Going Digital: 3 Tips in Starting an Online Business
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Whether it’s augmenting your income or addressing a market need, an online business is a good idea to explore.
This is especially an excellent venture to pursue amid the COVID-19 pandemic. As citizens continue to comply with stay-at-home orders and social distancing protocols from national governments, online shopping continues to grow.
If you’re thinking of starting an online business, consider a few tips:
While an online business may seem relatively easy to set up due to the lack of a physical storefront, aspiring entrepreneurs still need to engage in business planning.
A business idea is only the start. You need to create a clear plan of action on how you will address a particular market need with a product or service.
In-depth market research will inform your business plan and give you a clearer picture of what consumers need. Find out more about the behaviour and preferences of your target market. See what potential competitors are doing and find opportunities where you can make a solid value proposition.
You should then lay out a strategy on how your product or service will bring value to customers while competing with existing players.
After coming up with a plan and specific next steps, it’s time to think about start-up costs. How much capital will be needed in the initial phases? What sources of funding will be the most viable? There are several options to consider.
For one, securing a business loan is a fairly conventional path. However, it can be quite tricky to secure a loan from banks in Singapore. This is because major financial institutions often prefer lending to more established businesses with proven models and stable customer bases.
Here at Capital Funds Investments, we make business loans more accessible to aspiring entrepreneurs looking to start a viable enterprise. If you want to know more about what we can offer, feel free to send questions through our enquiry page.
You can also consider getting financial support from the government. There are many government initiatives designed to support small and medium-sized businesses in Singapore. Aside from loans, there are grants and tax incentives you can take advantage of.
Additionally, investors can be a source of funding. Suppose you have contacts who see potential in your business idea and are willing to shoulder start-up costs. In that case, this is a funding opportunity you should seriously consider. Investors may acquire a stake in your business in exchange for financial support.
An online business requires a good web presence. Without a physical storefront, you will need a decent website where customers can learn about why you exist, the product or service, and how they can make facilitate a transaction.
Start thinking about an appropriate domain name for your website. Then, work with designers and developers who can make your ideal website a reality.
More often than not, creating a website will take a significant amount of time. If you plan to launch your online business while it’s still in development, consider using other digital platforms (e.g., Facebook or LinkedIn) in the meantime.
Many businesses create online pages through these channels. And given the wide accessibility of these platforms, you might find your first crowd of customers there.
Capital Funds Investments aims to connect you with the resources you need to achieve your financial goals, whether personal or business-oriented.