How to Start a Business Online: 9 Key Steps

How to start a business online

Until a few years back, starting a new business without a physical location, with limited investment and cashless transactions was rather an unfathomable idea. Digital transformation changed all of it and unlocked a new world for entrepreneurs. Businesses gradually started shifting from the brick and mortar stores to the online world.

Since then, there has been an enormous surge in online business ideas and innovative ventures. Starting a business has been simplified and has motivated more people to create and capture opportunities.

Nevertheless, the online space is highly competitive and to make a mark, any entrepreneur must be aware of the fundamental practices as well as the tech tools and processes required to scale a successful enterprise.

Here’s a detailed review of how to start a business along with its advantages and examples.

Why should you switch to an online business

Managing a business online is beneficial in many ways and fairly less complicated when compared to an online store. Here are some key reasons that outline the advantages of an online store.

Capital and investment

In the case of an offline store, the need for substantial capital is one of the biggest deterrents for entrepreneurs. The store rent/lease, warehouse space, maintenance costs, inventory, etc incur heavy loans and financial liabilities.

An online business eliminates all of the above and allows you to explore models that can be started with limited capital. You can gradually expand and raise funds as your business starts to grow.

Some of the early investments for an online business include

  • Computer and supporting electronic gadgets
  • A well-designed website 
  • A payment partner for online transactions
  • Inventory sourcing

Several additional expenses may come into the picture depending on your business model and offering. But when compared to opening a physical store, the money here is less likely to create a burden. Additionally, there are several open-source platforms and tools that can help you sustain yourself during the early days.

Audience and reach

No matter where you are located, with an online business you are opening doors to a global customer base. Users can access your products from anywhere and at any time. When compared to an offline store that attracts a limited footfall, the online reach is immense.

What’s more, mobile penetration is seeing year-on-year growth, online shopping is becoming extremely popular and convenience is bringing more and more customers to the internet.

According to a report published by IAMAI and Kantar Research, India’s internet users are expected to reach 900 million by 2025 from 622 million internet users in 2020, increasing at a CAGR of 45% until 2025.

With the right marketing strategy and positioning, your business can aspire to target every potential customer across the world.

Accessibility

Your working hours do not apply to your customers in most online business models. They can access the website, products, services and make a purchase at their convenience, 24*7. 

More importantly, physical stores are at the risk of being abruptly shut down during emergencies – as we saw in the pandemic. An online business on the other hand is always open ensuring better possibilities for sales and revenue.

In 2021, e-commerce accounted for nearly 20 per cent of retail sales worldwide. Forecasts indicate that by 2025, the online segment will make up close to a quarter of total global retail sales.

Responsiveness

Owing to the tech advancements, interacting with a website while shopping online is a rather delightful experience. Customers can obtain every little detail regarding the product they are keen on, buy them within minutes and even return if they change their minds. All of this from the comfort of their personal spaces.

This seamless online transaction adds an element of experience for the customer rather than it being just another task. 

An online business is also quick to respond to customer queries. It is easily possible to keep the buyer informed about their order, the availability of stock, the expected date of delivery and every other information that can motivate the buyer to continue connecting with your business.

Also read: Top 15 Small Business Ideas to Explore in 2022

How to start an online business 

If you are ready and set to move your business online, the following steps will help you understand the many aspects that need to be taken into consideration, particularly when operating in the digital domain.

1. Outline a plan

Having zeroed in on an idea, you might want to begin right away and put the product out there in the market. But, before you have a website up and running or finalise the brand name and design, it is important to lay a broad strategy that assesses and evaluates your offering and business goals.

The simplest way to drive this is by answering questioning pertaining to the product such as: 

  • Does the offering/service solve a problem for a large enough audience?
  • Is your solution a feasible and cost-effective option for the target audience?
  • What differentiates your product/offering from the existing solutions (your competitors)?

2.Conduct a thorough product research

E-commerce products can be broadly divided into three categories – physical goods, digital products and services. 

Once you have identified the category your offering belongs to, it is essential to study the industry data and market trends. Every insight is helpful in the correct positioning of your product in the online market. It is equally important to be aware of the audience’s perception of the space that you will be operating in.

Entrepreneurs often hire research firms that offer market data and information directly by interviewing the target audience base. Their sophisticated market analysis helps determine early on the scope of your products and the avenues to further refine them.

Another way is to conduct online surveys and interview sessions with small groups to understand what the consumers think about your product.

3. Identify your target audience

You might have a collective idea about your audience but the above two steps will help further filter them. Having a clear understanding of your end consumers helps build and market the brand more effectively. 

Creating customer profiles and market segmentation based on demographics, psychographics and other factors is the foundation for tapping the right market and opportunity.

4. Specify the problem and corresponding solution

This step is beneficial for building strong communication for your brand. You might very well know what your product is aimed at but articulating it will help your consumers identify and relate to your offering better. It is also necessary for everyone associated with your business to understand the exact positioning of your product or service.

5. Analyse your competition

Analysing the competition can be quite detailed as well as an insightful process. It consists of breaking down the competition’s business to understand what they fare and fail at. Competitor analysis helps you get a sneak peek into the tactics and strategies that already exist in the market.

