If you are in business, you must have heard that without investment there is no profit. Many believe that without solid capital you can’t do your own thing. Is it really? Is money really everything? If you recall the history of many well-known brands, such as Nike, Apple, Google, you will understand that without money it is quite possible to achieve good results.
Ecommerce
Now a tenth of all retail sales is online commerce. And according to experts, this figure will increase every year. So if you have an idea, good motivation and enough products for the initial stage, then you can very well start your own business. You can open an online store without huge costs, the main thing is to properly allocate the budget.
In this review, we will discuss the basic methods of launching an online store without significant costs.
Product line
Online commerce creates tough competition in today's market. Therefore, if you want your business to be successful, you need to create a truly unique product. To get started, decide on your target audience. Who is your product intended for? Only having decided on this issue, you can correctly build a development strategy. Choosing the right products for an online store is one of the most important factors for your success.
Where to look for ideas?
You can look up possible ideas for an online store by looking at the list of the most popular products sold through such popular online stores as Amazon. Also your friend on this issue could be Google Trends. In this case, the list of ideas for implementation through the online store is best reduced to three. Thus, you can competently concentrate your own starting capital and advertising budget.
Most Profitable Products
To date, the list of the most profitable products for sale through online stores will look something like this:
- Video games.
- Phone accessories.
- Accessories for TVs.
- Sunglasses.
- Kids toys.
- Jewelry.
These are fairly inexpensive e-commerce products that can bring you a good profit. There are also trending products that are relevant at a given time. It can be anything - from essential oils to branded socks.
Extra charge
How to maintain the profitability of your business? According to studies, the best indicators show products worth $ 60 or less. For most buyers, spending $ 40-60 does not cause much hesitation. Therefore, products of this price category are able to bring the maximum possible profit. But before ordering price tags, calculate the profitability of the enterprise. To do this, you need to consider the costs of purchasing products, labor and other expenses. Thus, you can find the breakeven point.
Shop by yourself
In this case, not independent production is meant. Although if you can create unique things, then you can completely sell them through your own online store. You can master areas of expertise such as accounting or marketing. Of course, this method of organization may seem rather tedious to you. However, at the same time, it allows you to better control your business.Doing all the work yourself, you will understand how much money your store actually brings you.
Kickstarter
Platforms like GoFundMe and Kickstarter will help you get your business idea across to your audience. In fact, these tools are designed specifically for consumer products. This is a great way to organize pre-sales of products. In addition, using this scheme will help you create additional channels for advertising that do not require costs.
Credit application
Suppose you have a small supply of cash to open your own online store. But, like in any other business, online commerce often has unplanned cash spending. In this case, you need at least a small financial pillow, which will help cover the costs. Today, many banks offer special loans for entrepreneurs at a low interest rate. Of course, if you take a loan for business development, you will have to provide a decent package of documents to the bank, which includes the business plan of the entire enterprise. Therefore, it is better to keep the following documents ready:
- Summary: here you need to briefly and succinctly formulate the idea of your business, describe the products, highlight the main goals. This document should show potential investors what products you intend to sell and how it differs from competitors' products.
- Description of the company: here you need to provide basic information about your qualifications. You can also set out your business model here.
- Products: what makes the products you offer unique? How do they differ from the rest? Also here you should list the prices of goods sold by you, show the possible profit.
- Market analysis: investors also need to provide information on the brief state of the industry as a whole. To do this, you will need to analyze several competitors.
- Marketing strategy: this should include a detailed description of promotions and customer loyalty programs.
- Operational plan: an important part of the plan, which presents the features of your store, the specifics of delivery and order management.
- Financial plan: it is unlikely that you will be able to find an investor who agrees to give you money without knowing the financial condition of your company. The financial plan should include a description of the profit and loss of the company, as well as current assets and operating expenses.
Using social networks
Today, many entrepreneurs know that social networks are one of the best ways to attract buyers and customers. Particular attention should be paid to this marketing channel. However, do not think that promoting your product on social networks will not cost you anything. This requires significant time, and possibly financial costs.
In order to run a successful marketing company on social networks, it is important to engage as many channels as possible. Different platforms give you access to different audiences. Experts recommend focusing on the following options:
- Facebook Specialized Groups: The marketing campaign on this social network should be very careful. Before placing an advertising publication, be sure to read all the conditions.
- Instagram: A great way to keep your audience focused on your product. You can also negotiate with popular bloggers about advertising.
- Tumblr: A platform designed to promote niche products.
Conclusion
Creating your own online store will require you to be fully committed. Having start-up capital does not guarantee success for your company. There are a number of factors that can affect the development of a business.However, if you have correctly decided on the choice of a product, competently built an advertising campaign and planned a budget, then you can count on success.