9 Questions to Ask Yourself Before Opening an Online Business

Opening an online business can be a fantastic way to achieve your personal financial goals. It can come with less risk and cost than opening a physical business. But, it still takes a lot of dedication, time, and usually a financial investment to get your online business up and running.

Here are some questions you can ask yourself to gauge your readiness.

What is a good business to start? The best business to start is one that serves a specific need with sufficient demand. It’s also a good idea to choose a field that you have some expertise and interest in.

What do I need to open an #onlinebusiness? Consider what you need to open an online business. Opening an online business requires less materials and overhead than a physical business. But, you’ll still need to assemble, plan, or create some things to get off the ground. These could include an idea for your product or service, a marketing plan, business branding, a competitive advantage, a financial plan, business software, hardware or equipment, and a legal and accounting framework.

What is my competitive advantage? Your competitive advantage is what makes your product or service unique from other sellers or providers. This could be your niche, your personality, your branding or style, product quality, product benefits, or more. But don’t try to compete on price. It’s a race to the bottom. Dig deep to find your specific topic and use that as the jumping off point to determine your competitive advantage.

Oat is my risk tolerance?valuate your risk tolerance. Are you willing to give everything you have to make your dream a reality? Or are you more cautious and want to make sure you have backup plans? No way is right or wrong. But, thinking about this before making large scale business decisions can help you stay on the track you see best for yourself.

How much time do I have to spend on my business? Look at your schedule and see how much time you have to spend on your business. Are you able to work on your business in your free time, or are you going to have to sacrifice other potential income-generating opportunities to make time for it? It may take longer if you’re working on your business on the side, so set your expectations accordingly.

Do I have sufficient business funding? Do you have enough capital to open a business? Even an online business with minimal overhead needs some kind of funding for things like software, equipment, and covering your own personal financial needs until you have profits from your business. Many business experts recommend having three to six months of operating expenses available in liquid assets.

When can I launch my business? Next, you’ll need to plan the timing of your business launch. If you set a timeline for a goal, you’re more likely to achieve it. Give yourself ample time to lay the business foundation, create your product or service, and begin your marketing. It’s okay if this is months in the future. It’s better to be prepared for your launch than rush and stumble.

How should I market my business? Consider how you’ll market your business. Blogging, organic social media, email marketing, and cross promotion are great and inexpensive ways to start. Regardless of the specific choices you make to market your business, one key best practice is to diversify your marketing channels.

Am I ready to open an online business? The last thing to consider is if you think you’re ready. Many business owners say that someone is never truly ready, but you’ll know you’re on the right track with a few key indicators. If you have a product or service ready for sale with a website and marketing materials, some business funding, and future plans for your business, those are all great signs.

Whether you are starting out with your online business as a side hustle or already a small business owner, Kajabi has the tools you need to build an online business. With Kajabi, you can sell knowledge products like online courses, membership sites, private podcast episodes, digital downloads, or coaching.