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What to keep in mind when updating your business plan

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Why, when and how

Did you know updating your business plan should be a part of your regular business practices? If not, don’t worry — a lot of people skip this step. But it could benefit you to make this effort.

Read on to learn why updating your business plan is so important, how to tackle this task, how often you should make updates, and key things to keep in mind.

Let’s get to it!

Why should you update your business plan?

Black and white photo of man looking at laptop screen
Image source: Unsplash

Outside of updating your business plan as a standard course of doing business (which we’ll discuss in detail shortly), there are a few noteworthy situations that warrant a full business plan overhaul:

You need to raise funds

If you need capital to make tech upgrades, grow your team, or expand operations, you’ll likely need to raise funds. Before you can reach out to new investors, however, your business plan must be up-to-date and reflect your company’s current financial situation, including operating costs, cash flow, business goals, and income projections.

Related: 10 small business funding options

You want to refinance

Similar to potential fundraising moves, refinancing your business loans requires an updated business plan because it outlines operating costs, your company’s challenges, and forecasted revenue. No lender will entertain refinancing or even new loans without an updated business plan and financials.

You want to launch a new product

Big business moves necessitate an updated business plan and launching a new product or service qualifies. A new product means new potential revenue, so updating your business plan to reflect that fresh revenue stream is critical. Be sure to include everything you would’ve when writing your business plan the first time around — like costs, vendors, time frames, target demographic/segmentation, and financial projections.

You want to expand your company

Company expansion can take many forms. Perhaps you’d like to open up a second location in another city. Maybe you want to purchase more warehouse space for your products. Large technological upgrades are considered expansions, too. No matter what type of growth you have in mind for your business, updating your business plan to reflect this intention to grow is a key step before reaching out to investors and potential lenders.

You’ve changed your supply chain

Supply chain issues have become an acute problem since 2020. However, there has always been a need to update business plans to reflect changes in the supply chain and/or a change in the vendors you decide to use. Any time you make changes to your vendor list, put updating your business plan on your schedule.

Related: How to overcome supply chain challenges in 2022

You have new competitors

If a new major competitor enters your industry, it’s likely to affect how you do business. Whether that means your share of the industry “pie,” so to speak, decreases, or it means a new brand changes the expectations for your industry and you need to now follow suit — a  business plan update is in the cards to reflect these changes.

When and how often should you update your business plan?

As you can likely see by now, updating your business plan is an essential part of having a business plan in the first place.

It’s a dynamic document that needs to be updated to meet where your business is at right now.

Though you don’t need to update your business plan to reflect every little change, making regular updates is a solid business practice.

If your company is chugging along with no major changes, giving your business plan the once-over at least once a year should be sufficient for updating financial data and projections. However, if your company undergoes a major shift, you’ll want to update your business model when you expect that change to occur.

How to update your business plan

Close-up of person looking at charts next to smartphoneClose-up of person looking at charts next to smartphone
Image source: Unsplash

Now that you have a sense of how often you should update your business plan and why you need to do so in the first place, let’s turn our attention to the real meat of this article: how to update your business plan. Here are six key things to keep in mind when updating this most important document.

1. Make updating your business plan part of your regular review process

One of the biggest obstacles to updating a business plan is scheduling the time to do it. Business owners are busy people, and it’s all too tempting to leave these sorts of tasks until tomorrow. However, you can get around this by simply incorporating a business model review into other processes you already complete.

If your company does quarterly financial reviews, add in a business plan review during this time. You’ll already be taking time away from day-to-day business operations to complete the financial review, so you might as well spend a couple of extra hours updating your business plan.

You could even schedule it for when you do your taxes or prep documents to send to your accountant. Add the business plan update to your to-do list for those days.

2. Include your team in the process

If you have any kind of team for your business, you must include them in this process. They are likely involved with the day-to-day functions of operating your business and can provide key insights into what the future of your company looks like. For example:

  • Ask the marketing team for reports on trends they’ve noticed over the past six months or so.
  • Ask sales about any demographic shifts they’re noticing in the customer base.

Those who are doing work within your industry daily are going to feel the subtle shifts within the market before anybody else. And they might have insights into what projections look like — things that you might not come up with on your own.

