Advertising
Advertising

10 Dos and Don’ts Of Launching Your Own E-commerce Business

10 Dos and Don’ts Of Launching Your Own E-commerce Business

Like everything else these days, business also has gone online. The traditional ways of doing business are slowly losing their charm and the next generation of aspiring entrepreneurs are jumping on the new wave of online business – because if done correctly, adding an ‘e’ to your commerce can take your business to a whole new level.

Not just with entrepreneurs, the new way of doing business is also leaving its mark on consumers. According to UPS study, 70% users said they prefer their favorite retailer online.

Taking your business online though, is trickier than you’ve imagined. It takes time, patience and durability to pass through hurdles and run a successful e-commerce. If you’ve decided you want to leave your mark in this burgeoning digital economy and are resolute in your desire, then these 10 basic do’s and don’ts can help you a great deal.

1. Do give your time to make your site look good

The number of entrepreneurs testing their luck in the digital world is too damn high and giving your business a pleasing professional look is a must if you want to stand out among myriads of players who are playing the same game.

Yeah in an ideal world the content should matter more than cover but when the competition is too high, little things decide the tie and the design of your site is one of these little things.

Advertising

There are many guides on internet which can help you with the design of your site. Website builders are great tools to help you with designing by reviewing your competitors.

2. Don’t just assume people will find your site

Do good things, sell unique products and people will find your business one way or another. This concept of business might work in a Disney world utopia but unfortunately, it does not work in real world anymore.

The internet is simply too big for a random viewer to stumble upon your site. You should work on planning ways to get more direct traffic. Social media reach can aid your business a great deal in terms of publicity. Good SEO also helps public reaching via search engines

3. Do work on building a concrete platform

It’s obvious that you learn the details of the art through experience but you cannot always cross the bridge once you reach the river. Having the correct features planned and doing the risk analysis always helps.

It’s tempting to be courageous and just go out on the battlefield but you have to make sure you have readied your weapons and prepared a decent backup plan. Some mistakes are costly to fix so make sure you do the best you can to prevent them from happening.

Advertising

You have to take care of technical issues like finding the right hosting solution, managing the scalability of your website and security along with other non-technical issues such as scalability of business, customer support and market penetration right from the beginning.

4. Don’t waste your time trying to sustain the company single handedly

You are founder, marketer and leader of your business. So basically, you are a one man band. But if you’re spending your entire day trying to bring everything into balance, then note this is an idea that’s not worth pursuing.

If you want to launch a successful ecommerce business then you should be able to do the main work in the least time possible so you can focus on other aspects like growing and scaling your business.

5. Do set budget aside for tests and trials

The hardest thing for an entrepreneur to do is admit his product is really not that great. Though you might passionately like the idea you’ve created, there is no guarantee that it will work.

If you wait months, or even years to find out the actual performance of your product, it might just be too late. Do surveys, sell samples before going mainstream and test your product thoroughly before you decide to invest your time and energy on it.

Advertising

Conduct surveys or try selling samples of your product before spending blood, sweat, and tears to launch a company online. Even if your product has legs, you should always test and refine first.

6. Don’t put features above strategy

It’s easy to be quickly overwhelmed with your efforts. It’s good if people of certain demographics are giving you good reviews but you can always paint a bigger picture.

There are always voids in market which need filling and always room to innovate something new. If a month has passed and you are still trying to refine negligible design elements, then you are stuck in the vicious loop of feature-bias. Focus on more important aspects, the ones that actually increase the output not just the appeal.

7. Do listen to your customers

People are entitled to their opinions and they are opinionated. So you’ll receive all kinds of comments about your business. Yeah, reacting on every single one of them is nothing more than a waste of time but you should definitely acknowledge their opinions.

Your customers help you point out frailties that you otherwise would have ignored. Evaluate their suggestion and work for a remedy. If you listen to your customers, it also develops a bond of loyalty and trust.

Advertising

8. Don’t inaccurately measure your success

E-commerce is not rocket science. It’s seasonal. It has its carnival and its droughts. Compare year-over-year, not quarter-over-quarter, as ecommerce is highly seasonal.

Comparing your July traffic to your June data does not give a clear picture of your progress. You should set aside a statistically accurate interval and compare your metrics. Compare July to July, winter to winter or year to year if you want an accurate report of your progress.

9. Do your best to efficiently manage email lists

If you have done your homeworking designing a fantastic site, then growing your email list as soon as you launch an ecommerce is a must. It’s one of the best ways to boost traffic later on.

Add email lists as a key-performance indicator when you’re measuring success. If you ignore this part, you might find yourself sunk in a rabbit hole trying to pay your way out through advertising, sponsored content and other paid outlets.

