Starting an online business
The start of a new year inspires many to take the plunge and set
the goal of launching their own businesses. It simply takes one
brilliant idea, the guts to take the risk and some capital.
According to Companies House incorporations in the UK are on the
rise, with 2.8million companies listed for December 2011, up from
2.65 million the previous year and 39,168 new companies were
incorporated in November 2011 alone.
According to Ofcom, the UK surpasses other European countries
with its eagerness to purchase goods and services online, creating
a wealth of opportunity to exploit the online market. The UK is
Europe’s leading online retail economy with sales in 2011 estimated
at €81bn (£67bn); this is the opportune time for many to launch
online businesses.
Have a business plan
The first step to creating and launching any business is to have
a detailed plan of what it is you are trying to achieve; this forms
the basis of your business plan. Your business plan will outline
your business concept, your target market knowledge, your marketing
and sales strategy, in essence what your business hopes to achieve
and how you hope to achieve it and how much money you’ll need to
get it done. It is important to be clear about how your website
will add to your business? Is there a market for your online
business idea?
Research is crucial and forewarned is forearmed as the saying
goes. You’ll gain a higher chance of success, if you are willing to
take the time to research your online business idea thoroughly. For
example if you know who your competitors are and can be sure that
you can supply the market with a niche product or service that can
successfully compete, then that is just the start.
A strong business plan can also help you to secure financing so
it’s imperative that you take your time over this.
Going online
Everyone wants an all singing, all dancing website, but
these are not always practical; your website has to communicate to
your customers, explain to them clearly the goods you have for sale
or services you offer and make the ‘buying’ experience – the way
someone would acquire your goods and services – quick, simple and
pleasurable. You might find, dependant on what your online business
idea is, that you don’t need to build a website, other online tools
might be more appropriate.
For example, many who have products they wish to sell have used
eBay as an internet platform instead of creating a website and have
done so, so successfully that they’ve created successful million
pound turnover businesses, mainly boosting their sales through
exports.
Setting up your website
If it is a website that you need for your online business, the
first part of your set up process is purchasing your domain name;
and determining whether your website is something that you can
manage and build on your own or whether you will need professional
help?
You’ll have to run a check to see if the web address you want is
available. And find a web hosting service to host your website
upon.
Remember your website will only be beneficial to you if people
can find it, so making sure your site is searchable is of key
importance. You will have to optimise your site; meaning you will
have to make sure that behind the scenes all your web content, page
descriptions and images are correctly tagged so that your site is
SEOed. SEO means search engine optimisation, which simply means
your website has been designed in a way that improves your
website’s visibility for search engines such as Google; making it
easier for potential clients and customers to find you, if for
example they search for your website through Google.
Business requirements
When you set up a business there are always a few I’s that need
their dots and T’s that need to be crossed. Just because your
business is online doesn’t mean that you won’t need to go through
the same steps to protect your business.
Selling goods online is termed as distance selling and this
requires you to comply with the Consumer Protection (Distance
Selling) Regulations and the Electronic Commerce Regulations, in
which you are obliged to provide consumers with specific
information prior to them placing an order with you, provide them
with an order confirmation and information on their rights to
cancel. It is also imperative that you familiarise yourself with
the Sale of Goods Act and Trading Standards.
If your online business has a requirement to hold data on your
customers, you will have to register
with the Information Commissioner to comply with the Data
Protection Act 1998.
By law your website must also comply with the Equality Act 2010,
which necessitates your need to ensure your website can be accessed
by anyone with a disability. According to W3C, the governing body
of the World Wide Web, up to 20% of people are affected by some
form of disability so by providing an accessible website you
increase your audience reach and potentially increase sales.
Even if you are running your business from your bedroom with
just a laptop, it is always imperative that you have good small business insurance to protect you against
many of the risks facing small business owners, such as damage to
stock, office equipment and business interruption cover.
Marketing your online business
What would be the point of all your efforts to create a bright
new future for yourself through your new business launch - if you
never let the world know you existed?
Marketing your new online business is essential, you have to get
your brand name out there. Word of mouth is the cheapest form of
advertising known to man. So inform suppliers, friends and family,
in fact anyone that you meet about your new online business. You
don’t have to hire a PR company, a well drafted press release sent
to local, national and your business sector press can work wonders.
As is exploiting social media tools like Facebook and Twitter to
gain following and generating some interest in your brand. Joining
affiliate programmes will also help to generate sales.
You could also start a blog that would allow you to communicate
to your customers and gain their trust through providing them with
any developments, promotions, advice and information on your
company’s area of expertise.
As you are a start up business, it’s vital that you have a clear
strategy for how you’ll position yourself in the market through the
product or service you’ll be supplying as well as a promotional
strategy until you have a strong client base.
For more information on setting up your website.
