In the video “starting an online business from Scratch: Step-by-Step Guide by Jensen Tung,” Jensen Tung, a filmmaker and entrepreneur, shares his expertise on starting an online business with no initial investment. He covers a simplified version of his successful Go-To-Market strategy, emphasizing the importance of identifying and solving a problem rather than solely focusing on the product. Tung provides step-by-step instructions, from finding the problem through personal experiences or existing businesses, to determining the target market based on factors like market size, competition, and profitability. He also discusses choosing the platform for the online business, establishing a strong brand, and promoting the business through social media marketing. Tung encourages viewers to be adaptable and iterate their approach as they strive for success.
Throughout the video, Tung explains the key steps in starting a profitable online business from scratch. He advises viewers to shift their focus from the product to identifying a problem that can be solved instead. By sharing his personal experiences and offering practical tips, Tung guides aspiring entrepreneurs through essential steps, such as finding a problem through personal experiences, chat GPT, targeting specific markets, or examining existing businesses. He emphasizes the importance of choosing the right platform for the online business, establishing a strong brand, and promoting the business through social media marketing. Tung encourages viewers to be patient and willing to make adjustments as needed, reminding them that success may not come immediately. Overall, his step-by-step guide offers valuable insights for those looking to start their own online business.
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Identifying a Problem
When starting an online business, the first step is to identify a problem that you can solve. This is crucial because focusing on the problem rather than the product itself will determine the success of your business. There are four ways to find a problem to start a business around.
Personal experiences
One way to identify a problem is by reflecting on your own personal experiences. Take the time to examine your life and interests and think about the problems you have faced. Consider what skills you have that could help others. By looking inward, you may discover unique insights and solutions that can form the foundation of your business.
Using chat GPT for generating ideas
Another approach is to utilize chat GPT, an AI tool, to generate ideas. You can ask the tool for a list of problems to start a business around, and it will provide you with potential ideas. You can then delve deeper into specific categories to find problems that align with your interests and expertise.
Targeting specific markets
Identifying and targeting specific markets is another effective way to find a problem to solve. By focusing on a particular group of people, such as gym-goers or university students, you can understand their struggles and uncover problems that you have the ability to solve. Use chat GPT to come up with target markets and list out their problems.
Looking at existing businesses and products
Drawing inspiration from existing businesses and products can also lead to the identification of problems. Research and explore what problems these businesses and products are trying to solve. You can search on platforms like Google, YouTube, TikTok, or even Alibaba and AliExpress to find ideas and understand the pain points that customers are experiencing.
Once you have found a problem that you can solve, you can then decide on a product that aligns with that problem. Remember, the focus should always be on the problem and not just the product itself.
Determining Your Target Market
After identifying a problem, the next step is to determine your target market. This involves considering factors such as market size, competition, and profitability.
Market size
It is essential to assess the size of your target market. A market that is too small may limit your growth potential, while a market that is too large may be too competitive. Evaluate how many potential customers there are for your product or solution. Ideally, you want a market that is sizable enough to support your business but not oversaturated.
Competition
Understanding the competitive landscape is also crucial. Research and analyze the number of competitors in your target market. Determine whether they are established and professional. Consider how you can differentiate your business and stand out among the competition. It may be beneficial to find a niche within your target market to carve out your own space.
Profitability
Assessing the profitability of your target market is vital for the success of your online business. Determine if your target market is willing to spend money on your product or solution. Research the purchasing power and buying habits of your target market. Additionally, consider the profit margins associated with your product or solution. A target market that values your offering and is willing to pay for it will increase your chances of profitability.
By carefully evaluating market size, competition, and profitability, you can make informed decisions about your target market and position your business for success.
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Choosing the Platform
Once you have identified your target market, it is time to choose the platform for your online business. There are various options available, each with its own advantages and considerations.
Marketplace options (Amazon, eBay)
One option is to sell your products on established marketplaces like Amazon or eBay. These platforms offer a built-in customer base and can provide exposure and traffic to your products. However, keep in mind that these marketplaces come with fees and competition. You will be competing with other sellers for visibility, and you may have limited customization options for your brand.
Creating your own website
Another option is to create your own e-commerce website. This gives you complete control over your branding and allows for more flexibility in terms of customization. You can tailor the website to align with your target market and create a unique online shopping experience. However, building and maintaining a website require more effort and technical know-how. You will also need to drive traffic to your website through marketing efforts.
