How to Start an Online Business In 2023: 10 Easy Steps

Article

by
Thomas J Law

14 Dec, 2022

Bonus: Additional Resources to Help You Build and Start Your Online Business

Starting an online business isn’t easy. There are so many important decisions to make. What should you sell? Who should you sell to? How will you get customers?

If that’s not enough, every other week there seems to be a new business trend online. There’s chatbots, cryptocurrencies, Facebook ads, Instagram influencers, and many more. What should you pay attention to? What actually matters?

If you want to know how to start an online business in 2023, we’ve got you covered. In this quick and simple article, we’ll take you through how to start a small business online, step-by-step. Consider this as a starting an online business for dummies guide, as we cover everything in plain English and list simple, actionable instructions to help you start. 

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How to Start a Business Online (From Scratch)

#1: Don’t Start Building Yet

When looking to start a business, it can be tempting to jump into action.

So, if you’re feeling the urge to build a website, choose a business name, or create a logo, hold off for now.

If you want to start a successful online business, first, you need a strategy. And steps two, three and four of this article will show you how to create your online business strategy.

#2: Choose a Business Model

When learning how to build an online business from scratch, it helps to know about some tried-and-tested online business models.

Here are six types of online businesses to consider:

1. Affiliate Marketing: Promote other business’s products and services online, and receive a commission for each sale you make with this passive income idea.
2. Freelancing: Provide a service to other individuals and businesses using a skill that you have, such as advertising, writing, designing, or programming.
3. Coaching and Consulting: Become a coach or a consultant and sell your expertise, advice, and guidance.
4. Information Products: Package and sell your expertise in ebooks, worksheets, templates, and online courses.
5. Software as a Service (SaaS): Create a piece of software or application, and charge users a recurring subscription fee.
6. Ecommerce: Use a service like Shopify to set up a website and sell physical products online.

Want more online business ideas to help inspire you? Check out our guide, “25 Small Business Ideas to Make Money”.

#3: Identify Your Target Market

Next, you need to get clear on your target market. In other words, who are you going to serve?

This step is absolutely vital.

As the marketer Philip Kotler once said, “There is only one winning strategy. It is to carefully define the target market and direct a superior offering to that target market.”

Here’s the trick: Make sure you are part of your target audience.

Think about it. If you’ve been camping your entire life, you’ll understand the problems, desires, and language of other campers. As a result, it’d be much easier to sell camping products online. 

Plus, your marketing will be more successful because you’ll have a better understanding of how to communicate with other campers.

On the other hand, if you’ve never been camping in your life, you’d probably struggle – a lot – to sell camping products online.

So, when choosing a target audience, ask yourself:

• What are my hobbies and interests?
• Is there anything that I know a lot about?
• What do I spend most of my time thinking, talking, and reading about?

#4: Find a Problem to Solve

When learning how to start an online business, it’s important to note one key thing: all businesses solve a problem.

Plumbers fix leaking pipes. Hollywood movies fulfill people’s boredom, curiosity, interest, and the need to escape and relax. Clothing brands help people express themselves and feel attractive.

Here’s the golden rule: The bigger the problem you can solve – and the better you solve it – the more money people are willing to pay.

For example, take healthcare services. They solve a big problem, which is why almost everyone is willing to spend a lot of money on it. 

On the other hand, not many people will pay you to stop their table from wobbling. It’s not a big problem, and they don’t need help solving it.

Bottom line: If you want to identify how to start an online business, you need to find a good problem to solve.

Here are three examples:

• Target market: Fashion-conscious teenage boys
• Problem: The fashion-conscious want to stand out from the crowd without spending too much money.
• Solution: Create a clothing line that’s flamboyant and budget-friendly.

• Target market: Marketing managers at multinational software companies.
• Problem: Businesses need to drive traffic to their websites.
• Solution: Write articles that rank on the first page of Google to drive traffic.

• Target market: Working Moms with young children.
• Problem: Many moms want to work out regularly, but they don’t have much time.
• Solution: Create a time-saving fitness program and schedule.

How can you find a problem to solve?

• Join Facebook groups and online forums and ask people what they need help with.
• Use Google Keyword Planner to find out what people are searching for.
• Find successful online businesses and identify the problem they solve, then look for ways to do it better.