The internet has transformed the world of business COMPLETELY in just the last 10 years.
Today literally anyone can fire up a laptop (and if they don’t have one, they can get online at a library for free) and build a global business competing with giant megacorporations in an afternoon for less than a fancy dinner and a couple of movie tickets.
On the one hand, this has opened up a world of opportunity that never existed before. Entrepreneurs that would have been blocked from operating on a global scale now have the chance to reach hundreds of millions of prospects and offer them products and services in a way that couldn’t have been possible previously.
On the other hand, however, this is a double-edged sword. If everyone has the opportunity to build and grow and online business today you’re going to be up against a flood of competition that wouldn’t have existed in the past – and that means you have to use the perfect digital business model to have any measure of real financial success going forward.
Below we break down some of the core concepts you really need to focus on to create that perfect digital business. Build your business on the back of these fundamentals and you’ll be able to create the kind of financial future most people never get a chance to enjoy.
Let’s get right to it!
Pick Niches for Riches
The biggest mistakes that digital entrepreneurs make (and one that most of them make time and time again) is believing that they are able to offer products and services perfect for anyone and everyone – when nothing could be further from the truth.
The only reason that Walmart and Amazon are able to offer anything and everything to anyone and everyone is because they have a mountain of money and capital they can take advantage of that bootstrapped digital entrepreneurs won’t ever have the same access to.
Instead, you need to focus on niches and targeted markets rather than trying to be the “everything store” for folks online. Not only that, but you have to stop thinking that all people are going to be interested in purchasing your products – even if your offering products and services that could conceivably be used by anyone and everyone.
Take, for example, an inventor that comes up with the most picture-perfect universal remote ever made. It would still be a huge mistake to think that their target market would be everyone with a television, even though you could see why they would make this blunder.
Sure, most people with a TV would agree that a picture-perfect universal remote would probably make their lives easier – but only a fraction of them are going to be interested in going through the programming process, only a fraction of them are going to be interested in consolidating remotes that come with their electronics for free, and only a fraction of them are going to be moved by a marketing or advertising campaign designed to get them to pull the trigger on this purchase.
By niching down (focusing on people that buy the latest and greatest TVs with an extreme focus on performance, for example) you are able to laser target your marketing and your message in a way that isn’t ever possible when you try to reach the masses.
The perfect digital business model ALWAYS picks niches for riches.
What Does Your Market Want?
Another huge mistake that online entrepreneurs make far too often is the misconception of building a business that they themselves are passionate about, creating products and services that they would love, or designing their marketing and advertising campaigns based on what they themselves would respond to.
A major distinction you have to make as a business owner – online or off – is the distinction between you as a business owner and your target market as consumers.
No matter how passionate you might be about whatever it is you have to offer because you’re coming from a position of trying to sell this service you are always going to be a little bit “off-center” of what your customers might actually be interested in.
Instead of trying to find products and services that you could sell a group of people you should instead reverse engineer the process, something that the most successful digital business owners do on a daily basis.
Stop looking for things to sell, products or services to offer, but instead, start looking for problems to solve or products and services that your market wishes listed but cannot find or haven’t found just yet.
This is where you’re going to find your competitive advantage, where you’re going to find your most powerful products and services, and how you’re going to be able to rapidly expand and scale up your digital business beyond serving the basic needs or wants of a target market.
This is a revolutionary new way to look at building your business and it is how a lot of the most successful companies on the planet operate. Use this leverage in your own digital operation and before you know it you’ll be gobbling up more market share and making more money than you ever thought possible.
Can You Reach Your Prospects?
After finding the right market and the right products or services, the next thing you have to think about when you’re looking to build on the perfect digital business model is to find a way to reach your perfect prospects and your target market.
There are so many different markets and so many different products and services that it’s almost impossible to imagine not being able to come up with a digital business idea perfectly tailored for success.
Unfortunately, you might find through your research that even though you found a hungry market and an ideal solution reaching them would be almost impossible – because they do not do business online, because it is such a competitive space, or because it might cost you so much money to market to them that you’d never be able to break, let alone make a profit.
Some of the best markets out there are going to be unreachable unless you’re able to find a way to offer products and services as “loss leaders”. You’ll have to quite literally buying your first few customers for finding ways to do joint ventures with other established marketers and businesses, creatively weaseling into these all but unreachable markets until you are able to establish the kind of cash flow that can set your business up for success from then on out.
Reachability is a big piece of the puzzle that you cannot afford to ignore.
Can You Automate Your Business?
At the end of the day, the perfect digital business model is a business model that is repeatable, a business model that works almost on autopilot, and a business model that pumps your bank account full of profit even while you sleep – 24 hours a day, seven days a week, 365 days a year.
In the early stages of building and growing your online business, you are going to have to do a lot of the heavy lifting.
There’s no way around that. You’re going to have to have the vision, the drive, and the resources to create a business out of thin air – and only you are going to be able to set the course for your business and establish its ability to succeed or fail right out of the gate.
But as soon as humanly possible (as soon as humanly possible) you need to be doing all you can to replace yourself, either through software and systems or by outsourcing and delegating work to other people.
Create processes that can be followed, find a way to build a workflow for all of the new outsource or virtual assistants you are bringing on board, and take full advantage of software that already exists – or have it created for you – to automate just as much of your digital business as you can.
This again will give you a significant competitive advantage that no one else in your market will have access to, but it’s also going to give you the kind of freedom that most entrepreneurs never enjoy.
Far too many entrepreneurs get set up with a business that is little more than a much more lucrative job, and never get the opportunity to enjoy the kind of financial freedom that they established for themselves.
Don’t let this happen to you!
It’s Your Turn!
It should be your goal to work on your business rather than in your business, and the sooner you are able to start making this happen the faster your operation is going to grow.
Systems breed success, streamline operations significantly, and also let you turn your business into a sellable asset – helping you not only earn money on a day to day basis while you are at the helm but also providing you with a pretty lucrative “parachute” should you decide to sell your business and reap the financial rewards in one big windfall!
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Aside from that, what are your takeaways from having an online business?