances and Legal Considerations

Managing finances and legal considerations is crucial for the smooth operation of any online business. To ensure your business’s financial stability and compliance with the law, it is essential to take the necessary steps and adhere to the required legal requirements and licenses.

1. Budgeting

Setting up a clear and comprehensive budget is essential for effective financial management. Consider all expenses, including operational costs, marketing expenses, and any necessary investments. Regularly monitor your budget to ensure you stay on track and make adjustments as needed.

2. Accounting

Proper accounting practices are vital to maintain accurate financial records. Consider using accounting software to record and track your revenue, expenses, and cash flow. This will help you keep a clear overview of your business’s financial health.

3. Tax Requirements

Be knowledgeable about the tax requirements for online businesses in your jurisdiction. Understand the applicable taxes, such as sales tax or value-added tax (VAT), and ensure timely and accurate tax filings. Consider consulting an accountant or tax professional to assist you in navigating these complexities.

4. Licenses and Permits

Research and understand the specific licenses and permits required for operating your online business. These may vary depending on your location and the nature of your business. Acquiring the necessary licenses and permits ensures that you are operating legally and protects your business from potential legal issues.

Consulting with a lawyer who specializes in online business operations can provide expert guidance and ensure compliance with state and federal laws. They can help you understand the legal requirements specific to online businesses, such as e-commerce regulations and data protection laws.

By diligently managing your finances and fulfilling the necessary legal requirements and licenses, you can operate your online business with confidence and avoid potential financial and legal pitfalls.

Congratulations on completing the beginner’s guide to starting an online business ! Throughout this comprehensive guide, you have gained valuable insights and practical tips to kickstart your online entrepreneurship journey. By following the step-by-step approach outlined in this guide, you have equipped yourself with the necessary knowledge and tools to navigate the exciting world of online business.

As you embark on your online business venture, remember to stay focused on your goals and remain adaptable to changes in the dynamic digital landscape. Continuous learning and improvement are key to thriving in the online marketplace. Utilize the resources, platforms, and strategies discussed in this guide to establish a strong online presence, connect with your target audience, and drive sales.

Success in online business requires dedication, perseverance, and a commitment to delivering value to your customers. Embrace new technologies and leverage data analytics to make informed decisions and stay ahead of the competition. Stay connected with the online business community, network with like-minded entrepreneurs, and seek mentorship to accelerate your growth.

Remember, starting an online business is just the first step. Your journey towards success in online business is an ongoing process that demands continuous effort and enthusiasm. With the right mindset, a solid foundation, and the willingness to adapt and innovate, you can turn your online business dreams into a reality. Best of luck as you embark on this exciting new chapter of your entrepreneurial journey!

Is it possible to start an online business from home?

Yes, starting an online business from home is entirely possible, even with no initial investment. Many successful online businesses today started with nothing and have grown to generate significant revenue.

What are the steps to start an online business?

The steps to start an online business include brainstorming business ideas, finding a niche, evaluating the idea, analyzing competitors, identifying the target audience, setting up a website, learning about digital marketing, creating a marketing plan, optimizing the website for search engines, and establishing a social media presence.

How do I choose the right product or service for my online business?

To choose the right product or service for your online business, consider your passions, skills, expertise, and identify gaps in the market. It’s also important to select the right platform for selling online, considering factors like ease of use, available features, and scalability.

What are the best website builders and e-commerce platforms for building an e-commerce website?

Some of the best website builders and e-commerce platforms available for building an e-commerce website are Squarespace and Shopify. These platforms offer a user-friendly interface, a range of features, and scalability options.

How can I market and promote my online business?

There are several strategies for marketing and promoting your online business, including tapping into your existing network, leveraging social media, organizing a launch contest, utilizing established online selling platforms, and investing in online ads. It’s important to have a comprehensive online sales strategy and plan for success in the competitive online market.

How can I expand my online business?

To expand your online business, you can consider diversifying your product offerings, expanding into new markets, optimizing customer experience, and leveraging data and analytics to make informed decisions. Adapting to changing market trends and customer preferences is crucial for long-term success.

What are the financial and legal considerations for managing an online business?

Managing finances and legal considerations is crucial for the smooth operation of any online business. This includes budgeting, accounting, tax requirements, and obtaining the necessary licenses and permits. Consulting with a lawyer can help ensure compliance with state and federal laws, as well as the specific requirements for online businesses.

