Millions of people start new businesses in the United States every year. From the new cool neighborhood restaurant or coffee shop to curated boutiques and a place to pick up a 6-pack of that hard-to-find beer, lots of people invest in building out a space, stocking inventory, and opening their doors to the public. And while this may be what you think of when you think of the new business in town, there are also lots of people opening small businesses that are totally online—no place to swing by and no reservation needed. And maybe this is more of what you have in mind when you think about your own success story! Because when you start a small business online, there is a much lower cost to getting to launch—but that doesn't mean there isn't still a list of things to do. So today, we wanted to walk you through the important things to know about starting a small business online. Read on (with a notepad handy) and start making moves to start your own!
Why people choose to start a business online
There are lots of reasons you might choose to start a business online versus opening something with a physical space or retail location. And just as figuring out what you want your business to be is a personal decision, so is deciding whether it's going to be completely online or not. But, in case you are wondering what some of the "pros" to being fully online are, here are some of the reasons:
- Low overhead costs: You don't need to rent or buy a brick-and-mortar location
- You can reach a global audience: With an online business, your potential customer base is much larger than if you were limited to just people who could physically come into your store
- You have more control over inventory and stock: With an online store, you can manage your inventory much more easily and have a better idea of what is selling and what isn't
- You can automate many processes: From shipping orders to marketing your business, there are lots of things that you can automate which will free up your time to work on other aspects of your business
Types of online businesses
Now that we've talked a little bit about some of the reasons you might want to think about starting an online business, let's dive into some of the different types of businesses you can start!
E-commerce: This is probably the most popular type of online business and what most people think of when they think of an"online business." An e-commerce store is a website where people can come to buy products or services from you (like Etsy). This could be anything from physical goods like clothes or home decor items to digital products like ebooks or courses. Dropshipping is also a popular option for those who are looking to create an e-commerce store but don't necessarily want to carry inventory themselves.
Copywriting business: If you have a knack for writing and persuasion, a copywriting business might be a good fit for you! Copywriters get hired by other businesses to help them create marketing materials like website copy, sales pages, email campaigns, and more.
Consultant: Consultants provide their expertise to businesses or individuals who need help with specific projects or problems.This could be anything from social media marketing and business coaching to event planning and interior design.
Sell services: There are all kinds of businesses built around offering services like web design, virtual assistant work, SEO consulting, and more. If you have a skill that others need, starting a business around selling your services is a great way to make money online!
Photographer/videographer: If you have an eye for composition and know your way around a camera, you can start a business offering your photography or videography services. This could be anything from wedding photography to product photography to real estate videography.
Graphic designer: If you're creative and have experience with design software like Adobe Photoshop or Illustrator, starting a graphic design business could be a great fit for you! You can create things like logos, social media graphics, website layouts, and more.
Social media manager: Businesses of all sizes are in need of help managing their social media accounts. If you're active on platforms like Facebook, Twitter, and Instagram and know how to engage with an audience, this could be a great business for you! You would be responsible for creating content, scheduling posts, and interacting with followers.
Virtual assistant: A virtual assistant is like an online personal assistant. You can offer your services to help with things like email management, scheduling appointments, data entry, or anything else that someone might need assistance with.
Wedding business: Many wedding businesses can be started with just a website and a process to work with couples! You can become a wedding planner, officiant, stationery designer, photographer or musician with few up-front costs.
Types of businesses you can start online:
- E-commerce store
- Copywriting business
- Consultant
- Sell services
- Photographer/videographer
- Graphic designer
- Social media manager
- Wedding business
What you need to start a business online
Once you know what kind of business you want to start, there are some essential steps to follow and get it launched! Luckily, the list isn't super long, nor will it cost you a ton of money.
Build a brand to define your online identity
When you create your brand, you want to have a logo, brand color palette, and images that you can use on your website and social media platforms. You can work with graphic designers to create something custom or purchase and customize a pre-made logo on something like Creative Market. You also want to invest in at least a headshot and/or professional product photos as a part of the brand assets you are creating.
Your website is your online storefront
When you are starting a small business online, one of the first things you need to do is set up a website. This will be your home base, where people can learn about what you do as well as the services or products you offer. You'll want to make sure that your website is clear and concise, with easy navigation and contact information prominently displayed (in case someone needs help). You also want to make sure you've optimized it for SEO (search engine optimization) so it is more likely people will find your website on the internet. Once your website is set up, you'll need to start thinking about how you will book appointments or take orders. If you are selling products, you'll need to set up a way for people to purchase those items and have them shipped.
Pro-tip: There are lots of website platforms that make it easy to build a website. Our favorites are Squarespace and Shopify.
Let's talk business licenses, permits, and legal stuff
Even though you are starting a business online, in most cases you will still need to get the proper business licenses and permits. This is typically done through your local city or county government office. They will have a list of businesses that require licenses or permits, as well as the application process. Keep in mind that this can be a lengthy process with lots of paperwork and deadlines, so it's important to start early.
Another important thing to consider when starting a small business is insurance. This is vital protection for you and your business incase of accidents, injuries, or damage to property. There are many different types of insurance available, so it's important to do some research and find the best policy for your needs—the company you have renter's or homeowner's insurance through is a good place to start.
Last but not least, you'll need to create a legal entity for your business. This is typically done by filing for incorporation with your state government. This will protect you and your personal assets in case of legal action against your business.
Pro-tip: You can use something like LegalZoom to complete your filing without needing to do it all yourself.
After you’ve done everything you need to officially start your small business online, be sure to set some goals! This blog post will get you pointed in the right direction.
