Starting a business can be challenging, especially with all the assumptions being thrown around that 90% or more of startups fail, though there is no scientific evidence to support such claims. However, such challenges can be minimised, and the chances of success increased if the appropriate process is followed.
A business process may be defined as “…a set of related tasks that lead to a particular goal” (Bernstein and Newcomer, 2009). This shows that from the time the idea is conceived to its launch, there are stages of development to go through. This process is iterative and may not follow a specific sequence, though certain steps must be completed before others. However, breaking it down into stages is convenient and enhances understanding. Fortunately, these stages have been studied by academics and practitioners, resulting in proven steps that, if taken in the correct order, can provide a solid foundation for success.
Many frameworks can be used to start an online business or any business, but the main ones listed below ensure a solid foundation and increase the chances of success. Here is a general startup process for an online business:
Evaluating the Business Environment.
- Identify a niche or product/service you want to offer.
- Conduct market research to understand demand, competition, and the target audience.
- Validate your idea by gathering feedback or testing with a small audience
Idea Generation and Market Research
Business Planning
- Write a business plan outlining your goals, target market, marketing strategy, financial projections, and operational plan.
- Decide on your business model (e.g., e-commerce, subscription, affiliate marketing).
Legal and Administrative Setup
- Choose a business name and register your domain.
- Register your business legally (LLC, sole proprietorship, etc.).
- Obtain any necessary licenses or permits.
- Set up a business bank account and accounting system.
Website Development
- Choose a platform (Shopify, WordPress, Wix, etc.) based on your needs.
- Design and develop your website to ensure it’s user-friendly and mobile-responsive.
- Set up payment gateways and security features (SSL certificate).
Product or Service Preparation
- Source or create your products.
- Develop your service offerings.
- Set pricing strategies.
Marketing and Launch
- Create marketing materials and content.
- Plan and execute marketing campaigns (SEO, social media, email marketing, PPC).
- Launch your website and start selling.
- Operations and Customer Service
- Manage orders, shipping, and inventory.
- Provide excellent customer support.
- Monitor business performance and adjust strategies as needed.
Growth and Scaling
- Analyse data and customer feedback.
- Expand product lines or services.
- Explore new marketing channels and partnerships.
Following these steps can help you build a sustainable and successful online business.
References
(Bernstein and Newcomer, 2009)
Bernstein, P.A. and Newcomer, E. (2009). Chapter 5 – Business Process Management. [online] ScienceDirect. Available at: https://www.sciencedirect.com/science/article/pii/B9781558606234000056 [Accessed 1 Feb. 2023].