Leveraging your team means getting a more complete picture of what your company has accomplished, how it’s currently positioned, and where it will go from here.

Pro tip: You can manage these tasks directly in Microsoft 365 as well. Sharing documents is a snap and you can collaborate on your business plan in real-time.

3. Note regulatory changes

When updating your business strategy, take some time to research any regulatory changes that have taken place in your industry. New rules, regulations and laws are passed all the time and many can have a direct impact on how you do business.

For instance, payment processors now must report your earnings to the IRS. This change could affect how you report income and change your relationship with contractors. The implementation of sales tax on internet sales made in the state where your business is located is another example from the past that had a profound effect on companies doing business online.

Such changes can impact your financial reporting and/or make your business more competitive, and less competitive, and otherwise change your approach to how you do business.

4. Note vendor/supply chain changes

Another factor to take into consideration when updating your business plan is any vendor or supply chain issues or changes that have occurred since your last plan update. If a vendor suddenly changed their billing system or adjusted their fees, you might need to account for this in your business plan as it could cut into your profit margin projections.

Or, if the supply chain has made it so you need to use multiple vendors to meet your company’s needs without experiencing disruptions, your business plan should make note of this change — and even indicate that supply chain issues are an ongoing problem.

To be honest, nearly every company has experienced some issue with the supply chain since 2020, so if you haven’t updated your business plan since then, now is probably the time.

5. Keep broader economics in mind

The overall state of the economy can directly affect your company’s performance. And while economic downturns can leave some industries untouched, it’s rather rare. But even if your company is lucky and hasn’t been affected by broader economic fluctuations as of yet, keep updating your business plan on your radar.

The economy as a whole can impact your vendors, shipping, packing, contractors and other services related to how you do business. It can also affect staffing and the accessibility of talent. So even if your company hasn’t experienced negative effects, acknowledge the general state of the economy in your business plan and include contingency plans should issues arise.

6. Follow demographic changes

We’re currently in the midst of huge demographic changes in the United States and all over the world, which will have a direct impact on how you do business and what the future might bring to your company.

As of 2022, the median income among the middle class is going down, the income of the very wealthy continues to go up, and the median age of workers is going up, too. People are having babies later in life and at lower rates than in the previous generation.

All of these factors can directly impact your revenue potential as well as who your target demographic or ideal customer even is. And this means you need to update your business plan to account for these shifts. Continue to revisit demographic data and projections a couple of times per year to ensure your internal projections still apply and to see if your processes need updating and track your actual results. If so, a business plan update is in order, too.

What to do next

If you haven’t even so much as glanced at your business plan in a bit, now’s the time to dust off the document and give it a once-over. Times are changing — seemingly faster than ever before — so it would behoove you to set aside some time to update your business plan sooner rather than later.



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Business Ideas

10 Signs Your Side Hustle Will Be a Success

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While lots of people are interested in taking up side hustles, far fewer actually succeed with them. What’s one sign a side hustle will likely do well, and why is that such a good indication of its success?

These answers are provided by Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue each year, and have created tens of thousands of jobs. Learn more at yec.co.

1. It Breeds Consistency

A side hustle that’ll likely do well is the one that breeds consistency. There’s no such thing as overnight success; you’ll fail multiple times until you reach your goal. The reason most side hustles don’t make it is that people quit midway and don’t see things through. If you don’t mind giving 100% despite failing at something multiple times, you’ll eventually find a way to turn things around.

Jared Atchison, WPForms

2. It’s Based on Your Expertise

One strong indication of a side hustle’s potential success is when it’s based on your area of expertise. When you share what you’re good at, not only do you have the chance to earn extra income, but you also deepen your understanding of the subject. Teaching requires exploring every aspect of your craft, keeping you engaged and pushing you to improve continuously.

Yury Sokolov, Finazon

3. You Have a Well-Defined Business Plan for It

A side hustle will likely do well if there is a clear and well-defined business plan outlining the goals, strategies, target market, financial projections and operational details of the side hustle. It helps the side hustler stay focused, make informed decisions and navigate challenges effectively. A well-structured plan shows that the side hustler has thoroughly thought through their venture.

