How to Start an Online Business That Makes You Money
If you’ve stumbled onto this article, I’m guessing you’re toying with the idea of starting your own business. Maybe you dream about launching a business or turning a hobby into something more.
You want the freedom to work from anywhere. The ability to be fully in control of your time and how much you make. Or maybe you want a way to spend more time with your kids while making money doing something you love.
I get it. My story is not that different. In fact, my entrepreneurial story begins in 2012, when I decided to start my own web design business as a way to kill two birds with one stone.
I wanted a creative outlet for all my creative ideas and a way to help support my family. On a whim, my husband suggested I turn my web design hobby into a business.
And so, after much internal monologue (Can I really do this? I have no business education! I’m just a college dropout! Who am I to run my own business? I can’t possibly do this…. Or can I?), Ley Design Studio was born.
Now, I won’t lie and say it was easy and I was raking in all the dough within my first year. It took a couple of years for everything to fall into place and see consistent income.
And I’ve had to learn a lot of things and wear a lot of different hats throughout those nine years.
Related post: 9 big lessons I learned as a solopreneur
But the most important thing is that I didn’t give up. I kept pushing on and I kept experimenting.
And I’m happy to say that my online business allows me to work from home (or anywhere where there’s the internet really!), spend more time with my kids, and live comfortably.
And now I want to help you do the same so you can have the same freedom. So enough of the small talk. Let’s get down to business.
Heads up: some of the links in this article are affiliate links. This means that if you use them to make a purchase, it will cost you absolutely nothing but I will earn a small commission. My chips and salsa fund thanks you from the bottom of my… errrr stomach?
The 9-step plan to starting a profitable online business
I know 9 steps sound like a lot but believe me when I say these steps are crucial if you want to start a business that you absolutely love and that makes you money. I’m going to go into more detail about each step below but here’s the plan in a nutshell:
Come up with an idea
Research your target market
Figure out your niche
Come up with a name
Take care of the legal stuff
Create an online presence
Create a marketing plan
Launch and continue showing up
Get support
So with that out of the way, let’s go over those steps, one by one.
1. Come up with an idea
The first thing you need is a solid business idea. After all, without an idea, you won’t exactly have a business.
So there are a few ways to brainstorm your perfect business idea.
Think about what you’re good at and what you enjoy doing
This is crucial. You’re starting a business to make money doing something you love. So, therefore, the logical solution is to pick something that you won’t mind doing day in and day out for at least a good few years. Yes, you can pivot and evolve your business later on. But you gotta start somewhere. And it’s a lot easier to start with something you love.
For example, maybe you have an eye for design and love decorating your house. Perhaps starting a business as an interior design consultant is the perfect idea for you. Or, maybe you love calligraphy and want to create handwritten wedding invitations.
Start with a list of things you enjoy doing, things that interest you, your skills and hobbies, and generally things that you’re more knowledgeable about than the rest of us.
Figure out what problems you constantly solve for others
Is there something that your friends and family keep coming to you for? Maybe you’re really good with computers and they always ask you to help them update it or troubleshoot an issue.
Or maybe they can’t stop raving about your cooking or baking. If that’s the case, there might be a potential business idea hiding in there.
Think about your own problems
Is there something that annoys or frustrates you? Or maybe it has in the past and you figured out how to fix it?
That was me, by the way. I was desperate for a way to create a personal website/blog and nothing was working. So I dug into web design tutorials and learned all I could about building websites with HTML and CSS, and couldn’t stop learning.
The thing about your own problems is that if you’re struggling with it or have in the past, chances are there are other people with the same problem. So that’s a perfect opportunity for you to step in and solve those frustrations.
Decide On How You’ll Monetize Your Idea
So you’ve got your list of ideas at the ready. The next step is to figure out how you’ll monetize that idea. In other words; how will you make money with your idea?
Generally speaking, there are four ways to monetize your potential business idea:
Selling services such as graphic design, web design, copywriting, finding opportunities as a content reviewer, calligraphy, mentoring, consulting, virtual assistance, and similar
Selling products that can be digital (think graphic design or web design templates, sewing patterns, fonts, stock photography, etc.) or physical (such as handmade products, t-shirts, etc.)
Selling information products such as courses, workshops, eBooks, and classes
Affiliate marketing and sponsorships where you get paid to promote other people’s products, services, and businesses
You could also end up mixing one or more of these and diversify your income but I’d advise you to start simple, pick one of those, and add additional monetization methods later on, when your income is stable.
