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How do you start a successful online business? And how do you make money running an online business? This article gives you some critical tips and guides on how to excel in offering services and products online. We wrote this article after collecting the views of successful online business entrepreneurs, and these are a summary of their advice to you as you start your journey. So lets get started.
Starting an online business has never been more accessible, thanks to the myriad of tools, platforms, and global markets at our disposal. But as many aspiring entrepreneurs quickly learn the journey from idea to profitability is fraught with challenges, and many give up too.
Start a Successful Online Business
As I mentioned above, we are drawing on valuable insights shared by seasoned entrepreneurs on Reddit. This article provides a roadmap for starting a successful online business. From choosing the right business model to overcoming obstacles, these lessons can guide you toward entrepreneurial success.
1. Choose the Right Business Model
The foundation of any online business lies in its business model, which serves as the blueprint for how a business creates, delivers, and captures value. In simple terms, a business model defines how you generate revenue and sustain profitability while addressing the needs of your target audience.
After interacting with experienced entrepreneurs, here are some key models you can explore:
Service Businesses
One way you can start is by offering services such as web development, SEO, video editing, graphic design, business coaching, UX/UI design, and technical support. These ventures often require specific skills and can be lucrative with minimal startup costs.
For example, Jamie and his partner started a web development agency with just $300. They used the money to set up a professional website and subscribe to tools like Adobe Creative Cloud. They used LinkedIn for networking and did cold outreach, and that’s how they landed their first client within three months, earning $1,500 for a single project. From there, word-of-mouth referrals helped them grow their business.
Your case might not be exactly like theirs, for instance, your first website might not bring in $1,500, but if you can do what they did, you are sure to get similar results.
Content Creation
Content creation involves producing and sharing valuable, relevant, and engaging materials like blogs, newsletters, videos, or social media posts to attract and retain a specific audience. It’s about providing information or entertainment that solves problems, answers questions, or connects with your audience’s interests.
My advice to you is to consider creating content targeting niche topics. By focusing on a specific audience or subject, you can build a loyal following over time. For instance, newsletters or blogs on niche topics like sustainable living, personal finance, or fitness can attract dedicated readers. Once you’ve built an engaged audience, you can monetize through subscriptions, sponsorships, or affiliate marketing.
This lady on Reddit shared with us how she grew a newsletter about eco-friendly lifestyles to 10,000 subscribers within a year, using free tools like Substack and promoting through Twitter. Their revenue came from premium subscriptions and brand partnerships, showing the potential of targeted content creation.
E-commerce
You can also explore e-commerce models such as selling on platforms like eBay and Etsy, or leveraging Amazon FBA. These models involve selling physical or digital products directly to customers, either through your own store or established marketplaces. Success in e-commerce requires careful attention to product sourcing to ensure quality and demand, efficient logistics for timely delivery, and marketing strategies to attract and retain customers. For example, many entrepreneurs use social media advertising, influencer partnerships, and search engine optimization to drive traffic and boost sales.
One entrepreneur launched an Etsy store with $500, sourcing unique handmade items from local artisans. Through Instagram marketing and small influencer collaborations, they achieved $3,000 in monthly revenue within six months.
Software as a Service (SaaS)
Another viable option is SaaS (Software as a Service), which involves creating and delivering software solutions through a subscription model. SaaS businesses provide ongoing value by addressing specific problems or needs, such as project management, scheduling, or specialized tools for industries. This model generates recurring revenue, making it a scalable and predictable option.
Targeting niche markets can yield significant opportunities, as serving a specific audience often means less competition and greater customer loyalty. For example, one entrepreneur created a SaaS platform for small-scale pickleball tournament organizers. With a $5,000 initial investment in development, they marketed directly to local pickleball communities, gaining over 200 paying users at $20 per month, which established a steady revenue stream.
Niche Markets
My advice is to identify underserved demographics, such as digital nomads or the African market, where there is often less competition and untapped growth potential. These markets are filled with unique needs and opportunities, allowing you to tailor your offerings and establish a strong foothold.
For instance, one entrepreneur entered the African e-commerce space with an initial investment of $1,000. By focusing on affordable, high-demand products and using local payment systems, they quickly gained traction and grew their business to $4,000 in monthly revenue within a year. Targeting such markets not only allows you to stand out but also positions your business as a solution provider in a growing industry.