Kazi Mamun, CANSOFT

4. You’re Passionate About It

Is it a job or a passion project? Are you pursuing it for the dollars it will bring? Or are you pursuing it because you enjoy it? In order for any venture to be successful, you need to invest your time, energy and commitment. If you’re not enjoying it, you won’t pursue it for long enough. Choose a side hustle that doesn’t feel like a hustle! Success and money will follow.

Candice Georgiadis, Digital Day

Working on a side hustle

5. It’s Low-Cost and Automatable

Side hustles that can be automated and run on low overhead costs are more likely to succeed. A side hustle should only take up a maximum of five to 10 hours a week, and anything longer starts to creep into part-time job territory. Try to generate a positive return on investment using a sustainable revenue plan within three to six months before you worry about scaling or investing more money.

Ian Blair, BuildFire

6. It Offers a Unique Solution

If you can define a unique value proposition for your side hustle, you’ll know that you can achieve success from it. Look for ways your users can benefit from your product or service. Is it different from your competitors? Does it offer a unique solution to solve the pain points of your users? These are a couple questions that can help you identify your unique value proposition.

Josh Kohlbach, Wholesale Suite

7. It Increasingly Engages Customers

A promising sign of a successful side hustle is consistent, increasing customer interest and engagement. Whether through sales, inquiries or social media interactions, sustained customer engagement indicates your offering resonates with people. It’s a practical metric of market validation, which is crucial to the longevity and success of any business venture.

Kyle Goguen, Pawstruck

Business owner working on a side hustle

8. It Combines a Growing Trends With Your Own Interests

A side hustle will likely do well when it encompasses a growing trend that happens to coincide with one of your interests. Starting a side hustle may sound fascinating, but people often don’t give 100% to it. But when it aligns with your interests, work becomes fun. So, you’re more likely to commit to it even after a busy day at work, day in and day out. That’s what ensures its success.

Stephanie Wells, Formidable Forms

9. You’ve Done the Market Research for It

People often take up side hustles without careful consideration, and that’s one of the major reasons they don’t succeed. Market research is very important and provides you with relevant insights to make informed decisions. So, you should consider different factors such as market demand and competition along with careful analysis of your available resources before getting started.

Chris Klosowski, Easy Digital Downloads

10. It Has Expandability and Longevity

A key factor for a successful side hustle is its “expandability and longevity.” If your venture can grow without a significant increase in effort or resources, it’s likely to thrive. Also, it’s crucial that your side hustle isn’t a fleeting trend but addresses a long-term need. This balance ensures your side hustle can evolve over time, providing a steady income and satisfaction.

Vikas Agrawal, Infobrandz

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Growing a Business

Transforming Your Business Ideas into Action: 13 Ways

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Embarking on the journey of turning a business idea into reality is a thrilling adventure for eager entrepreneurs. It’s a quest that demands meticulous planning, flawless execution, and a rock-solid strategy to breathe life into that idea.

Read on to embark on a voyage where we’ll unravel the vital steps and intriguing factors involved in metamorphosing your business ideas into tangible plans that can pave the way to triumph. So, fasten your seat belts and get ready for an exhilarating ride toward success!

photo credit: Fauxels / Pexels

1. Validate Your Idea

Before diving into execution, validate your business idea to ensure it has market potential and addresses a real need or problem. Conduct market research, seek feedback from your target audience, and analyze the competitive landscape. This validation process helps refine your idea, identify potential challenges, and validate its viability.

2. Create a Business Plan

Develop a comprehensive business plan that outlines your vision, goals, target market, competitive analysis, marketing strategies, financial projections, and operational details. A well-crafted business plan serves as a roadmap for your business and provides a framework for decision-making and securing funding if needed.

3. Build a Support Network

Surround yourself with a support network of mentors, advisors, and like-minded individuals who can provide guidance, expertise, and encouragement. Seek out networking opportunities, join entrepreneurial communities, and engage with industry professionals. A strong support network can offer insights, challenge your ideas, and provide valuable connections and resources.

4. Develop an Execution Strategy

Break down your business plan into actionable steps and develop an execution strategy. Identify the key milestones, tasks, and timelines required to bring your idea to life. Assign responsibilities and establish accountability to ensure progress and track your achievements. Regularly review and adapt your strategy as needed to stay agile in a dynamic business environment.