Source Links

https://www.reliablesoft.net/how-to-start-an-online-business/
https://www.fool.com/the-ascent/small-business/e-commerce/articles/how-to-sell-things-online/
https://www.sitebuilderreport.com/how-to-build-an-online-store

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How to Write a Business Plan, Step by Step

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What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

ZenBusiness

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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How to make a business plan

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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Step-by-Step Guide to Writing a Simple Business Plan

By Joe Weller | October 11, 2021

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A business plan is the cornerstone of any successful company, regardless of size or industry. This step-by-step guide provides information on writing a business plan for organizations at any stage, complete with free templates and expert advice.

Included on this page, you’ll find a step-by-step guide to writing a business plan and a chart to identify which type of business plan you should write . Plus, find information on how a business plan can help grow a business and expert tips on writing one .

What Is a Business Plan?

A business plan is a document that communicates a company’s goals and ambitions, along with the timeline, finances, and methods needed to achieve them. Additionally, it may include a mission statement and details about the specific products or services offered.

A business plan can highlight varying time periods, depending on the stage of your company and its goals. That said, a typical business plan will include the following benchmarks:

Product goals and deadlines for each month
Monthly financials for the first two years
Profit and loss statements for the first three to five years
Balance sheet projections for the first three to five years

Startups, entrepreneurs, and small businesses all create business plans to use as a guide as their new company progresses. Larger organizations may also create (and update) a business plan to keep high-level goals, financials, and timelines in check.

While you certainly need to have a formalized outline of your business’s goals and finances, creating a business plan can also help you determine a company’s viability, its profitability (including when it will first turn a profit), and how much money you will need from investors. In turn, a business plan has functional value as well: Not only does outlining goals help keep you accountable on a timeline, it can also attract investors in and of itself and, therefore, act as an effective strategy for growth.

For more information, visit our comprehensive guide to writing a strategic plan or download free strategic plan templates . This page focuses on for-profit business plans, but you can read our article with nonprofit business plan templates .

Business Plan Steps

The specific information in your business plan will vary, depending on the needs and goals of your venture, but a typical plan includes the following ordered elements:

Executive summary
Description of business
Market analysis
Competitive analysis
Description of organizational management
Description of product or services
Marketing plan
Sales strategy
Funding details (or request for funding)
Financial projections

If your plan is particularly long or complicated, consider adding a table of contents or an appendix for reference. For an in-depth description of each step listed above, read “ How to Write a Business Plan Step by Step ” below.

Broadly speaking, your audience includes anyone with a vested interest in your organization. They can include potential and existing investors, as well as customers, internal team members, suppliers, and vendors.

Do I Need a Simple or Detailed Plan?

Your business’s stage and intended audience dictates the level of detail your plan needs. Corporations require a thorough business plan — up to 100 pages. Small businesses or startups should have a concise plan focusing on financials and strategy.

How to Choose the Right Plan for Your Business

In order to identify which type of business plan you need to create, ask: “What do we want the plan to do?” Identify function first, and form will follow.

Use the chart below as a guide for what type of business plan to create:

Is the Order of Your Business Plan Important?

There is no set order for a business plan, with the exception of the executive summary, which should always come first. Beyond that, simply ensure that you organize the plan in a way that makes sense and flows naturally.

The Difference Between Traditional and Lean Business Plans

A traditional business plan follows the standard structure — because these plans encourage detail, they tend to require more work upfront and can run dozens of pages. A Lean business plan is less common and focuses on summarizing critical points for each section. These plans take much less work and typically run one page in length.

In general, you should use a traditional model for a legacy company, a large company, or any business that does not adhere to Lean (or another Agile method ). Use Lean if you expect the company to pivot quickly or if you already employ a Lean strategy with other business operations. Additionally, a Lean business plan can suffice if the document is for internal use only. Stick to a traditional version for investors, as they may be more sensitive to sudden changes or a high degree of built-in flexibility in the plan.

How to Write a Business Plan Step by Step

Writing a strong business plan requires research and attention to detail for each section. Below, you’ll find a 10-step guide to researching and defining each element in the plan.

Step 1: Executive Summary

The executive summary will always be the first section of your business plan. The goal is to answer the following questions:

What is the vision and mission of the company?
What are the company’s short- and long-term goals?

See our roundup of executive summary examples and templates for samples. Read our executive summary guide to learn more about writing one.

