In this episode we will be looking at what you need to consider when starting an Online Store | 5 things to consider..
- Creating Value for your potential customer
- Delivering that value into your customers hands
- Managing your business finances
- Marketing and
Welcome to the fifth episode of the GrowthStart insights podcast. Today we’re gonna be looking at five things that you need to consider before starting your online store. Let’s have a look.
When we break down the creation of a business, we are left with five fundamental pillars in its creation. The first pillar is value creation. That’s all about creating value in our product or service. Then we have value delivery, that is the entire process of how that customer gets that product into their hands. Then we have finance, how do we finance the entire business, what are the revenue streams, what is the profit margin. Then we have marketing, the fundamentals of gaining interest, attracting a customer, creating desire and then driving that action in form of a purchase. We also then have the sales aspect in a typical online business. That would be what we would call a sales funnel. Where we have a ton of people that are interested in our product or service and then we break it down and really create that desire and eventually create that purchase.
When we talk about value creation, what is that? What is valuable for a customer? Typically we’ll look at the benefits and features of a product. That’s not necessarily the selling aspect of the product.
What makes a customer actually buy the product is seeing the benefits applied in their actual life. If you can make that customer see how their life would be with the benefits your product provides, that is true value creation.
You obviously need to talk to your potential customer, think about who that would be. Things like the demographics, is it male or females, what are the age groups, what are their interests and then what would really provide value to them for your specific product?
Think about your competitors and what other things that you can either improve on or what can you do totally different to make your product better and more valuable. The key thing here is that value. You really need to get that down. If you get that down then you have a selling product.
Next up is value delivery. When we think about value delivery, that is the entire process how your customer first perceives you and your product and how that product eventually gets into their hands. So if you think about what the experience would be on your website when they first come onto your platform. What do they see? What do they experience? How is the checkout process? Is it a simple process and then what happens when that product actually gets delivered.
Do you own the delivery process or do you outsource to a courier? Things you might not have control over is how that courier person handles the customer. If the customer has any questions, they won’t be able to ask that courier person, because it’s a third party and they might not have knowledge about your product. If you own that part of the business, you have control over how your customer perceives you even when that product actually goes into their hands.
You need to take careful attention in that value delivery process, because that will make the decision whether that customer actually will come back or not. Your product might be extremely valuable to the customer, but if that process of actually getting that product is not that great, they probably won’t come back for the next time.
So finance this is the big one that all of us worry about. How do we manage the costs of running this business and how do we make sure that it’s profitable? The number one tip that I can give you is to make sure that from the start you pay careful attention to jotting down every single piece of income and every expenditure.
If we can keep our expenditures low our profits will then in return be higher and this is our ultimate goal. When we have a business we want to make money from that business right? There are simple ways of doing this for free. Firstly you can use a excel spreadsheet, just to keep track of that income and expenditure and what’s left that’s your profit.
The key is always to keep those costs down and how do we do that? We can use free and open source tools when we start out our business to keep that costs as low as possible. There are tons of free things available that we do not have to pay hundreds of Rands for on a service provider that hosts our online store. We can do it way cheaper than that.
There are free marketing platforms available, if you think about content marketing it is free. It will take you some time to go and write an article or to do a YouTube video as an example, but you do not have to pay for ads from the start. Especially in the start it is important to first concentrate on that organic growth. If we get the organics down the rest is simpler.
When I think about marketing, I think about attracting a person, then creating interest in that person in my product or service. Once we have the person’s interest, we need to create a desire. Again back to the value creation part we spoke of. When you have that value, we can use that in our marketing messages. The person will see that value.
When we’ve made them see that value, that’s when we spark desire in that person. So now they have a desire for a product and service and then we throw out what people refer to as a call to action. Buy my product, buy my online course, sign up for a service, get a free coaching session or whatever your product or service is in line with.
It is all about the messaging. How do you create that interest? How do you attract that customer? What is the first thing that they’re gonna see? Where are they gonna see that? Now if we really think about our value it is so much easier to ask these questions about how do we get that interest, because if we’ve got that value clear then we know what our customer wants to see themselves as. We can create our messaging in line with that once we’ve got the desire. Now we can drive a purchase of a product or service.
We’ve attracted this person to our website or to our platform. They have a desire to follow up on that call to action that we gave them. The next thing is, how do we drive that sales process? Typically for this I would use a sales funnel. You’ll have this on a website, specifically a landing page and then we’re going to answer those key objections that that customer would have had. Normally it would be, ah but I think this product is too expensive or I’m not quite sure that I’m going to actually get the value that you’ve told me that I would get.
Think about a landing page where you answer all these objections, you give full detail of the features and benefits that your product will provide and then we create some kind of urgency to actually close that sale. On a typical landing page you would see there are no buttons, there are no menus besides the one to actually go to the checkout form. We don’t want to distract the customer in this process. We want to make sure that we answer any objections that will be left. We want to make sure that the benefits and the reasons why they need to purchase this right now is clear and that’s how we really drive that sale home and make sure that we close it.
The more you do this the more you’re going to have the data to actually know what these objections are for your particular customer and what are the little things that you can improve on in that sales funnel process to make sure that your closing rates are bigger and that you drive better conversion on your sales.
That’s it. These are the five key things that I think you need to know when starting your online business. If you really have a detailed think about all of what we spoke about and you write it down, you can ask yourself the right questions. Ask the questions that those customers would be asking and then really think holistically about this entire process.
If you do that I guarantee you you’re going to make a success of it. Please comment with your questions and subscribe to our channel. We really appreciate it and we’d love to make you more content just like this. Thank you.
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