How to Start an Online Business

The first steps to starting an online business aren’t what you might think. 

The business names…

The branding colours…

The website and social media presence… 

The “aesthetic groundwork” that business coaches and influencers say you need to do first…

I’m here to challenge it.

The logo, the naming, the design… 

They’re all important steps for an online business to take…

But they aren’t “prerequisites” for starting a business. 

If you read last week’s newsletter about Unlocking Entrepreneurial Freedom…

And decided the entrepreneur's life is for you… 

Then these are the actual first steps:

1. Deciding What You Want 

2. Testing the Market

But, fair warning…

It’s going to take work. 

It’s going to take introspection. 

It’s going to take time and effort.

But if you’re craving the entrepreneurial life…

It’s worth it. 

Step 1: Decide What You Want

I often say to my partner, Gabi:

“You can have whatever you want, as long as you decide”

This couldn’t be more true than for startups.

A successful business is one with the end goal in mind. 

Don’t figure it out along the way… 

First decide what you want from your business…

And then reverse engineer a plan to get there. 

Start by answering the question: 

“What am I trying to achieve?” 

I know —  that’s a massive question to tackle. 

So let’s break it down into smaller components: 

What your drive is + 

Why you’re doing it + 

Who you’re doing it for 

= What you’re trying to achieve with your business.

What’s My Drive?

You might think the answer to this question is simple. 

“I’m starting an online business.”

But that answer doesn’t give you a clear sense of direction…

Or sense of purpose. 

You need to dig deeper. 

Think about where your business fits in the bigger picture of what you want in life. 

Yes, you’re starting an online business…

But think about what you’re doing it for. 

What kind of business you want to build…

What are you trying to achieve…

And what are you optimising for?

Is it for money?

“I’m not making enough, so I’m going to start a side hustle to supplement my income.” 

Is it a lifestyle play?

“I want more of my time back so I can live the life I truly desire”

Is it for the impact? 

“I want to change the world and make a real difference” 

Whatever it’s for… it’s entirely up to you. 

As long as you understand your “what” and use it to inform your business decisions… 

That’s all you need to stay on the right track. 

Then you can move on to answering your “why.”

Why Am I Starting an Online Business? 

This question forces you to do the uncomfortable, internal work that many people try to avoid…

It forces you to think about the intersection between:

• Your passions

• Your skills

• The market 

• Your ability to monetise 

When you take the time to reflect on these ideas…

That’s how you achieve ikigai.

Ikigai, a Japanese concept combining the terms iki (“life”) and gai (“benefit”), translates to “your purpose in life.” 

Finding your ikigai starts within.

Start by answering the 4 following questions to determine where your perfect online business opportunity lies. 

1. What do you love doing? (Think about what lights you up…) 

2. What are you good at? (Think about your unique skills or talents…)

3. What does the world need? (Think about what people are missing in their lives…)

4. What can I be paid for? (Think about what problems people might pay to have solved)

At the intersection of these questions is your ikigai…

Your purpose in life… 

Your “why”...

And you can’t start an online business without knowing that first. 

Who Am I Doing It For? 

So, you know what you’re trying to achieve and why... 

But you can’t have a business without clients or customers. 

And you can’t provide anything to anyone without knowing who they are. 

That’s why it’s integral to know your “who”…

To pinpoint and understand the market that your online business will serve.

I can’t tell you what market you “should” pick… nobody can. 

But I can tell you it’s a balancing act. 

The “perfect” market balances 3 things: 

• Your interests (so you can enjoy your work) 

• Your goals (so you can edge towards self-actualisation)

• Economic viability (so you can satisfy your ambitions) 

Before you start any business, you need to pause and deeply assess your market. 

Does the opportunity that lights me up make sense in the world? 

Will people pay in a way that suits my drive? 

Is the market big enough to fulfil my vision of the business? 

Determining if the market is big enough to match your goals is crucial at this point… 

If you want to build a product that changes the world… 

You first need to figure out if there are enough people who would want that product. 

Otherwise you could invest years into creating something, only to find out that your market is too small then need to walk away… 

Please do this work now. 

You can Google things like ‘market size of X industry’ or ‘growth rate of X industry in 2023’

You’re looking for signs that there is a large potential market, and that it is trending upwards. 

Both of these mean you’re onto something good. 

Then, you need to test.

Step 2: Test the Market

In Step 1, we focused on introspection.

You figured out what you wanted…

You explored why you wanted it…

And you’ve got a pretty good picture of the business you’d like to start…

But how do you know if it will actually work? 

Easy. 

You don’t. 

