Setting up an e-commerce business may involve a lot of determination and motivation, and it can be devastating and complex for new entrepreneurs. There are many boxes to check, hats to wear, and things to do. And if poorly planned, it can all go ruined quickly.
Start from the beginning – The Business Plan
A business plan is your fundamental starting document where you will describe your business, the products you will offer in the market and the way you plan to make money. The file should deliver a clear business strategy, a list of resources you need to get started, and an identification of potential risks.
This is vital to your business’s success, so take your time. According to HBR, these are the 3 fundamentals that a business plan should reflect:
- The market including both existing and prospective clients, customers, and users of the planned product or service.
- The investors, whether of financial or other resources.
- The producer, whether the entrepreneur or the inventor.
Product description, packaging, and inventory
The product description explains the main product’s features, why it stands out from others in the market, and the benefits it will bring to the target segment. How much will the product cost, and where does it stand compared with other relatable items in the market? If professionals have tested your product in the field and have any certifications and awards, these features will increase the product’s credibility and benefit the marketing process later.
Packaging is one of the main aspects of your product, but unfortunately, many companies do not recognize it. You have worked so hard to create a product and experience that will appeal to your customers – why disappoint at the last stage?
If you have an online store, you’ve probably noticed that when shipping companies talk about parcel dimensions, they refer to volumetric weight. Calculating the volumetric weight correctly is very important, as it allows you to choose the form of transport that best suits your needs and even saves possible cost overruns on shipments.
Inventory management helps you identify which and how much stock of a product you have. Proper process execution will ensure you meet customer expectations, deliver on time, and satisfy consumers.
Market analyses
Starting a new business is an exciting but stressful process, as there is a whole list of things you must do before starting. An essential aspect of this venture is proper market research, and there are 2 options before you: a secondary method known as dark research, where you rely on the sources and data already available and harvested by other parties for other purposes, and primary market research.
The primary market research focuses on your key objectives. The process is done internally and involves reaching out directly to potential customers to gather information.
Business strategy implementation or Getting the Stuff Done
Strategy Implementation refers to executing the plans and strategies to accomplish the long-term goals of your new business. This is where you go from paper to the moves and actions to achieve the written-down objectives. And you need to shine! Even the best-laid plans may not realise without proper implementation.
If you partner with a fulfillment provider in this exciting journey, choose an affordable, fast and accurate provider. Doing so will reduce shipping costs, automate the fulfillment process, and make expanding into new markets easier.
Web plan
There is no need to emphasize the importance of a good website for your e-commerce business. This is where you say Hello, nice to meet you! to your target market, showcase your product, and build trust and credibility. The significance of it being professional and user-friendly cannot be understated.
- Planning is essential for the success of your e-commerce business. Here are steps to a structured and well-thought-out website:
- Set purpose and goal
- Create a budget
- Assign roles
- Create a content strategy
- Structure your website
- Design and testing
- Maintain your site
Financial plan
Having a business idea, creating a marketing plan, and discussing it on social media are great ways to kickstart your business. But when it’s your business, you’re also responsible for helping it achieve its financial goals. It’s good to know in advance whether your business will be profitable.
Again, preparation is the name of the game. This step will make it clear whether your business idea is feasible. It will indicate the costs and what is needed to finance them and convince financiers to lend you money, forming the basis for your financial pitch.
You come up with a credible financial section for your business plan to demonstrate that it’s realistic. Break the figures into components by sales channel or target market segment, and provide realistic estimates for sales and revenue.
Marketing strategy
A clear vision of your mission, branding and customer communication. E-commerce marketing is any marketing effort you make to promote your online store and generate sales. It applies both to getting new customers (customer acquisition) and making old ones shop again (customer retention). This is a long-term journey, and your end destination, aka the goal of your marketing strategy, needs to be set first.
The task is to define the target audience, their demographics, interests, and shopping behaviour and establish your brand’s message. An integral part of any digital marketing strategy is keyword research – they will help you define your brand and realise which words your target audience will use to reach you online. Develop the metrics and channels you will use to reach your customers and set a budget. Be realistic when determining the amount of money you will dedicate to this part of your e-commerce business start-up, and use it wisely.
In the end, you will measure the results of your marketing activities, both organic and paid, and modify your strategy.
There are no limits on who can become an excellent entrepreneur. You don’t need much money or business experience to start something that could become a major success.