Step 2: Description of Business

The goal of this section is to define the realm, scope, and intent of your venture. To do so, answer the following questions as clearly and concisely as possible:

What business are we in?
What does our business do?

Step 3: Market Analysis

In this section, provide evidence that you have surveyed and understand the current marketplace, and that your product or service satisfies a niche in the market. To do so, answer these questions:

Who is our customer?
What does that customer value?

Step 4: Competitive Analysis

In many cases, a business plan proposes not a brand-new (or even market-disrupting) venture, but a more competitive version — whether via features, pricing, integrations, etc. — than what is currently available. In this section, answer the following questions to show that your product or service stands to outpace competitors:

Who is the competition?
What do they do best?
What is our unique value proposition?

Step 5: Description of Organizational Management

In this section, write an overview of the team members and other key personnel who are integral to success. List roles and responsibilities, and if possible, note the hierarchy or team structure.

Step 6: Description of Products or Services

In this section, clearly define your product or service, as well as all the effort and resources that go into producing it. The strength of your product largely defines the success of your business, so it’s imperative that you take time to test and refine the product before launching into marketing, sales, or funding details.

Questions to answer in this section are as follows:

What is the product or service?
How do we produce it, and what resources are necessary for production?

Step 7: Marketing Plan

In this section, define the marketing strategy for your product or service. This doesn’t need to be as fleshed out as a full marketing plan , but it should answer basic questions, such as the following:

Who is the target market (if different from existing customer base)?
What channels will you use to reach your target market?
What resources does your marketing strategy require, and do you have access to them?
If possible, do you have a rough estimate of timeline and budget?
How will you measure success?

Step 8: Sales Plan

Write an overview of the sales strategy, including the priorities of each cycle, steps to achieve these goals, and metrics for success. For the purposes of a business plan, this section does not need to be a comprehensive, in-depth sales plan , but can simply outline the high-level objectives and strategies of your sales efforts.

Start by answering the following questions:

What is the sales strategy?
What are the tools and tactics you will use to achieve your goals?
What are the potential obstacles, and how will you overcome them?
What is the timeline for sales and turning a profit?
What are the metrics of success?

Step 9: Funding Details (or Request for Funding)

This section is one of the most critical parts of your business plan, particularly if you are sharing it with investors. You do not need to provide a full financial plan, but you should be able to answer the following questions:

How much capital do you currently have? How much capital do you need?
How will you grow the team (onboarding, team structure, training and development)?
What are your physical needs and constraints (space, equipment, etc.)?

Step 10: Financial Projections

Apart from the fundraising analysis, investors like to see thought-out financial projections for the future. As discussed earlier, depending on the scope and stage of your business, this could be anywhere from one to five years.

While these projections won’t be exact — and will need to be somewhat flexible — you should be able to gauge the following:

How and when will the company first generate a profit?
How will the company maintain profit thereafter?

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

This basic business plan template has space for all the traditional elements: an executive summary, product or service details, target audience, marketing and sales strategies, etc. In the finances sections, input your baseline numbers, and the template will automatically calculate projections for sales forecasting, financial statements, and more.

For templates tailored to more specific needs, visit this business plan template roundup or download a fill-in-the-blank business plan template to make things easy.

If you are looking for a particular template by file type, visit our pages dedicated exclusively to Microsoft Excel , Microsoft Word , and Adobe PDF business plan templates.

How to Write a Simple Business Plan

A simple business plan is a streamlined, lightweight version of the large, traditional model. As opposed to a one-page business plan , which communicates high-level information for quick overviews (such as a stakeholder presentation), a simple business plan can exceed one page.

Below are the steps for creating a generic simple business plan, which are reflected in the template below .

Write the Executive Summary This section is the same as in the traditional business plan — simply offer an overview of what’s in the business plan, the prospect or core offering, and the short- and long-term goals of the company.
Add a Company Overview Document the larger company mission and vision.
Provide the Problem and Solution In straightforward terms, define the problem you are attempting to solve with your product or service and how your company will attempt to do it. Think of this section as the gap in the market you are attempting to close.
Identify the Target Market Who is your company (and its products or services) attempting to reach? If possible, briefly define your buyer personas .
Write About the Competition In this section, demonstrate your knowledge of the market by listing the current competitors and outlining your competitive advantage.
Describe Your Product or Service Offerings Get down to brass tacks and define your product or service. What exactly are you selling?
Outline Your Marketing Tactics Without getting into too much detail, describe your planned marketing initiatives.
Add a Timeline and the Metrics You Will Use to Measure Success Offer a rough timeline, including milestones and key performance indicators (KPIs) that you will use to measure your progress.
Include Your Financial Forecasts Write an overview of your financial plan that demonstrates you have done your research and adequate modeling. You can also list key assumptions that go into this forecasting.
Identify Your Financing Needs This section is where you will make your funding request. Based on everything in the business plan, list your proposed sources of funding, as well as how you will use it.