5. Secure Funding

Assess your financial needs and explore funding options to support your business idea. This may include self-funding, seeking loans or grants, or attracting investors. Prepare a compelling pitch, create a financial forecast, and be diligent in presenting your business’s value proposition to potential funders. Consider utilizing crowdfunding platforms or alternative financing options to fuel your business’s growth.

Product devlopers discussing

6. Build a Minimum Viable Product (MVP)

Consider developing a minimum viable product (MVP) as an initial version of your product or service. An MVP allows you to test your idea in the market, gather feedback, and make necessary improvements. It can also attract early adopters and potential investors by showcasing the value your business offers.

7. Establish Strong Partnerships

Identify strategic partners or collaborators who can complement your strengths and help accelerate your business’s growth. Establishing strong partnerships can provide access to new markets, distribution channels, expertise, or resources. Nurture these relationships and ensure that they align with your long-term goals and values.

8. Embrace Continuous Learning

Entrepreneurship is a journey of continuous learning and adaptation. Stay curious, invest in your personal and professional development, and embrace opportunities to learn from both successes and failures. Seek feedback, attend industry conferences or workshops, and stay updated on emerging trends and technologies relevant to your business.

9. Leverage Digital Marketing and Online Presence

Utilize digital marketing strategies to build your brand and reach your target audience. Establish a strong online presence through a well-designed website, social media platforms, and content marketing. Engage with your audience, build relationships, and leverage digital tools to expand your business’s visibility and attract customers.

Entrepreneurs working on a business idea

10. Stay Resilient and Adapt

Entrepreneurship is filled with challenges and uncertainties. Stay resilient, be prepared to adapt your plans when necessary, and embrace change as an opportunity for growth. Learn from setbacks, pivot if needed, and maintain a positive mindset. The ability to navigate adversity and adapt to evolving market conditions will contribute to your business’s long-term success.

11. Monitor Key Performance Indicators (KPIs)

Establish key performance indicators (KPIs) to track the progress and success of your business. Identify metrics that are relevant to your goals and regularly monitor them. KPIs can provide valuable insights into your business’s performance, highlight areas for improvement, and help you make data-driven decisions to optimize your operations.

12. Cultivate a Customer-Centric Approach

Place your customers at the center of your business. Understand their needs, preferences, and pain points. Seek feedback, engage in customer surveys, and actively listen to their concerns. By cultivating a customer-centric approach, you can tailor your products, services, and marketing strategies to better serve your target audience and build long-term customer loyalty.

13. Continuously Innovate and Stay Ahead

Encourage a culture of innovation within your business. Foster creativity, encourage new ideas, and promote a willingness to take calculated risks. Stay informed about emerging trends and technologies in your industry and explore ways to incorporate them into your business. By continuously innovating and staying ahead of the competition, you can differentiate your business and seize new opportunities.

Entrepreneur learning growth strategy

To Conclude…

Transforming your business ideas into actionable plans requires thoughtful consideration, strategic planning, and consistent execution.

By validating your idea, creating a comprehensive business plan, building a support network, developing an execution strategy, securing funding, building a minimum viable product (MVP), establishing strong partnerships, embracing continuous learning, leveraging digital marketing and online presence, staying resilient and adaptable, monitoring key performance indicators (KPIs), cultivating a customer-centric approach, and continuously innovating, you can bring your entrepreneurial vision to life.

Embrace the challenges, remain adaptable, and continuously refine your approach as you navigate the journey from idea to reality. Get ready to embark on a rewarding adventure where creativity and determination pave the way to success!

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Marketing

How to start selling online, full guide for beginners

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Get your business online

Is selling online over-saturated? No way! It’s still very doable to make money from anywhere with a laptop. You just need to learn how to sell online and have the dedication to make it work.

This guide will give you proven methods to sell products and services online with insights from people making money using digital platforms. Plus, we’re sharing tips for building your own website and the secrets to selling with social media.

How to start selling online

Before jumping in and making your first sale, you need to know what you’re selling and who to. Through market research, you will find the answers.

Do market research

Once you’ve brainstormed the products or services that you’d like to sell online, you’ll need to see if there’s a market for those products. To do this, there are market research tools online that you can use.