Now don’t get me wrong — introspective work is necessary.

It helps you focus on why you’re starting an online business in the first place. 

But it’s all based on assumptions. 

Assuming your ideal customers are out there… 

Assuming they need what you’re offering…

Assuming they’ll want to work with you. 

That’s the thing about assumption… 

It makes an ass out of “u” and “me.” 

It’s time to test those assumptions. 

Why does testing matter? 

Well, put simply… 

You need to know whether your idea is actually fulfilling a need, or just contributing to the noise. 

That’s why Step 2 is so integral. 

Ask Your Market

So, when it comes to your new online business idea…

You can plan and assume and research until you’re blue in the face…

But nothing replaces asking real people what they think. 

And it starts by asking yourself, “Where are my ideal customers?”

How you find them is through both passive and active research.

Passive research is observational, picking up on trends and painpoints of the community you’re seeking to serve. 

Social media is an incredible tool for this, and some great things to try are: 

• Joining Facebook groups where your market hangs out

• Exploring Reddit threads

• Reading Instagram and Youtube comments

By “reading between the lines,” you can learn a lot about what your market needs.

But active research is just as valuable. 

Active research involves directly engaging with these communities. 

Find a conversation, and enter it in a way that seeks to understand: 

“Hey I see you’re struggling with X, and I’m thinking of starting Y. Would something like that help to solve your problem?”

“I’ve heard a lot of people here are concerned about X - what if somebody started Y?”

“Would Y be helpful to you?” 

What you’re trying to find out here is: 

• Do people struggle with what I assume they do? 

• What are they currently doing that isn’t working?

• Would they pay in a way that suits my goals? 

For example… 

Let’s say you found your Ikigai and you want to do coaching of some sort, because you want that kind of lifestyle…

But through your research, you discover that your market is busy and only wants to pay to have things done for them. 

That’s incredibly helpful to know now, right? 

It’s important to note here that this is NOT a prospecting exercise… 

You are not looking for customers, you are doing research. 

So don’t even think about trying to make money right now. 

Just show up. 

Listen. 

Observe. 

Ask questions. 

Practise patience, and it will pay off in the long run.

How Do I Apply What I’ve Learned?

Now that you’ve put the effort into testing your assumptions… 

You can apply what you’ve learned by making changes and improvements to your business idea.

And, because the testing phase is full of discovery…

You’ll probably make changes you didn’t think you’d make. 

That’s okay. 

It’s part of the process. 

And that’s why flexibility and open-mindedness are key. 

Consulting your market and adjusting, based on their feedback, is an ongoing, cyclical process for business owners. 

But the key here is to see testing as a win-win either way.

You’re not just assuming anymore. 

You’re making decisions based on real data from real people. 

And that’s when you see progress.

So if the entrepreneurial life is for you…

And you’re ready to start your online business. 

The logo and business name can wait. 

Here are the actual first steps to starting your business…

Starting An Online Business Checklist

1. Decide What You Want:

• What am I trying to achieve with my business?

• What is my drive (more money, more time freedom, changing the world)?

• What do I love doing?

• What am I good at?

• What does the world need?

• What can I paid for?

• Who is my ideal market?

2. Test the Market:

• Research and find where your ideal customers hang out (Facebook groups, Reddit threads, etc)

• Have conversations with 10 people in your market this week and ask them for feedback

• What are they struggling with?

• What do they think of my business idea (engage with them directly, ask them questions, etc)?

• What do they think of the business model?

• How can I adapt my business based on feedback? 

The work you put into these first steps will take time, patience, and effort...

But it will set the tone on how you’ll run your online business. 

The most successful businesses started at Step 1…

They set the foundation for their business to grow and thrive…

And their businesses were better for it. 

Yours can be, too. 

Until next time…

Stay awesome, stay powerful. 

P.S: Once you’ve got a solid business idea, it’s time to dive into marketing and sales. Want to know what to do next? Hit reply and let me know you want to know more, and I’ll write it for you soon 👍

P.P.S: Whenever you’re ready, here are a few things you might be interested in:

1. Advice On Starting Your Business: A powerful Youtube video where I answered a reader’s question on how to start a successful business.

2. 'How I Quit Alcohol' Podcast: One of my favourite interviews I’ve ever done. If you’re interested in learning how I came from rock bottom to create a life I’m proud of, you’ll want to listen.

3. Follow me on IG: Get bite-sized video content and behind-the-scenes of my nomad entrepreneur life

And, of course, if you know other people who might enjoy content like this, please share this with them.

Your help in building this community will be forever appreciated.