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel | Microsoft Word | Adobe PDF | Smartsheet

Use this simple business plan template to outline each aspect of your organization, including information about financing and opportunities to seek out further funding. This template is completely customizable to fit the needs of any business, whether it’s a startup or large company.

Read our article offering free simple business plan templates or free 30-60-90-day business plan templates to find more tailored options. You can also explore our collection of one page business templates .

How to Write a Business Plan for a Lean Startup

A Lean startup business plan is a more Agile approach to a traditional version. The plan focuses more on activities, processes, and relationships (and maintains flexibility in all aspects), rather than on concrete deliverables and timelines.

While there is some overlap between a traditional and a Lean business plan, you can write a Lean plan by following the steps below:

Add Your Value Proposition Take a streamlined approach to describing your product or service. What is the unique value your startup aims to deliver to customers? Make sure the team is aligned on the core offering and that you can state it in clear, simple language.
List Your Key Partners List any other businesses you will work with to realize your vision, including external vendors, suppliers, and partners. This section demonstrates that you have thoughtfully considered the resources you can provide internally, identified areas for external assistance, and conducted research to find alternatives.
Note the Key Activities Describe the key activities of your business, including sourcing, production, marketing, distribution channels, and customer relationships.
Include Your Key Resources List the critical resources — including personnel, equipment, space, and intellectual property — that will enable you to deliver your unique value.
Identify Your Customer Relationships and Channels In this section, document how you will reach and build relationships with customers. Provide a high-level map of the customer experience from start to finish, including the spaces in which you will interact with the customer (online, retail, etc.).
Detail Your Marketing Channels Describe the marketing methods and communication platforms you will use to identify and nurture your relationships with customers. These could be email, advertising, social media, etc.
Explain the Cost Structure This section is especially necessary in the early stages of a business. Will you prioritize maximizing value or keeping costs low? List the foundational startup costs and how you will move toward profit over time.
Share Your Revenue Streams Over time, how will the company make money? Include both the direct product or service purchase, as well as secondary sources of revenue, such as subscriptions, selling advertising space, fundraising, etc.

Lean Business Plan Template for Startups

Lean Business Plan Templates for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

Startup leaders can use this Lean business plan template to relay the most critical information from a traditional plan. You’ll find all the sections listed above, including spaces for industry and product overviews, cost structure and sources of revenue, and key metrics, and a timeline. The template is completely customizable, so you can edit it to suit the objectives of your Lean startups.

See our wide variety of startup business plan templates for more options.

How to Write a Business Plan for a Loan

A business plan for a loan, often called a loan proposal , includes many of the same aspects of a traditional business plan, as well as additional financial documents, such as a credit history, a loan request, and a loan repayment plan.

In addition, you may be asked to include personal and business financial statements, a form of collateral, and equity investment information.

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

Outside of including all the key details in your business plan, you have several options to elevate the document for the highest chance of winning funding and other resources. Follow these tips from experts:.

Keep It Simple: Avner Brodsky , the Co-Founder and CEO of Lezgo Limited, an online marketing company, uses the acronym KISS (keep it short and simple) as a variation on this idea. “The business plan is not a college thesis,” he says. “Just focus on providing the essential information.”
Do Adequate Research: Michael Dean, the Co-Founder of Pool Research , encourages business leaders to “invest time in research, both internal and external (market, finance, legal etc.). Avoid being overly ambitious or presumptive. Instead, keep everything objective, balanced, and accurate.” Your plan needs to stand on its own, and you must have the data to back up any claims or forecasting you make. As Brodsky explains, “Your business needs to be grounded on the realities of the market in your chosen location. Get the most recent data from authoritative sources so that the figures are vetted by experts and are reliable.”
Set Clear Goals: Make sure your plan includes clear, time-based goals. “Short-term goals are key to momentum growth and are especially important to identify for new businesses,” advises Dean.
Know (and Address) Your Weaknesses: “This awareness sets you up to overcome your weak points much quicker than waiting for them to arise,” shares Dean. Brodsky recommends performing a full SWOT analysis to identify your weaknesses, too. “Your business will fare better with self-knowledge, which will help you better define the mission of your business, as well as the strategies you will choose to achieve your objectives,” he adds.
Seek Peer or Mentor Review: “Ask for feedback on your drafts and for areas to improve,” advises Brodsky. “When your mind is filled with dreams for your business, sometimes it is an outsider who can tell you what you’re missing and will save your business from being a product of whimsy.”