Market research involves gathering information about your target market, competitors and industry trends. The goal is to determine whether or not your ideas are likely to make money and, if they are, how you can reach an audience interested in buying from you.

Market research includes:

  • Competitor analysis to see what others are doing and what works for them. You need to look at where you fit within the market, what makes you stand out and what you can offer that competitors don’t.
  • Analyzing online forums where your audience hangs out to build a picture of who your audience is and what they need so that you can target them better.
  • Look for trends to discover products people are looking for now.

Top tip: When it comes to identifying trends, you can use Google Trends, which is a free tool. Search the product or service you’re considering selling and see how interested people are.

For example, a search for ‘buy selfie stick’ shows that searches for this product peaked in 2018 and have steadily declined in search volume; probably not the product for you right now.

Google Trends can help you choose what to sell online. The screenshot shows a steady decline for the keyword ‘buy selfie stick’.

Searches for air fryers, on the other hand, increased in 2020 and have remained relatively stable ever since.

Google Trends can help you choose what to sell online. The screenshot shows a stable search volume for the keyword ‘buy air fryer. An air fryer may be a great choice of product to sell online.

Google Trends can help you choose what to sell online. The screenshot shows a stable search volume for the keyword ‘buy air fryer. An air fryer may be a great choice of product to sell online.

Choose a niche and product

If you’re starting your online selling venture from scratch, it’s best to start with a niche product or service.

Niching allows you to build out an audience looking to solve a specific problem. You will get to know your buyer deeply, and only then can you provide them with all the reasons why your chosen product or service helps them.

Top tip: it will help if you genuinely like and believe in what you’re selling, especially if you’re going to sell on social media (more on that later).

Choose a platform or create an online store

The key to choosing a platform – or platforms – is not to spread yourself too thinly. If you’ve done your market research thoroughly enough, you will already have an idea of where your audience is hanging out online.

Top tip: consider your time. You are better off covering fewer platforms well than covering many badly. You can always scale later.

Market and sell

Once you’ve covered the above, it’s time to jump into your marketing plan. You’ll need a marketing plan that considers the buyer funnel. Think about the content you need to create to persuade prospective customers to buy from you. You will also want to build trust as part of your marketing strategy.

Top tip: sites like Reddit and Quora are free and provide insight into your audiences, their problems, their issues with competitors and so much more. The same applies to Google’s People Also Ask.

Sticking with the idea of selling air fryers, a quick search of the word ‘air fryers’ returns commonly asked questions about pros and cons.

Screenshot of Google’s People Also Ask shows questions about air fryers asking mostly about advantages and disadvantages. The screenshot shows how someone selling this product might want to answer these buyer queries.

Screenshot of Google’s People Also Ask shows questions about air fryers asking mostly about advantages and disadvantages. The screenshot shows how someone selling this product might want to answer these buyer queries.

Now that you’ve got your marketing plan started, it’s time to choose a platform for selling online.

Sell on your own online store

You can’t sell online without a digital store or platform. While you can sell on social media (more on this later), an owned channel like a website can become an asset over time.

Here’s some guidance on setting up your own platform.

Choose a domain

Check your desired domain name is available and buy online. Your domain name should be the same as your business name. It should be memorable, easy to spell, and relevant.

Create your store

Create an online store using GoDaddy’s Website Builder and set up shop within a day. You can add products, take payments and sell online from anywhere in the world.

Add payment processing

You need to integrate your online store with a payment gateway to accept payments. The gateway you choose comes down to personal preferences, terms and conditions and transaction fees.

PayPal is free to integrate but may charge a higher rate per sale, but if you want to test your ecommerce store before committing to a gateway like Stripe, PayPal can be a good start.

Manage inventory

Inventory management is crucial for any ecommerce business, especially if you receive orders online. If you have physical products, your inventory must match what’s available online; otherwise, your risk selling more products than you have in stock, resulting in disappointed customers.

If you’re selling online and offline, stock inventory can get more complicated as you must regularly update your online inventory.  Larger businesses have inventory management systems for this, but as a start-up, you can sometimes manage inventory updates with good administration.

