Category: Online Business

So you’ve decided to join the club and make some money online. It’s a good idea and doesn’t need much capital. Unlike other businesses, you can start your online venture with close to zero. There are lots of free tools available to start you off, but of course you can spend a little if you want to make a bigger impression. After all, you can get a website for less than $20 and a merchant account that charges per sale instead of per month.

If this sounds confusing, here’s a basic translation. Your website is like your digital office or shop. You’d have to buy a domain (that’s your www) for about $10 a year, and a hosting package (that’s like your office rent) for another $10 a month or thereabouts. Then you can build the site (which is like painting your office walls) for free using WordPress, or hire developer.

Next you can add plug-ins or social media integration (that’s like furnishing your office), and of course you need the social media accounts – Facebook, Twitter, Instagram etc. for customer care and marketing. They give you direct access to your customers. Alternatively, go to site-builders like Wix or Squarespace. They do all the above at a monthly fee (which is like renting a furnished office that comes with its own receptionist).

Getting started

But those are details. Before you get there, you have to decide exactly what business you’re going to run. Will you make a product, sell a skill, or re-sell other people’s goods and services? Those are the main categories for online business, though there are many sub-categories. For example, if you want to re-sell, you can sign up for an Amazon sellers’ account, then source your products and sell them. Alibaba is a good source for wholesale goods from China.

What online business should I start?

So you’ve decided to join the club and make some money online. It’s a good idea and doesn’t need much capital. Unlike other businesses, you can start your online venture with close to zero. There are lots of free tools available to start you off, but of course you can spend a little if you want to make a bigger impression. After all, you can get a website for less than $20 and a merchant account that charges per sale instead of per month.

If this sounds confusing, here’s a basic translation. Your website is like your digital office or shop. You’d have to buy a domain (that’s your www) for about $10 a year, and a hosting package (that’s like your office rent) for another $10 a month or thereabouts. Then you can build the site (which is like painting your office walls) for free using WordPress, or hire developer.

Next you can add plug-ins or social media integration (that’s like furnishing your office), and of course you need the social media accounts – Facebook, Twitter, Instagram etc. for customer care and marketing. They give you direct access to your customers. Alternatively, go to site-builders like Wix or Squarespace. They do all the above at a monthly fee (which is like renting a furnished office that comes with its own receptionist).

Getting started

But those are details. Before you get there, you have to decide exactly what business you’re going to run. Will you make a product, sell a skill, or re-sell other people’s goods and services? Those are the main categories for online business, though there are many sub-categories. For example, if you want to re-sell, you can sign up for an Amazon sellers’ account, then source your products and sell them. Alibaba is a good source for wholesale goods from China.

In terms of what to sell, you could look around your home, school, neighbourhood, or friends’ group to see what they may be interested in purchasing. It has to be something they can’t easily get on their own. It also helps if it’s something you have an interest in (or can learn about quickly), because product knowledge helps to boost sales. Start with small volumes. You don’t want wall-to-wall product that you can’t move.

Learn from the net

If you’re more interested in making something, the same approach applies. Is there something you already know how to make that people would be willing to pay money for? It could be knitted mittens, pencil drawings, custom cupcakes, or origami. Make a list of things you like to make. It can be as complex or silly as you like. Then run a poll of your online friends to see which of your products they’d be willing to pay money for.

Another option is to do a quick tutorial. YouTube has step by step video lessons on everything from watercolour painting to making scented candles. Pick something interesting, learn how to make it, and see if you can sell it. Whichever direction you select, make sure it’s something people would willingly pay for.

One of the biggest challenges any entrepreneur faces is raising capital. It’s a lucrative industry, which is why there are so many reality shows based on the concept. Shark Tank, The Pitch, and even companies dedicated to venture capital. Lots of billionaires double up as angel investors, funding start-ups so they can cash in later.

As an online business entrepreneur, all these avenues are open to you. Your main advantage is you can succeed with far less start-up cash. Chris Guillebeau wrote a book called The $100 start-up and hosts a podcast called Side Hustle School. In both, he gives numerous examples of low-income start-ups and gives stats on their progress.

The ventures showcased include things as zany as chicken saddles, worm farms, and importing crickets … to more ‘serious’ gigs like developing online training programmes for accountants and special needs teachers. The entrepreneurs on the show range from tweens and teenagers to retirees, and a lot of them started with $100 or less.

How much do you need?

Your best starting point is to trim your budget as far as it will go. Work out of your home, or use a friend’s space to cut down rent and utilities. Don’t make or buy excess stock until you’re sure you can move it. This also saves the expense of storage space. Where possible, request pre-orders and deposits so you don’t have to produce out of pocket. Get someone you trust to draft your starting costs. They’re more likely to be objective.Once you have a figure, look into your savings. Ideally, we’re focusing on $100, maybe $500 on the upper side. If you start inching towards $1,000, consider a smaller project, at least to start with. If you have a weekly or hourly job, decide to focus on raising that $100 to $500. Forego some treats and be ruthless in your savings tactics for a few weeks or months, until you can raise that amount.

External investors

Another option is to ask friends and family to invest in your business. You could sell them shares, or take a soft loan, depending on the relationship you have with them. If you’re offering shares, make sure you always retain majority stake, just so they don’t turn on you when your venture succeeds. For example, you could sell 30% of your shares.

Say you divide your company in 1,000 shares. Keep 700 and sell the rest at $1 each. This way, you only need 5 investors of $20, or 10 investors of $50 each. This same approach can be used on crowd-funding sites. If your business is arts-related e.g. a writer, film-maker, podcaster, v-logger, or robot-designer, you could open a Patreon and request fans of your work to support you. Many will be willing to sponsor you with $1 to $5 a month.

In exchange, offer exclusive access to your stuff. Or you could use sites like Kickstarter, Indiegogo, Appbackr, or Sellaband. Whether they’re intimates or strangers, the best way to raise funds is to just ask … so pick your prospective sponsors wisely.