Building an Asset With an Online Business – 5 Great Business Ideas to Try - Business 2 Community

Building an Asset With an Online Business – 5 Great Business Ideas to Try - Business 2 Community


Building an Asset With an Online Business – 5 Great Business Ideas to Try - Business 2 Community

Posted: 02 Apr 2020 05:38 AM PDT

Photo by Kari Shea / Unsplash

There are all kinds of side hustles and ways to make money outside of a job.

Each opportunity comes with pros and cons, and finding the right opportunity for yourself requires you to see how those pros and cons align with your own situation and your goals for the side hustle.

Now, some side hustles are great for making money quickly.

You could work as a delivery driver or a dog walker and start earning extra cash this week. If you need to make an extra $1,000 per month and you need to start earning quickly, this is probably the type of side hustle that you'll want.

In contrast, other opportunities may allow you to make a smaller amount of money passively.

You're not going to replace a full-time income, but it's easy money. There are several passive income apps that would fall into this category.

Some side hustles provide a great deal of flexibility and allow you to work whenever and wherever you want, as much or as little as you want. That's the beautiful part about side hustling.

But if you're looking for long-term potential or high income potential, building an asset like a business is most likely your best option.

Online businesses, in particular, can be an ideal sort of appreciating asset because of low startup costs, the ability to work from anywhere, and the possibility of selling your business to someone anywhere in the world.

When your side hustle involves building a business, you're not 100% focused on making money right now. Instead, you're also focused on growing something for the future and building an asset.

Down the road, your business could become an income-producing asset that earns significant money with little effort on your part, and you could also sell the business for a lump sum when you're ready to cash out.

If you need to make money this week, becoming a delivery driver for DoorDash or Postmates or turning to various gig job apps may be a great option, but you're not going to be building an asset that you can monetize or sell down the line.

If you're in a position where you can focus on long-term potential or if you're looking for something that might allow you to generate a full-time income at some point in the future, you might want to put your efforts into building an income producing asset like an online business.

Building an Asset

Building an online business takes time. A lot of online businesses like blogs, e-commerce websites, and YouTube channels aren't likely to make much money right away.

You may need to put 6-12 months (or longer) of work into the business before you start to make money. You're not making much money for your effort at first, but you're doing it with the hope of a future payout.

After a while, however, your business gains some momentum.

Traffic increases, you don't need to spend as much time trying to get visitors, new monetization opportunities arise, and income increases quickly. At that point, your hard work has paid off.

As an online business owner, you also have two options that aren't always easily available with some other types of side hustles:

1. Outsource the work to other people and allow your business to run somewhat passively. You'll probably still need to be involved, but you can hire others to do a lot of the daily work and turn your business into an asset that makes money mostly on autopilot.

2. Sell your business when you're ready to cash out and move on to something else. There are plenty of people and companies looking to buy online businesses and you may be able to get a few years' worth of profit if you're willing to sell.

Why Sell an Online Business?

I started my first online business (a blog) in 2007 and I've sold several websites and online businesses over the years. One of the questions that I get asked a lot is, "why would you sell a profitable online business?"

Sure, getting 3x annual profits to sell a business is a nice lump sum, but wouldn't it be better to hold on to the business and continue to make money for years to come?

To answer that question, there are several reasons why you might want to sell a profitable online business.

1. Time Limitations

While it's true that you can outsource a lot of the work involved with running an online business, you're still going to need to be involved to some extent unless you have someone very competent that you completely trust to run the business.

In other words, even if you're outsourcing the majority of the work, the business is likely to require some of your time and attention.

We all have a limited amount of time available, and focus also becomes an issue.

If you're trying to do several things (like running multiple businesses or working a full-time job with a few websites on the side) sometimes it's more effective to sell and have one less thing to deal with.

For me, time has been the biggest contributing factor in deciding when to sell online businesses.

Just because a business is making money doesn't necessarily mean it's the best use of your time. If you sell, maybe you'll be able to use that time for a different business that will be even more profitable.

2. Lack of Interest

When you started your website or online business you, were probably really interested in the niche or industry.

But, maybe of the course of a few years, you're no longer interested in the topic or you no longer enjoy running the business.

