Types of Online Businesses: A Guide for Future SMB Owners


Starting your first online business can be challenging but rewarding.

Take a look at the step-by-step guide below.

1. Define Your Idea & Niche Down

The first step is to define your idea and niche down.

Consider what you are passionate about and what kind of business you want to build. 

Consider the types of online businesses we discussed above and any other ideas you may have.

You don’t want to choose something too broad, so be sure to niche down and focus on a specific topic or audience.

Niching down means focusing on a smaller, more specific area of interest.

Example: Instead of a podcast about Travel, start a podcast about traveling in Mexico. 

2. Research the Competition

Once you have a clear idea of what you will do, it’s time to research the competition.

Check out other businesses in your niche and see what they are doing.

Research the following:

  • Services
  • Prices
  • Marketing Strategies
  • Customer Reviews
  • Gaps in the market

Get an idea of how they are doing and how successful they are.

You need to stand out from the competition, consider how your business will be different, and what you can offer that is not already available.

3. Prototype Your Business

Once you have a good idea of what the competition is doing, it’s time to prototype your business.

A prototype is a basic version of your online business that you create to test out your ideas and see if they will work.

Create mockups or wireframes of your website, product, or service. This will help you visualize how your business will look and function.

You can also create prototypes using online tools such as Figma or Invision. These tools allow you to create interactive prototypes of your business.

4. Get Customer Feedback

Getting feedback from customers is essential. It is important to know what customers think about your idea and how it can be improved. 

You can get feedback by surveying current or potential customers, interviewing them, or even having them test out a prototype of your product or service.

This will give you valuable insights into what people like and don’t like about your idea and can help refine it.

5. Refine Your Idea

Once you have customer feedback, it’s time to refine your idea.

Return to the drawing board and make any changes or adjustments that customers suggested.

Ensure you focus on what customers want and need from your product or service.

Don’t just make changes for the sake of making them – focus on what will help you serve your customers better. This will help you create a successful online business.

6. Write a One Page Business Plan

Now that you have a refined idea, it’s time to write a one-page business plan.

A business plan is a roadmap for your business.

It should include information about your product or service, how you will market it, how you will make money from it, financial projections, and a timeline for reaching your goals.

Writing a one-page business plan is important because it helps you stay focused on the key aspects of your business and makes it easier to communicate your idea to potential investors.

6. Fail, Refine, Fail Again  

Once your business concept is laid out, don’t be afraid to try new things and fail along the way. 

You’ll be surprised at the things you thought wouldn’t work, and the things that didn’t that you thought would work. 

Fail plus reflection equals progress! 



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