Competition can be analysed on different fronts – shopping experience, marketing strategies, insights and resources, ads and social campaigns, digital presence, and so on. It can be even helpful to interact with their website, buy a product, subscribe to their newsletter, and understand the process in-depth.

The main objective of competitor analysis is to build a better sales and marketing strategy for your product/offering.

This is a mandatory task and any business must be aligned with the laws of the land right from the start. Apart from getting the company registered, legalities also include understanding the compliances, tax-related details, trademark registrations, and so on.

Businesses also require licences and permits to operate depending on the product. Similarly, business insurance is essential to protect and safeguard the business.

7. Set up a website

Building a website is an exciting combination of creativity and technology. The web platform is the representation of your brand and the experience you wish to create for your consumers and hence needs detailed attention.

A website broadly consists of impactful visuals and descriptions that communicate everything about the product and brand. It is also important to choose the right e-commerce platform that offers essential features, extensions and functionalities.

A well-designed website with a seamless user experience can hugely contribute to conversion rates and sales.

8. Integrate a payment service provider

Selecting the right payment method is one of the final steps in your online journey toward starting an online business. A robust payment gateway is the backbone of seamless transactions and hence it is recommended to integrate with the right service provider.

Some of the factors to take into account are the number of payment options you can offer your customers, settlement periods, ease of refunds, payment security and the success rates of transactions. All of these are taken care of by a reliable payment gateway.

9. Finalise your marketing approach

Marketing is among the final steps that follow a sturdy product and website. Nevertheless, it is essential to market your product right from the start to build its awareness and fetch an initial response.

There are ample online marketing methods to choose from, some of them include:

  • Social media marketing: Paid and organic campaigns
  • Search Engine Optimisation (SEO): Content focussed approach
  • Email marketing: Personalised content approach
  • Paid advertisements: Visibility-oriented approach

How Paytm Payment Gateway can help you start your business online

Paytm Payment Gateway offers a powerful payment technology for quick and hassle-free transactions on your website. You can also leverage the following benefits:

Quick integration: A complete online onboarding process along with powerful APIs and custom SDKs helps you instantly activate payments with minimum documentation. Moreover, Paytm Payment Gateway also offers plug-in support for e-commerce platforms such as WooCommerce and Magento.

Multiple payment options: Paytm Payment Gateway supports 100+ payment sources with options like credit cards, debit cards, net banking, EMIs, and UPI. Customers can also choose to transact through Paytm Wallet and Paytm Postpaid.

Merchant discount rate: Paytm Payment Gateway does not charge a Merchant Discount Rate (MDR) for payments that are initiated through UPI and RuPay cards. There is no cost incurred by the business for payment gateway setup or maintenance.

Fastest settlements: The default settlement cycle by Paytm Payment Gateway is T+1 which is the fastest in the market and is irrespective of weekends or bank holidays. Businesses can also choose other options such as real-time settlements and batch settlements.

Paytm Payment gateway solves your transaction-related processes offering you industry-best success rates to ensure that your customers’ payments go through every time. Apart from being the preferred payment gateway of India’s leading unicorns, Paytm Payment Gateway is built with tech and features to support businesses that are beginning their venture online.

3 online businesses to start with a limited capital 

If how to start a business with no money has been the central question for you, here are 3 business ideas for starting a business from home with the least investment to test the market with minimal risk.

Dropshipping: If you plan to open an online e-commerce business in the long run, dropshipping can be the best business to start with. It involves selling products online that are shipped directly from the vendor to your customer. 

You do not need to maintain an inventory or be concerned about the hassles of packaging and shipping. The core business strategy is around marketing the products to the right target audience.

Apart from your website, the goods can be sold through established marketplaces that have a larger audience base.

Content creation: Content creation offers diverse opportunities and is a relatively new business model. It revolves around continuously creating content that engages and appeals to a specific audience base. 

Every type of content offers a distinct income opportunity. For instance, a blog as a form of content relies on banners, Google Adsense and sponsored content for revenue. Video content on platforms such as Youtube mostly depends on paid partnerships and product reviews.

Many other forms such as running a podcast and building a social media presence or starting up as a freelance content writer/consultant can be explored in this space. 

Website/app development: If you can build solutions that assist other businesses to grow in the digital world, website/app development can be your best bet. The investment is low (at least at the start) and the opportunity is huge. 

In addition to creating apps and websites for enterprises, you can also develop your own app and run it. This is a longer stint and will require ideation, testing, marketing and so on – eventually, this product can be your core business.

How to start a small business: Conclusion

With a rapidly growing market and a high-earning potential, there couldn’t be a better time to start a business online. However, it is a convergence of several processes, tools, and technology that need careful implementation for its success and growth.

While you put together the various aspects of your business, payment services such as the Paytm Payment Gateway can make your journey simpler as you set foot into the digital world.

 

Switch to Paytm Payment Gateway

You May Also Like
A Complete Guide to MSME Registration in India
Read More

A Complete Guide to MSME Registration in India

MSME registration provides several benefits to the companies in terms of taxation, credit facilities to scale the business up. Let us dig deeper to find out more about MSME registration in India.