Let’s make millions! How to start your online business

online_businessWant to start your own online business? We have just been squeezing our brains on Google Squared Module 2 to start our own,  so here are some reflections about it. Enjoy!

Well, there’s one thing you have to keep in mind: you shouldn’t build a house starting from the ceiling. And this applies here. Before making any moves, you should answer quite important questions.

– Is there a market opportunity?
– What makes your idea different?
– Is there any competitive advantage?
– Who is going to be your customer?
– What’s the revenue? How are you going to make money?
– What’s the role of mobile in it?

The Business Model Canvas is an excellent tool to start shaping this great idea that you have in mind:

There’s another thing you can’t forget if you are starting a business nowadays. It doesn’t matter what the business is. It needs an ONLINE presence. You have to make sure your web is mobile friendly (mobile web is set to overtake fixed-line web this year), are you going to have an app (23 apps installed on average, 80% of mobile time is spent on apps)?

Mobiles have become: a map, a camera, a personal trainer, a TV, a newspaper, a classroom, a shop, a games console, and much more.  78% of us don’t leave the house without our phone. There are even more mobile devices out there than toothbrushes. Smartphones are having an impact on how we shop and what we buy and increasingly providing a point of purchase.

customer segments
Buyers in any markets differ. Segments are groups of customers with similar interests in your products or services. When you segment your target, you have to consider different variables: geographic, demographic, pyschographic and behavioural.
Marketers often use multiple segmentation bases to identify smaller target groups.
Not all segmentation is effective, to be useful segments must be: measurable, accessible, substantial, differentiable, actionable.

How do your customers behave online?

value proposition
Once you have targeted your customers, your business has to know how it will serve them. The value proposition should be specific for each client segment.
Why should I buy your brand rather than a competitor?

Why is it better that it is online?

channels
The channel is another tool of the marketing mix. They are the touch points you are interacting with customers and adding value. Companies can design their distribution channels to make products and services available to clients in different ways.
In the past, many companies used a single channel to sell, today, more and more companies use multi-channel distribution systems.
As always, when deciding the channels, you have to keep in mind your consumer needs.

What’s the best multi-channel strategy to get to your customer?

customer relationship
You have to outline the type of the relationship you are establishing with your customer. For example, a company strategy can be to specialise in satisfying unique needs and go through a close relationship and intimate knowledge of the client (Lexus, Visa, Rizt-Carlton).

How is your customer and what’s the relationship he/she needs?

revenue streams
How and through which pricing mechanism the business model is capturing value.

How are you going to make money with your online business?

key sources
Infrastructure to create, deliver and capture value. Consider the vital assets as a start. As Guy Kawasaki explained on a conference about The Top 10 Mistakes of Entrepreneurs: “I’ve never seen a company die because it didn’t scale fast enough”. So, keep your feet on the ground! Don’t scale too fast in anticipation.

The advantage with many online businesses is that the initial investment is quite affordable, so the risk can be minimised.

key activities
Show which things you really need to be able to perform well.

key partners
Who can help you leverage your business model?

cost structure
Once you have an idea of your business model infrastructure, you can figure out the cost structure.

 

Now, we are ready to start making millions!

 

SOURCES
Google Squared Classes Module 2
Harvard i-lab | Startup Secrets: Value Proposition
Mobile marketing trends 2013 predictions
Guy Kawasaki: The Top 10 Mistakes of Entrepreneurs
The Impact of Customer Relationship Characteristics on Profitable Lifetime Duration
Jo Baker: Fall in Love With Mobile
Flurry Five-Year Report: It’s an App World. The Web Just Lives in It
Google Ipsos “Our Mobile Planet: Understanding the Mobile Consumer” UK May 2012

EMarketing EXcellence: Planning and Optimizing Your Digital Marketing 4th Edition; Dave Chaffey, Paul Russell Smith; Routledge, 2013

Marketing: Concepts and Strategies,6th Edition; Sally Dibb, Lyndon Simkin, William M. Pride and O.C. Ferrell; Cengage Learning, 2012

 

 

 

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