Business is going really well for you at the moment. You set up a little side hustle and created an online company, and it seems to be thriving. The customers are lining up, the sales are coming through, and the money keeps being added to your bank account. It’s extremely exciting, but you can be excused for feeling a little overwhelmed at the same time. You weren’t expecting so much success so soon…so…what happens next?!
There are countless instances of online businesses – or any small business for that matter – enjoying a period of success, only to then falter and die out. It happens all the time, which is why you need to make the right moves as soon as your company starts popping off. Here’s what you should think about:
Table of Contents
Retaining your customers
In the early stages of running an online business, customer acquisition is your main concern. You’re trying to get lots of customers, so they can buy your products and make you rich. If your business is doing a good job, this hasn’t been a problem for you. Lots of new customers are coming to your store every day, and the cash is flowing.
Consequently, the next step is focusing on customer retention. Instead of trying to keep gaining new customers, shift the approach to retaining the ones you already have. Effectively, many small online businesses fail as the new customers dry up and they have no sales to make. If you retain as many customers as possible, the need for new ones isn’t as great. You can afford to go through a slightly dry spell as you still have money coming in from customers that are coming back time and time again!
Investing your profits
You’ve got lots of money coming in from sales, so what are you going to do with it? The smart approach is to invest your profits into areas of your business that will help it become even better. In turn, this means you could make more money, generating more profits – the perfect investment.
Look at your online business and see where it could be improved. For example, perhaps you can invest in a better server, letting you deal with high traffic volumes easier, preventing downtime or a laggy website. Maybe you could invest in the design of the site itself, making it better and more user-friendly. Or, you might prefer to invest in your marketing strategy to try and gain more exposure, finding even more customers – and then retaining them as well.
Sorting out your future
Now hold on, this isn’t supposed to be morbid, okay! Wills will always be associated with death because, well, that’s the only time they ever matter. Don’t take this to mean you should start thinking about your death, it’s more that you need to think about what happens to your money. You’re a business owner, you have lots of business assets – where will they go when you eventually pass away?
This is a crucial thing to consider as you need to ensure your money falls into the right hands. There are countless instances throughout history where people have left fortunes in the hands of those who perhaps shouldn’t have then. Some of you may know the story of the Gunther IV dog, who effectively has a net worth of $400 million because its father got left a fortune from its owner. So, maybe don’t leave your assets to your dog, but think about where they should be left. It protects your life’s work and ensures your money ends up in the right hands.
Diversifying your business
When things are going well, you should always start thinking about how to improve. Also, you should keep one eye on the idea that this success won’t last forever, and therefore you need to prepare for a time where it might not be here. A lot of small online businesses fail because they have some success, but then the one thing that’s generating success no longer works. For instance, you sell a particular product that’s super popular for a short period, then nobody cares anymore.
Thus, you need to consider diversifying your business by offering new services/products. You don’t need to introduce them immediately, but it’s nice to have a plan in place when business starts slowing down. If the sales are drying up, you can release your new services/products to draw people back in.
Your online business is currently thriving, so let’s keep it that way! Don’t get complacent; always look ahead if you want to sustain this success.