Is It Easier to Start a Small Business Online and Succeed Than it Used to Be?

A few years ago the answer to that question might have been no!  But things are changing and changing fast.

According to recent research done by Forrester Research which compared the results of 2009 with those of 2008:

• 42% of retailers increased their visitor to order conversion rate in the first half of the year.
• In 2008 web sales grew 18% compared to 2007.
• 50% of online retailers surveyed during the first half of 2009 were optimistic about sales over the next 12 months.
• A massive 87% of online retailers said their ecommerce operation was profitable last year.

Is Running a Home Business Easy?

The answer to that is definately no.  All of the ecommerce businesses questioned above said they worked hard to  improve their business management.  Here are 5 key reasons they felt they prospered and succeeded.

1. Profit Margins Rule OK.  91% of online businesses said that a key factor in their success lay in keeping their profit margins healthy.  And that meant not trying to compete by lowering prices, offering two for one, free delivery or other enticements such as daily deals.  They focused on the value of their offering and made sure their customers were delighted.
2. Promotion, Promotion, Promotion.  88% of internet business owners said that they increased promotions.  The majority again focused on highlight the value of their products.
3. 20% of Customers Produce 80% of Profit.  That is very much a rule of thumb, but check your books - you will find that the concept works even if the figures are not perfect for you.  Customers are not always king. Look at your figures and sack any customers who are costing you money.  If this is not possible focus on the really profitable end of your business and the rest will fall away.
4. Grab a Bigger Slice of Your Market.  81% of those successful e-marketers said they worked hard at building market share.  In order to do so they focused on understanding their customers and their competitors and publicised every advantage they had over their competitors.  
5.  KeyWords are - Well Key Words  Marketing on the internet is very different to other methods.  Understanding what keywords your customers will use and integrating them into your web design and content as part of your marketing strategy is vital.  Don't waste time on it - but don't neglect it either.

Don't forget you can get more free resources at our website if you need help with setting up your small business online.