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5 Profitable Online Business Ideas

If you’re looking to start your own business online but aren’t sure what type of business would be best for you, we’re going to be covering the top 5 most profitable business ideas of 2020 that you can get started with today.

Making the decision to start your own business comes with a lot of responsibilities and you’ll have a lot of things to think about, from the name of your company to the branding and how you’re going to market your business to name a few. But if you are wanting to set up your own business, choosing what type of business can be a barrier if you don’t already have a clear picture in your mind.

1. An Ecommerce Shop

Let’s start off with setting up your own ecommerce business. It’s one of the most popular online businesses to choose from and if done correctly and if you put the time in, it can be successful. Here at EKM we’ve helped over 80,000 people get their own online shops set up over the years and have the knowledge and experience to help you do the same.

An ecommerce shop is where you can sell products online and they can range from gardening tools to handmade items – really anything you want to sell you can. But if you’re choosing the ecommerce route you need to ensure that you’ve chosen a product range that either fills a gap in the market or you can undercut a competitor on price and or quality etc.

This means that no matter what you decide to sell you’ll need to do some extensive competitor research. There are a few steps to help ensure you’re setting yourself up for success apart from customer research and that is making sure you have a strong and clear brand and message.

So when someone sees your online shop for the first time, they will know instantly what you sell and the kind of vibe you’re giving off. All of these things can be influenced by colour choice, font choice, theme choice and so much more.

2. Dropshipping

However, if you don’t have a lot of money when you’re starting to gather stock and store it, you may want to consider setting up a dropshipping business. With a dropshipping business, you don’t need too much cash upfront to get set up as once you’ve found a supplier and set up your ecommerce shop you only pay for the items once you’ve taken an order. Your supplier will then sort out all the packaging and posting of the order, straight to your customer.

This is one of the easier routes to market for an online business but dropshipping does have it’s pros and cons so you’ll need to do some research to see if it’s the right choice for you.

3. A Digital Product Shop

Another very popular and still growing option is to open a digital product shop. So instead of selling products through an ecommerce shop, you would sell items like digital art, digital recipe books, digital workout guides etc.

This option eliminates the need for any stock or physical assets and can be done purely online. You may have to create your own items to sell whether that be recipes, workout guides or books but there are great tools out there like Canva that has lots of templates to choose from with beautiful designs.

There are a few tools out there that can help you with this, namely our own Digital Vault where you can upload your digital products and list them on your EKM online shop.

4. SaaS

Software as a service or SaaS is something that you can look at if you’re thinking of developing some software or an app, much like EKM we are a SaaS company. This option will take up more time and resource to get off the ground but may be more profitable and sustainable in the long run.

You will need to already have a good idea of what you’re going to do and either know how to develop the software yourself or be able to employ a developer to build it for you. This can increase your costs quickly but you can seek funding from investors if the idea is attractive enough to them.

Other forms of funding include using websites like Crowdfunder or Kickstarter to get donations to help cover the cost but this can be a bit more challenging than finding an investor. 

5. Service Website

If you’re looking more for how you can use your skills to create your own business then setting up your own service website is a great option. If you’re a marketer, graphic designer, artist, personal assistant or anything else where you have a skill set to offer, this can be a great way to start making money online.

There are of course pros and cons to this option. It’s easy to get your own website set up with the services you offer but the difficult part can be getting the word out and building up a solid customer base.

There are a few ways you can do this. Depending on your budget you’ll need to invest in marketing either paid or organic or both. Driving organic traffic to your site via SEO (Search Engine Optimisation) or direct traffic is completely free and means that when you make a sale you’ll have a great ROI or Return on Investment.

If you have enough budget to run some paid advertising, this can be a highly effective method of driving the right type of traffic to your website and may result in a higher conversion rate.

All of these options are great if you want to start your own online business but if you need some more advice why not get in touch with the EKM team.

If you’d like to learn more about setting up your own online shop, you can speak to our ecommerce experts on 0333 004 0333 or request a callback here.

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