The only businesses that have been able to perform well or sustain themselves during the Coronavirus pandemic have been digital. Digital Businesses, like Ecommerce platforms, or restaurants, which are allowing for online booking and home deliveries through aggregator platforms, have been enjoying some limited amount of success.
This has given rise to many online businesses, which want to replicate the successes of an Amazon or a GrubHub. However, most people who start these kinds of online businesses fail to realise that there are many reasons why the above-mentioned online businesses have been a success.
In this article, we are going to help people who are looking to start an online business during the lockdown. We are also going to discuss some elements, people should analyse, explore and think about before starting the online business.
5 things you should know before starting an Online Business: The List
Your business needs to have a plan even after the Coronavirus ends-
No online business will ever be able to sustain itself, if the owner cannot think of what the business is going to be after the pandemic ends. In other words, a business cannot be started just because there is a lockdown.
Yes, there is a need and a demand, but there are many other variables that need to be taken into consideration before starting an online business. It is important that the roadmap for a post Coronavirus world is well laid out before the business gets up and running.
Do not diversify too much and settle on a niche-
Amazon was not built in a day. If you are looking to start an online business during the pandemic, it is important that you concentrate on a niche. You cannot try to emulate an Amazon or a Walmart and deliver the same level of services.
This is why you need to concentrate on a specific area and build all your processes, logistics and supply chains around that. This will help you get the business up and running in a shorter span of time and allow you to improve the quality of service.
Online Business can also be a One-Man Venture-
We fail to realise that a business is a business regardless of the fact that there are ten people involved or one person involved. During the Coronavirus pandemic, many people who were looking to start an online business, narrowed down on one great and exciting opportunity.
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Ask yourself the question- can people really afford to spend-
There are many things, you should take into consideration and asking yourself these questions sits right at the top. Yes, it is true that people are going for home deliveries and doing online shopping, but do they really have the money during the world’s worst economic downturn?
Who is going to buy from you and what are you selling. Is it is an essential item or a non-essential one. If it is an essential item, what will the frequency of usage- daily, weekly or monthly? These questions will help you conclude on whether this is the right time to start an online business or not.
Check who is your Competition and do you stand a good chance of competing against them-
There are thousands, if not millions of successful Ecommerce websites other than Amazon. This should not deter you from starting your online business. However, it is essential you figure out who your competition is and how you can better them.
This will allow you to orient your business in a much different way than your competitors are doing. This will also help you carve a new and distinctly separate identity for your business. Most importantly, it will also enable you to focus on their target audiences.