Conducting a business online is something worth pursuing, as is the case for any traditional business. But what are the principles of online business?
There are some things you have to keep in mind when starting out. Learning the right skills will make it easier to grow your business over time.
In this article, I will briefly discuss the difference between offline and online businesses. Shortly afterward, I will go over the five key components of an online business.
UPDATED: JANUARY 16, 2023
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- The Difference Between An Online And Offline Business
- Niche Research
- Keyword Research
- Content Creation
- Distribution & Social Sharing
- Outsourcing & Scaling
The difference between an online and offline business
There’s a difference when it comes to an offline business and an online business. Keep in mind that businesses operate like any type of business, but there are key differences between both.
- An offline business can be referred to as a physical location, or known as a brick-and-mortar store. In essence, the business is tied to a specific location. The online world evolved over the years, causing something called retail apocalypse.
- On the other hand, an online business is fully present on the internet (mainly through a website). Other places can be a social media channel or a vlog.
An online business can do business anywhere around the world, so it can open up to a bigger audience. It also means there’s no need for acquiring office space or being tied to a specific location.
For brick-and-mortar businesses, you can have a website just to have that online presence. But the benefit of going strictly online helps with not having to go through common regulations a traditional business would be subject to.
Let’s now dive into the five components of an online business further (step by step).
What are the principles of online business?
An online business is broken down into five components, including niche research, keyword research, content creation, distribution/social sharing, and outsourcing. Let’s go over each of these in more detail.
Choosing your niche is critical to running a successful business. To put it in simple terms, a niche is a specific area that interests a group of people. Whatever industry it’s in, it breaks away from going too broad when reaching out to people.
Breaking it down makes it easier to discuss a niche in general. Doing your research is necessary before picking a niche.
Some common places to consider for research include:
- Google Search
- Q&A forums (i.e. Quora, Reddit)
- Amazon (look for the latest/popular products that are trending)
Unfortunately, some people don’t take the time to research a niche. So it’s no surprise when down the road, they end up frustrated or may not get the desired results they want.
A niche is a specific area that interests a group of people. No matter what industry it’s in, it’s designed to narrow down a specific audience to cater to their interests.Eric T. Seil (Founder/editor of notimekillers.com)
For any online business, keywords are the ingredient to making a business visible online. I consider it to be the lifeblood of an online business- any business thrives on picking the best keywords.
Without keyword research, it’s much harder for your business to be discovered online. Keyword research is a skill to master over time with the right mindset.
If done properly, you can get a lot of traffic to your website for free (or what I refer to as organic traffic). You can do keyword research for free- without using a keyword tool at all.
The best way to do simple keyword research is by using Google Autocomplete. As I wrote about before, you can find real-time suggestions of what people are asking for through Google search.
It’s a great way to get ranked on the first page of Google, especially when it comes to finding user-generated content. I’ll dive more into this component in future posts, since picking the right keywords can make or break your business.
A relevant article from notimekillers.com
Read next on “How Can I Find Keywords For My Website? Free 5-Step Guide“, to learn how to do keyword research for free using Google. You will be surprised to see what you can get out of using the search engine.
Creating content is the most important aspect of online business; in other words, it’s the focal point of creating a successful online business.
I cannot emphasize that enough, as that should be the primary focus when starting out in the online world. It’s very important to stay consistent with putting out more content, as it will make a difference over time.
Content creation can come in the following forms, and I believe these are the best categories to take advantage of today:
- Writing articles (blogs)
- Audio recordings (podcasts)
- Recording videos (YouTube)
If you’re wondering which of these is the best one to go with, consider the following:
- Do you like typing? Do you prefer not to be on camera or talk?- Then go into the blogging direction.
- Do you like talking, but don’t want to be on camera?- Then podcasting might be the best alternative.
- Do you enjoy making videos and showing yourself on camera? Or is writing not your best strength?- Without a doubt, start a YouTube channel.
Later on, I will go over how to write effectively when it comes to blogging. Or in other formats (i.e. video), I think it’s essential to know how to communicate well with your audience.
Also, I may go over how to make basic videos for your content. Now more than ever, video content has become more mainstream. Look no further than YouTube- there are tremendous opportunities to grow a business through a YouTube channel today.
Once the content is created, we need to get it out to the masses. What’s the point of creating content if it’s not being seen by anyone?
That’s where it needs to be distributed in the right places. Whether that’s through social media networks, email lists (or even basic SEO), we want people to review the content we create.
Those viewers are potentially long-term customers that can turn into great relationships. So for each visitor that lands on your website, signs up to your email list, or subscribes to your YouTube channel, that’s an opportunity to create a long-lasting connection.
Where exactly to distribute your content?
Social media has evolved over the years. While social media marketing is still relevant for businesses today, some networks have become less effective for marketing your business.
Depending on your business (i.e your niche), picking the right places to share your content is key. You might consider using Instagram or Pinterest to promote your niche if it is more visual (for instance, food).
For me, I prefer doing SEO along with picking a few places to share my content, including YouTube and Pinterest. In the future, I’ll go over what has and what has not worked for me.