2. Research Your Target Market
Ok, so you’ve got your business idea, now you need to do some market research and figure out if there is a demand for what you plan on selling.
Is There A Demand?
A good place to start is to enter your idea into Google and see what pops up. You can also search Google Trends and see how popular your idea was/is over time. Also, check out the People Also Search for section on the results pages that Google search gives you.
Note down the number of results that pop up and make a note of what kind of results are showing up. Are you getting a lot of eCommerce sites but notice a lot of questions about those results that are unanswered? Or you are getting a lot of informational sites but with no real product or service behind them?
This can help you decide how you’ll monetize your idea as well as give you a clue on how to differentiate yourself, how to price it, and potential ways to market yourself.
Don’t be afraid if you discover that there are tons of people doing it. This only means that there is a demand for your product or service.
Who Would Pay For It?
One crucial part of your market research is to come up with a profile of the person who would buy your product or service. Who would pay for it? This is also known as defining your ideal customer profile, ideal customer avatar, or customer persona.
Now, a lot of people will tell you to start with identifying their gender, age, level of education, where they live, how much they make, and other demographics.
But I say that part shouldn’t be the first thing you focus on. The first thing you need to know is what problem does your ideal customer have and how does that relate to the service or product you offer?
For example, if you’re a calligrapher, your ideal customer probably wants wedding invitations that stand out and feel unique. Her problem is that all the invitations she has seen so far look generic and don’t speak to her.
She’s looking for that elegant, flowy style and your standard run-of-the-mill invitations simply won’t do. That’s precisely where your calligraphy services come in handy.
It doesn’t much matter if the bride is 25, 35, or 53. What matters is that she has a problem (finding unique and personalized wedding invitations) and you’re providing the solution for that problem (wedding invitation calligraphy).
So in this case, your ideal customer is a bride-to-be who’s looking for unique and personal wedding invitations.
Once you know that, you can dig deeper and research her general demographics and things like where she shops, where she likes to spend her time online, how much she makes, and the color of her eyes.
The latter will help you come up with things you can use in your marketing message to connect with her and get her attention. Those are things that will make her feel like you really get her.
3. Find Your Niche
So let’s start at the top: What the heck is even a niche?
The official definition of a niche is: “the subset of the market on which a specific product is focused. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that it is intended to target. It is also a small market segment.“
If that makes your head spin, you’re not alone. So let’s simplify things.
Typically, a niche can be defined as a particular industry. So copywriters are one niche, Interior designers are another niche. Web designers are a third niche. And so on and so forth.
However, a niche can also be something more abstract, an area that is so specific that the buyer can immediately recognize themselves in your message.
I like to define your niche as a problem you solve + who you solve it for.
For example, if you’re an interior designer, your niche can be styling residential homes on a budget.
Or if you’re a copywriter, your niche can be writing email copy for Fortune500 companies.
Why is a niche important?
A niche is specific. When you position your services and products as a solution to a specific problem, your marketing stands out more. It attracts the right people and makes it easier to sell.
For example, would you rather hire an accountant or an accountant that works with interior designers?
A niche makes your ideal customer feel understood. It makes them trust you more and trust is key when it comes to making a purchase decision. So basically, by doing steps 1 and 2, you’ve already identified your niche.
4. Come Up With A Name
How you name your business is entirely up to you. You’ve got several options here:
Use your own name and pair it with a service you plan on offering
Go abstract and use something totally different but cool, catchy, and memorable
Use an adjective paired with your industry keyword
Use your location with your keyword if you plan on serving local customers
Use a made up word or a word from a foreign language that’s easy to pronounce
If you can’t come up with anything, consider using a business name generator and see if you like any of the suggestions it comes up with.
Once you have a name you like, I’d recommend you register it ASAP as your domain name and secure it on social media platforms like Facebook, Instagram, Pinterest, etc.
5. Take care of the legal stuff
So far, we’ve covered a lot. You’ve come up with an idea, you’ve researched your target market, found your niche, and come up with a name for your business. Now it’s time to take care of the legal stuff.
Decide On Your Business Structure
Your business structure will vary depending on where you’re from and what type of business you want to open. For example, in the USA, there are several different business structures to choose from; such as an LLC, a sole proprietorship, and a corporation.
