Tag Archives: business model

7 Steps to Start an Online Business

Having your own online business is a dream that many of the readers of this blog may have. There are however important steps to start an online business that needed to be followed.

Starting an online business, although it operates in a different channel, is not that different from starting a Brick and Mortar business. In both cases you need no do certain things in order to get your business up and running.

The 7 steps to start an online business

Starting a business may be for most people a chaotic and emotional episode. However, if you have a guide to do the right at the right time, the process may be smoother that you think. So, here are the steps:

Step 1: Planning

A Business Plan is a detailed action plan or road map outlining every conceivable aspect of the proposed venture. The plan describes what, how, when, where and why with regard to the new venture. It is thus a structured guideline for achieving your business goals.

Therefore, if you want to start an online shop, you should at least ask the following questions:

  • What kind of products do I want to sell?
  • Are there any competitors that will be selling the same products as me?
  • What should my website look like?

Read more: Planning Your Online Business 

By this time you should already have an idea what your business is about. Also about a name for your business…

Step 2: Register a domain name and choose a hosting company

If you already have the name of your shop, it is time to start setting it up. The first thing to do is to register for a domain name. However, good luck! According to Tek Eye (2017), there were 330 million domains registered for over 1.8 billion websites last year… So I think all the obvious domain names is already taken.

In spite of all the best domain names already been taken, you should try to get a name that can best represent your products or services. Registering a domain name should not cost you more than $10 (R120) for a .com extension. Visit SA Domains to see if a domain name is available.

After getting the domain name, you need to find a good hosting company. Look for a hosting company that has good servers and that will be able to run your online store e.g. Texo Webhosting.

Read more: Choose a Domain Name and Hosting Company for your Online Business 

Step 3: Choose your E-commerce package

You can build your online store through hosted solutions or self-hosted solutions

Hosted solutions:

Many hosted solutions provide a good experience to users with you doing very little on your end. However, when you use a hosted solution, you should be prepared to lose a lot of opportunity for customization.

The following three are among the top solutions:

It’s easy for anyone to set up an e-commerce site with Shopify. Some of the features you will enjoy by setting up a store with them include a custom mobile template, unlimited server bandwidth, SSL security, and a personal app store. You can try it for free for 14 days or choose a package that will suit you. Pricing starts from $14 to $179 (R180 – R2300) per month depending on the features and functionalities you are looking for.

Yahoo! Merchant Solution. The layout of Y!MS is fairly straightforward and can be easily customized. Y!MS ecommerce plans start from $19.98 to $224.96 (R260 – R2925) per month depending on the package and features you need.

BigCommerce is similar to Shopify but has limited features. The website has a clean interface, making it easy for users to sign up. You can easily add users, products, features and take payments online in just a few minutes. BigCommerce pricing ranges from R325 to R3900 a month depending on the features your need.

Self-Hosted Solutions:

If you do not want a hosted solution, you can make your own e-commerce scripts or use other open source or commercial shopping cart scripts.

Zen Cart is a popular open source script that will work in most web hosts. The script is free to download. The only downside of using the script is that your website will feature a “Powered by Zen Cart” message at the bottom.

Magento is another good script you can use for your e-commerce website. The script is written in PHP and is frequently updated. As is the case with Zen Cart, you will feel more comfortable using Magento if you are well-versed with HTML and CSS.

If you are comfortable using WordPress, you can easily set up an ecommerce store using various free and paid plugins. Examples of popular plugins that will enable your WordPress site and have ecommerce capabilities include WooCommerce, WP e-Commerce, Cart66, and others.

Read more: Choosing an eCommerce Platform for your Web Store

Step 4: Taking Payments Online

Credit cards provide customers with an easy way to make payments at your store. Apart from credit cards, customers may also wish to pay through other methods such as PayPal. You will want to accept payments through the methods that your customers trust and use. To accept credit cards online, you will need a merchant account.

