The skills you will need to start an online business will depend on what type of online business you decide on.
Just as in the “real world” there is a large difference in business types and while many of the skills overlap in certain cases specialist skills, knowledge and experience are needed.
Let’s take a look at some of the different typs of Online Business opportunities there are out there.
Table of Contents
Different Skills Needed For Different Online Business Models.
The following are some of the more common online business models that you may consider.
- Wholesale online business – supplying products to retail businesses.
- Online Retail Business – direct sales to customers/consumers through an ecommerce website.
- Blogging – a wide range of options here and one of the more popular online business activities promoting products through a website journal or via social platforms
- Drop Shipping – selling vendor’s products for a higher price than the vendor and keeping the difference as your profit.
- Businesses providing a service – such as information/graphic design/dating sites/legal services/accounting services etc.
- Multi-Level Marketing – still a popular way to create a residual income.
- Affiliate marketing – promoting any number of products within a niche and getting paid a commission for it.
- And many more …
Skills Needed For an Online Wholesale Business
A wholesale business is defined as:
“The business of selling of goods in large quantities and at low prices, typically to be sold on by retailers at a profit”.
Not much has changed for wholesale suppliers other than their sales may have decreased due to the economic slowdown.
A loss of customers will probably lead to more active (and possibly aggressive) marketing techniques.
Prior to lockdowns wholesale businesses relied on sales reps and their website to keep in touch with, and promote their wares to, retail outlets.
While marketing and keeping in contact with customers may be done through a website, regular personal contact is essential; out of sight is, after all is said and done, out of mind.
To retain customer relationships and be at the forefront of retailers minds today’s wholesaler may need to employ staff to:
- man the phones to keep in touch with existing clients and prospect for new ones
- promote the business through online social networks such as FaceBook, Twitter, Instagram etc.
- continue with the traditional requirements of an online business in sourcing supply, maintaining records (stock, financial and staff performance) etc.
- and you will also need physical attributes such as buildings to store and despatch goods from.
Can a wholesale business be run online by one person or a family?
Possibly but it would require a lot of skills and time to manage and run it effectviively and profitably.
Skills Needed for An Online Retail Business
Retail shops are businesses that supply goods directly to the end user (you and me) and have come under a lot of pressure since the advent of large centralised malls and online shops.
With lockdowns being the final straw, for many, these business owners have to find a different way to market their goods.
“If you can’t beat them, join them”.
Previously online stores were the opposition – it may now be time to reconsider that and become one.
If you have been in retail before you may be pleasantly surprised with running an online business as some expenses will be reduced.
For example you may not need the same number of staff, have the same overheads in terms of lights and power etc. It all depends on how you structure your business.
If you choose to run your business like previously with stock on hand you will need facilities to store and despatch stock. Traditionally shops carried stock for customers to view, touch and see if the product was what they were after.
A purchase could be made and the customer departs with the goods.
An online retail business operates differently in that this personal element is removed and the customer and business owner must rely on what is presented on a website or what is able to be highlighted on an online video platform such as YouTube, Rumble or Vimeo.
There are a number of different options to running an online shop that will be of interest to you if you are looking at running an online retail business supplying goods directly to the client:
- eBay – a platform where both new and second-hand goods are sold. From within the eBay platform it is possible for the customer to visit the vendor’s shop. They may, for example, be looking at buying a particular camera from your eBay listing and decide to “visit shop” (which would be your ecommerce website) to see what else is on offer. This could result in additional sales for you.
- Shopify is another platform that is popular with online business owners and operates in much the same way as eBay. I am not 100% sure how it works but I think with Shopify most people use it as an outlet for their own goods. That is to say they do not get supplied by anyone else.
(Note to self: find out how Shopify works) - Drop shipping could be a perfect way to manage your business, described in more detail in the next paragraph.
An online retail business differs from the traditional brick-and-mortar type business in many ways.
The prime one being to diversify your operation and learn how to trade online without being face-to-face with your potential customer.
Skills Needed For Drop Shipping
Drop-shipping is a fairly popular online business model that allows you to sell a vendor’s products while adding your own mark-up.
For Example:
You can sell product “X” which you might have paid $100.00 for to a customer for $180.00 (or any other amount you choose). You pocket the differnce between what you paid and what you sold it for.
Pretty cool – but not quite as easy as it sounds, there is work to do besides banking profits.
You will need an eCommerce type website that the clients can order off.
And you need drop-shipping software to keep control over sales, receipts, expenditure etc.
You do not need to carry any stock – and this is what makes it so attractive to many. It’s like having a retail shop with all the stock but zero stock on hand!
Heres How Drop-Shipping Works
- Your eCommerce website is the store-front through which people order.
- The order arrives on your computer
- You have charged the customer $180.00 (using the example above) and have been paid with the order
- You now order and pay the vendor for the product an amount of $100.00 and provide them with the customer’s shipping address.
- On receipt of the order and payment from you the vendor sends the goods directly to the customer
- The transaction ends there save for any after sales issues that will be directed to you – this includes complaints and refunds.
Besides the drop-shipping software you will definitely need some accounting skills as well as being computer literate.
And you will need some online marketing skills involving keywords and the like to help get your potential customers to your site.
