The Ultimate Checklist For Starting An Online Business
There is a lot that goes into starting an online business.
From having a profitable idea, developing a sound business plan, getting funding, and figuring out marketing.
Whether you’re planning to sell handmade crafts, offer consulting services, or create an educational platform, this article is for you.
Here’s a checklist of 10 things to consider before launching your business.
1. Find profitable business idea
Coming up with a great idea is harder than you think.
A niche is a specific segment of the market that is willing to pay for what you’ve got.
It’s not enough to say, “I want to sell clothes”; you need to specify whether it’s sustainable fashion, plus-size clothing, or something else.
Before launching a business, you need to make sure that there is a market for it, in other words, your business needs to have a product-market fit.
Product-market-fit means that people are willing to pay for your service/product because the problem you are solving is big/important enough.
If you’re not sure where to begin, consider talking to people who are already in your target market. Ask them about their needs and wants, and see if there’s anything missing that your business could provide. You can also look at online resources such as forums and social media groups related to your niche.
2. Come up with a memorable name
Before creating a legal structure and registering your company, you need to come up with a memorable business name, that is also available as a domain name.
Your domain name is not just a web address, it’s an integral part of your brand identity. It should be easy to remember, spell, and type. When doing your domain name search, we recommend avoiding the use of numbers, hyphens, or anything that could confuse potential visitors.
Tips for choosing a domain name:
* Relevance – it should reflect your business or niche.
* Simplicity – keep it short and sweet.
* Availability – make sure the domain is available and not trademarked by another business.
3. Develop a business plan
While it may seem premature to start writing a business plan at this point, it can be an important tool in giving you direction. A business plan should help you identify:
* Your unique value proposition
* The problem you want to solve
* The market you will target
* Your competition
* The people (team members) you will need
* Revenue models
* The cost associated with launching the business
4. Create a brand identity
Your brand is more than just a logo, it’s the personality and promise of your business. It’s what sets you apart from competitors and builds a connection with your audience.
Elements of a strong brand identity:
* Logo – a visually appealing and memorable logo.
* Colour scheme – consistent colours across your website, packaging, and marketing materials.
* Voice and tone – how you communicate with your audience, from playful to professional.
5. Choose a business legal structure and register a business
One of the first decisions you’ll need to make when launching a small business is what legal structure to choose. Small businesses have four main options:
- Sole proprietorship
- Partnership
- Limited liability company (LLC)
- Corporation
Each option has its own advantages and disadvantages, so choosing the right one for your business is important.
The next step is to register your business with the state/country in which you will be operating. Each state/country has its own requirements for business registration, so it’s important to check with your state’s rules and regulations.
You will also need to register the company name for your business and make sure it is available.
6. Open a business bank account
You can open a business bank account once you have registered your business and obtained the necessary licences and permits. This will help you keep your personal and business finances separate.
It’s important to have a business bank account because it will make it easier to track your expenses and income and to apply for loans or lines of credit in the future.
7. Create your website
Your website is your storefront—it’s where your customers will learn about your products or services, make purchases, and interact with your brand. You don’t need to be a tech wizard to set up a website; plenty of user-friendly platforms can help you get started.
Key elements of a great website:
- User-friendly navigation – ensure visitors can easily find what they’re looking for.
- Mobile optimisation – your site should look great on all devices.
- Compelling content – use high-quality images and clear, engaging copy.
- Strong call-to-actions – guide your visitors towards taking specific actions, like signing up for a newsletter or making a purchase.
If you’re selling products online, you’ll need a reliable payment processing system and clear shipping options. This makes the purchase process smooth for your customers and helps build trust in your business.
Your online presence extends beyond your website. It’s about being visible and active where your audience spends their time. This includes social media platforms, online forums, and other digital spaces. Be where your audience is, whether it’s Instagram, LinkedIn, or TikTok.
8. Hire employees or contractors
Many business owners wonder if they should hire employees or independent contractors. The answer depends on many factors, including the type of business, its location, and the work that needs to be done.
Independent contractors are self-employed individuals who contract with another company to provide services. They are not employees of the company and do not receive benefits such as health insurance, paid vacation days, or retirement savings plans.
Instead, they usually invoice the company for their services at regular intervals.
Hiring employees can be more expensive for a business owner than hiring independent contractors because the employer is responsible for withholding taxes from employee paychecks and paying unemployment, workers’ compensation, and Social Security/Medicare taxes (if you’re in the US).
However, employees typically have a higher level of job security and may be more invested in the company’s success.
9. Hire office/storage space and buy equipment
Depending on what type of business you are running, you may need to look for office space, retail location, warehouse or studio.
This includes things like computers, printers, desks, chairs, and any other type of equipment that is specific to your business.
You will also need to make sure you have a good internet connection and a reliable power supply.
10. Come up with a marketing and advertising strategy
No matter how amazing your product or service is, it won’t sell itself. A solid marketing strategy is essential to get the word out and attract customers.
Consider these marketing tactics:
- Social media marketing – engage with your audience on platforms like Instagram, Facebook, and Twitter.
- Content marketing – create valuable content like blogs, videos, or infographics to attract and educate your audience.
- Email marketing – build a mailing list to keep your audience informed and engaged.
Although it may sound like a no-brainer, neglecting advertising is usually one of the biggest mistakes entrepreneurs make.
Create a strong branding message that resonates with your target market and highlights both the quality of your services as well as your competitive advantages.
Finally: big launch day
The big day! Launching your online business is a significant milestone. Make it a memorable event with a launch campaign that generates excitement and attracts customers.
Launch ideas:
- Special promotions – discounts or freebies for early customers.
- Social media countdown – build anticipation with a countdown and sneak peeks.
- Partnerships – collaborate with influencers or other businesses to expand your reach.
Regularly analyse your performance and make adjustments as needed. Use tools like Google Analytics to track website traffic, sales data, and customer behaviour. This information is invaluable for making informed decisions and improving your business over time.