It's perfectly normal that our interests change over time. I prefer to work on things that I enjoy, so if my interests change, I may look to sell.

3. Sell High

Most businesses have a limited life cycle, and this is especially true with online businesses.

If your business is doing well and it has a lot of value today, there's no guarantee the value will remain or that it will increase. You could see the value of the business drop significantly.

If you've been around the online marketing world for a while, you may be familiar with Digg.com.

Digg was an incredibly popular social media site more than a decade ago. In 2008, Digg was involved in talks with Google about an acquisition for a reported $200 million, but the deal never happened. Digg lost popularity and was sold in 2012 for $500,000.

That sort of thing also happens on a smaller scale with websites that aren't in the spotlight. You may decide that you want to sell now rather than waiting to see what happens in the future.

Knowing when to sell is not an easy decision and there are risks either way.

Sell too soon and you risk missing out on higher income potential. Sell too late and you risk losing value and selling for less. You'll need to consider the current value of your business and decide which risk outweighs the other.

4. Maxed Potential

If you feel like you've done everything you can and taken the site as far as you're capable, it may be time to sell.

In this situation, the income from the site and the value of the business is not likely to increase very much in the future, and there is a greater chance that it could decrease.

Trends can be very powerful when you go to sell. Ideally, you want to be selling a business that is trending up.

Trying to sell a business that is trending down will be more difficult and it may impact the valuation of your business and what buyers are willing to pay.

Spending time to grow an online business can be a great way to build an appreciating asset. However, there is a cap for how much an asset can appreciate, and the idea here is to sell before you hit your cap and decline.

Types of Online Business and the Impact on Selling

Not every online business is going to be treated the same when it comes to the process of buying or selling.

Some types of businesses appeal more to buyers, and obviously, this can impact the price you get for the business as well as the amount of time that it takes to find a buyer.

Let's take a quick look at some common types of online businesses and see how good or bad they tend to be in terms of trying to sell.

Niche Websites (good for selling)

A niche website is simply a site that is very tightly focused on a specific topic. For example, you could have a niche website about camping, running, wedding photography, or any other specific topic.

Most niche websites are monetized with affiliate programs and/or display ads, but there are other possibilities as well.

Here's a perfect example of a niche website: this particular Amazon Affiliate website focuses on kitchen sinks (talk about niche!)

This is a popular type of online business because you can start a site on just about any topic of your choice. There are a lot of hobbies that make money, and you may be able to run a profitable website based on a topic that you enjoy.

Niche websites tend to be ideal for selling because a buyer can step right in and continue running the site with no problem.

The writing can be outsourced to freelancers so the buyer doesn't need to know very much about the topic of the site.

Another factor that's also important for buyers is that niche websites tend to be low maintenance and are somewhat passive.

Blogs & Authority Websites (Good For Selling)

A blog is very similar to a niche website, but sometimes blogs publish content that's not quite as hyper-focused as compared to a niche site.

Blogs also tend to build more of a connection with readers. Niche websites will generally attract the vast majority of their traffic from Google searches, but blogs tend to build more of a loyal following that results in repeat visitors.

The terms "blog" and "authority website" can all be used basically interchangeably (unless you're talking about a personal blog).

These types of sites are also very good for selling. Most of the work involved with running a blog, including the writing, can be outsourced, which makes it easier for buyers and investors.

Blogs can also be very appealing because they can have some influence that opens up a lot of possibilities for making money in the future.

E-commerce (Good For Selling)

An e-commerce business is also a good option if you're looking for a type of business that you could sell at some point in the future.

However, selling a business that involves physical inventory is more complex than selling a business that is 100% digital.

Regardless, e-commerce stores sell all the time. You can take a quick look on websites like Flippa to find plenty of examples:

In some cases, there will be an agreement for the buyer to purchase the remaining inventory as a separate transaction. This is done to keep the transaction and the sustainability of the business in the best interest of both parties.

For example, if the price agreed upon for the business includes inventory, the seller may stop ordering new inventory since they're not going to get a return on it.

If the process of completing the sale takes a couple of months and the buyer takes over, the inventory may be depleted because the seller didn't continue to run the business as they would have otherwise.

