Here’s the reality: starting a business can feel overwhelming at the beginning. But if you have a vision and you’re willing to put in the work, there’s never been a more exciting time to start.
The big secret about launching a successful business is that you don’t have to dream up the next world-changing idea. The best ingredient to starting any business is knowing the unique skills and knowledge you bring to the table—and then leveraging them to help solve the problems of your customers.
By the end of this guide, you'll learn:
- The top 4 online business ideas you can start today
- How to start a business online based on the business model of your choice (steps and examples)
- Answers to some of the most common questions beginner entrepreneurs ask
Table of Contents
- 1. What is an online business?
- 2. How to start an online business in 6 simple steps
- 3. 4 online business ideas you can start today
- 3.1 Become a consultant, freelancer, or coach
- 3.2 Start an ecommerce business
- 3.3 Become a full-time content creator
- 3.4 Launch a software (SaaS) product
What is an online business?
Every year, the difference between online and offline businesses blurs more and more. Even physical stores usually have online storefronts. Your local lawn care company probably has a website that collects reviews, sets up appointments, and markets the business.
For this article, we're defining online businesses as companies that deliver services or products online. That includes ecommerce stores, content creator brands, SaaS companies, and online course creators. It doesn't include companies that merely have an online presence but only deliver their products and services in person or via a physical store.
Online Business
- Low upfront and ongoing costs
- Sell to anyone in the world
- Flexible business hours (24/7)
- More scalable
Physical Business
- High costs (rent, etc.)
- Focus on local customers
- Set business hours
- Limited discoverability
How to start an online business in 6 simple steps
Before we dive into specific models, let’s cover how to start a business online from a high level.
1. Discover a business idea
Start by considering where your personal interests and strengths overlap. Do you have a rare and valuable skill? Do you have a passion for teaching? These are skills you can leverage.
2. Create an MVP
Don’t overcomplicate your business idea. You just need to prove the concept. Start with a version of your product or service that you can put together quickly. Test before you invest.
3. Find your first customer
Try to find people outside of your family and friends. You want to prove demand for your offerings by selling to people who have a real need.
4. Fine tune your offerings based on feedback
Customer feedback is one of the best ways to hone your product into something people truly get excited to buy.
5. Consider the legal structure and finances
Decide on a business structure (LLC, Sole Proprietorship, etc.) and create a financial plan for taxes and expenses.
6. Keep growing your business
Once the foundation is in place, improve every element. Implement scalable marketing tactics like SEO and digital ads.
4 online business ideas you can start today
Here are four common online business ideas and how to build them.
1. Consultant / Freelancer
The easiest business to start online is offering a professional service.
2. Ecommerce Business
Selling physical or digital goods online through a store.
3. Content Creator
YouTubers, bloggers, podcasters - monetize your audience.
4. SaaS Product
Developing and selling software as a service.
1. Become a consultant, freelancer, or coach
Becoming a freelancer is the easiest business to start because all you need is you and your time. However, you need to begin with a marketable skill.
Step 1: Master an in-demand skill
Popular skills include:
- • Graphic design
- • Web design
- • Writing
- • Video editing
- • Photography
- • Development
- • Administration
- • Online security
- • Marketing
Step 2: Create a profile
Platforms like Upwork, Fiverr, and Thumbtack make it easy to get started. Alternatively, you can build your own personal website to showcase your portfolio.
Step 3: Determine your rates
- Hourly billing: Simple, but penalizes efficiency.
- Fixed fee: Quoting an exact price for a deliverable.
- Value-based pricing: Price based on the value to the client, not your time.
- Retainer: Useful for ongoing contracts (e.g., monthly SEO).
2. Start an ecommerce business
Starting an ecommerce business comes down to five basic steps:
- Determine your product: You can bring an existing product to a new market, create custom products, find arbitrage opportunities, or flip goods.
- Source products: Find an affordable way to source your inventory. Dropshipping, manufacturing, or thrifting are common methods.
- Choose your platform: Personal website (Shopify, WooCommerce) vs. Marketplaces (Amazon, Etsy, AppSumo). Marketplaces offer built-in traffic but less control.
- Fulfill orders: Start with self-fulfillment to save costs, then move to third-party fulfillment services as you scale.
- Create a marketing plan: Use digital ads, content marketing, SEO, and marketplace discovery to find customers.
3. Become a full-time content creator
Content creation includes blogging, podcasting, YouTube, and social media.
Step 1: Determine your specialty
The finer your niche, the more likely you are to achieve success. Ask yourself what subjects you are curious about or what topics you can geek out on for hours.
Step 2: Become an authority
You don't need to be an expert initially. You can approach it as a journalist, learning and researching as you go.
Step 3: Build a loyal following
You need "1,000 True Fans"—people who believe in you enough to buy what you sell. Create high-quality content consistently.
Step 4: Choose your platform
Prioritize one core platform (Blog, YouTube, Email List) and use others as distribution channels (Social Media).
Step 5: Monetize
Ways to monetize include:
- Online courses
- Ebooks and templates
- Premium communities (Patreon)
- Ad space
- Affiliate marketing
- Coaching/Consulting
4. Launch a software (SaaS) product
Building a successful SaaS product requires identifying a clear problem and building a solution.
1. Determine the problem
Look for frustrating tasks at work, negative reviews of existing products, or common struggles in your industry.
2. Develop the MVP
Focus on the core features that solve the primary problem. Use low-code tools if you aren't a developer.
3. Launch
Platforms like AppSumo are excellent for launching software products to an audience of early adopters.