Are you thinking of starting an online business but don’t know where to start? I don’t blame you because it could be confusing and overwhelming when it comes to starting an online business.
There are so many options and so much noise on the internet. But let me keep it simple for you when it comes to starting an online business you have two options either you sell a service or you sell a product. When you’re selling a service you’re selling your expertise you’re selling your skill sets. When you’re selling a product it could be a digital product with intangible rights like software or it could be a physical product something that you could sell through an e-commerce store.
When it comes to starting an online business, I believe that you need to ask 3 important questions. These questions will help you in starting and get going in your business.
Top 3 Questions to Ask Before Starting an Online Business?
#1 Does it have high-profit margins?
When it comes to any business, margins are extremely important. Think about this if you sell a product for INR 1000 and it costs you INR 800 to get or to create or to buy you have INR 200 profit margins.
Well, that is going to be very very challenging when it comes to scaling your business. Because you only got INR 200 for each unit to pay for people to pay for your traffic source to pay for marketing. On the other hand, if you buy something for INR 200 and you sell it for INR 1000 wouldn’t you agree that your margin your profit margin is a lot better?
Business is a game of margins, not volume just because you’re doing a lot of transactions and volume doesn’t mean that you’re making a good profit.
So the good old concept of buying low and selling high makes sense.
#2 Are they actively looking for solutions?
Your potential prospects, your potential clients, and customers are they actively looking to buy what you have to offer? Now how do you know if they are proactively looking to buy what you have to sell?
Answering questions like I think they are interested. I think people will love this. My mom likes it. My wife likes it. My husband likes it. Well, that’s not good. Are they searching for these types of products online if you check the keywords are people searching for these types of products and needs and solutions online? It’s much easier to sell something that they’re already looking for versus trying to create that demand.
Because there are two types of demands you have existing demand and you have created demand it’s always easier to create something that has an existing demand. You don’t need to convince and tell people why they need it they already know why they need it they’re just looking for the best options to buy.
#3 is it on trend?
The third and most important question to answer while starting an online business is – is it on trend?
Imagine if you are selling a CD and it may be a great CD. Some of you reading this blog may not even know what a CD is. The CD is a compact disk that people used to listen to music. Earlier they used to listen to songs on CD but nowadays we listen on iTunes or you know through mp3 or online. We don’t buy CDs anymore it’s not on trend.
So you want to sell something that’s actually on a trend that you know that this is taking off. A lot of people are searching for it and also it has good profit margins that you can buy low and sell high.
Suppose you want to check which business you want to start or which product, service, or niche is trending you can try Google Trends.
Google Trends offers free services where you just need to put your keyword and check if people are searching for it online or not. It is just to find out the demand or people’s interest in the product and it doesn’t matter if it’s a product business or a service business.
If you’re serious about starting your online business and you want to take control of your destiny my advice is this you don’t have to get it right you just have to get it going.