There are over 24 million eCommerce companies that are present online. Out of the millions of the online businesses that are activated, only 2% of them produce more than $1,000 of revenue annually. In the startup culture that we live in, people value new ideas and creative thinking. In order to see success in a competitive market, it is critical that individuals take the opportunity to invest in the right things that will lead their business to success.
Although the market for direct-to-consumer (DTC) sales has been growing consistently for the last decade, the economic shifts caused by the COVID-19 pandemic are expected to skyrocket the growth of this market rapidly. Now, consumers can have easy access to retailers through social media shops, online platforms, and live streams. Although there are many advantages of DTC companies, there are distinct disadvantages including an increased liability, cybersecurity data risks, and increased complications in the supply chain. Due to these challenges, brands must consider their capacity before launching their services. In this article, we will share three things that all entrepreneurs should do before launching an ecommerce business.
1. Invest In Marketing
One of the biggest mistakes that new companies make is the decision to skimp on their marketing efforts. Many brands think that they can provide products to customers and their marketing efforts will come later. Unfortunately, brands have an extremely difficult time growing their audience without proper marketing. When you invest in marketing, you grow your ability to reach new customers, maintain current clients, and promote your products. Your branding is your personality, and it is what helps you develop a relationship with clients. If you are looking for a third-party marketing partnership, Bomme Studio is an amazing fashion marketing agency that helps entrepreneurs in every step of the brand experience.
2. Develop a Customer Persona
A customer persona is a description of an individual that depicts the ideal audience member. When you develop a customer persona, you get to know the nuances of your consumer base on a deeper level. Typically, these descriptions are highly detailed, helping you understand the daily habits of the audience you are hoping to reach. When you invest in this research, you can mold products, services, and messaging that consumers can relate to. This persona is developed based on demographic and psychographic intel. When you develop this identity, your messaging will be increasingly thorough and relatable.
3. Make a Business Plan
A business plan is a written document that outlines outcomes, processes, methods, and time-frames for a company. These guidelines help business owners maintain fiscal responsibility and adequate intuition into the future success of the company. In many cases, a business plan outlines ways that you will pivot if success is not occurring. In addition, there are backup plans that can be activated in case of an emergency. When you flesh out the details of this plan, you will be prepared for any unexpected challenges that you may face along the way. Not only will this plan hold you accountable, it can be used to gain rapport with potential investors and board members. Some of the primary objectives of this plan include:
- Developing legitimate guidelines that lead to economic success
- Develop restrictions that will guide the organization if it is failing
- Secure funding from investors
- Develop rapport among the community
- Assist business owners to stay on task, keeping the primary purpose of the organization in mind
Oftentimes, people compromise their mission and vision in order to experience quick success. By outlining a thorough plan, you will likely gain more momentum as a brand.
Starting an ecommerce business can be extremely challenging. Not only is it difficult to receive adequate funding, it is hard to gain traction. Before starting a business, it is important to network and determine if there are enough people who will be interested in your products and services. As you begin to take action items towards the initial launch, invest in marketing, research, and development that can help validate your ability to succeed as you continue to grow.