10. Don’t give up quickly

It’s easy for entrepreneurs to get frustrated if their idea does not work but many of them fail to realize that it often takes time and patience to thoroughly test out an idea and success does not come overnight.

If you believe you truly have a million dollar idea then you should be willing to risk anything for it. You should not hastily desert a project because it’s not working well for the time being, because it just takes relentless hard work and there is always a silver lining. Who knows – you might even get lucky!

Featured photo credit: Pexels via static.pexels.com

More by this author

Nabin Paudyal

Co-Founder, Siplikan Media Group

Benefits of Sauna: 8 Ways It Makes You Healthier and Happier 25 Websites Other Than Social Media To Upgrade Your Life Think That Positive Mantras Help a Lot? Try Value Affirmation Instead 6 Successful Entrepreneurs Who Struggle Through Dyslexia Every Family Has Its Problems, This Is How Some Stick Together No Matter What

Trending in Money

1 How to Invest for Retirement (The Smart and Stress-Free Way) 2 How to Nix Your Credit Card Debt in Less Than 3 Years 3 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2019 4 How to Use Credit Cards While Staying Out of Debt 5 How to Use Debt Snowball to Get out from a Financial Avalanche

Read Next

Advertising
Advertising
Advertising

Published on May 7, 2019

How to Invest for Retirement (The Smart and Stress-Free Way)

How to Invest for Retirement (The Smart and Stress-Free Way)

When it comes to stocks, I bet you feel like you have no idea what you’re doing.

Everyone who’s not a financial expert has been there. I’ve been there. But, time is passing and you need to be crystal clear with how you’re investing for your retirement.

Otherwise, it’s back to work until you can afford not to. So, how can you invest for retirement when you’re not a financial expert?

You take the time to learn the fundamentals well. If you do, you can grow your wealth and retire happy. The best part is that you don’t need to be a financial expert to make smart investment decisions.

Here’s how to invest for retirement the smart and stress-free way:

1. Know Clearly Why You Invest

Odds are you already know why should invest for retirement.

But, maybe you know the wrong reasons. It’s time you get clear on why you’d like to retire. Here are some questions to help you get started:

  • Will you spend more time with your family?
  • What does retirement mean to you?
  • Are you looking to launch that business you’ve been holding off for years?

Everyone wants to retire but not for the same reasons. Once you’re clear for why retirement is important for you, you’ll focus on making it happen.

Investing in the stock market allows you to take advantage of compound interest.[1] All this means is that your money earns money on top of its interest. A reason why investment in the stock market is one of the best ways to plan for retirement.

2. Figure out When to Invest

“The best time to plant a tree was 20 years ago. The second best time is now.”– Chinese Proverb

It’s true if you’d had started investing when you were 10 years old, you’d have a lot more money than you do today.

The reality is that most people don’t start investing until it’s too late. So, if you’re currently waiting for the perfect time to start an investment, it would be today. Open your calendar and block out 2 to 3 hours to choose how you’ll invest for retirement.

Advertising

A quick way to get a snapshot of where you stand is to use Personal Capital. Input all your personal information and spend some time setting your retirement goals. Once completed, you’ll know where you stand with your retirement.

Having a savings account for retirement isn’t planning for retirement. Why? Your money loses value when you factor in US inflation.[2]

3. Evaluate Your Risk Tolerance to Create the Perfect Portfolio

Investing your money well depends on your emotions.

Why?

Because when the market drops most people panic and withdraw their money. On average, the US stock market yields an annual 6% to 7% ROI (return on your investment.) But, this won’t happen if you’re worried about short-term loses.

Before you invest your next dollar, know your risk tolerance.[3] Your risk tolerance determines the number of risky and safe investments you’d have.

Regardless of your investing style, you need to view investing for retirement as a long term game. Know that some years you’ll lose money but recoup this in the long-term.

Avoid watching market-related new. Also, create a double authentication to log in your investment account. This way you’re less likely to withdraw your money.

4. Open a Reliable Retirement Account

Depending on your circumstance, you may need to open a new brokerage account. This is the account is where you’ll invest your money.

If you’re currently working for a company, odds are that they offer a 410K investing account. If so, here’s where you’ll invest most of your money. The only problem with this is that you’re limited to the stock options that are available.

You do have the option to open a separate IRA (individual retirement account.) Here are some of the best brokers:

  1. Vanguard
  2. TD Ameritrade
  3. Charles Schwab

5. Challenge Yourself to Invest Consistently

Committing to invest for retirement is hard, but continuing to do so is harder.

Advertising

Once you’ve started investment for your retirement, you run at risk from stopping. Often you’ll want to contribute less, so you’d have more money in your pocket.