Amazon FBA (Good For Selling)

Throughout the past few years, there has been a big increase in the demand for e-commerce businesses that sell through Amazon's FBA program.

These businesses can be ideal for buyers because the majority of the work is outsourced and they can be scaled up very efficiently.

However, selling on Amazon also comes with some risks. Amazon could shut down a seller account at any time, or make other changes like increasing fees.

A business may be worth more if it sells through its own website or other e-commerce sites rather than relying exclusively on Amazon.

SaaS (Great For Selling)

Software as a service (SaaS) businesses are ideal for selling because buyers love the recurring monthly or annual revenue that is generated through the subscription-based model. It provides added stability and predictability, and that can increase the value of a business.

Personalized Blog (Hard To Sell)

If your blog or website is highly personal to you, it could negatively impact your ability to sell. Buyers may be concerned about what will happen to the business when you exit.

This doesn't mean creating a personal blog isn't an effective way to build an asset that makes money. Just know that it might be tough to sell down the line.

If your blog or website is currently personalized and you have some interest in selling later on, you can start to take steps to slowly decrease the personal aspects of the site.

That could involve hiring some freelance writers to get a greater variety in contributors to the site, or simply changing the branding of the site to be less about you personally.

Podcast (Hard To Sell)

Selling a podcast can be a little bit different than selling another type of online business, assuming you (the owner) are also the host of the podcast.

The success of a podcast is heavily influenced by the host, so buyers are likely to be hesitant to buy if you're looking to completely exit the business.

But that doesn't mean that you don't have any options if you want to sell.

The first option would be to come to an agreement with the buyer that involves you staying on as an employee or freelancer to host the show. You may not have all of the other responsibilities, but you would still be the face (voice) of the podcast.

Another option would be to bring on the buyer as a co-host and plan a slower exit.

For example, if you currently host the podcast solo, you could bring in the buyer or someone that the buyer has hired as a co-host, with an agreement that you will continue to co-host the show for a set period of time (like 1 year).

That would allow the show to make a slower transition that wouldn't have an abrupt impact.

Is Building An Asset Through Online Business Right for You?

There are plenty of reasons to start an online business and work towards building an appreciating asset, but that doesn't necessarily mean that it's the right approach for you.

You'll have to consider your own personal situation and the goals for your side hustle. But if you do have an interest in long-term profitability or the possibility of selling in the future, an online business could be a great approach.

Best of luck in your side hustle journey!

This article was originally published at ThisOnlineWorld.com.


St. Peter Hosting Online Business Session - KTOE News

Posted: 02 Apr 2020 04:37 AM PDT

Dear Saint Peter Business Owners

The City of Saint Peter and St. Peter Chamber of Commerce are hosting the third COVID19 Business Economic Impact Session at 9:00 a.m. on Friday, April 3, 2020. During last week's session, we were joined by over 50 local businesses logging in on their computer or phone. It would be great to exceed that number this week as we have room for many more participants

As with the previous weeks, the goal of the session is to share the information that impacts your business and employees. We hope to provide direction to the resources and information available from the local, state and federal agencies as well as our partner organizations. As we expected, things are changing on a daybyday basis as new programs and services are developed 

In the past weeks we have talked about the Small Business Administration and Minnesota Department of Employment and Economic Development loan programs. Unfortunately, given the immense volume of calls, we are hearing that there are still difficulties with the online registrations

On Monday evening, the City Council gave final approval to the City of Saint Peter COVID19 Micro Loan Program recommended to them by the Economic Development Authority. An email was sent out yesterday to the eligible businesses we could identify with the details on the application process. The City Council did add salons, spas and barbers to the roster of eligible business classifications. Within the first 24 hours since we sent the email, we have had 

considerable interest from those wishing to participate

We will once again conclude the virtual gathering with a question and answer session. If we don't have the answer or information at hand we'll do our best to get it in time to report at the next Friday session. If you have questions in advance you can send them now to russw@saintpetermn.gov

To join from computer, tablet or smartphone https://global.gotomeeting.com/join/96574358

You can also dial in using your phone (Toll Free): 1 866 899 4679 or Onetouch: tel:+18668994679.965743581

Access Code: 965743581 

Be well and be safe!

