How to Start a Business Online

Step 1: Find a need and fill it
Most people who are just starting out make the mistake
of looking for a product first, and a market second.
To boost your chances of success, start with a market.
The trick is to find a group of people who are searching
for a solution to a problem, but not finding many results.
The internet makes this kind of market research easy:
Visit online forums to see what questions people
ask and what problems they're trying to solve.
Do keyword research to find keywords that a lot of
people are searching, but for which not many sites
are competing.
Check out your potential competitors by visiting
their sites and taking note of what they're doing to
fill the demand. Then you can use what you've
learned and create a product for a market that
already exists--and do it better than the
competition.
Step 2: Write copy that sells
There's a proven sales copy formula that takes visitors
through the selling process from the moment they arrive
to the moment they make a purchase:
1. Arouse interest with a compelling headline.
2. Describe the problem your product solves.
3. Establish your credibility as a solver of this
problem.
4. Add testimonials from people who have used
your product.
5. Talk about the product and how it benefits the
user.
6. Make an offer.
7. Make a strong guarantee.
8. Create urgency.
9. Ask for the sale.
Throughout your copy, you need to focus on how your
product or service is uniquely able solve people's
problems or make their lives better. Think like a
customer and ask "What's in it for me?"
Step 3: Design and build your website
Once you've got your market and product, and you've
nailed down your selling process, now you're ready for
your small-business web design. Remember to keep it
simple. You have fewer than five seconds to grab
someone's attention--otherwise they're gone, never to be
seen again. Some important tips to keep in mind:
Choose one or two plain fonts on a white
background.
Make your navigation clear and simple, and the
same on every page.
Only use graphics, audio or video if they enhance
your message.
Include an opt-in offer so you can collect e-mail
addresses.
Make it easy to buy--no more than two clicks
between potential customer and checkout.
Your website is your online storefront, so make it
customer-friendly.
Step 4: Use search engines to drive
targeted buyers to your site
Pay-per-click advertising is the easiest way to get traffic
to a brand-new site. It has two advantages over waiting
for the traffic to come to you organically. First, PPC ads
show up on the search pages immediately, and second,
PPC ads allow you to test different keywords, as well as
headlines, prices and selling approaches. Not only do
you get immediate traffic, but you can also use PPC ads
to discover your best, highest-converting keywords. Then
you can distribute the keywords throughout your site in
your copy and code, which will help your rankings in the
organic search results.
Step 5: Establish an expert reputation for
yourself
People use the internet to find information. Provide that
information for free to other sites, and you'll see more
traffic and better search engine rankings. The secret is
to always include a link to your site with each tidbit of
information.
Give away free, expert content. Create articles,
videos or any other content that people will find
useful. Distribute that content through online article
directories or social media sites.
Include "send to a friend" links on valuable content
on your website.
Become an active expert in industry forums and
social networking sites where your target market
hangs out.
You'll reach new readers. But even better, every site that
posts your content will link back to yours. Search
engines love links from relevant sites and will reward
you in the rankings.
Step 6: Use the power of e-mail marketing
to turn visitors into buyers.
When you build an opt-in list, you're creating one of the
most valuable assets of your online business. Your
customers and subscribers have given you permission to
send them e-mail. That means:
You're giving them something they've asked for.
You're developing lifetime relationships with them.
The response is 100 percent measurable.
E-mail marketing is cheaper and more effective
than print, TV or radio because it's highly targeted.
Anyone who visits your site and opts in to your list is a
very hot lead. And there's no better tool than e-mail for
following up with those leads.
Step 7: Increase your income through
back-end sales and upselling
One of the most important internet marketing strategies
is to develop every customer's lifetime value. At least 36
percent of people who have purchased from you once
will buy from you again if you follow up with them.
Closing that first sale is by far the most difficult part--
not to mention the most expensive. So use back-end
selling and upselling to get them to buy again:
Offer products that complement their original
purchase.
Send out electronic loyalty coupons they can
redeem on their next visit.
Offer related products on your "Thank You" page
after they purchase.
Reward your customers for their loyalty and they'll
become even more loyal.
The internet changes so fast that one year online equals
about five years in the real world. But the principles of
how to start and grow a successful online business
haven't changed at all. If you're just starting a small
business online, stick to this sequence. If you've been
online awhile, do a quick review and see if there's a step
you're neglecting, or never got around to doing in the
first place. You can't go wrong with the basics.