How To Start An Online Business From Scratch

how to start an online business from scratch

If you’ve landed on this page, you’re most likely trying to find out how to start an online business.

In this article, I will be outlining the five CRUCIAL steps to starting a profitable online business, as well as looking at the history of our economy and online business.

The internet is has many genuine online business opportunities and my aim is to open your eyes up to the drastic changes and incredible opportunities that are now available to us in this digital age.

(If you want to get straight into the meat and potatoes of exactly how to start an online business – you can go here to access our free video training series.)

Now:

The internet has changed things for good. Period. It absolutely blows my mind when I think about how far technology has come over the last twenty years or so. The rapid advancement of technology has brought about huge untapped sources of potential that people don’t even know exist!

Let me explain: how to start an online business from scratch

Tracing our steps back in history we find that the traditional economy has always been plagued with depressions, recessions and general instability.

Mapping out the traditional economy on a graph shows us how it is constantly going through positive and negative fluctuations.

Recessions and depressions have always triggered a new economy and/or a revolution.

This trend can be traced back by thousands of years all the way back to the stone age – yet we still make the same mistakes over and over again!

The peak and gradual downturn of the agricultural revolution around the year 1750 sparked the birth of the well known industrial revolution.

The industrial revolution then went on from 1750 to 1840.

The year 1837 came and brought with it a financial crisis in the United States. This turned into a major recession that lasted until the mid 1840’s with profits and wages going down along with rising unemployment.

Shortly after the recession of 1837 came the Californian gold rush, when gold was found by James W. Marshall at Sutter’s Mill in Coloma, California.

Gold worth tens of billions of todays dollars was recovered. Thousands of miners migrated to California with the dream of riches but only a few of these people truly became wealthy.

Thats why they call it the gold coast! (I didn't know this up until a few months ago, slightly embarrassing)

Moving on to the next economic mess that occurred almost a century later, in 1929.

The great depression. Almost 30% unemployment.

But check this out:

There was a boom happening at the same time. The second industrial revolution came out of the great depression, where more millionaires where created than EVER before in history.

A few decades later, another recession took place. This one was in the 1980’s and was a severe global economic recession that affected much of the developed world in the late 70’s and early 80’s. This recession brought high unemployment as well as long-term financial effects contributing to a debt crisis in latin-america, in addition to a savings and loan crisis in the United States.

Guess what else happened in the 1980’s?

Thats right. The digital revolution!

The transition from analog devices to digital technology, leading to the explosion in adoption of digital devices that continues to this day.

Noticing any trends here? History is repeating itself!

The recent recession of 2007 was a life-changing event for millions of people all over the world. Countries turned literally upside-down. People losing their jobs. Unemployment rising exponentially.

This is a great opportunity for us:

Over the last ten years or so there has been a new economy emerging. An economy that was born thanks to the world wide web.

It is known as the digital economy.

A new gold rush is happening…

This new digital economy is absolutely booming.

Digital content is a precious commodity.

Think about the likes of Amazon, eBay, Instagram, Snapchat, LinkedIn..etc. Some of which have only really been around for a handful of years. These online companies are now worth billions of dollars.

The graphic below illustrates what is called a digital arbitrage.  The internet allows an increase in the ease and speed of any transaction.

Digital marketers can take advantage of this by connecting buyers and sellers around the world, getting rewarded in the form of affiliate commissions.

how to start an online business

Let me put things into perspective with some Internet company valuations: 

These are official figures as of May 2015 that I've pulled from Statista.com - One of the leading statistic companies on the internet.

  • Google has a market value of $373 billion.
  • Facebook $226 billion.
  • Amazon $199 billion.
  • eBay $73 billion.
  • Netflix $38 billion.

Obviously these are some of the biggest giants in the online arena but I just wanted to highlight how insane these numbers are, considering these businesses exist primarily in the digital world with no physical brick and mortar presence!

These are numbers our brains cannot even comprehend! How many zero's does $213 billion have? I have no idea!

Internet companies are thriving, generating huge profits, while traditional brick and mortar businesses struggle to turnover a profit due to upkeep and staffing costs, as well as ruthless price competition from online companies.

Think about Uber. Once a small, humble start-up company that launched in 2010 that has now become a globally recognised phenomenon.

Uber is now a major global company and is used by people all over the world. With an estimated valuation of $64 billion!

No traditional brick and mortar business has ever seen such an exponential rise in value.

Digital companies are quickly coming in and driving out all the traditional, established entities.

A revolution is now taking place in the way we approach the whole idea of building a profitable business.

Put simply, you cannot succeed in business in 2016 if you don't have an online presence.

There couldn't be a better time to start an online business from scratch!

The likes of Walmart, Barnes & noble and HMV simply cannot compete with online giants like Amazon and eBay.

Companies have been forced to adapt to the digital revolution or get left behind. Blockbuster for example, tried to resist the online transition and unfortunately had to learn the hard way.

The internet has changed the world as we know it and this is only the beginning.

How To Start An Online Business  

Finding out how to start an online business can be a daunting prospect. Especially if you're new to all this online stuff.

You may assume that learning how to start an online business is something that could take years and that you will need to spend a huge chunk of cash hiring a web designer to build a website for you.

Neither of these are accurate at all!

Some Of The Most Common Misconceptions About Online Business...

"I'll need to learn technical computer skills" - Many people incorrectly assume they need to have a technical skill set to launch an online business.

