Business News

Begin a digital firm? Widespread pitfalls needs to be averted right here

July
10, 2020

Read for 5 min

The opinions expressed by the entrepreneur's contributors are their own.

Starting an online business requires some planning. An entrepreneur needs to measure demand, understand how SEO and digital ads work, and how to attract customers cost-effectively. If the formula works, the company can scale quickly. As stated in the World Bank Group's “Enabling Digital Entrepreneurs” report, “many digital entrepreneurs are“ born globally ”and can grow and scale very quickly across borders.”

Online spending has skyrocketed in recent years, and continued growth is likely as people continue to stay at home, which "creates tremendous opportunities for online shops," Mathieu Jang said in an interview. He is a co-founder of the Affiliate Institute, a Las Vegas-based digital marketing training company that helps members increase their revenue online.

Jang has developed a 12-week accelerator program that optimizes student affiliate marketing practices. Apart from the technical aspects of e-commerce, it is of crucial importance for him to have the right attitude and to remove the idea of ​​a personal limitation: “Successful marketers don't happen the world. Top performers happen in the world. "

According to the Department of Commerce, e-commerce now accounts for 16 percent of all retail sales in the United States. And Amazon.com accounts for more than a third of e-commerce. So a small business can potentially reach a large audience. However, there are pitfalls to avoid.

Related topics: 3 things you need to know before starting a delivery service business

1. Don't understand your target customer

You can burn a lot of money by showing ineffective ads. Poor marketing campaigns increase customer acquisition costs, which is a critical metric for a digital company. There is a lot of noise on social networks and on the internet, which can confuse beginners' approach to campaigns. You really need to understand the audience to optimize ads. That means dealing effectively with location, interests, design, calls to action, and other factors that increase conversions and lower customer acquisition costs.

The sales volume for goods is huge. For example, the online apparel, footwear, and accessories market will reach $ 4 trillion this year. Shopping on the Internet has also increased the demand for online services such as SEO, website creation, graphic design and advertising. A high level of understanding means that you have correctly identified a niche. If you know who is buying and who is not, you can optimize the content of a website based on this niche to create the right landing pages, newsletters, brochures and social posts to attract relevant traffic. Publishing better content improves inbound marketing metrics and user engagement.

Owners of physical store fronts had an easier time of it because a target consumer was often someone who lived nearby or in a neighboring city but apparently had no geographical boundaries online. It is helpful to create a digital person you are targeting. What does your ideal buyer look like and how does he behave? What kind of clothes or shoes are you looking for? Which functions are most important? You may find profiling tools on social platforms that you can use to create target profiles. A business owner cannot successfully cut a niche without identifying its customers.

2. Work as a lone wolf

Having knowledge of online practices such as SEO, advertising, e-commerce, email campaigns and social media best practices is very helpful, but there can be frustrating blind spots. You can run Facebook ads well, but have faltered when writing landing pages. Or you may have high opening rates for email campaigns, but suffer from low purchase conversions. Scott Smith, the founder of 7 Figure Surfer, said in a recent phone call: “During my six years of online work, I often had to find out for myself. I started from scratch and spent thousands of dollars doing it. "

Smith overcame these hurdles by finding some mentors who showed and encouraged solutions. An experienced veteran can quickly teach entrepreneurs what works and what doesn't, saving them headaches, time, and money. It's a good idea to attend conferences, meet-ups, and networking events to exchange contact information with gurus. Using other people's expertise (in areas where you are weak) increases the effectiveness of campaigns. When founding an e-commerce company, small optimizations can pay off.

3. No outsourcing or using automation tools

Outsourcing enables business owners to leverage the skills of independent contractors and streamline the business by being better than you at certain tasks. Virtual assistants have time so you can focus on customer acquisition and post-purchase support. By hiring a video producer to create a popular TikTok video, you can use your time and budget more effectively than you do.

Or use a tool that saves time for business owners. Neuro.net, the automation tool, functions as an outsourced call center for retail customers in order to receive support from virtual agents even in complex conversations. According to the company, human emotions are simulated so well that 99 percent of people do not know that they are talking to a robot agent. This is a bold claim for an automation tool, but data processing company Powerry is convinced that it recently invested $ 5.3 million in Neuro.net. Still, it's an affordable option for business owners who can't afford full-time customer service representatives in their current growth phase.

Related: Strapped For Cash? Three modern ways to get a small business loan.

It is extremely important that business owners use their limited time for activities that are critical to success. Non-essential tasks should be delegated to others. An online business can reach a global audience and scale quickly. Know your target audience, network with experts in a similar niche and build a team infrastructure that can scale your business.

Related Articles