An Online Business In A Down Economy

Significant changes has been seen in the economy. None of these changes are worthy of a celebration. We have seen people loosing their homes and we have seen people loosing their jobs. All of which can be attributed to the economic crisis the world is facing. Anywhere you go the effect of this predicament is evident. We all know that we are in an unstable economy right now. However, do not be disheartened with these things. Remember the saying, “When one door closes another opens.” So even if things are not looking bright as far as the economy in general is concerned there is always an opportunity out there waiting for us. One opportunity I am talking about is starting your online business.

This is hard to believe that is true, but this article I have read might change your mind:

“Forrester analyst Sucharita Mulpuru said the majority of the 2009 growth in online spending will come at the expense of physical stores. She expects more consumer dollars to be spent online because it’s easier for people to comparison shop and to find what they’re looking for.

Online sales are expected to make up 7 percent of overall retail revenue in 2009, compared with 6 percent in 2008.”

Some people who lost their jobs actually started to set-up their own businesses online. The capital that you need to start an online business is minimal as compared to a brick and mortar set-up. After all, an internet-based business grows our marketplace to a global one. Customers will flock from all sides of the world that is how the online business works. For as little as $5,000 (or less) you can actually start that business online.

Here are some of the best practices that aspiring entrepreneurs should know:

1. 
   
   Focus on a certain group. We all know that when you start an internet business you are going up against Walmart and Target (considering you will enter the online retail space). Being able to detemine your niche is the first step to producing a successful online business. A successful online business is built around one niche. The products / services that you offer should be able to resolve the current problems of your target niche. Your site content should provide information about your niche. Creating an online business around your niche helps you rank better at search engines, positions you as an expert, and creates buzz in your industry.
   
2. 
   
   Offer an innovative marketing system. The best example for this best practice will be Diapers.com. This online company is a small retailer of all sorts of baby products. They sell diapers, baby wipes, etc. But the good thing about this website is their marketing strategy. Every customer who refers someone to the company receives a discount. We all know that discounts are highly valued especially nowadays when money is tight. So offering an innovative marketing system is one best practice that entrepreneurs should know of.
   
3. 
   
   Always remember that price is important. Even if you are selling a niche product, remember that customers are still after how much the product is. However, it is hard to compete with big box retailers when it comes to price that is for sure, but you can always make up for it by providing value on the products that you offer. In doing so you sort of divert your customer’s attention off the price.

Offer unique products to your target market, come up with an innovative marketing strategy and a promotion that will help customers deflect prices are important business strategies. To conclude this article, an Online business is something that is hard to turndown. Even if we are in a middle of recession the growth of Online businesses cannot be stopped. Moreover, the Internet is a huge place, and there would always be customers on the lookout for something new.