The world of digital business has grown exponentially in recent years. With the democratization of the internet, more and more entrepreneurs are exploring this medium to launch new products and services and build strong and sustainable brands.
The global e-commerce market is estimated to reach $7.4 trillion by 2025, growing at a compound annual growth rate of 14.7% between 2020 and 2027 (Statista, 2023).
However, starting a digital business from scratch involves a series of strategic and technical steps. This guide will provide a complete overview, from idea validation to execution and scalability.
Understanding the digital market landscape
Before we dive into the practical steps, it’s important to understand the landscape in which digital businesses operate. According to a report by eMarketer (2023), e-commerce represents 19.5% of all global retail sales and this number continues to grow.
Additionally, the growth of social media platforms and the increased consumption of digital content have made digital business a powerful avenue for companies of all sizes.
Some of the most popular digital business segments include:
E-commerce: Online stores that sell physical or digital products.
Infoproducts: Online courses, e-books and other information products.
Affiliate Marketing: Promoting third party products and earning a commission.
Software as a Service (SaaS): Companies that sell software on a subscription basis.
Consulting and coaching: Offering expertise in exchange for a fee.
Each of these segments presents its own opportunities and challenges, and it is essential that the entrepreneur understands where his or her business idea fits in.
Idea validation
Validating a business idea is one of the most crucial steps in developing a digital business.
Often, entrepreneurs invest time and resources in an idea without first validating whether there is actually market demand.
Market research and competitor analysis
To validate an idea, the first step is to conduct comprehensive market research. This includes:
Competitor Analysis: Use tools like SEMrush, Ahrefs, and SimilarWeb to understand who your competitors are, what keywords they are ranking for, their estimated traffic, backlink strategies, and how they are positioned in the market.
Keyword research: Google Keyword Planner and Ubersuggest are great for understanding the search volume around a specific topic. If a lot of people are searching for a db to data specific solution, that’s a good sign of market demand.
MVP (Minimum Viable Product) Testing: Create a simple landing page explaining your value proposition and promote it through paid advertising on Google Ads or Facebook Ads. Analyze the conversion rate and click-through rate (CTR) to determine interest.
Validation with the target audience
A survey conducted by CB Insights (2022) found that 35% of businesses fail because there is no market demand. To avoid this, you can:
Conduct interviews with target audiences: Speak directly with potential customers to understand their pain points and needs.
Creating surveys and questionnaires: Use tools like Google Forms how to unite the audience around the brand or SurveyMonkey to collect quantitative data.
Structuring the digital business plan
Once you’ve validated your idea, it’s essential to create a robust business plan. A digital business plan needs to be detailed and should include:
Value proposition
Your value proposition is what sets your business apart from the competition. It should be clear and compelling enough to attract your target audience. Ask yourself:
What specific problem does twd directory my product/service solve?
What unique benefits do I offer?
Revenue model
Defining how your digital business will make money is key. Some common revenue models include:
Direct sales: Sale of products or services.
Subscriptions: Recurring payment models, common in SaaS and streaming services.
Affiliates: Earn commission by promoting third party products.
SWOT Analysis
SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) is a strategic tool that helps to understand the scenario in which the business finds itself.
Use it to assess both the internal and external environment.
Financial planning
Financial planning is vital for the sustainability of a digital business.
It is important to set a budget, identify funding sources (such as angel investors or venture capital), and forecast revenue projections.
Building an online presence
Having a solid online presence is crucial for any digital business. This starts with creating a professional website and a robust content strategy.
Website development
Your website is the showcase of your business. Here are the essential steps:
Choice of platform: WordPress, Shopify, WooCommerce, among others, depending on the business model.
Responsive design and user experience (UX): According to Think with Google (2023), 53% of mobile users abandon a website that takes more than 3 seconds to load.
On-page and off-page SEO: Search engine optimization is essential to attract organic traffic. Use techniques such as keyword optimization, link building, and improving site speed.
Content Strategy and Digital Marketing
A well-planned content strategy can set a digital business apart from its competitors. Here are some things to consider:
Content Marketing: Creating blog articles, videos, infographics, podcasts, e-books, etc. Businesses that use content marketing generate 3 times more leads and cost 62% less than traditional marketing (Content Marketing Institute, 2022).
SEO (Search Engine Optimization): Technique to improve visibility in search engines. Websites on the first page of Google receive 95% of all clicks (Backlinko, 2023).
Email marketing: Email campaigns have an average ROI of 4,200% (DMA, 2022). It’s an excellent way to nurture leads and convert customers.
Paid media (PPC – Pay-per-click): Facebook Ads, Google Ads, and Instagram Ads are effective for reaching new audiences quickly.
Launch and growth strategies
Once you’ve built a solid foundation, the next step is to launch your digital business and scale it.
Launch strategies
Launch offers: Exclusive discounts, bonuses, and free products can help attract early customers.
Influencer campaigns: Partnering with relevant influencers can expand your reach. By 2023, influencer marketing is a $21.1 billion industry (Influencer Marketing Hub, 2023).
It involves rapid experimentation across different channels and strategies to discover the most efficient way to scale the business.
Common tactics include:
A/B Testing: Constantly improve the conversion of landing pages, emails, and other materials.
Marketing Automation: Tools like HubSpot and ActiveCampaign to automate marketing processes.
Metrics and KPIs Analysis: Use Google Analytics, Hotjar and other tools to monitor and optimize performance.
Digital business management and scalability
After launch, the focus shifts to efficient management and scalability. Some points to consider:
Customer Relationship Management (CRM)
An efficient CRM system can help you manage leads, customers, and interactions. Platforms like HubSpot, Salesforce, and Pipedrive are popular for customer relationship management.
Operational scalability
To grow sustainably, you will need to invest in infrastructure, technology, and staff. Operational scalability includes:
Process automation: Implementation of automation systems for repetitive tasks.
Team expansion: Hiring new talent as needed, especially in areas like digital marketing, product development, and customer support.
Conclusion
Creating a digital business from scratch is a challenge that requires strategic planning, market validation, rigorous execution and constant adaptation to changes.
With a global market that continues to grow and evolve rapidly, the opportunity for entrepreneurs is enormous.
