Starting a business that sells products or services online is the best idea if you don’t have a large budget. There are many benefits to focusing your efforts in the digital world, and we’ll discuss some of them in just a moment. Over the last twelve months, thousands of new internet business have been formed in the UK, mainly because business rates have been waived. Still, that means that now is the best time to get on board. If you wait too long, the government-run schemes designed to make life easier for you may no longer exist. So, you need to capitalise on the opportunity in front of you and act fast. Any delays could mean starting a new company becomes far more difficult than it is at the current time.
Why should you sell online rather than in the real world? Well, in most instances, it comes down to costs. While you will still have to seek some funding for your venture, the amount you require will be much less than it otherwise would have been. We all know how difficult it can be to convince high street banks to part with cash these days, and so you’ll get better results if you only need a small amount of capital. That is just one of the many things to consider when running a business. Don’t worry too much about that now though, we’ll go into more detail in a little while.
Deciding What You Should Sell Online
You have two main options when it comes to deciding what you would like to sell online. Firstly, you could become a manufacturer and product original products. Doing that should mean you have 100% of the market share. Just make sure you employ the services of a decent patent attorney if that idea sounds plausible. The last thing you want is to spend time designing original items only to be thrust out of the market six months later by other firms that have found a way to undercut you. For that reason, you need proper protection before you reveal your product ideas to the world. Thankfully, you are covered from the moment your patent is filed.
Secondly, you could decide to act as a middle-man. In most instances, that is the best strategy when selling online. Middle-men tend to see higher profits than manufacturers or standard retailers. That is because they don’t have to worry about creating their products, and so overheads are much lower. If you think this idea appeals to you, it’s a good idea to spend a long time deciding which products you should supply. Best of all? You can have them shipped straight from the manufacturer to the customer. That means you aren’t going to need a warehouse, and you won’t have to deal with couriers.
Get The Capital Required to Fund Your Business Idea
As we said a moment ago, it can be hard to convince bank managers to release funds at the current time. That is mainly due to the amount of pressure they’ve come under since the financial crisis hit home. Those of you wanting to become a manufacturer will almost certainly need to seek investment from somewhere. However, you’ll do better by looking for alternatives. There are lots of private investment companies you could contact.
If you’re going down the middle-man route, it is entirely possible that you could start your business without any investment. All you should need is a good quality website and a means of promotion. Thanks to services like Google Adwords and Facebook Ads, you don’t have to spend as much money as you might think. So long as you have a few thousand pounds lying around in your accounts, there is no reason you shouldn’t be able to get things up and running. You can then use your profits to pay for progression.
Work from Home Until You Have No Other Choice
One of the main expenses faced by online sellers is rent. While it might be tempting to find business premises as soon as you start trading, that will eat into your profits considerably. With that in mind, you should always aim to work from home until you have no other choice. Sure, your family might start to get a little annoyed with you for stealing the dining room for months on end. However, they’ll be more than supportive when you explain how much money you’re making for them.
Once your business has reached a certain size, you’ll need to think about employing some staff to help you out. At that point, you should start looking for a suitable business premises. To save yourself a lot of time and effort, you should consider serviced office space in London. That will help you to reduce the headaches of running an office, and it will also mean you get a top quality address that customers and clients will find appealing. Like it or not, basing your business in the capital will almost certainly mean you experience increased success rates.
Try to Automate As Much As Possible
By paying specialists to create custom codes and software for your business, it should be possible to automate most of your processes. That is especially true if you’re acting as a middle-man rather than a manufacturer. At the end of the day, you just need solutions that pass your orders directly to the people who will fulfill them. It shouldn’t cost much to create a system that does that. Once you’ve got automation solutions in place, all you have to worry about is making payments and dealing with customer service. Of course, there are many firms that specialise in training your staff. You should find a reputable one and arrange for them to spend a day with your team.
We hope you have learned a lot about selling online, and that you are now in a better position to make the right moves. Any mistakes during the first few months of your new business could cost you dearly. So, think ahead and learn from our advice.