Skills Needed for Blogging
When thinking “Online Business” a large percentage of people think of “blogging”.
This is probably because of the numbers of so called influencers currently using platforms like Instagram, Twitter, Reddit and FaceBook are almost all bloggers.
An influencer can be anyone and include high profile personalities, experts in particular fields or simply someone who is popular and has a lot of followers.
When Jennifer Aniston was at the height of her popularity (and for all I know this could still be the case today) if she was seen out wearing a particular handbag, you could bet your bottom dollar that sales of that handbag would go through the roof the next day.
That is the impact an influencer has and she did nothing but go out wearing a handbag.
Some influencers (sportsmen come to mind) are paid substantial sums to endorse products this way.
Fabulous work if you can get it!
Back to starting out as a blogger.
You will need:
- Social media account/s – some platforms are better suited for certain types of promotions
- To build a following by building your brand – Oprah, Kim Kardashian, Brad Pitt etc are al brands. There are lesser known brands that are making an absolute fortune in specific niches – see screen shot above.
- A unique point of difference – competition is tough so you need to stand out.
- Ability to connect with and influence people; in particular their buying decisions.
- A website of your own.
- A positive outlook on life and
- Maybe a thick skin …
Blogging can be fun and lucrative but it takes time to build a following and postings need to be regular and preferably often.
It is demanding if you want to stay on top but the financial rewards are well worth it.
Skills Needed to Provide Online Services
Online services covers a very large and diverse range of services, and is far too broad a subject to be conered in this post.
Suffice to say …
These can include, but are not limited to information/graphic design/dating sites/legal services/accounting services etc.
Facebook and YouTube are services.
Each of these various categories requires a different, and in many cases overlapping, set of skills.
All require a website.
Depending on what type of service you plan to offer you may need to be open 24/7 and therefeore require staff or an active participating clientele who can comment and interact on your website.
Skills Needed for Affiliate Marketing – The Best Option of All?
My favourite online business model – how I make my living.
Let me say upfront that back in 2006, when I started out, I had none of the skills needed for Affiliate Marketing but was fortunate enough to find the best affiliate marketing training on the Internet.
Firstly let me explain how it works for those who don’t know.
The following graphic explains it rather well.
- As an Affiliate Marketer you have your own site (this site, the one you are reading right now is an affiliate site) from which you will promote products.
See position 2 in the graphic above - You can promote anything you want – literally anything in the world that is bought can be sold by an affiliate marketer.
Position 3 in the graphic above – note these are just some of the biggest and trusted retail outlets you can promte goods from. - You do not need to stock goods and you do not need to do any invoicing or shipping. There is no customer contact from you and you do not need to deal with customers at all.
- Customers find your site through internet searches and if they like the product you are promoting they are redirected to the vendor’s site via using a custom link (exclusive to you).
Position 1 above. - If they buy from the vendor you get paid a pre-determined commission which could be anything from as low as 2% to as high as 75% (or more) depending on the type of product and the vendor’s terms and conditions.
Position 4 in the graphic above.
The skills you will need for affiliate marketing are really quite simple (as I said I had none when I started but now feel confident in my basic computer skills).
You will need to:
- Learn how to build and update a website – with today’s “drop and drag” options it’s easier than ever.
- Find a niche that you feel you would like to promote – you don’t need to be an expert in the field.
- Fully understand your market – their wants, their needs, their fears, their passions etc.
Ideally if you have an interest in a particular subject it is a good starting point as you probably know the market already. - You do not need to be an expert at anything! You can learn everything that is needed in a relatively short time.
- You will need to be prepared to work hard and be disciplined – like any business you cannot simply open your doors and think customers are going to come flooding in. It takes time for Google to start taking your site seriously and push you up the rankings.
One of the most daunting prospects I faced as a marketer was the though of building a website.
“I mean serioulsy how do they do that – websites look very complicated and must require coding skills?”
Turns out it is much easier than I thought, no coding skills needed, and anyone can build a site in under 30 minutes – watch the video on “How to Build a Website“.
Internet Affiliate Marketing incorporates all of the skills needed for starting any of the online business models mentioned above.
All with the greatest of ease, the least cost and minimal stress.
Having an affiliate marketing site promoting products in your chosen niche is like having your own retail shop without the huge overheads!
Choose whatever product you would like to promote. Give details, features and benefits, about the product on your website and from there redirect them to the vendor who does all the work.
You simply collect a commission check/cheque when the transaction is complete.
“Surely affiliate marketing can’t be that easy?”
No-one said it was easy, you will have to work real hard to get your site ranked, but it is that SIMPLE!
Final Word on The Skills Needed To Start an Online Business
The above is a brief outline of the many and varied options available.
Despite what is going on around us, at any time, I believe if we look at the opportunities available we can determine our own future.
“In every cloud there is a silver lining”
I AM A FIRM BELIEVER THAT THIS IS THE CASE!
The internet transcends any and all borders and governments.
The skills you ultimately need for running any online business can either be farmed out and paid for or you can learn them your self and have total control over your business and your future.
I’d love to know your thoughts on what kind of online bsuiness you are thinking of getting into and why – let me know in the comments below.
And as always – keep on trucking …