Table of Contents
- Do online businesses have a future?
- Advantages of setting up an online business from home
- Steps to set up an online business from home
Starting an online business from home is a great idea as there is enough scope and demand for the same. Online businesses usually require lower overhead costs and investments, ensuring higher profit margins. You can set up your own online business from home by following a few easy steps.
# Do online businesses have a future?
- What is an online business?
- Is the online business industry growing?
Online business refers to any kind of business that takes place entirely on the internet. It can include buying or selling a product online or providing an online service.
With an increase in the usage of mobile phones and the internet, the scope of the e-commerce/online business industry has grown. The Indian e-commerce industry is expected to beat the US to become the second-largest e-commerce market in the world by 2034. The number of Indian internet users is to rise from 481 million (2017) to more than 907 million by 2023. An increase in the number of internet users is likely to result in the growth of the Indian online business industry.
# Advantages of setting up an online business from home
Below mentioned are some of the advantages of setting up an online business from home :
- Enhanced scalability – Scaling an offline store/business would mean opening more stores, and that will require greater capital and effort. On the other hand, scaling an online business is a lot easier and more cost-effective as everything takes place virtually.
- Increasing demand – India has a young demographic that is more inclined towards online purchasing. Moreover, the ongoing pandemic has further fueled the demand for online businesses.
- Higher profit margins – Setting up an online business requires low investment as there is no need of renting stores, buying furniture, paying store electricity bills, etc. Lower overhead costs ensure a higher profit margin.
- Increasing investment – Due to a growing market and an increasing demand for online businesses, there has been an influx of investments allowing new players to set up their businesses.
- Location independence – Starting an online business from home will allow you to work anywhere as long as you have a stable internet connection.
- Endless market reach – One of the greatest advantages of an online business is the endless market that it enjoys. Your online business is not restricted just to the people who live in the area. Your services and/or products can reach people worldwide.
# Steps to set up an online business from home
If you, too, are tempted with the idea of opening an online business from home, then here is a step-by-step guide to help you give life to your business idea.
1. Choose a business idea
The first step of setting up an online business from home is to decide what products and/or services you wish to provide/sell. If you wish to provide a service then start by identifying your skills, and jotting them down. You can keep on narrowing down your list from thereon. You can also sell physical products online. Take inspiration from other online businesses to get a better idea. Choose a business idea that has an advantage over your competitors, is legal, has an active target audience, and can be scaled.
2. Conduct a market research
To check the viability of your business idea, you need to study the market and know about your competitors. Find out if there is any demand for the products and/or services you wish to offer. Conduct an online or offline survey to find more about your target audience and their requirements.
3. Set up an online business model
Decide upon a business model that fits your idea well. Make sure that the business model provides adequate attention to the business idea, market research, marketing, operations, and financial planning.
4. Plan your investment
Before you move any further, it is important to plan your expenses. The cost/investment required for starting an online business varies across different business ideas. Most online businesses usually require a fund for the following :
- Market research
- Email marketing
- Website designing
- Human resources
- Manufacturing cost
- Traditional marketing
- Business taxes, etc.
5. Legalize your business
You won’t be permitted to start your online business unless it is legally compliant. Decide whether you want to have a sole proprietorship, partnership structure, Limited Liability Partnership (LLP), or a Company format, for your business. After deciding upon the structure of your business you need to find out the tax return details. Acquire required licenses and permits to finally start your online business.
6. Set up your business website
Decide if you want to provide products/services through your own website or through well-established online marketplaces like Amazon, Flipkart, etc. You can also choose to sell products/services through both your own website and online marketplace. You can either self-host your website or outsource. Provide detailed information about your business and products/services on your website. Give adequate attention to SEO.
7. Plan your marketing strategy
Drafting a marketing strategy for your new home-based online business is very important. Target sources like Facebook, Pinterest, Youtube, etc., for effective advertising of your business.
8. Test your website before launching
Once everything is ready, test your website for any loopholes. Launch your website once everything is sorted.
Vyapar is a business accounting software that helps its users manage their businesses in an organized and structured manner. It takes care of business/accounting management, data safety and security, commodity management, tax and discounts, cash and bank management, and a plethora of other functions. If you are planning to start an online business from home, then Vyapar can be of immense help to you. In fact you can easily start your online store for your business in Vyapar.
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