$453,000,000,000 Was made ONLINE is 2017. Why aren’t you taking your chunk of the pie? It’s only growing. Let me share with you how to get your portion of that nice apple pie… Or Whatever kind of pie you like, I like apple. (I’m talking about money not pie)
My first dropshipping store of strange kitchen appliances was a complete flop! Don’t make the mistakes I made, and begin your journey to financial freedom!
You’re thinking about creating an online business. Lets first pause and ask Why? Do you want to have passive income? Do you have a product that could help people? Are you sick of your job now?
Take your Why and have it clear in your mind prior to beginning the next step. Determining your why will be a reference to keep you motivated and determined when obstacles come. Online businesses do not fail because the online market sucks, they fail because the owner sucks. Don’t let that be you! Along with this, most failed businesses don’t stick around long enough to see themselves succeed.
If you create a website and make one sale, then you have just created an online business.
This sounds simple but in order to have a successful business that you can run from the comfort of your home it will take some work.The process in creating a business is simple, but it takes much more time than most people anticipate. In this post I will break down the process into 3 phases in creating your online business.
Phase 1: Find an idea
Phase 2: Understand your Marketing Plan
Phase 3: Create a killer website
Phase 1: Find an Idea
This may be the hardest step in creating your first online business. To break this process down we’re going to decide; Do I want to sell a product or a service? When deciding what to sell we’re going to keep the concept of VRIO in mind. You can predict how well your product or service will do based on this concept.
What is VRIO?
- Valuable: Does your product provide value to your clients?
- Rarity: Are you selling toothpaste or something that is hard to come by?
- Inimitable: Can someone else come along and create the same exact thing without much effort?
- Organization: Are you able to run and bring your goods or services to market?
Apply this concept to finding an idea.
Have you ever seen a product that shocked you when you first saw it?
A product that did extremely well in 2018 was the Onewheel+ as you can see in the image. Similar to this were the two-wheel hoverboards that people went crazy over after their release in 2015.
Why did these products do so well?
These products had a distinctive advantage due to the fact that they are extremely different from any other product that was currently being put into market. If you brought this VRIO concept and applied it to the hoverboards and OneWheel+, these products can dominate their markets. There was no markets until Shane Chen created the hoverboard in 2015.
I don’t expect you to instantly come to the conclusion of the theme of your business, or the products or services you will sell. Creating an online business can be difficult at times, but push through and reference your why statement often.
Look at your options between goods and services. Do not select what you are looking to do too fast. If you pick an idea too quickly, spend lots of time on it, then find it’s not for you… This will create wasted time into a venture that was not well thought out in the first place. Keep an open mind in deciding between goods and services. People have made millions in both sectors. Let’s take a look at the actionable steps needed to find an idea and begin the process to get into these sectors online.
Selling a product online may be scary due to the fact that you have various worries and reasons why it’s not a good idea. I will assure you that it is not a good idea to be poor either! You can get started on a small budget, so quit your worrying. Let’s take a look at what dropshipping is, though this may not be your best option since it has been scaled up like crazy and is highly competitive!
The drop-shipping method took off as did AliExpress. People were selling things off their own Shopify website for high dollar values, then shipping them from the Aliexpress website to the consumer. Crazy amounts of money is being made online doing this!
Dropshipping from Aliexpress is cool if you make it work, but STUPID! Do you really want to work hard and make a cool website with crappy Chinese mass-produced things sold for a high price? People aren’t going to take interest especially when the consumer comes to find it take 12-20 days deliver. The dropshippers are creating a headache in online shopping. It wouldn’t still be alive coming into 2019 if it didn’t work though. Just do me a favor and NEVER order anything online without searching for a lower price, unless it’s amazon.
Now just because I say dropshipping sucks with Aliexpress, it doesn’t have to suck with your online business. If you’re concerned about space in your home and shipping details, Printful can take care of this whole inventory process for you. This is considered dropshipping since you do not hold the product and someone else is shipping it out for you. Just send whatever you plan to sell to them and they’ll store it at the warehouse. Also, if you design and create a product made in the country it’s being sold in, you can figure out ways for the product to be shipped from the manufacturer to the customer. This is still considered dropshipping, but you will not be bringing high quality of product and servicing to the customer. Packaging is a huge part in returning customers so ensure this is of quality when it’s being sent out. Quality will always win against the online business that took shortcuts.