"You can start an online business for free" - It IS technically possible to start an online business without any income but it will take a very long time and will require around the clock work. Compared to a traditional brick and mortar business, the average investment required for starting and running an online business is peanuts. The profit margins are also a lot bigger as you typically won't have anywhere near as many overheads as a traditional business.

"I'll have to develop a product for people to buy" - Nope. Business models such as affiliate marketing allow you to leverage the fantastic products that other companies produce. So you don't need to spend time creating your own product from scratch.

How To Start An Online Business - Five Essential Steps

  • 1

    Targeted Advertising

    Marketing and advertising is the lifeblood of any business in this day and age. You could have the best product in the world but if no-one knows about it you won't sell anything.
    The internet is the perfect marketing tool as it allows us to easily reach every type of target market in existence.

  • 2

    Lead Generation

    Lead generation can be described as acquiring a potential customers information. Such as an email address, for example. This allows you to communicate directly with the prospect and build a relationship with them. Lead generation is absolutely CRUCIAL to the success of an online business. If you aren't generating leads you don't have a business.

  • 3

    Providing Value

    Building a genuine relationship with your prospect is the most effective way to generate sales for your business. You can do this by providing value in the form of content. This could be a free ebook, webinar for example. By providing value you are separating yourself from the competition and building a list of raving fans at the same time.

  • 4

    Build Your List

    Building a list of subscribers ties in with the previous points mentioned, lead generation and providing value. Combining these marketing strategies can yield fantastic results for your business. Technology such as autoresponders allow us to follow up with subscribers automatically, 365 days a year. Once you have the system setup properly it does most of the work for you.

  • 5

    Promote Quality Products

    Many entrepreneurs invest thousands of dollars into a business that tries to solve a problem no-one gives a shit about. Find or create products that people NEED. Create products that solve people's problems. I cannot stress how significant this point is.

What I'm about to introduce you guys to here could be something of a revelation for some of you. So many people don't actually know about the income opportunities that exist on the internet which is why I'm so passionate about sharing this information.

The genuine income opportunities available are overlooked by the massive amounts of hype, hot air and fake "push button" solutions.

I'm gonna let you in on a secret... push button solutions don't exist. The whole "get rich quick" thing is a farce.

The bottom line is that if you want success, you gotta work your ass off for it.

Ultimately the best type of job in the world is one where you're doing something you love and you get paid handsomely for it.

This is something that is entirely possible now, thanks to the internet.

The Best Way To Earn Income Online...

Let me first introduce you to what I think is the BEST business model out there at the moment. Some of you may have heard about it before or come across it online in some shape or form.

The business model i’m on about is called Affiliate Marketing.

In summary, affiliate marketing is the promotion of a product or service in order to generate a referral and make a commission from that referral. An affiliate is basically someone who makes a commission from a sale promoting someone else’s product.

This could be the sale of literally anything, from courses that teach people how to date the woman of their dreams, to amazon products and digital skills courses. The amount of commission earned can also hugely vary depending on the affiliate program. They can range from a measly few percent all the way up to ninety percent, in some cases.

The official definition of affiliate marketing, according to Wikipedia is:

"Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts."

I’ve actually written an article called “What Is Affiliate Marketing” so feel free to check that out for a more detailed explanation, as well as a breakdown on how the business model works. 

It’s pretty sweet if you’re new to the world of affiliate marketing.

Thousands of people have built successful online businesses through affiliate marketing. The level of technology and automation we have access to nowadays has created huge opportunities for pretty much anyone with the right mindset to build their own online business and start profiting in a matter of weeks.

Building an internet business doesn’t come with the same level of risk as investing in a traditional business. You don’t need a huge startup investment and don’t have to pay upkeep costs like you would have to with a traditional brick and mortar business. Yet the earning potential and profit margins are many times more!

Why Isn’t Everyone Doing It If It's Such a Great Business Model?

Most people that attempt an online venture do it on their own. They lack a system they can plug into, therefore making it a lot harder for them to get setup with everything they require.

The bottom line:

Most people end up spreading themselves way too thin, trying to master way too many things at the same time. They get stuck in education mode thinking they need to learn every technique out there and never actually get down to business! Overwhelm slowly sets in and they end up putting their internet business venture on the back-burner or just giving up all together.

The secret to success:

Firstly there is no real secret to success, but there are things out there that can definitely fast-track your results by cutting your learning curve and giving you the right training.

The right training platform is instrumental to your success in any venture. It's the difference between becoming financially free in six months compared to three years.

You can do this on your own, you can Google things and watch YouTube videos to try and piece things together but you'll most likely get overwhelmed in a very short space of time.

I'm a big fan of doing things with speed and learning from the best, which is why we've put together a free video training series for you if you're interested in getting your start online today...

Want To Start A Wildly Profitable Online Business?

get your free training now

Looking for a bucket list of online business ideas? Checkout Jamie Spencer's great guide - 17 Online Business Ideas That Make Money

3 Comments

  • Michelle

    Reply Reply 27th April 2016

    Wow some excellent points here. You’re right, starting an online business can seem like a daunting prospect at first. But like you said, if you put in the hard work and learn the correct digital skills you basically cannot lose!

  • Passive Income

    Reply Reply 9th September 2016

    This is so true! I always believe that there are no other ways to start an online business but through these. Thanks for sharing!

  • Ema

    Reply Reply 9th February 2017

    Very informative and helpful post to start an online business successfully. To start any type of online business successfully, there are some important steps to follow. And marketing and advertising are an important part of it. The Internet is the best marketing tool to reach out of your targeted audience. Utilizing some powerful online marketing methods can help you gain a great success.

Leave A Response

* Denotes Required Field