Read more: Starting Your Web Store – How to Receive Payments Online

Step 5: Add Content and Products

After you have set up your domain name, hosting and shopping script, you are ready to start selling online. You now need to add your content and products. From this point onwards, you will also need to do some maintenance and tune your website design to match the needs of your customers.

Indeed, “The quality and relevance of the content of a retailers’ webpages can mean the difference between a sale and a bounce” writes Douw G Steyn recently in Bricks2Clicks.

The next important step is to get the product that your customer has paid for, to its destination.

Step 6: Shipping and Fulfillment

Like a physical retail store, you need to maximize the visitors at your store. However, you cannot simply hand over products over the counter. Also, shoppers expect a seamless shopping experience — no matter where they are, what device they are using, or how they choose to shop. Order Fulfillment – taking the right product, putting it in the right box, shipping it, and gaining the customer’s approval – is a demanding task (Bricks2Clicks).

Step 7: Marketing your online shop

One of the biggest challenges you may face as an e-commerce store owner is generating traffic that converts on your store. There are a number of digital marketing channels that retailers can use in the online channel:

  1. SEM (Search Engine Marketing) consists of SEO (Search Engine Optimization) and Paid Advertising (e.g. PPC – Pay Per Click advertising).
  2. Content Marketing includes Blogging, e-Mail marketing, e-Books and video marketing.
  3. Social Media Marketing is marketing on social media websites such as Facebook, Twitter and Pinterest.

So these are the seven steps to start an online business…


Just as with Brick and Mortar shops, there’s no easy way to just star and make money. If you follow these steps to start an online business, you may soon identify your strengths and weaknesses as well as opportunities and threats that exist in the marketplace.

Good luck with you new venture!




Home-based business – Important Startup Strategies

There are millions of entrepreneurs that do their business from their homes. In fact, according to IncFile.com, home-based business was done by at least 38 million Americans during 2017.

Although the idea of doing business from your home sounds informal and casual, entrepreneurs should do the following suggests Casey Kelly-Barton in the HostGator Blog.

Important strategies to consider when starting your home-based business

  1. Interview yourself. Not only will you be your own boss, you’ll be your own employee, so hire with care.
  2. Study the logistics of self-employment. Do you have space to work and to store any inventory, equipment, and raw materials?
  3. Make a simple and clear business plan. What do you plan to sell? Who will buy it? How will you reach them? How often will they buy from you, and how much will they spend?
  4. Put your legal and financial ducks in a row. Decide on your business type and get your city or county business permit in place. Then open a business banking account.
  5. Set up your website. Look for a web hosting service that offers mobile-optimized site templates and fast page-load times.
  6. Set up a professional email address. Not all web hosts offer email hosting. Streamline things for yourselves by choosing a web host (like HostGator) that offers free emails with your website.
  7. Listen to your prospective customers. The most successful home-based businesses go out of their way to meet the needs of their customers, and it’s especially important to listen well as you plan your first product or service.
  8. Develop your value proposition. What can you offer your audience that will provide value for them and require a not-ridiculous amount of risk (in terms of effort and expense) from you?
  9. Ramp up your marketing. Once you have a product to offer and a customer base, you can market to prospects like the customers you already have.
  10. Develop new products or services. Expand or iterate on your product line based on customer feedback.
  11. Review regularly. Ask yourself a few questions about your business in general.


And if still wondering what home-based business to do, here are some guidelines 1:

  • Turn what you most enjoy into a home-based venture, such as a favorite hobby or interest.
  • Utilize existing skills from your salaried job.
  • Solve a problem that people are willing to pay someone else to do for them.
  • Use technology and resources you already have around the house, from your van to your computer.

Read also:  Every business needs a business plan


1 BizMove Management Training Institute, How to Start a Small Home Business A Step By Step Guide to Starting a Successful Home Based Business, http://www.bizmove.com/books/how-to-start-a-small-home-business.htm