In this digital age, the world of business has changed dramatically and entrepreneurs have to think of increasingly innovative ideas just to get noticed. In addition there is a significant shift from traditional businesses to grasp the online opportunity - these are established businesses that have a track record and greater access to capital and provide a formidable competitive challenge. Moreover, it has become obvious that the traditional business model needs to adapt to online opportunities, not only by establishing websites but by exploring social media and e-commerce options. This is not to say however, that traditional entrepreneurial principles are redundant. Indeed, applying these principles, in conjunction with techniques that are appropriate to the digital world, will be the recipe for success that many small businesses are seeking.
As a serial entrepreneur who now helps start-ups and small businesses enter the world of e-commerce I believe I have a good insight into small business creation today. I have the following tips to share with budding entrepreneurs and how to help them succeed:
- Know your skills – are you a salesperson? A techie? A marketer? Use the skills you have but recognise the ones you don’t and get advice.
A common mistake made by entrepreneurs is to try and do everything. It appears the most cost-effective route because your time is free. Only this isn’t the case, the time spent on areas that you have limited expertise of are costing you money through significant opportunity costs - your time has a value. But by bringing together a group of best-in-class suppliers teamed with freelance expertise the budding entrepreneur can increase the skill-set of the organisation without large scale expenditure on staff or overheads.
- Know your limits – don’t be taken for a ride by advisors. Be aware of costs of setting up both online and offline and don’t expect success overnight. There is time for growth when you have more funds and time to manage the process.
Following from the last tip, though it is exceptionally tempting to pay third parties to assist you in your development it has to be managed and planned within a budget. The chances are that in the initial phases of development the business will not grow quickly. History has taught us that the majority of businesses have to grow slowly before moving to hyper-growth. Patience and a keen eye for suppliers who are willing to work as partners to help you achieve your dream are crucial.
- Be thorough - just being online is not enough – Search Marketing techniques such as Search Engine Optimisation (SEO) are needed to help drive traffic to your site and boost your brand.
When establishing a business online, entrepreneurs often create an exceptional proposition, a beautifully crafted website with a strong and secure payments system, while failing to address the issue of driving traffic to the site. It is unlikely that prospective customers are going to stumble upon your site, so a robust SEO strategy needs to be implemented. This can be driven through implementing key words in your online content and applying a link building strategy. In particular by leveraging links from other, more credible, sites you can drive your Google page ranking and increase your position in search engines.
- Don’t be afraid - try something new. Being online is all about immediacy and convenience. Set up your ecommerce solution so that customers have the added expediency of being able to buy your service or product online.
You’ve made the choice to become an entrepreneur so already you’ve taken a risk that many millions of people wouldn’t do - don’t stop there. The great joy of starting an e-commerce business is the considerable flexibility that the platform provides. You can make immediate alterations to your offer and can test them with your most loyal customers. By getting closer to your customers you will be able to derive considerable insights that will help drive new product innovation. As consumers have become more used to e-commerce they are happy to help develop products they want providing they feel their opinions are being listened to.
- Never give up! - In my career there have been countless times when I could have buckled under the pressure. Instead, I found that belief and passion for what I was doing gave me the motivation to persevere.
In summary, starting an online business has just fast forwarded the entrepreneurial process - the same rules apply. The differences are that you have far greater flexibility as the infrastructure that you are working with can quickly and easily be changed.
In the early days of e-commerce there were considerable fears that the lack of face-to-face contact with clients and customers would be detrimental to business. In fact, with the immediacy of consumer interaction today’s online entrepreneur has an exceptional resource. By providing the appropriate channels for customer communication you have a readymade (and free) research and development department at hand.
By staying focussed on the business that is best suited to you, keeping a close eye on costs and innovating without fear, you give yourself a fighting chance in today’s highly competitive world.
Michael Norton
Managing Director, PayPoint.net