Your chosen structure will decide whether or not you need to formally register a business and what type of insurance and fees you’ll need to pay. It’s best to get in touch with your local laws and government bodies that are in charge of commerce and get accurate information straight from the source.
Set Up Your Business Bank Account
It’s best to keep your business income separate from your personal income. You’ll want to set up your own business bank account which you’ll use for income coming in from your business as well as any related business expenses.
Speaking of business expenses and income, I highly recommend reading Profit First. This book is truly a game changer when it comes to making sure your business is profitable and it teaches you how to do it in a fun way.
Cover Your Legal Basis
You’ll also want to investigate if you need business insurance or any other permits and licenses.
If you don’t need the above, the next items are something you’ll definitely want to get and those are a rock-solid contract, terms and conditions, and privacy policy. These documents will protect you and make sure that if you ever run into any legal problems, you have a leg to stand on.
Initiate The Registration Process (If Needed)
If you need to register your business, be sure to initiate the registration process. This can take a while for all the paperwork to be complete and it gives you plenty of time to start setting up your website and working on your launch and marketing plan.
6. Create an online presence
So you’ve started the registration process but that doesn’t mean you should sit idly by and wait for the paperwork to be done. Use this as an opportunity to create your website and social media presence.
Create a simple logo and brand identity
You don’t have to start out with anything fancy. In fact, it’s better if you keep it simple as your brand will evolve over time as your business grows and evolves. That said, I do recommend having a simple, text-based logo, 2-3 brand colors, and a consistent set of fonts that you’ll use.
This will allow you to start building your brand recognition and make it easier for your followers to spot your social media posts in their feed.
Related post: Brand vs Branding: What’s the difference?
Build Your Website
When it comes to your website, I recommend Squarespace as it’s super easy to use and there’s no maintenance needed. I’ve written a whole guide on how to build a website with Squarespace so I’ll let you read that one instead of repeating all the steps here.
I’ll only say to keep things simple and start with at least these three pages: your homepage, about page, and services page along with a contact form. You can also throw in an opt-in page so you can start growing your email list. (more on that a bit later).
Create Social Media Profiles
So I’ve got a bit of bad news for you. Just because you start a business and launch a website, that doesn’t mean that clients/customers will magically line up at your door, credit cards at the ready.
They won’t know (or care) that you exist. Unless you tell them. And the best way to tell them? Go where they are — social media platforms. You’ll need to do a bit of research again and figure out where your customers like to hang out.
One thing I’d like to point out, though, is that you absolutely do not have to be active on all the platforms. Instead, pick one or two platforms that you like using and that your ideal customer is also using.
Then, once you’ve grown and you’ve got this posting and showing up regularly down to a science, consider adding another platform into the mix.
Get Your Basic Tech In Order
The last piece of the puzzle in this step is to get your basic tech in order. You’ll need:
A way to take payments online — the two most popular payment processors are Stripe and PayPal. I recommend signing up with both and offering people both as the option to pay. Plus, both of these platforms integrate with Squarespace and Squarespace allows you to sell your services.
A way to book appointments — if you’re providing any type of service where an initial consultation is a must, you’ll need a way to book appointments without going crazy trying to find a time that works for both of you. I recommend and use Acuity Scheduling. It’s super easy to use and it works out all the time zones for you so your clients don’t have to do any manual calculations. Plus, you can also charge for your consultations.
An email marketing platform — I’ll talk more about email marketing below but here’s the deal. Most people won’t be ready to buy from you the first time they land on your website. Without collecting their email addresses, you’ve basically lost your chance to sell to them. An email list gives you a way to nurture the relationship further and it’s also not dependent on wonky social media algorithms. My fave email marketing platform is MailerLite and it’s what I use. MailerLite is free for up to 1000 subscribers and offers a lot more features than ConvertKit (automation included).
Related post: Top 10 Business Tools I Use To Run My Business
7. Create a marketing plan
Okay, so I’ve already told you that you’ll need to create social media accounts and sign up for an email marketing platform. In other words, you’ll need to create a marketing plan for your business.
This doesn’t have to be anything complicated and fancy. In fact, the simpler it is, the easier it will be for you to stick with it and show up consistently. My favorite marketing method is content marketing. Here’s why.
Take Advantage Of Content Marketing
Content marketing involves creating long-form content typically as a blog, video, or audio content. The reason why I love it so much is that the content lives on your website and gives you a perfect opportunity to increase your search engine rank by creating content centered around your keywords.
