Starting a business on the Internet: keys to success

Keys to avoid frustration

After more than a decade in the web development industry I have met many entrepreneurial people with a plan and the illusion of carrying it out as a way to have a business of their own and prosper in these times of crisis.

There is no doubt that the Network offers many opportunities for all but it is also true that ignorance and sometimes naivety can cut off the bet on the Internet as a shuttle to business success.

Unfortunately, I have had the experience of carrying out ambitious projects and advanced developments which have had to be shut down after a short time.

For this reason, after reflection I wanted to expose in this article the main causes that can motivate this failure and thus seek the best solutions or advice when undertaking on the Internet.

User guide

Project definition

It is undoubtedly the most basic and important mistake. A business idea is not a simple occurrence that can be translated into a pen-written folio. At best it will be the germ of the idea that must then bear fruit.

Once the basic concept has been formulated, the set of circumstances, actors and processes that will intervene in the project when it is launched publicly must be developed. An initial scenario is usually presented with one or more types of user who carry out information and money transactions according to rules that must be clear from the start for all participants.

I have known the case of launching a web application and soon having to change the rules of operation. Although the new rules are more interesting for the user, it is important to note that a sudden change without sufficient explanation generates confusion and sometimes mistrust.

It is true that all projects involving advanced interaction are subject to change, but these changes should be gradual and perceived as improvements so that the user can clearly see the benefits of such innovations.

We all remember, for example, the rumors, hoaxes and denials that we have heard in relation to the WhatsApp service. Whether free, whether paid, whether deactivated, whether to renew, update... etc.

Although it is a clear example of success, in good measure because it is one of the first, many users have had doubts and have thought about looking for an alternative application.

Fork out for it

Financial plan

To make a profit you must first make an economic investment, that is, you must sow before harvesting. This is another weakness of many entrepreneurs.

Perhaps encouraged by the boom of self-publishing platforms and infused with the spirit of the expert furniture-maker at IKEA, they sometimes clap their hands on the head when the initial budget figure has more zeros to the right than expected.

The development of a custom web project has a cost associated with the high number of hours and technical staff who must intervene in a coordinated way so that everything goes according to the objectives and deadlines set.

Saving costs by cutting functionality can be dangerous to project success if key aspects such as usability, design, security and application performance are left out.

The milkmaid and her pail

Return of the investment

We are talking about business and therefore it is not worth putting a web project that will succeed among users, that will go out in the media, if then it does not get some way of profit necessary to at least stay on the market.

"Surprisingly, we have had to ask the customer: where will the profits come from?"

A good development team helps you at all times to define the tools that allow economic transactions to be comfortable, fast and safe for users but the entrepreneur has to have clear from the beginning who, how, when and how much the user of your website will pay.

It is what is currently called monetization of a business. Therefore, it is important to estimate what users would be willing to pay for the services offered and advertisers in case of advertising spaces.

The importance of the crier

The marketing plan

Not only should the investment in development be planned, but a budget for project promotion should be considered. In marketing there is a maxim that says:

"A regular product with a good advertising campaign sells better than an excellent product with a bad campaign"

It would also be fair to say that you will not make much of an effort if you only invest in development and expect customers to reach you by themselves or through the mouth.

A marketing expert who knows your project will be able to draw up a plan, with a good campaign, that effectively conveys the appeal and advantages of your application to a well-defined target audience.

Sales are not falling apart, so it’s good to have a marketing plan with some of the budget allocated before you start developing.

Hit first or hit twice

The moment and the competition

The concept of innovator in a project cannot be derived from having an original idea. How many people have been disappointed to find that their idea was already had by someone else and has put it into action with greater or lesser success.

It is therefore important to make a prior analysis of the competition and not to assume that no one else in the world has had the same idea as us.

It is not to fall into discouragement and think that everything is already invented. Business success stories are full of examples where someone has taken an existing idea but improved it and put it into operation with more resources or a better advertising campaign.

A clear example of this would be the case of Airbnb, a website dedicated to the publication of ads and the management of reservations of holiday homes. It is undoubtedly a business model known for quite some time and that in recent years has been able to make money through a good reputation and supported by an aesthetic and ease of use that have ended up creating trend in the world of web design and development.

All of the above can be summarized in a simple idea:

"Either you’re the first or you’ll have to do much better than the rest."

Rome wasn't built in a day

Commitment and patience

An online business is not as different from a traditional business as one might think. There is no counter but you have to serve the public, you have to manage orders, promote sales. and that involves a significant commitment.

There are cases where the web project is born as a parallel activity that develops alongside a full-time job or in which a person takes over all the tasks of the business.

To cover all aspects of the project, it is necessary to have a full-time or well-coordinated team that can deal with the problems arising from the day-to-day management of the business.

On the other hand, perhaps associated with the remnants of the get-rich-quick culture, not all entrepreneurs are willing to hold out until results are obtained. Setting a short-term plan for profits is almost like trusting providence to make things right.

Brother-in-law and other handymen

Work with pros

It seems obvious, but we still rely on the ability of some brother-in-law or friend to meet the demand for some professional services. The most typical case is in relation to everything that has to do with the image, for example a logo or photograph.

"Using a home logo for a serious web project is like going to the Oscars in flip-flops."

That’s why it is important to choose well and trust the work of each of the professionals involved in the development of the project and not let ourselves be guided by our personal impressions when it comes to business decisions.

The true professional will put all his efforts into delivering a quality job because he is the first interested in your success. So the pats on the back of your colleagues are fine but better leave them for when you have already launched the idea of your business.

Having the help of a web consultant can be the best investment you make for your website. You can not imagine the customers who have come to me after wasting their money on professional claims that have promised a lot for very little.

In any case, remember the following:

"If you think that hiring a professional is expensive, you can not imagine how expensive it can be to hire an incompetent"

Alternative online business

Affiliate marketing and dropshipping.

If you want to try something without risking your capital, but with the possibility of making money on a recurring basis, you can opt for affiliate marketing.

This formula consists in setting up a website or online store where you do not sell your own products but promote the products or services of a third party in exchange for a commission. The process is controlled because each time you take a user from your website to the affiliation one parameter is passed that identifies you as a prescriber.

The main task therefore focuses on positioning such a website so that it gets the traffic needed to finally click on affiliate links. The best known case is Amazon. With such a huge catalogue, it is easy to find a niche market that may be interesting.

As an example you can see Todomazinger.com. This is an online shop focused on the popular Japanese animated series that aired in Spain in the late seventies. On the web you can find the most requested products of Mazinger Z: shirts and figures. As you will see the products are listed according to each category, but there is no own detail page. Instead you have a link to the product in question already on the Amazon website.

The success of this type of site is based on finding what is known as a niche market. The aim is to identify a type of product which is in growing demand and which is not yet fully exploited.

Another current online business modality is the one known as dropshipping. Basically it is about selling another’s products directly from their product catalog and linking to their warehouse. You make your own shop but you’re really acting as a business intermediary. You do not invest in stock but are bound by the parent company’s system.

This formula, however, is already very exploited and the margins are very low, with the disadvantage that you have to take all the management of orders and customer service. For this reason, we must think carefully and know if we will have the time and willingness to carry out such management.

My conclusions

Summary of ideas presented

Starting an online business has its advantages and also some disadvantages. Timing and competition are critical to getting a big piece of the pie. This not only requires a good idea but also requires dedication, strategy and a good team of professionals.

If you are able to gather these ingredients, work hard and with enthusiasm, you will be able to see patiently that your digital business begins to bear fruit and that if you continue investing in it you can achieve successes as remarkable as satisfying.