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The internet has made it easier to start a business from the comfort of your home. Whether you want a primary income source or a side hustle, you can succeed in your online business.
This is because e-Commerce sites now outsell many brick-and-mortar stores. The UK’s online retail industry raked in over £100 billion in 2022, meaning there are endless possibilities for digital entrepreneurs to monetise their products and services. Are you thinking about launching a small online business? Follow this comprehensive guide to successfully run your digital enterprise.
- Get your business idea right
Setting up an online business allows you to market your products globally. But it would be best to get the right idea to boost your chances of success. One crucial step to successfully starting your company is to ensure your business idea resonates with your passion, skills, and mindset. Many online entrepreneurs make mistakes by launching businesses they are not enthusiastic about. Such an idea can limit your potential, making it harder to sustain the business for the long term.
Connecting with audiences and understanding their needs will be harder if you don’t implement the best online business idea. So, choose an online business that motivates you to put in 100% effort to achieve your goals. Competition can be fierce in the digital business world. Therefore, you need a unique idea to stand out from the thousands of other brands. If you’re unsure where to start, consider asking experienced online entrepreneurs for tips on what services will make a good Internet business.
2. Define your business model
Defining your business model is another important step to prioritise when starting an online business in the UK. After finalising your niche and determining your target market and audience, you must understand your business model; this should explain how the business will generate money. The model may focus on four key streams: ecommerce, dropshipping, advertising, and subscription. If you intend to create an online store to sell your products/services, you can align your business model to the e-Commerce category.
Dropshipping is among the most successful online business models today. It’s an easy way to start an online enterprise in the UK. With drop shipping, online entrepreneurs set up and operate their stores like e-Commerce sites. However, the only difference is that they don’t have to directly handle products. Instead, they receive customers’ orders and forward them to wholesalers who deliver the products directly to the buyer.
3. Register and lay the business structure
As with any company, you have to register your brand with HM Revenue and Customs (HMRC) and lay the structure of your business. Consider consulting with solicitors for professional advice on business registration in the UK; your business structure can influence your legal obligations, including tax and insurance. Sole traders, for instance, can run their online businesses as individuals or self-employed persons. You may be personally liable for potential business losses if you opt to be a sole proprietor. File an annual tax assessment with the HMRC to understand your tax obligations and insurance requirements,
In a partnership, you and your business partner should share the costs and profits and pay taxes on your shares. Consider registering as a limited liability company to separate your personal finances from the business. This way, you may pay less tax and reduce risks to your wealth. Limited liability companies often pay corporation tax on profits, which is less than the amount sole traders and partnerships pay. After registering with HMRC, you must also prepare documents on how to run the business. Keep your accounting records safe and get an attorney to represent the business in case of legal issues.
4. Build a great eCommerce website
Designing a site is the most exciting aspect of creating a digital business, so you must ensure yours is stylish, functional, and easy to navigate. As a tip, hire a great eCommerce website developer to design yours professionally. A responsive and mobile-friendly ecommerce site can help boost sales and conversions. It will also help your business make a good impression. No matter how beautiful a site is, consumers may find it difficult to use if the navigation features are complicated. Focus on developing a simple yet optimised website that guarantees swift navigation and a positive user experience. Choose a good domain name and hosting provider, and integrate the website with a convenient content management system (CMS).
Designing your website yourself can help save money. However, the process can be overwhelming if you lack experience and relevant technical skills. To avoid stressing yourself with web design tasks, outsource to experts. Once your e-Commerce site is ready, the next thing you want to do is choose a secure payment gateway.
5. Comply with online business regulations
Online businesses must follow general data protection regulation (GDPR), privacy and electronic communications, consumer contracts, and electronic commerce regulations to avoid legal issues. Big brands like WhatsApp and Amazon have had massive fines on GDPR in the past few years. GPDR gives online users control over their personal information; the regulation encourages business owners to be honest and consensual with data usage. The UK government plans to introduce new regulations to help businesses to balance privacy and innovation. Consider checking the current regulations to see how they will affect your business.
Privacy and Electronic Communications (EC Directives 2003) address cookies and other technologies that track user activity. If your online business site uses cookies, ensure you inform visitors about these features and how to turn them off. One way to comply with cookie regulations is to install a cookie law plugin and enable users to accept or decline cookies.
Also, Consumer Contracts Regulations 2013 came into effect in 2014. They apply to business-to-consumer (B2C) dealings, addressing how your business must protect customers’ rights. The core tenet of consumer contract regulation hinges on returns; according to the rules, online brands must provide customers a two-week period to cancel or return orders; all returns must meet a refund. It would be best to offer transparent information on your products or services, VAT, postage, and packaging costs. Ensure your customers understand what they are buying and how to contact your business if anything goes wrong.
6. Use social media
Social media presence is important for businesses of all sizes, so create accounts on these digital platforms to help market your online enterprise. Popular platforms like Facebook, Instagram, and Twitter have millions of users, providing endless opportunities to promote your business to a wider audience. Of course, you may not be ready to run your business on all social media environments. But still, experimenting to find what works best for your company is a good idea. Build a loyal community to increase engagement. Consider adding social media links to your website and ask buyers to share reviews. Post regularly on social media platforms, and use hashtags to represent your brand. Also, run competitions or giveaways as a great trick to get more people to discover your business. Another idea to grow your social media presence is to launch paid ads, targeting consumers in their feeds.
7. Invest in email, affiliate, and PPC marketing
Email, pay-per-click, and affiliate marketing are great ways to increase brand awareness and drive traffic to your website. Send newsletters regularly to your buyers, engage them, and deliver updates about new releases or special offers. You can grow your email list by adding a sign-up form to your website. Ensure you comply with GDPR standards when requesting users for email addresses.
Affiliate marketing could also be a practical strategy to improve sales. When customers click on your affiliate links to make a purchase, you may pay a small commission to the affiliate website that directs them to your business.
Again, one of the most effective pay-click-click (PPC) systems for online businesses is Google Ads. Leverage a search engine of your choice and ensure your website landing pages show at the top when consumers search with keywords matching your marketing campaign. A PPC campaign can help drive significant traffic to your website. However, it would be best if the clicks are worth the investment—the best way to get good results from PPC advertising is to optimise the campaign to increase conversion.
8. Optimise your website for SEO
A great website may not meet its expectations without following the right search engine optimisation strategies. SEO is the key to success for many online businesses. So it helps to optimise your site to outrank competitors. Improving your business search engine visibility is important because many internet users hardly browse past the first two pages on the results page. Work with SEO experts, when necessary, to improve your website’s ranking on Google. Investing in local SEO can help drive local traffic to your website to boost sales and conversion.
9. Partner with a PR agency
Collaborating with the right PR agency can take your business to the next level. PR agencies can help promote your digital business through media coverage, interviews, newspapers, and magazines. Spreading the brand’s reputation will increase its value and authority in the industry. The more popular and reliable a PR agency is, the higher the chances of impacting your business.