7 Female Founders Whose Online Businesses Are Booming In These Times - Forbes

Posted: 02 Apr 2020 10:38 AM PDT

Americans have radically shifted their shopping behaviors in the midst of the new normal as COVID-19 "has dramatically changed the way people around the U.S. now live their day-to-day lives." There is a silver lining for many online businesses with specific product categories suddenly seeing "significant interaction increases in the wake of wide-spread social distancing."

According to Inmar Intelligence, shoppers are looking for online resources and items to "keep themselves happy, productive, healthy, and stocked-up as they spend more time at home to retain a sense of "normalcy" in their lives.

As we adjust to this new reality, this has proven to be a boon for an enterprising group of female founders who are experiencing surges in their online businesses. What each brand has in common is their ability to cater to dynamic female market segments with engaging content, find innovative ways to be of service in a time of need and to give back in a meaningful way.

Tone It Up. Successful entrepreneur Katrina Scott, the co-founder of Tone It Up along with Karena Dawn, is an expert on fitness, a passionate brand-building expert, and a new mom that advocates for body kindness and self-love. Founded in 2009, today Tone It Up is a fitness lifestyle brand with "an expansive community" that reaches millions of women across their social media channels.

Scott recently reflected that, "Sadly, conronavirus caused nearly all gyms and fitness studios to close their doors overnight. We could never have predicted that at-home fitness would become what the entire world needed during a global pandemic, but we are here and doing everything we can to help."

As consumers everywhere have started seeking to remain healthy while sheltering-in-place, two weeks ago Tone It Up decided to respond. The first step was removing their paywall and offering their TIU App free to everyone for 30 days so their community and their families could workout and stay healthy at home. Since then, app downloads have increased by 950% and online store traffic has doubled with women stocking their shelves with protein and at-home fitness equipment. 

Additionally, as an important outreach which brands everywhere are beginning to embrace, Scott "soon realized the severity and sense of isolation many women in our community were feeling."

The result was Scott "also started filming Instagram live workouts (in collaboration with APL and REVOLVE), which have already reached over 8 million people around the world." The live element and connectivity of these workouts has increased the greater sense of community by bringing everyone together. Women can workout with Scott, meditate with Karena, or choose a workout from the app. The bottom line is Scott and her team are "grateful to be in a position where we can help, while there are so many helpers and men and women on the front-lines."

Olive & June. Tapping into the self-care segment, Sarah Gibson Tuttle, Founder and CEO of Olive & June shared that obviously, people "are certainly spending most of their time at-home and they're looking for fun ways to occupy that time, ways to relieve stress and to find at-home solutions for things they previously went to professionals for - like manicures. We're fortunate in that our product business has always been about creating salon-quality manicures at-home and we're so incredibly grateful that people have embraced and supported the brand during this time."

Again, engagement seems to be a critical component of why certain brands are seeing growth. Tuttle has "seen so many people proudly posting their at-home manicure content saying how they're finally learning to do their own nails, asking for DIY mani tips and tricks, and people who have never before opted for an at-home solution finally taking out their kits or purchasing for the first time."

This also aligns with what Olive & June is seeing from a sales perspective. Over the past week the brand has seen a significant spike in sales. Purchases of their at-home manicure kits are up over 8 times versus an average week and they're seeing three times the volume in DMs on social. As a result, Tuttle and her team "are working around the clock to be there for their community, respond to every inquiry and to just simply connect" and help however they can.

Real. While more established brands are pivoting, first-time entrepreneurs are also delivering much needed services to the market at a critical time. Ariela Safira, founder of Real a new mental health company, shifted gears from her original launch plans of a studio opening this spring.

After quickly realizing "mental health is a priority right now," Real fast-forwarded their launch to offer a selection of free digital therapy services to provide support for people struggling through this epidemic. On the day of launch, the first virtual salon reached sign-up capacity within 2 hours, and all salons were completely full within 2 days. Since the company's launch of virtual services, their wait list has grown by 36% in less than a week.

Real is also rolling out a free month-long mental healthcare platform, as part of their giving back effort, called Real to the People that will host virtual Group Salons, therapist-run digital events and 1:1 sessions to help us feel that we are not alone and to support well-being during this global health crisis.

