According to 2019 polls done by Marist College and National Public Radio, 76% of adults in the USA shop online, and a quarter of those do it at least once a month. Though most retail sales still happen offline, the online platform has grown steadily over the years thanks to busy millennials who prefer to shop online. The most prominent advantage of an online business is that it requires significantly less capital to start. While the cost depends on what kind of business you want to start, you will have to incur these five costs.
1. Basic hardware and internet
It is possible to run a business on your phone in the 21st century. However, if you want a well-established company, you have to purchase at least one computer and have steady internet access. You will also need production equipment if you are going to make products from scratch. With the right business plan and vision, Opportunity Business Loans can connect you with a suitable lender who will help you kick-start your business.
2. Website creation
An excellent online store runs on a successful website. You will start by buying a domain name that can go for $10 a year or more. You also need to host your website so it can be live daily by paying $60 to $100 annually. If you are tech-savvy, you can figure out how to design a new website from there on your own. However, paying a professional designer to make the website for you is the best option, though it will cost you money.
3. Training
Training equips you with the necessary knowledge and support you need to succeed. The internet world always has a shifting goal post, and you have to keep up with the trends. Most people who skip this expense end up making costly mistakes or running the business down.
4. Marketing tools
If you create an excellent website and amazing products and no one knows about them, you will not make money. Marketing is the core of every business and where the most significant expenditure goes. For online stores, you need an autoresponder to build a mailing list and send out emails for you. You also need to invest in a keyword tool to help you with search engine optimization and make your work easier. Pay-per-click advertising is also a great way to get your products or services in front of people’s eyes.
5. Software and e-commerce platforms
Over and above what you pay for your website, you also need subscriptions to e-commerce platforms and solutions. Sometimes you need to get accounting software to manage your finances and team communication software. When the business is new, you can start with the essential software or pay for the e-commerce platform to get your business going.
While you will require some money to start an online business, what matters most is the time you have to spend on it. You have to build your niche and foster relationships with people who will become your clients. Focus on gaining exposure, offering quality, and building trust with people so they can always count on you.