Outside of these more practical tips, the language you use is also important and may make or break your business plan.

Shaun Heng, VP of Operations at Coin Market Cap , gives the following advice on the writing, “Your business plan is your sales pitch to an investor. And as with any sales pitch, you need to strike the right tone and hit a few emotional chords. This is a little tricky in a business plan, because you also need to be formal and matter-of-fact. But you can still impress by weaving in descriptive language and saying things in a more elegant way.

“A great way to do this is by expanding your vocabulary, avoiding word repetition, and using business language. Instead of saying that something ‘will bring in as many customers as possible,’ try saying ‘will garner the largest possible market segment.’ Elevate your writing with precise descriptive words and you'll impress even the busiest investor.”

Additionally, Dean recommends that you “stay consistent and concise by keeping your tone and style steady throughout, and your language clear and precise. Include only what is 100 percent necessary.”

Resources for Writing a Business Plan

While a template provides a great outline of what to include in a business plan, a live document or more robust program can provide additional functionality, visibility, and real-time updates. The U.S. Small Business Association also curates resources for writing a business plan.

Additionally, you can use business plan software to house data, attach documentation, and share information with stakeholders. Popular options include LivePlan, Enloop, BizPlanner, PlanGuru, and iPlanner.

How a Business Plan Helps to Grow Your Business

A business plan — both the exercise of creating one and the document — can grow your business by helping you to refine your product, target audience, sales plan, identify opportunities, secure funding, and build new partnerships.

Outside of these immediate returns, writing a business plan is a useful exercise in that it forces you to research the market, which prompts you to forge your unique value proposition and identify ways to beat the competition. Doing so will also help you build (and keep you accountable to) attainable financial and product milestones. And down the line, it will serve as a welcome guide as hurdles inevitably arise.

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TechRepublic

10 Ways to Build an Effective Online Presence for Your Business

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Having an online presence is crucial for any business. However, just having one is not enough. With millions of competitors across the web, standing out is essential.

This guide, written by Agatha Aviso for TechRepublic Premium, outlines 10 ways to build an effective online presence for your business, with key action steps to help you implement them.

Featured text from the guide:

4: LEVERAGE SOCIAL MEDIA

Social is the new search engine. Anyone and everyone is on social media and they are using it to discover and research brands. Social media platforms are powerful tools for building online presence. However, it is important to first identify the channels where your target customers are most likely to be active, and then create compelling profiles and engaging content.

It can get overwhelming when you start posting content on social media. You might feel pressured to post often and respond to comments right away. Focus on quality over quantity. You are likely to get more engagement posting high-quality related content than posting multiple times a day with low-quality content.

Enhance your business knowledge with our in-depth 12-page PDF. This is available for download at just $9. Alternatively, enjoy complimentary access with a Premium annual subscription. Click here to find out more.

