…about how many decisions have to be made.
But it’s just the same if you decided on an offline business.
They are the same questions you have to ask yourself – and decide on an answer for your business.
Here are some of them, with some mistakes people make.
1 What makes your business and/or products different from others in the same niche? Can people get the same or similar from somewhere else online? If so, why would they choose you than someone else?
What’s your advantage?
Besides these questions being ignored, there are 2 basics mistakes people make at the start.
a) Some people think they will start their online business by copying what someone else is doing. The problem is that what works for someone else will probably not work for you. You’re individuals and your businesses are individual. Straight away you’re up against established businesses, perhaps long term ones, who already attract the same customers you’re after. It’s difficult to get them to move to you, especially if they’re satisfied with where they are.
b) Some people think, heroically, they will be the best in their niche. This sounds like common sense. But you have the same problem as in (a). Also, even if your were the best, which will not come quickly or easily if ever, customers will not necessarily make the move to you. They will take into consideration all other factors about what they like about where they are. These might include trust, customer service, or variety of products or services.
2 Where are the profits? I mean profits after all costs have been covered. This is important as the focus of a business is to make profits.
You can do this in 2 ways.
You can be selling premium products so you can sell at a higher price. Coaching is this type of product online. Someone is getting personal access to you but for a premium price. It has to be as this is your working time. If you’re taking coaching you cannot be doing something else in your business. So you have to charge an hourly or session rate which is more than the time cost to you. Your costs in your business may still be high for some reason but you make a profit from the premium products even after you take off those costs.
The other basic way is to have as low costs as possible. You could be selling premium or low priced products. But your low costs mean you make clear profits after those costs are taken into account. Imagine having a membership site on dog training physical products. Maybe customers get a deal a day or week that they can’t get anywhere else. To be able to do that you’d have to be able to get the products at lower cost to you, than normal, and cover delivery costs too if you arrange the delivery yourself. Of course, if you had a lot of targeted traffic you might still sell higher ticket products at higher prices because you know the numbers are there, and you’re still getting the product at a lower cost to you because of the number of sales you can generate.
3 What daily business actions are you taking? Are those actions the most effective to take to ensure your strategy operates effectively and makes you profits?
The basic mistake here is that people thinking they’ll make some money online because it’s quick and easy, don’t have a strategy. Usually, they have bought an opportunity product, believing what the marketing told them. Or they focus on the money making, not realizing the business has to make profits, not just revenue, for them to make money.
A done-for-you business would be attractive in this case. This is the opposite of building your own business. Also, some people may mistake it for something like an offline franchise business. But usually you’re just left to yourself, or it’s a means to upsell you to something more expensive. On top of that, of course, there may be many others doing exactly the same as you. There is no strategy for your business, though there probably is for the business you bought it from.
These are 3 areas people get stuck on and lead to them giving up. The point is you need a strategy first, into which all the parts of your business and your actions in it, fit.
Here’s more on Successful Internet Marketing Start Up