Outsourcing & scaling
Once your business makes money and attracts an audience, it’s time to consider reinvesting in your time. Basically, you have two options:
- Spend that money on “stuff” (AKA Crap)
- Reinvest the money you earned back into your business
Let’s be real: At some point, you’re going to need some help in your business. So if you’re disciplined with the money earned, you’re going to put it aside for hiring and outsourcing your work.
If you know how to outsource properly, it can be easy to automate or delegate tasks to other people. These can be tasks you don’t enjoy doing, or simply to open up more time to work on tasks that grow your business.
For example, these can be basic administrative work that doesn’t benefit your time. Or if you’re like me who’s not a social media fanatic, delegate your social media management to people who enjoy doing that work.
What’s the big takeaway from outsourcing?
Here’s the biggest benefit: You get more time back; plus, you’ll be more efficient as well.
Also, you can look into automation tools or services to help you save time. That can be another alternative to hiring individuals, but that’s up to you.
The main purpose is to buy time- the idea of having others do things you don’t find the best use of your time. As I mentioned before, you need to work ON your business, instead of IN it.
As your business grows and becomes profitable, it’s something you need to practice and keep up with. If the purpose is to have more time and freedom, then it’s worth making an effort into it.
A relevant article from notimekillers.com
Read next on “How To Find Your Niche For An Online Business: Best Guide“, to learn how to choose a niche you have passion for. Finding the right niche is the key to success for any website you create.
An online business is similar to any type of traditional business; however, there’s an emphasis on going completely remote to conducting business.
Remember, there’s no such thing as an online business being easier than an offline business. It requires work, time, and effort like any other business to see excellent results.
The five points mentioned earlier are the founding blocks of conducting online business. Following these components will make the process easier, and help build trust and authority in growing a brand.
Whatever route you take, I believe going into online business is an adventure worth diving into. Creating a potentially lucrative business will take some time at first, but it’s worth the effort.
There are four simple steps to starting a business online. Learn the basics on how to do that in this exclusive one-hour expert class. Dive into the video below and sign up for a free starter test drive to get going today.
WATCH: “The 4 Steps To Creating A Successful Business Online” by Kyle Loudoun, co-founder of the Wealthy Affiliate Platform.
Your Turn: Do you find an online business to be worthwhile?
I would like to get your thoughts on this topic. Have you ever wanted to start a business, but thought it would be difficult?
Do you realize the potential of starting a business online? Is it possible to make a living by writing, or even making videos?
Which of the five components intrigues you the most? Which one do you think will be the most challenging to work on?
Feel free to share your thoughts by leaving a comment below. I look forward to reading your responses, and I’ll gladly respond promptly.
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Eric is a content writer and the site owner of notimekillers.com. He takes great pride in helping people manage their time and grow their businesses. Eric is a firm believer in time freedom, as he believes in taking ownership of time. “Time is your most important asset. It can be your best friend or worst enemy. How you use your time can shape the future you desire to have.” In his leisure time, Eric loves to write and read whenever possible. He enjoys going for long walks outdoors while doing in-home workout videos every week. You can follow Eric on LinkedIn.
4 thoughts on “What Are The Principles Of Online Business? 5 Components”
Great information! I am about four months into my online business, and I am anxious to start to see some results.
I know it takes time, and I am willing to put in the time to see it through. While I like to create content, that is where I am holding myself back.
It is the time to create the content that is slowing me down. I am almost to the point in the WA training to get into social media, and I think that will really jumpstart my business.
At some point, I will look into outsourcing. At what point would you consider outsourcing work?
It can feel normal to want results sooner than later. Believe me, I’ve been there before, and it helps to stick with it no matter what.
Creating content is the one thing people may feel crazy about; however, it’s the key part to growing any online business. Content creation is the key to the long-term success of a business.
It’s good you’re going through the training, but still remain focus. Don’t get too far ahead and take shortcuts- just take it one lesson at a time. Learn and take action.
Regarding your question, I would not outsource until you start earning revenue. Once the commissions are steady enough where you can create a budget for hiring, then I would do it then.
So I would go down that route. But that’s something to consider later down the road.
Thank you very much for sharing your thoughts- I greatly appreciate it.
This is some great information. I agree that online businesses are growing businesses.
These are some great principles to go by when someone is thinking about starting a business or growing their business.
Most people fail in the online business world because they expect instant results without doing any research.
Niche research is key. If you are knowledgeable then you can create good and engaging content.
These principles are foundational to growing any type of online business. I believe they are at the core of succeeding in business.
You’re right to point out that many people fail in the online business world. This idea that they can get quick results is just unrealistic.
There’s no such thing as an overnight success, or getting rich instantly. That’s not how the real world works.
Without doing any research, or putting in the work, there is no point in doing business. Whether you’re doing niche research or keyword research, those are important parts of growing an online business.
When you do that you build your way to becoming an authority in your niche. That’s the whole point of doing business- it’s about people trusting you while being engaging at the same time.
Thank you very much for sharing your thoughts- they’re greatly appreciated.