1) Determine what product you are going to be selling
You need to make sure that the industry you are in is not too saturated with competitors. And if it is, then you need to find a small group of people– your niche–to market too– a group within a group
2) Find a supplier
If you aren’t creating your own products, then you will need to find a distributor to buy wholesale from, or to dropship your products for you.
3) Make a profitable sale.
Sell your product at a high enough price to make a profit, while at the same time keeping your product priced low enough to be competitive?
This takes real analysis, and the decision making process should not be rushed.
If you get this one wrong, you will not be able to financially succeed.
You need to make sure that you account for all of the expenses before deciding if this is going to be a profitable market.
No matter what your business or service is, you will you need at least some of these things. Will your business require:
A domain name?
An auto-responder service (for email marketing)?
Web design services (paying a professional designer)
Content creation (paying someone to write lead magnets, free reports, email messages, social postings, blog posts, and website content)?
Media (photos, music, or videos) to enhance your online material?
E-commerce (this could include an online shopping cart, ecommerce set up service and/or a merchant account).
Site analytics (this service lets you know how visitors respond on their visits to your webpage).
Leads? Some business and services pay for the contact information of interested people.
After you get a general idea of what running this business will cost, then you need to weigh, analyze and onsider the profit potential of selling this product. Are you going to make a profit after paying for all of the expenses related to selling online? If you pay wholesale for your product, can you mark it up enough to make a profit? Will your product be competitively priced after you make sure that it is profitably priced? In other words, can you sell it for a high enough price to make up for your expenses, while at the same time keeping the price lower than most of your competitors?
These are questions you need to ask yourself before proceeding.
Depending on your product, there may be other factors to consider when you total your expenses (like packaging, shipping, and any overhead needed to rent storage space) but this list will give you a good place to start.
Having trouble determining what your online business may need to be successful?
Sign up today for a free assessment of your business