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Use these simple tips to build a loyal following of happy, satisfied customers for your online business: Offer multiple ways for customers to communicate with you (including e-mail, phone, real-time online support, online forums, and social media). Use video to provide a better view of your products or to offer suggestions on how to use the ...
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Make it legal. Deal with your finances. Launch your business. 1. Vet your idea. First things first: you gotta vet your idea. Before jumping in head first, you need to be 100% confident (or at least 90%) confident that your idea is worth it—worth the time, sacrifice, stress, anxiety, frustration, and ego hits.
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1. Develop the mindset needed to be a digital entrepreneur. The first step of starting an online business is getting your head in the right place. Know that you will "fail.". Probably a lot. You may lose some of your investments. You may spend money on ads that don't convert. You may stock products that never sell.
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Starting an online business can be a powerful way to launch a new product or service while reaching a wider audience. With market research, a solid business plan, a strong website, and a digital ...
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Post contents. 1 How to Start a Business Online (From Scratch) #1: Don't Start Building Yet. #2: Choose a Business Model. #3: Identify Your Target Market. #4: Find a Problem to Solve. #5: Analyze The Competition. #6: Cover Your Legal Bases. #7: Select Your Sourcing Strategy.
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Step 1: Research your product idea. The first step to launching your online business is often the biggest bottleneck: finding a profitable product to sell . Notice that step one of starting a business isn't fundraising. You can start a business at virtually zero up-front cost—stay tuned to find out how.
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Luckily, if you follow these eight straightforward steps, you'll be well on your way to starting your own online business. 1. Consider low-cost small business ideas. Take some time to consider inexpensive business options. There are plenty of business models that let you get started for less than $1,000. Add a little elbow grease and a spark ...
A Step-By-Step Guide to Starting an Online Business [2022]
Step 1: Selecting A Name. The name of your online business and your website does not have to be identical, but keeping them consistent is highly recommended. Ensure that your brand's name fits your niche and is simple enough for your online prospects to judge what your brand is selling.
How to Start an Online Business (All-in-One Guide for Dummies)
Step 1: Choosing the niche for your online business. Step 2: How to choose the best website builder for online business. Step 3: How to set up your online business. Step 4: Extend your online business site with plugins. Step 5: Tips and tricks to optimize the site for better performance. Sum up.
Business plans for beginners: a step-by-step guide
And if you're specifically looking to start an online business, try Starting an Online Business for Dummies. Your business plan: the hard work will pay off. Creating a business plan can feel overwhelming at first if you've never made one before. And we won't lie; it does take a little bit of elbow grease to put one together.
How to Start an Online Business in 2024 + Business Ideas
If you're looking for inspiration, here are some popular online business ideas to start in 2024. Self-Publish an eBook. Leverage your passion for writing to make 35-75% royalties from the eBook's sale, depending on the platform. This online business idea requires low startup costs and has long-term earnings potential.
How To Write A Business Plan (2024 Guide)
Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ...
Online Business for Dummies: A Beginner's Guide
The first step in starting an online business is to brainstorm business ideas that align with your interests and skills. Consider your passions, hobbies, and expertise when generating potential business ideas. This will ensure that you embark on a venture that you are truly passionate about and will enjoy working on. 2.
Business Plan: What it Is, How to Write One
Learn about the best business plan software. 1. Write an executive summary. This is your elevator pitch. It should include a mission statement, a brief description of the products or services your ...
Simple Business Plan Template (2024)
Whether you want to launch a side gig, a solo operation or a small business, you need a simple business plan template to guide you. Forbes Advisor offers you a comprehensive and easy-to-follow ...
How To Make A Business Plan: Step By Step Guide
The steps below will guide you through the process of creating a business plan and what key components you need to include. 1. Create an executive summary. Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.
How to Write a Simple Business Plan
Write the Executive Summary. This section is the same as in the traditional business plan — simply offer an overview of what's in the business plan, the prospect or core offering, and the short- and long-term goals of the company. Add a Company Overview. Document the larger company mission and vision.
How To Start A Small Business At Home (2024 Guide)
Open a Business Bank Account. Opening a business bank account helps keep personal and business income and expenses separate. Using a business bank account can make it easier to track and record ...
How To Start An Online Business For Dummies Step-By-Step
Table of Contents. Starting An Online Business Checklist. Find your Niche market. Take Steps To Prepare Yourself For The First Year. Examine The Business's Viability/Idea. Examine Your Domain Name List. Attempt To Break Your Website As Much As Possible. Comprehend Legal Matters. Examine Your Campaign Launch Strategy.
Business Plans Kit For Dummies Cheat Sheet
Good plans should guide and inspire. Set clear goals and objectives. Make sure you have measurable outcomes and feet-to-the-fire timelines. Gather all the information you need. An effective plan depends on a complete and accurate understanding of your market, your customers, your financial situation, and your business environment.
10 Ways to Build an Effective Online Presence for Your Business
4: LEVERAGE SOCIAL MEDIA. Social is the new search engine. Anyone and everyone is on social media and they are using it to discover and research brands. Social media platforms are powerful tools ...
Starting an Online Business All-in-One For Dummies, 6th Edition
The tools you need to follow your dream of starting and running an online business! With the right knowledge and resources, you can take action to start the online business youve been dreaming of. This comprehensive guide provides tips and tricks for turning your dream into a reality. The sixth edition of Starting an Online Business: All-in-One For Dummieswill teach you the basics and beyond ...