Choose a shipping provider

Shipping can get rather complex, especially if you’re planning on handling international orders. You need to think about shipping costs and how you will manage them. Some businesses choose to absorb shipping so there’s no obvious cost to the buyer. Of course, if you do this, shipping costs should be factored into your product price.

Shipping calculations vary, but here are some options.

  • Flat-rate shipping is as it sounds. The business charges the same shipping cost for all packages, regardless of weight or distance. Flat-rate shipping should be carefully monitored. With a flat rate, your business expects to profit on some purchases and lose on others, especially if you’re shipping internationally. Flat-rate will only work if the profits and losses are approximately balanced.
  • Actual cost is a calculation where the business calculates the exact shipping cost for each package and charges this to the customer. This is usually done automatically at checkout using a shipping calculator. The calculation will take into account location, weight, size and more.

You can incentivize a purchase with free shipping, and you can also offer more expensive shopping options for faster delivery.

Top tip: Test your shopping experience before you start. You must ensure your prospective customers have a seamless experience from finding you to buying. That means no broken checkout.

Sell on Marketplaces

Marketplaces like Amazon, Etsy, eBay and Craigslist offer excellent opportunities to reach a broad audience and sell your products. Service-based businesses can try Freelancer, Upwork, Toptal and more.

You can sell on many of these marketplaces and your website. You can try the marketplaces and see how they perform.

Naturally, each marketplace will take a percentage of the sale, so you’ll need to factor that in.

Amazon

Any ecommerce brand should at least try out Amazon. It is a search engine for products, and some of your buyers will go to Amazon before Google.

Pros

  • Amazon is one of the largest ecommerce marketplaces.
  • It’s simple to set up a seller account and list your products.
  • Users may use Amazon as a search engine rather than Google, so you’re reaching a new audience.

 Cons

  • Amazon has over two million sellers, so you need good product photography to stand out.
  • For users to find you on Amazon, you need to know a little about Amazon SEO.

Etsy

Etsy is a popular marketplace for crafts, handmade and vintage products. But Etsy is also an excellent marketplace for digital products like guides, ebooks and more.

Pros

  • If your product is crafty, handmade or vintage, you can know that users are heading to Etsy to find it.
  • It’s cheap to start selling.

Cons

  • It is a busy marketplace with lots of sellers.
  • You don’t have the same control over your Etsy store as you do your store.
  • Customers often expect personalization on Etsy.

eBay

eBay is one of the oldest ecommerce marketplaces. By now, most of us have probably sold (or tried to sell) something on eBay.

Pros

  • It’s familiar.
  • You may already have an account with some reviews to build trust.

Cons

  • eBay’s UX isn’t as friendly as some alternatives.

Craigslist

Craigslist is a classified advertisements website that allows you to sell products locally.

Pros

  • There are no fees
  • You can sell locally, which helps with shipping fees if you want to keep your business geographically small.

Cons

  • Local sales only can be limiting once you have the desire to grow.

Sell on social media

Once the products or services are available to buy, your first task is to drive traffic to the site. Here are some tips for promoting and selling your products digitally.

Social media

Social media is a great place to build an audience and, importantly, a brand. Through social media, you get to know your audience, and they get to know you; social media is personal.

TikTok

TikTok is a platform credited for its generous algorithm providing accounts with excellent reach. As one of the fastest-growing platforms with over 1 billion users, your audience is likely hanging out there.

Mia Steele is a TikTok creator who began monetizing content in April 2022. She reports great success on the platform.

Steele says, “In less than six weeks of posting on TikTok and diving into User Generated Content (UGC), I began monetizing my content. I managed to replace my income by creating content and ads for brands.

“As my TikTok following grew, I even sold my own digital products to my audience.”

Steele’s top tip for a successful social media account is, ‘Devote time to cultivate and nurture your own audience, so you can capitalize on the traffic to sell your own products.’

TikTok also has TikTok Shop that you can access once you have 1,000 followers. TikTok Shop allows you to take a commission from items promoted and sold within your videos.

Facebook and Instagram

Like TikTok, you can grow an audience on Facebook and follow the path of selling digital products. Facebook and Instagram also have Shop functionality to sell products directly on the platform.

Facebook and Instagram benefit from the ability to post from Instagram to Facebook automatically, which will save you time.