Consider using a domain name with the ‘.store’ extension
When choosing a domain name for your e-commerce website, it is worth considering using the ‘.store’ extension. The ‘.store’ extension is specifically designed for online stores and can instantly convey to visitors that your website is a store. It has a wide range of available names, making it easier to find a domain name that suits your brand. You can purchase a ‘.store’ domain from registrars like GoDaddy or Namecheap or website builders like Shopify or Wix.
Carefully weigh the pros and cons of each platform option and select the one that best aligns with your business goals and target market.
Creating Your E-commerce Website
Once you have chosen the platform for your online business, whether it’s a marketplace or your own website, it’s time to create your e-commerce website. There are various website builders available that can help you build a professional and user-friendly website, even if you have no prior coding experience.
Website builders (Shopify, Wix, Squarespace)
Website builders like Shopify, Wix, and Squarespace offer templates and intuitive drag-and-drop interfaces that simplify the website creation process. These platforms provide customizable themes and layouts, allowing you to create a visually appealing website that aligns with your brand. They also offer features such as shopping carts, secure payment gateways, and inventory management systems to streamline your e-commerce operations.
Consider the features, pricing, and user-friendliness of different website builders to choose the one that best suits your needs. Take advantage of the available resources and tutorials provided by these platforms to maximize your website’s potential.
Establishing a Strong Brand
Establishing a strong brand is crucial for the success of your online business. Your brand represents your identity and communicates your values and offerings to your target market. When building your brand, consider the following elements:
Choosing a simple and searchable name
Select a name for your business that is simple, memorable, and searchable. Avoid complex or confusing names that may make it difficult for customers to find or remember your brand. Conduct thorough research to ensure that the name you choose is unique and not already in use.
Creating a logo
Design a professional and visually appealing logo that represents your brand’s essence. Your logo will be the visual representation of your business and should be carefully designed to convey the right message to your customers. Seek the assistance of graphic designers or use online design tools to create a logo that aligns with your brand’s identity.
Defining a visual identity
Develop a consistent visual identity for your brand. This includes selecting a color palette, typography, and imagery that reflect the values and personality of your brand. Consistency across all visual elements, such as your website, social media profiles, and marketing materials, builds recognition and establishes credibility.
Crafting messaging that solves target market’s problems
Craft compelling messaging that articulates how your product or solution solves the problems of your target market. Clearly communicate the benefits and value that your brand offers. Develop a unique selling proposition (USP) that sets you apart from competitors and resonates with your target market. Consistent and persuasive messaging helps build trust and encourages customers to choose your brand.
Invest time and effort into building your brand to create a strong and recognizable presence in the online marketplace.
Promotion and Marketing
Promoting and marketing your online business is essential to reach your target market and generate sales. Consider the following strategies:
Social media marketing
Leverage social media platforms to connect with your target market and promote your products. Develop a social media marketing strategy that includes content creation, engagement with your audience, and paid advertising campaigns. Utilize social media analytics to measure the effectiveness of your efforts and make data-driven decisions.
Short-form content platforms (TikTok, Instagram Reels, YouTube Shorts)
Take advantage of short-form content platforms like TikTok, Instagram Reels, and YouTube Shorts to create engaging and shareable content. These platforms offer great opportunities to showcase your products and tell your brand’s story in a visually appealing way. Experiment with different content formats, collaborate with influencers, and monitor engagement metrics to maximize your reach and engagement.
Adjusting and Iterating
When starting an online business, it is important to be prepared for changes and be willing to iterate your approach. Finding profitability may take time and require adjustments along the way. Stay open to feedback and continuously monitor the performance of your business.
Being prepared for changes
The online business landscape is dynamic, and trends and customer preferences can change rapidly. Stay informed about industry developments and adapt to new technologies and strategies. Be willing to make changes to your product offering, marketing tactics, and overall business strategy based on the feedback and needs of your customers.
Finding profitability may take time
Finding profitability in your online business may not happen immediately. It takes time to build brand awareness, attract a loyal customer base, and optimize your operations. Stay focused, monitor your financials, and make data-driven decisions to improve your profitability over time.
Conclusion
Starting an online business from scratch can be a challenging and rewarding endeavor. By following a structured approach that involves identifying a problem, determining your target market, choosing the right platform, establishing a strong brand, promoting your business, and being prepared to adjust and iterate, you can increase your chances of success. Remember that building a profitable online business takes time, dedication, and continuous improvement. Embrace the process and stay committed to providing value to your customers.
