4 important steps before starting your online business by Shakil

 

4 important steps before starting your online business

by Shakil

 

 

Find a hungry market – The first and foremost task before launching your online business:

This is the most important step to build an online business. No matter how awesome your products are, that is totally worthless if there is no one to buy that. Most of the new online entrepreneurs do that mistake by making the product first without doing proper market research. You need to find out what kind of product can bring profit for you. There is a famous quote by William bill of Wealth Design Group LLC -”Failure to do market research before you begin a business venture or during its operation is like driving a car from Texas to New York without a map or street signs”.  Either you can hire professionals to do market research for you or you can do that yourself. You can use search engine information like Google trends, online surveys, questionnaires etc to collect data and analyze to find a potential market.

Calculate the cost to promote your product online:

Marketing online is much more cheap and effective than marketing in traditional Medias like TV, radio, billboard etc. Since you are going to build an online business, your primary focus should be on marketing online. You can promote your business online via PPC, Social media marketing, Email marketing etc. It is a huge topic indeed. A simple tool to estimate marketing cost is Google adwords tool. You can see an estimated cost of showing your ads by that. Although this tool only shows cost for adsense ads, the cost is nearly same in all networks. The higher the cost, the more you have to spend on marketing.

Calculate the total cost of product creation :

Wages can vary greatly Depending on product types. Not every worker is equally salaried. If your product is a software, you must need several programmers to work on that. Either you can outsource from freelancer market places like oDesk, Elance or hire them locally. A programmer charges between $100 – $150 per hour. The total amount of hours can vary depending the complexity and size of the project. The same things happens to others type of projects as well.

Estimate the profit of first six months :

What will you do business for? The simple answer is profit. This is the main purpose of a business. Estimate your potential customers of first six months, how many sales could your business generate in first six month? Now calculate your total costs for market research, marketing, product creation and other things. If the first six month profit is more than the total cost, that is certainly a fantastic business idea to go with. If costs and profits are nearly same, still that is a good business idea because you counted profits of first six months only and your major investment is already done.
Pre launch researches are so important that it defines successful business ventures and failure business ventures.