Pinterest

Pinterest allows you to create a shoppable feed to list your products and sell them directly on the platform. You can also use Pinterest to drive traffic to your online store or blog.

Pinterest marketer Kayla Ihrig says, “The best way to make money on Pinterest is by making pins that lead to your services or products. Unlike other platforms where you need to constantly share valuable information to market your product or service, on Pinterest, users are searching for it and just want to be able to find it. Creators need to create images or videos (called pins) that display what they offer and then optimize them for search. Then, when a user searches for a solution to their problem, they find your content and go back to your website.”

Ihrig’s pin, pictured below, is the perfect example of a pin that leads a user to her service-based site.

Screenshot of a Pinterest pin demonstrating Pinterest done well. The pin links to a website where a sale can be made online.

Screenshot of a Pinterest pin demonstrating Pinterest done well. The pin links to a website where a sale can be made online.

Selling on social media opens a window of opportunity for entrepreneurs. You can sell your own products and services or explore affiliate and email marketing, which you can advertise in tandem with your platform.

Affiliate marketing

With a combination of your website and social media, you could sell products online without actually owning or stocking a single item. Ideal for the entrepreneur craving ultimate freedom.

With affiliate marketing, you take a percentage of sales made via your channels using trackable affiliate URLs.

Mia Steele drives traffic from her social media following of 20,000 to her website. She started with a domain name from GoDaddy and started her journey into affiliate marketing.  Steele says, “Within just seven months, I had joined more than 15 affiliate programs, built an email list of over 3000 subscribers, and earned over $90,000 in commissions by promoting products on TikTok and through my blog.”

The key, Steele says, is “Building your email list from day one. I underestimated the power of an email list until I ventured into affiliate marketing, and I regretted not starting earlier. Having a compelling free lead magnet and consistently producing high-quality content to drive traffic to your offers will be the key to your success.”

Email marketing

Email marketing is a cost-effective way to reach your target audience and promote your products. Done well, every email you send can make money. At least, this is the case for the team at Siligrams.

Arlene Battishill, Chief Marketing Officer, says, “Our email marketing is killing it with an average 55% open rate. Every email makes money. A recent email marketing campaign – a series of 10 daily emails – had an average 63% open rate because the campaign was nothing but stories and bad jokes and had absolutely nothing to do with our product!”

The secret to Battishill’s campaigns is consistency and humor; not every email is a sales plea that likely contributes to the sales success. Siligrams choose to humor and engage their audience instead of going for a hard sell. Remember, people buy from people.

Top tip: you can create and send stylish emails in bulk using GoDaddy’s marketing suite.

Trust the process when selling online

If it were easy, everyone would do it. Although the online selling path is simple, it requires dedication. Commit to your product, trust the process and be consistent.

As a budding entrepreneur, you have a lot to explore, and a platform that works for one business may not work for another, so be bold and experiment.

Sell online FAQ

Finally, we’re answering some of the most asked questions when it comes to selling online.

How do I sell online for the first time?

Your first online sale is the result of small steps made consistently. Follow the steps in this guide, from idea generation and market research to marketing and set-up, and you will make your first sale.

What are the most profitable items to sell online?

The most profitable items to sell online vary based on trends, but some items stand the test of time. These items include SaaS products via affiliate marketing since you earn recurring revenue.

For physical products, you can explore items in the following categories:

  • electronics
  • fashion accessories
  • beauty products
  • home decor
  • health and wellness

Naturally, these categories are also some of the most competitive, and you should consider the challenges. For example, electronics can go wrong, resulting in customer service issues and refund requests. Health and wellness is challenging to build authority in, especially if you’re relying on a new, owned website to sell from.

How can I sell products online legally?

The legal requirements for selling online can vary, and you must research to ensure you comply fully with laws and regulations.  You must consider registering your business, correctly paying your taxes, and customer privacy and security. Advertising online also requires you to adhere to rules and regulations, from product information to the types of images and ad copy.

What is the easiest platform to sell online?

Ease of use is a priority for any platform that allows you to sell online. You can set up an eBay, Etsy or Amazon store within a day. The platforms are already geared to helping people like you sell.

If you want to own your platform, which is not a good idea, website builders help you set up shop as quickly and efficiently as possible.



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