In fact, most of my customers and clients have found me through my blog posts that show up on Google when they search for things like “best Squarespace template for coaches” and “landing page Squarespace”.
Now, most people get overwhelmed by the idea of blogging. But remember, if you feel like writing is not your strong suit, there’s nothing stopping you to create audio or video content.
And you don’t have to publish every day. Try publishing a new piece of content at least once a week and do it consistently. You can always ramp up your content production once you get into the swing of things.
As far as what you should blog or create content about… well, your content should be related to your offers. After all, if you sell calligraphy wedding invitations, it makes no sense to talk about your favorite brand of peanut butter.
In a nutshell, your content should educate your readers and solve their problems while positioning your services/products as the perfect solution.
One more thing: if you create content from a place of “What does my ideal customer need to hear today? How can I help them?” instead of “How can I get them to pay me?” you’ll have an easier time creating content that not only resonates with them but also builds trust and gets them to actually buy. Sounds counterintuitive but it works.
Funnel Your Social Media Followers to Your Site
Content marketing is great but it takes a while to start working. That’s where social media platforms come in handy. You can use them to build awareness about your brand/business and lead them to your site.
As I’ve mentioned earlier, it’s best to stick with one or two platforms in the beginning and expand later on. Trying to be active on multiple platforms at once leads to burn out and you’ll eventually stop showing up altogether. (Ask me how I know 😉 )
Show up daily and engage with your followers and fans. Notice that I didn’t say you have to post daily. I realize that almost all platforms will tell you that you need to post daily and multiple times.
But, let’s face it: when you’re a one-woman show, that’s not feasible, especially if you’re also trying to spend time with your kids, take care of yourself and your household, and you know… have a life.
Related post: How to Create a Killer Social Media Strategy
Work out your ideal posting schedule and stick to it — even posting twice a week regularly is better than not posting at all. But try to show up and engage with people who follow you on a daily basis.
Set aside 15-30 minutes per day to simply engage in meaningful conversation with your audience. Reply to their comments, leave genuine comments, and be a human that’s connecting with other humans online.
Nurture Them With Email Marketing
Once you have website visitors, you need to collect their email addresses. Remember, I said most people won’t buy from you immediately. That’s why you need to create an amazing opt-in (also known as a lead magnet, free offer, or freebie) that they get in exchange for their email address.
The opt-in should solve their problem and be quick and easy to digest. It can be as simple as a checklist or a cheat sheet. It should give them a quick win that makes them feel good about you and establishes trust.
Once they’re on your list, you want to continue nurturing that relationship and show them how awesome you are. That’s when the magic of conversion happens.
When your subscribers trust you, they’re more likely to buy from you. That’s why almost everyone who’s doing business online will tell you that the money is in the list (myself included!).
8. Launch and continue showing up
Ok, so now we’re in the home stretch and if you’ve gone through all of the steps above, now it’s finally time to launch your business. Most people overcomplicate this step but in reality, here’s what you need:
Your website with at least a home page, an about page, a blog page, and a services page that has a contact form
At least 3 blog posts that talk about the problem your target audience is struggling with
An email opt-in that’s set up in your email marketing platform to deliver the freebie
At least 3 more blog posts have been scheduled to publish for the next 3 weeks.
When the launch day arrives, you’ll want to make an announcement on your social media profiles and email your list to tell them you’re officially in business. Invite them over to check out your website and join you in celebrating.
After the launch day passes, you want to continue showing up and connecting with your audience, nurturing the relationship, and reminding them how they can work with you.
Related post: 7 Things to Do Immediately After Launching Your Website
9. Get support
Finally, you’ll want to surround yourself with like-minded people. Remember, growing a business is not easy and you’ll want people in your corner who understand what you’re going through and who can share the journey with you. They will be there for you and give you encouragement when you need it.
As the song goes (or the expression, whichever you prefer), when the going gets tough, the tough get going. Believe me, when I say, it’s a lot easier to get going when you have someone in your corner.
Ready to start your own online business?
And there you have it! Those are all the steps involved in starting an online business. And if you’re looking for a way to create a website for your new business, I’ve got you covered.
My website launch roadmap walks you through all the steps necessary to launch a gorgeous website that converts. Simply enter your name and email below and I’ll send it your way ASAP!