Bala Bangles. Founded by husband and wife team Natalie Holloway and Maximilian Kislevitz, Bala Bangles was conceived after an epiphany while the duo, who had spent the majority of their careers at large advertising agencies working on major brands, was on sabbatical in Southeast Asia.

The idea for 'Bala,' which means 'strength' in Sanskrit, emerged from a yoga class meant to burn off "steam." After an hour of light stretching, the couple felt unsatisfied and began sketching out designs for a more fashionable, more functional wrist and ankle weight.

To fund the first production run, they launched a successful Kickstarter campaign, raising $50,448. They went on to do $2.1M+ in their first calendar year. Their pivotal moment occurred in February 2020 when they appeared on ABC's Shark Tank and received a $900K investment from Mark Cuban and tennis legend Maria Sharapova. It changed everything along with the emergence of Covad-19.

As Holloway detailed, "We aired on Shark Tank on 2/28, just weeks before the gravity of the situation set in and people began self-isolating. Put differently, the Shark Tank airing gave us huge exposure at a time when people are trying to stay fit while staying home. Since gyms and studios have closed, we have become an essential part of people's at home workouts."

As part of the in-demand "healthy" segment that is rapidly growing, The Shark Tank airing resulted in a large uptick of 466% in sales relative to this time last year. Holloway shared, "But with shelter in place mandates and the uncertainty of just how long this will last, demand has yet to slow down and we have completely sold out on our website and also at all 500+ retailers that carry us."

The brand is also moving as quickly as possible to keep up and add value to their home-bound customers, commissioning instructors to develop free Bala-fueled workouts. Similarly, in partnership with brands like Year of Ours and APL, Bala is hosting bi-weekly Instagram Live workouts to foster a sense of community and keep people moving. The strategy is working with every pair every single set of Bala Bangles sold-out and the site accepting pre-orders which are on their way.

Branch Basics. With consumers focused on stocking up and staying healthy, the combination of the right product paired with the right information is a dynamic growth category. As cleaning and personal hygiene have taken center stage as part of a new cultural conversation, Branch Basics, with their natural, non-toxic, multi-purpose cleaning products, has seen an increase in sales and interest in its educational content.

According to Founders Marilee Nelson, Allison Evans and Kelly Love consumers are seeking ,"increased guidance in uncertain times to reduce their risk of infection and protect their families." The brand's Starter Kit has been in such high demand that it sold out on March 13 and since then, they have built a wait list of 4,400 along with a website conversion rate increase up to 50% for their full product range. Much of this could lead to a long-term change in consumer purchasing habits for basic household goods. It will be interesting to observe in the coming months.

Minibar Delivery. Since COVID-19 became prevalent in the U.S., Minibar Delivery, which offers on-demand delivery in over 50 American cities and ships to 40 states, has seen a significant surge in business, with Inmar Intelligence reporting a 47% increase in demand for home delivery options.

Falling squarely in the "be happy" category, Founders, Lara Crystal and Lindsey Andrews, explained "since liquor stores have been deemed an essential service, the rate of purchase via alcohol delivery service has dramatically increased nationwide. Minibar Delivery, specifically, has seen a 75% increase in orders and a 373% increase in new buyers." As a result, the duo are adding new liquor stores to their platform daily in order to help them keep up with demand and stay running during this unprecedented time.

Finally, while most businesses are trying to restructure and get creative in an effort to stay afloat during this crazy time, social distancing and shelter-in-place has a whole new meaning with Honey Bridette. Female Founder, Eloise Monaghan of the luxury lingerie brand for women, shared that their sex toy sales were up by almost 235% last week and bondage inspired lingerie was up by 90% over the previous week.

Apparently, since everyone has been self-quarantining, overall sales have increased by 30% over last year, as many couples are looking to keep themselves sexually satisfied in these uncertain times. Overall, it looks like we can possibly even expect a surge of corona babies nine months from now.

Disclosure: In my current role at APL, I have worked on joint promotions with both Tone It Up and Bala Bangles.