Other ways to figure what product to sell, is scale it at home. If you created a bracelet, coloring book, branded headphones, or even a cool keychain collection; try selling this product locally to people you know before creating a website.
You can find a high quality pair of no-name headphones from China, create a cool logo for packaging and up sell it online. Graphic designers will be your best friend. After you find one good product you would enjoy selling, build a niche around this product and begin to scale it up in a singular niche. If you are struggling to find a good product to sell, find a good niche to sell in.
Picking a niche:
Let’s look at what it means to have a niche-based website. Niche is defined as “denoting or relating to products, services, or interests that appeal to a small, specialized section of the population.”
Now when picking your niche don’t choose a small group of people who would be interested, GO BIG! I referred to creating and selling a keychain earlier. You can create a website all about keychains and have this be your niche. You could create a niche all about coffee mugs. Here are some more examples of niches for products to sell; cat toys, fitness accessories, winter blankets, candles, men’s boxers, graphic tee’s, men’s accesories.
Understand that when you enter a niche, you want to be the go-to website for that type of niche and product. You guys know the hulu ads for AdamandEve (References Hulu to make the readers not question why I know about it). They created a whole website based around sex toys! That’s a hell of a niche if you ask me.
Most how-to guides will advise you to pick a niche prior to picking products, but keep both in mind in the process of asking yourself, “What do I want to sell”. Either find one good product and build around that, or think of things that you’re into that you would enjoy doing market research on. Force yourself to ask and research business oriented questions about select products.
If you are wary of your skills and ability to perform services online, learn. If selling goods is not for you, then you are going to have to begin the search for a marketable skill or someone who has a marketable skill. Though this marketable skill does not have to be limited to a distinct sector.
If you are short on skills, find someone in a third world country and sell their service to clients in the US for much more. This video shows a young man who did this very well. You are a salesman, so SELL and let others do the dirty work. Here’s a list of things you may want to research and pursue in the service sector.
- Learn to create high converting service oriented websites:
I will go more in depth on this topic in future blog posts, so stay up to date by signing up for notifications. You can sell your skill and time of building websites for small businesses.
- Offer a valuable online program:
Canva is sweet because it offers a free service for people to come and edit pictures for thumbnails, IG posts, facebook and so much more. This online platform brings in lots of users, who they then can convert to paying clients. Expedia only directs people to the best flights available. It’s ONLY a website bringing in $25 Billion in 2018. These websites offer value to visitors and will profit and continue to grow. If there is a need in the online marketplace, fill it with your website.
- Run Social Media for Businesses:
I just released my Marketing on Instagram blog post. Fill in your email so you don’t miss a minute of this. I will teach you how to promote pages on instagram. You can take this simple to use universal instagram format and contact local businesses that will then pay you to run their social media.
- Social Media influencer groups:
I mainly use instagram and twitter to promote business ventures. This is where people want the big time fame baby! You can get in contact with people who have a good number of follows and likes. After getting responses create an influencer group. In doing so, you will have created a valuable space of engagement and interaction on social media. You then can charge people to come into the influencer group.
I have only listed a couple of things to get the mind flowing, but the possibilities are endless. If you wonder, “would this work?” Do market research and pursue it.
Keep in mind VRIO, you don’t need to be the best at all 4 categories like the OneWheel+ was. Your business may only be good in 1 or 2 categories. Figure out how to improve in all 4 categories.
If you are thinking about taking a service-oriented business to market your approach will vary from that of taking a product to market. If you are interested in learning how to take a service to market check out this post. Taking a service to market will differ from taking a product to market.
Phase 2: Understand Your Marketing Plan:
You must be short on money if you’re looking up how to create a business online! Let me inform you that your marketing plan should not be set in stone. When you have $10,000 to spend on advertising compared to $100 or even $10, your marketing plan will change.