2. Skills and Execution
Successful entrepreneurs emphasize the importance of skills and execution. Here’s how you can make it work:
Building Technical Skills
One way you can strengthen your chances is by learning technical skills, particularly in web development and programming. This is because, to have a great chance of being a successful entrepreneur in the IT space, web dev or programming skills are almost mandatory at this point.
One Redditor shared how he transitioned from a non-technical background to becoming a freelance web developer by dedicating six months to learning HTML, CSS, and JavaScript using free resources like freeCodeCamp. Their first project paid $800, which they reinvested into more advanced courses and tools.
Taking Action
My advice to you is to take action. Having an idea is not enough; execution separates dreamers from doers. People have ideas, but the one who executes is always one step ahead. Start small and iterate based on customer feedback.
One gentleman began a dropshipping business with $200, using Shopify and Facebook ads. Although his first campaigns failed, he refined his targeting strategy and turned a profit, achieving $1,000 in sales within the first two months.
3. Marketing and Client Acquisition
Getting your business in front of potential customers is critical. Here are some strategies that entrepreneurs shared:
Social Media
One way you can market your business is by using platforms like Reddit, Twitter, and LinkedIn. Sharing your expertise and engaging with relevant communities builds credibility.
A common example of this is entrepreneurs who gained SEO clients by actively participating in relevant subreddits. By providing free advice and sharing case studies, they positioned themselves as an expert and attracted paying clients.
Referrals and Word of Mouth
My advice to you is to focus on building a strong reputation and encouraging referrals. Satisfied clients are often your best marketing assets.
I know this is possible because one entrepreneur shared how he grew this graphic design business entirely through referrals. After delivering exceptional work for his first client, he was recommended to others in the same industry, leading to steady growth without paid advertising.
Cold Outreach
Another strategy is cold outreach, especially in B2B contexts. Tailored outreach can demonstrate value and initiate meaningful conversations.
For example, one entrepreneur secured consulting gigs by sending personalized LinkedIn messages to decision-makers in their target industries. He achieved a response rate of 15%, resulting in three long-term clients within a year.
Influencer Marketing
You can also consider partnering with influencers to promote your products or services. This strategy can help you reach new audiences.
One entrepreneur shared how he collaborated with micro-influencers to promote her handmade jewellery on Instagram. She offered free samples in exchange for posts, and this drove significant traffic to her Etsy store, increasing sales by 40% in three months.
4. Finances and Pricing
Initial Investment
My advice is to start with an investment that aligns with your business model. Service-based businesses often have low entry costs, while SaaS or e-commerce ventures may need more upfront capital. Note that the lower the entry cost, the more saturated the niche is likely to be. Meaning only the truly skilled and diligent survive and turn a profit
Pricing Strategies
Experiment with different pricing models, such as subscriptions, retainers, or high-ticket consulting, to find what resonates with your audience.
For example, a consultant started with low-priced packages to build a portfolio before transitioning to high-ticket clients. Within a year, they increased their rates from $500 to $5,000 per project.
5. Key Takeaways and Advice
Passion and Perseverance
I would advice you to pursue something you’re passionate about. Building a successful online business takes time and dedication. Stick with it for one year and be patient. Don’t anticipate overnight success. If you get lucky, great, but persistence is key.
Learning and Adapting
Be willing to learn and adapt. I knew nothing about website building but learned everything along the way. You just have to start somewhere.
Experimentation and Iteration
Be open to trying different approaches and refining your strategy based on results. Feedback from customers and peers can provide valuable insights.
Building Community and Support
My advice is to join entrepreneurial communities and seek advice from experienced individuals. Networking with like-minded professionals can also lead to partnerships and opportunities.
Starting a successful online business is a journey of learning, persistence, and execution. You must choose the right business model, acquire the necessary skills, and leverage effective marketing strategies, and you can navigate the challenges of entrepreneurship.
As the stories of these successful entrepreneurs demonstrate, success often comes to those who are willing to take risks, learn from mistakes, and continuously improve. So, take the leap—you could be the next online business success story.
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