7 FACTORS TO TAKE INTO ACCOUNT BEFORE STARTING AN ONLINE BUSINESS
How do I choose an online business model that’s a fit for me?
There are at least seven factors that you should take into account before you jump into a new business and select your business model.
- Don’t start a new business for wrong reasons, you don’t want to start a business because it worked for someone else or because someone said so. You need to have your own reasons for every new business venture you kick off.
- Pick a business model that you have some sort of X-factor for. For example, if you’ve worked in retail before, physical products with Amazon FBA may be a more natural fit for you.
- You need to right size your next business venture to the level of risk that you’re willing to take. There is a lot of variation among business models when it comes to financial risk. For example, Amazon Kindle requires pretty much no upfront capital, where any physical product requires investing in inventory and management of customer lifecycle operations such as returns, refunds, customer support what have you.
- Force yourself to think long-term, where would you want to be say in 5 years? Try to work backwards to what you should be doing now. If you don’t get excited with the idea of becoming Amazon best selling author one day, getting into self-publishing may not be a good idea.
- Avoid going after a fad such as Bitcoin unless you’re really into currency investing and deeply understand crypto currencies. Avoid giving into shiny object syndrome.
- While you can make five or six figure recurring passive income with online businesses on the basis of support systems, retiring on the beach with an online business is only possible if you’re able to sell it to someone else and exit. It is a good idea to think about the “exit” during your ideation process, and start with the end in mind. One way to acid test an exit-optimized idea is to evaluate its dependency on “You” the owner, as opposed to the brand itself. If your customers and market success is built on the basis of brand itself without you being factored into it, you’ve got yourself a really awesome exit-optimized business.
- Don’t get emotionally attached or invested into your business. What do I mean by that? Your business is an entity by itself and failure and success of an idea or business are not about your failure as an entrepreneur.
Last but not least, subject matter discussed in this post, as well as others, is covered thoroughly in various online courses offered by Private Label Mastery.
Please feel free to share your questions or comments, I will be answering them over the next few days.