That’s why it’s important that you create a budget that allows you to invest each month. If you’re working for a company, you can set a percentage for the amount you’d like to contribute each month. Most people by default contribute 1% but aim to contribute 10% to 15%.

Be the judge for how much you can afford to contribute after covering important expenses. To stay motivated, use Personal Capital to view your net worth.

A benefit to contributing money to your retirement account is not taxed. For example, if you earn $100 and invest 10%, you’d contribute $10, then get taxed on the remaining $90. As of 2019, the most you’re able to contribute towards your 401K is 19K but this can change.

6. Consider Where to Invest Your Money

The most common way to invest your money is in stocks, but it’s not the only way. Here are other ways to invest:

Robo Advisors

Robo-advisors[4] are fancy algorithms that’ll choose the best investments for you. Sites like Wealthfront make it easy for first-time investors to invest their money. You’d input information about yourself and set your risk tolerance.

Then, set your monthly contribution amount and your robo-advisor would do the rest. Robo-advisors charge a fee to manage your money, but less than regular advisors.

Bonds

Think of bonds as “IOUs” to whomever you buy them from.

Essentially, you’re lending money and charging interest. Like stocks, not all bonds are equal. Some will be riskier than others depending on their rating.

Here are the different types of bond categories:[5]

  1. Treasury bonds
  2. Government bonds
  3. Corporate bonds
  4. Foreign bonds
  5. Mortgage-backed bonds
  6. Municipal bonds

Mutual Funds

Picture a group of people dumping all their money in a jar that’s managed by a professional. This is how mutual funds work. The fund manager manages the money looking to earn capital gains (interest.)

One of the best types of mutual funds is index funds. Since these funds don’t try to beat the market and instead follow it, they need less research. Because of this they often charge the lowest fees and yield the best long-term results.

Advertising

Real Estate

Yes, buying a home is an investment when done correctly.

Imagine buying a home and using it as a rental property. After repairing it, you receive a monthly surplus check of $100 to $200.

This may not sound like a lot, but repeat this process enough times and you’d earn a large amount of passive income. That’s why real estate is one of the best investments to not only retire but become wealthy.

But, it requires a lot of money to start and you should expect losing money along the way as you learn the process.

Savings Accounts

Your money can still grow in a savings account. Nowadays most online banks offer a 2% annual return. Although the average inflation is higher your money will be available when you need it.

7. Master Disincline to Dodge Short Success

Investing for retirement is a long-term strategy. That’s why you need to master delayed gratification. All this means is delaying short-term pleasure for something bigger in the future. Research shows that those who have delayed gratification are more successful.[6]

So how can you master delayed gratification?

By building your discipline.

Think back to what retirement means to you. A clear purpose will help you avoid withdrawing your money during a market downturn. It’ll help you contribute more towards retirement when you’d want to waste it instead.

Your journey towards retirement will be long, so reward yourself along the way. Choose a reward that’s relevant and meaningful, so that you reinforce positive behavior. For example, after contributing more towards retirement, treat yourself to dinner.

8. Aggressively Invest on This One Investment

I’ve mentioned several types of investments but haven’t covered the most important one.

It sounds cliche but here’s why you’re your best investment towards retirement. The more you know, the more money you’ll be able to make. The more good habits you adopt, the more secure your retirement will be.

Advertising

More importantly, investing in yourself is an investment that no one can take away. There’s no market downturn nor tragic circumstance that’ll wipe your knowledge and experience.

But, how can you invest yourself?

Reading books, blogs, and anything that’ll help you learn new topics daily. Listen to podcasts and audiobooks on your commute to/from work.

Save money to buy courses and hire coaches. I used to believe hiring coaches was a waste of money when I could learn the subject alone.

But, coaches see your blind spots and hold you accountable. Hiring the right coach will help you achieve your goals faster than you would’ve alone.

Retire Happy with Excess Money

The key to a secure financial future doesn’t only belong to financial experts.

It’s possible for you and I. What if you were able to retire earlier than most people and weren’t a financial planner? What if you were able to focus on what you enjoy doing the most while your money was working hard for you?

I know this sounds impossible now, but the truth is you’re capable of taking charge of your retirement. I’m not a financial expert but I’ve learned how to invest my money by reading books and learning from others.

Investing your money is scary. So start small and invest a small amount of your money with a robo-advisor. Feel your money drop and rise for a month or two. Then, invest more and keep this up until you’re aggressively saving for retirement.

One day, you’ll wake up with a net worth you’re proud of – confident about your retirement. You now know a few strategies you can use to invest in your retirement. Will you take action to retire happy?

More Articles About Making Wise Investment

Featured photo credit: Matthew Bennett via unsplash.com

Reference

Read Next