Tips that save time.
Let’s talk about what really matters when it comes to building an online business.
Having a great idea for a product or service is just the starting point. To truly succeed, you need a solid foundation that can support your growth, roll with the punches, and stand up to challenges.
I want to introduce you to the six key pillars of online business – each one I argue crucial to your long-term success. Whether you’re just getting started or looking to strengthen what you’ve already built, understanding these pillars is essential.
In this post, I’ll break down these six pillars. We’ll explore how they work together to support your goals and help you create a lasting online presence. It’s not always glamorous, but it’s what separates the businesses that thrive from those that don’t make it.
So let’s get into it. These are the building blocks you need to know about:
1. Operations and technology
The backbone of any online business is its operations and technology. This pillar covers everything from the tools you use to manage your website, ecommerce platform, and payment processing, to the systems that handle inventory, customer data, and order fulfillment. Reliable and efficient operations are crucial for ensuring that your business runs smoothly, scales effectively, and delivers a positive customer experience.
For most small businesses, WordPress is more than adequate as a website platform. It’s flexible, user-friendly, and offers a wide range of plugins that can add functionality without requiring advanced technical skills. Whether you’re running a simple blog, an ecommerce store, or a membership site, WordPress can handle it. Additionally, it integrates well with other tools and services, making it a versatile choice for businesses of all sizes.
However, to get your WordPress site – or any website – up and running, you’ll need two other essential components:
- a domain name and
- web hosting.
The domain name is your website’s address on the internet (like yourbusiness.com), while hosting is where your website’s files are stored and served to visitors. It’s important to choose a reliable hosting provider, as this affects your site’s speed, security, and uptime.
Hosting is actually one of the more complicated aspects of computer technology, but the good thing is that you don’t have to know a lot about it in order to work with your website. Many hosting providers, like Bluehost or SiteGround, offer one-click WordPress installations, making it easy to get started.
Automation is another key aspect of this pillar. Streamlining repetitive tasks – such as email marketing, social media posting, or order processing – can save time and reduce human error, allowing you to focus on growth strategies and customer engagement. Moreover, integrating these automated systems ensures that your operations are not only efficient but also scalable.
In the end, solid operations and the right technology are essential to building a strong foundation for your online business. Without them, even the best products or marketing strategies can falter due to inefficiencies and breakdowns in your workflow.
And, again, go ahead and start with WordPress. Make it the foundation of your website. Along with a solid domain name and hosting, it’s going to serve you well as the engine that runs your online operation.
2. Value proposition
Your value proposition is the heart of your online business. It’s what makes you stand out in a crowded market and convinces customers to choose you over your competitors.
Essentially, it’s the promise of the unique value you deliver to your customers – whether that’s through your products, services, or content.
A strong value proposition clearly communicates the specific benefits your business offers and how it solves a problem or meets a need that your target audience has. It’s not just about what you sell, but why it matters to your customers.
For example, if you run an eco-friendly clothing brand, your value proposition might highlight the sustainability of your materials, the ethical production process, and how your products help customers reduce their environmental impact.
To craft a compelling value proposition, start by understanding your customers’ pain points and desires.
- What are they struggling with?
- What do they wish they could find?
- What the competition doesn’t provide?
Once you’ve identified these, align your offerings to address these needs directly. Your value proposition should be simple, clear, and customer-focused, making it immediately obvious why someone should choose your business.
It’s also important to communicate your value proposition consistently across all your marketing channels. From your website’s homepage to your social media profiles and email newsletters, the message should be the same: here’s what we offer, here’s why it’s valuable, and here’s why you won’t find it anywhere else.
A well-defined value proposition is essential for attracting and retaining customers. It’s the foundation upon which your marketing, branding, and customer relationships are built.
Here are two great examples of value propositions done right:
3. Target audience
Understanding your target audience is critical. Your target audience consists of the specific group of people most likely to buy your products or services.
These are the individuals who have a need or desire for what you offer, and who are willing to pay for it. Knowing exactly who these people are allows you to tailor your marketing efforts, product offerings, and messaging to meet their needs and preferences.
To define your target audience, start by researching your current customers and the broader market.
- Look for common demographics such as age, gender, location, income level, and education.
- But don’t stop there – dig deeper into their interests, values, lifestyle, and buying behaviors.
- Also don’t forget about analyzing where those people hang out online. Are they on Instagram, Facebook, Reddit?
This deeper understanding helps you create more personalized and effective marketing strategies.
Once you’ve identified your target audience, create detailed buyer personas.
These are semi-fictional profiles that represent your ideal customers. A buyer persona includes details like the person’s name, age, job, hobbies, challenges, and what they’re looking for in a product or service like yours. These personas help you visualize your customers and keep their needs front and center in your business decisions.
Understanding your target audience also helps in product development and content creation. When you know what your audience wants, you can create products, services, and content that resonate with them. This alignment increases customer satisfaction, loyalty, and word-of-mouth referrals.
4. Revenue model
Your revenue model is the blueprint for how your online business makes money.