8 Ways to Build a Sustainable Online Business - About Manchester

Posted: 02 Apr 2020 10:06 AM PDT

After four months since its discovery, Coronavirus has been declared by WHO as a global pandemic. The spread of the virus has affected countless businesses worldwide. Due to the restrictions in many countries, some companies are facing temporary closure. Many people lose their jobs and businesses.

Times like these make starting an online business enticing. Regardless of pandemic or not, online businesses can be a reliable source of income. However, building a sustainable online business can be a challenge. Here's how you can build one.

Start a Business With Your Core Values

Your business will always be a part of who you are. It is an extension of you and your core values. To be able to build a sustainable business, you must build your business based on your values, not on others. If your business reflects who you are, it will be easy for you because you will naturally offer what you believe in and prospective clients will likely do business with you. The more they know you, the more they trust you. That trust is part of what you need to build a sustainable business. Some business people and entrepreneurs make it easy for their clients to know them by sharing their story with the public on social media and through other online business promotion outlets.

Be Flexible, Welcome Change

You may have some specific visions and goals for your business. You may even have a clear image of what the company would look like in a few years. However, do not let this vision stop you from adapting to the changes. Consider the possibility of changing something about your business. In reality, the most successful businesses today are very different compared to what they started with.

For you to be successful and sustainable, consider any possible improvements to your business. Be flexible and adapt to the changes. For example, if you are running an interior decoration business that includes flooring, could you expand to outdoor flooring? Because many house owners now prefer to floor their gardens with composite decking rather than wood decking, including this new arrival to the services you offer could be a game-changer.

Take Calculated Risks

Taking risks is a part of any business. The most successful and sustainable online business owners, however, take calculated risks. How do you make calculated risks? First, do some research when taking a risk. Consider all possible outcomes of your decision, good and bad—weight the probability and the impact of the success. Finally, learn to say no to some opportunities.

Learn SEO

Learning SEO is very critical when it comes to online business. SEO stands for Search Engine Optimization. SEO is the process of increasing your website's ranking, how high it shows on search engines, using various techniques and practices. The higher you are on the search engines, the more people who will visit your website. Aside from increasing web traffic, SEO also helps to convert those traffic into actual customers. It also helps build brand awareness.

It is true that if you do not have any online marketing background, it could take a lot of time to learn this new skill, the time you would dedicate to running your business. If this is the case, your best bet is to hire a good SEO company to help you out.

Formulate and Update Your Business Strategy

Before starting your online business, you need to have a business plan. It includes setting your goals. A business plan is also used to track your progress and make necessary changes.

If you have already created some business strategies for your startup, make sure that you regularly evaluate your progress. Continue to make goals for your company. Include short-term, medium-term, and long term goals to your business plan.

Reach Out To Your Audience

A business will only be successful if it reaches out its intended audience. Likewise, you need to reach out to your audience to build your brand. To do this, you can use different channels to communicate with them. It's also important to keep in contact with your previous clients. Make sure that they consider you as a leading choice when it comes to the service or product you're offering. You can regularly send newsletters through email marketing or other forms of retargeting to keep them informed. If you keep open communication with your clients, you will be more comfortable asking them for referrals and testimonials. It's also important to show gratitude as much as possible.

Harness the Power of Social Media

Social media plays a huge part in people's lives. According to a recent survey, more than 3.5 billion people use social media sites. Harnessing the power of these social media sites can help your business grow and become successful.

To properly use social media, you need to figure out the proper channel first. There are many social media sites. Before choosing which one to use, consider your target audience. What social media site do they commonly use? After deciding on a platform, create a good content strategy that can increase traffic and engagement. It is also helpful to research and analyze your competitors.

Continue To Expand Your Expertise

Sometimes having focused expertise is advantageous. However, a company has more opportunities to grow and succeed by expanding your services. By increasing your services, you can give your customers more options and you can cater to more people. However, make sure that your business is ready before expanding your business. Preparations and planning go a long way when it comes to your business' development.

Comments

Popular posts from this blog

10 Best New Age Business Ideas - CT Post

COVID-19: New business ideas emerge as people work from home - The Jakarta Post - Jakarta Post

Florida unemployment system set up to discourage benefit-seekers: governor - Business Insider - Business Insider