First things first.. MARKET RESEARCH. Understand who is out there selling products similar to yours. See what they’re doing, see what they’re not. Spend time and do quality research in your field.
Use a concept called SWOT analysis. I’ll do a SWOT analysis for Facebook so you can learn about analyzing a business.
- Strengths: Interactive online platform with people you know.
- Weaknesses: Lacks in visual elements like platforms such as instagram, VSCO, Pinterest
- Opportunities: Incorporates more games, apply facebook to EVERYTHING
- Threats: Generation Y and Z are adopting and using other forms of social media.
“Apply facebook to everything”… They really are everywhere it’s scary…
Now you must understand SWOT analysis when looking for a future business venture online.
Let’s go back to this keychain business I mentioned. I searched “keychains” on google and look who is there to compete with; etsy, amazon, Claire’s, Zazzle. Four companies you are going to struggle to compete with solely on google. So.. we need a new approach.
How am I going to take my product or service to market?
Well here is a major key alert! You will need to create a name for your company first and foremost. After this utilize the free resources; instagram, facebook, linked in, email, twitter, pinterest. These free resources are going to be the biggest step in getting your brand name recognition. Understand all of these resources and know which one best applies to your brand.
My personal favorite for selling products is Instagram. Pinterest can be extremely high converting also. Pinterest and Instagram are great because they are solely visual and very easy to market on. What you’ll need to do is create a gmail and multiple different social media pages on different platforms revolving around your brand. Marketing is a concept people go to college for years and still don’t put it into action for themselves. Don’t be that guy… Or Women. “Massive Action!” -Grant Cardone
Find the pros and cons of each social media platform. Search for companies that are similar to yours. What will then happen is as you begin to look at these pages and do research about them, advertisements related to your idea will appear. Kind of freaky isn’t it.. Look at all the advertisements, look at what’s actually selling and what isn’t. Learn how to analyze advertisements.
What you’ll notice is people are paying for you to see ads targeted to you. This is why they’re appearing on your social media. I always click them because I like having them pay for me to click it and not buy anything. Does that make me a troll? Look at the advertisements ads that are only getting 300 likes. This shows they are not actually selling, because if they were selling they’d be scaled up. Ads with 10,000 likes are the ads that are actually making sales and able to make money for what they’re paying in ads.
- Observe the types of pictures the good ads are using.
- Observe the way they caption the photo.
- Observe their target audience.
- Observe what people are saying in the comments.
- OBSERVE THE WEBSITE!
The website is the most important thing to take notice of, because this is what your next step is going to be in taking your product to market.
Phase 3: Create a website
This should be the easiest part in creating your website. I say this because all the hard work should be done before creating a website. It is the last step in the process due to the fact that you don’t want to pay for Shopify for longer than you need to. Yup, Shopify that’s the ticket because that’s the easiest one to use! Shopify is an online website builder similar to Wix, or Squarespace. Shopify allows you to easily upload products and sell them on your website.
I’m not looking to create an entire tutorial blog on Shopify. Rather use this as a call to action. When you are ready check out this tutorial on How To Create Your Shopify Store. This guy is dope! Definitely check out some of his stuff he created an accessory store and has been key in mentoring me in learning how to do these things myself.
Tips on Shopify:
The majority of the websites you have shopped at (Besides Amazon) use a website layout that can be similarly recreated on Shopify. Look at other websites and see what you like and dislike. Get creative and sit down with dedicated time to learn the basics on how Shopify works.
- It is unnecessary to pay for a theme, unless you have money you’re willing to throw at it and go the extra mile.
- Always get that upgraded domain. What would you think if my domain name include “.wordpress” in it?
- You can find cheap domain names with Godaddy (you all remember those sexual commercials they came out with).
- Don’t pay for the higher end shopify monthly payments.
- See the process through until you make sales.
Glad you made it through this, and thanks for checking out The Ultimate Businessman! Sign up for more up to date free content. Yeah it’s FREE! So why wouldn’t you do it. Join me in my journey to financial freedom because I believe anyone can achieve financial freedom if they choose to.
Peace and Late!