It defines the various ways you generate income, whether through direct sales, subscriptions, affiliate marketing, online courses, advertising, or a combination of these. A well-thought-out revenue model is essential for creating a sustainable business that can grow over time.
When choosing a revenue model, consider your products, target audience, and overall business goals.
- For instance, if you sell physical products, a direct sales model might be the most straightforward approach.
- However, if you offer specialized knowledge or services, a subscription model could provide a steady, recurring income.
- Similarly, if you run a content-heavy site, advertising or affiliate marketing might be a significant revenue stream.
It’s often beneficial to diversify your revenue streams rather than relying on just one. For example, a business that sells digital courses might also offer one-on-one consulting, memberships, or even affiliate products that complement their offerings. Diversification helps mitigate risk, as it ensures that your business isn’t overly dependent on a single source of income.
It’s also important to keep your revenue model adaptable. The online business landscape is always changing, and what works today might not work tomorrow. Regularly review and adjust your revenue model based on market trends, customer feedback, and performance data. This flexibility allows your business to stay competitive and capitalize on new opportunities as they arise.
5. Marketing and sales strategy
Your marketing and sales strategy is how you attract, convert, and retain customers. It’s the plan that outlines how you’ll reach your target audience, communicate your value proposition, and drive revenue.
A strong strategy integrates various marketing channels and tactics to create a cohesive approach that guides customers from awareness to purchase and beyond.
To start, it’s essential to have a clear understanding of your target audience and their online behaviors. This knowledge helps you choose the right marketing channels – whether that’s social media, email marketing, search engine optimization, content marketing, or paid advertising. Each channel serves a different purpose, from building brand awareness to nurturing leads and closing sales.
That being said, very few online businesses can exist without content. Content marketing plays a crucial role in most online business strategies. By creating valuable, informative, and engaging content, you can position your brand as an authority in your niche, build trust with your audience, and drive organic traffic to your site. Regularly publishing blog posts, videos, or podcasts that address your audience’s pain points keeps them engaged and moving through your sales funnel.
SEO is another cornerstone of a successful marketing strategy. Optimizing your website and content for search engines helps your business get discovered by people searching for the products or services you offer. This involves keyword research, on-page optimization, link building, and, again, creating high-quality content that matches search intent and delivers what readers need.
Email marketing is another powerful tool for converting prospects into customers and keeping existing customers engaged. By segmenting your email list and sending personalized, targeted messages, you can nurture leads, promote new products, and encourage repeat purchases. Automation can help streamline this process as well, ensuring timely and relevant communication with your audience.
Your sales strategy should work hand-in-hand with your marketing efforts. Whether you’re using a direct sales approach, a sales funnel, or a combination of both, it’s important to guide potential customers through each stage of the buying process. This includes addressing objections, highlighting your value proposition, and creating a sense of urgency when appropriate.
6. Customer experience
Customer experience is the final pillar, but it’s by no means the least important.
In fact, it’s often the factor that determines whether a customer will return to your business or recommend it to others. 🤷♂️
Customer experience encompasses every interaction a customer has with your business, from navigating your website to receiving their order and beyond. A positive experience builds trust, fosters loyalty, and turns one-time buyers into repeat customers.
The first step in creating a great customer experience is ensuring that your website is user-friendly. This means having a clean, intuitive design, easy navigation, and fast loading times. Customers should be able to find what they’re looking for quickly and without frustration. If your site is hard to use, customers are likely to abandon their carts and turn to competitors instead.
Beyond the website, excellent customer service is crucial. Whether customers reach out with questions, need help with an order, or encounter a problem, they should receive prompt, helpful, and friendly support. Offering multiple channels for support – such as email, live chat, and social media – ensures that customers can get assistance in the way that’s most convenient for them.
Personalization is another key element of a strong customer experience. Customers appreciate when businesses remember their preferences, recommend products based on their past behavior, or send them personalized offers. This can be achieved through data-driven insights and automation tools, allowing you to tailor the shopping experience to each customer’s unique needs.
Finally, consider the post-purchase experience. This includes everything from how you handle shipping and returns to how you keep in touch with customers after their purchase. And this is not just important for products. Service providers should look into this with equal attention. Sending follow-up emails, asking for feedback, or offering loyalty rewards can keep your brand top-of-mind and encourage repeat business.
Building a lasting online business
Creating a successful online business isn’t just about having a great product or idea; it’s about building a solid foundation that can support growth and withstand challenges.
The six pillars – Operations and Technology, Value Proposition, Target Audience, Revenue Model, Marketing and Sales Strategy, and Customer Experience – are the essential elements that every thriving online business relies on.
Each pillar plays a crucial role in your business’s overall success. Operations and technology ensure that your business runs smoothly, while a strong value proposition makes you stand out in the market. Understanding your target audience allows you to meet their needs effectively, and a well-defined revenue model keeps your business financially sustainable. A solid marketing and sales strategy drives growth, and a focus on customer experience ensures long-term loyalty and brand advocacy.
By prioritizing these pillars, you’re not just building a business; you’re building a brand that can adapt, thrive, and grow in the competitive online landscape.
