Moving your business online is not an easy decision to make. I mean, it isn’t like deciding what to eat today and start cooking any dish.
However, don’t ever have the thought that it’s hard to do. It’s said that “Well planned, well done.”. Yet, here’s the idea! You better make a plan, a good one. You gotta consider it at some point, think about them, and answer a few questions with yourself first.
Then, when you get all these things done, you can do it!
No matter what kind of business you’re running, no matter if it’s a startup, I can assure you that everything will go smoothly as long as you stick to the plan. Even if you meet some problems, you’ll manage to overcome them.
Money issues are one of the biggest fears. You may be worried and thinking: “Oh, I wanna move my business online, how much will it cost me? Can I do it? What if it all became a waste?” and so many more questions.
Don’t worry, in this article we’re helping you plan for it well.
Your online business is a real business; you’re going to build a career. Let’s explore how it’s done.
Tips Before You Start:
1. Set Your Business Plan:
You cannot start your online business without having a business plan.
Why Should You Have a Business Plan?
- To set reasonable expectations:
We all start with those big dreams; no shame about that. Being reasonable gives you more flexibility. You can deal with anything you may face.
- Define your business:
Once you decide to move your business online, you have to make it clear and detailed.
Business plans are a reference for your business. They provide all the information about what your business sells, its structure, and how it’s run.
- Be prepared:
Business plans also include other technical details such as legal documentation, insurance methods, and your funding plan. All of this guarantees your security and maintains your professionalism.
- Understand your market:
Online business is a new different world. You better start wisely and not rush into it. Setting a business plan helps you evaluate your market, analyze your competitors, and be updated about rising trends.
Keeping this in mind will make you strong. So, when you start, you’ll look like you’ve been into this for years, and not just a beginner!
- What’s next?
Being successful isn’t as difficult as maintaining your success. One more good thing about a business plan is tracking your activity and fulfilling your ambitions. It helps you learn from your past and gain more creativity. Remember, your first competitor is yourself!
2. Review Your Legal Requirements:
You can’t ignore the legal part. I know it isn’t of anyone’s favorites. However, it’s important to guarantee your rights.
It differs from one place to another, but its main lines are quite the same.
In this part, you fill some paperwork related to your business license and any possible taxes.
In brief, it depends on some factors like whether you’re the owner of your business, or you have partners, or it’s mixed. Setting this from the beginning is so important, as it controls the tax process and defines the governmental limitations on your work.
Once it’s all finished, you go to the fun part, which is:
3. Pick a name for your business:
Here’re some tips to care about while choosing your business name:
- Do a good search:
Before choosing your name, you better search your market area first. Sure, you don’t like to come up with a familiar one or a copy for something else. Be unique!
- Think about catchy names:
Once your search is done, make a list with all the names that come into your mind. That will make things easier for you.
- Check for the legal stuff:
Finally, you make your decision, but don’t forget to make sure the name is legally accepted. I know it seems quite strange, but it’s a fact that some governments have issues with business names.
You can check for it before the registration process to make sure you’ll find no problem.
Just one thing left, The Financial Part, and don’t worry! We’ll try to explain it in the easiest possible way.
In this section we’ll answer the main question of our topic and the core part of any online business:
How Much Does It Cost to Move Your Business Online?
To be honest, it can be a tricky question. When it comes to money, you’ll find yourself spending more than you’ve planned. Things keep coming out of nowhere.
We get your worries, and to make it easy for you, and for everyone who’s going to start an online business, we’re mentioning only the necessary expenses.
1. The legal requirements:
That’s the first thing to spend your money on. You can’t avoid these expenses, as they are necessary to run your business.
The legal requirements include your business license, permissions, and other fees for your account renewal.
What’s good about legal expenses is that you can sum them in a defined budget. They differ from one place to another and depend on the type of business you’re performing. However, they are affordable and you don’t have to worry about them.
2. Other types of costs you’ll have:
In this part we’ll discuss the costs you’ll need to apply your online services.
● Your business:
You’ve set a good business plan and finished all legal and operating stuff. Finally, you’re ready to launch your business, but wait! How?
This part includes the expenses of your products and raw materials. In brief, it’s your business core.
CEOs and other business owners recommend starting small. Don’t go blind with your dreams.
It’s a trial & error process. Starting small will help you know your limitations, and narrow any possible failures.
● Online Store:
Once you decide to go online, you have to find the best way to express yourself. Some people prefer websites, others prefer social media accounts. It depends on how you want to run your business.
Things that will cost you money:
Web hosting:
First, you should have good internet access to run your business effectively.
It should be fast and unlimited. Fortunately, this step is easy. Define your needs and adjust your choices according to them. Many internet bundles are available; sure, you’ll find what suits you.
Your website:
You finally choose to have a website, this will cost you some money.
Keep in mind these features while designing your website: to be mobile-friendly, working fast, and well customized.
You better read about the user experience; understanding it will help you through this step.
E-commerce services:
You can’t avoid these expenses. Having an e-commerce platform will help you manage all your financial issues such as creating online stores, and accepting payments. Many tools are available to help you choose what suits your budget.
● Offline Store:
Before you’re selling your products online, you should have an offline place to keep your products.
It isn’t a big deal. Some businesses start from home. However, it depends on the type of the products, the amount, etc.
It can be a future step, I mean when you find yourself growing, and witness your business progress, you may start thinking about having a company or a workplace. So this part’s expenses are elastic. You can control it according to your financial state.
● Shipping services:
You pay for this part in case you don’t have a store. Shipping costs depend on the products you’re going to sell and the place that offers you these products.
It may look hard. However, many deals are available to help beginners.
● Branding:
This part includes all that you can do for marketing yourself.
Logo designs, online campaigns, advertising, email marketing, sponsorship, content creation, etc.
Online marketing provides you a variety of options, which is so good. In addition, it’s full of tricks and creativity. You’ll have lots of ideas to brand yourself and yet most of them are affordable.
It isn’t about how much you’ll pay for it. It’s about how you will do it. So, this part is also elastic, and you have full control over it.
● Reward System:
This one relates to the teamwork part. If you have partners, or you have any employees; you have to keep that one in your mind.
Settling it with them from the beginning will comfort you later, and keep any future problems away.
here, you’ll find another advantage for starting small. Knowing your limitations will keep things clear and easy.
As we’ve mentioned, the financial part differs from one business to another. However, we tried to mention any unavoidable expenses. Fortunately, most of them can be adjusted to your budget. So why waiting? Now it’s time to take a step.
Some facts:
According to Shopify, which is one of the most trusted online store builders, the top funding sources for business owners during their first year of business are:
- Personal savings.
- Reinvesting revenue from sales.
- Family and friends.
Also, Shopify recorded the expenses of small business during the first year, which are:
- 11% on operating costs
- 3% on marketing costs
- 9% on online costs
- 6% on product costs
- 7% on shipping costs
- 8% on team costs
- 5% on offline costs
We mentioned this to let you know that none of the great business owners did it alone! Sure, it’s a risk, no one denies it. However, the outcomes are promising. Nowadays, everything is becoming online, why don’t you become a part of it?
Looking for a free consultation from expert? Contact us!
