Want to be successful online? Then you must know these 6 core business principles to be successful online
To do business online is completely different from doing business offline.
You will need an entirely new set of skills and a completely different mindset.
With that being said, I can also mention that the core business principles behind and online and offline venture are the same.
So, for you to be successful online, let’s look at these core principles:
Principle 1: Vision
If you’re serious about succeeding, both professionally and personally, you must start with the end in mind.
If you don’t have a clear vision of what you want to build, you won’t know
- what tasks are important
- what opportunities you should follow
- and what strategies you should use.
let’s take a look at 2 scenarios
Business man A, let’s call him Joe, doesn’t have a clear vision about what he wants to achieve. He just knows that he seriously wants to “make money online” and that is it.
Business man B, let’s call him Sam, has a much clearer vision. He knows he wants to create and SEO company to help people from around the world to improve their profitability through search engine marketing.
Now, tell me, do you think Joe should create a blog?
My answer is maybe, what is yours?
Do you think Joe should create websites optimized for Google AdSense?
Again my answer is maybe.
And lastly, do you think that Joe should make websites for affiliate programs?
Once again, maybe.
You can see that with no clear vision, it becomes difficult to know what should and shouldn’t be done.
To answer these questions for Sam’s business is a whole lot easier.
Do you think he should create a blog?
My answer: Yes, definitely, because it is going to help him to interact with his potential clients and to showcase his expertise on this topic.
Do you suppose he should create websites for AdSense?
Nope, not at all. That is not how he is going to make money.
And lastly, do you think that he should make websites for affiliate programs?
Once again, not at all – this is not his business model.
“When a man does not know what harbour he is making for, no wind is the right wind” – Seneca (Famous Roman philosopher)
Before you start anything, even if it is one of the 5 ways of making money online that really work, make sure you pen down your vision as clearly as possible.
Principle 2: Value
It doesn’t matter what online business you decide to pursue, there is one core ingredient that your business needs to be successful. That is VALUE.
Let’s say for instance, you decide to start a web design company, then you must create value for your clients by delivering designs that are worth the money they will pay.
What if you are a comedian and you want to start a humor blog? Then too, should you create value for your readers by making them laugh and by entertaining them with your blog posts. (of course if you want to beat all the competition with comedy websites, you must sign up for emails and receive my free ebook that will give you a great tip on creating something that will stand out above the rest – but you’ll have to hurry, I’m going to limit the quantities, because if everybody knows this – who will stand out then?)
Don’t have anything specific to sell, but have a certain line of interest that you know a lot about? Then you’ll probably choose to make money with affiliate marketing. Even then you will need to create value for people by making it easier fo them to find the products and services that they are looking for, or to know more about those products through your [honest] product reviews.
There are people who believe that it is possible to make money by deceiving others, by selling them hope. You’ll see me every so now and then sending out a warning, telling people that it is not easy to make money online. If you read my pages about building websites and online jobs, you’ll see me regularly saying that I’ll excuse you for thinking that I might be a negative person (which I’m not) – just realistic. I don’t want you to burn your fingers even before you start. You’ll never hear me say you can make millions quickly – IT DOESN’T WORK THAT WAY.
Almost everywhere on the internet you find these “gurus” that promote and sell their secrets to make millions of dollars while working only two hours a day….
Please, my friend, note this: those are nothing but SCAMMERS and while some of them do manage to make some money short them, over the long run they all fail. You can’t fool people for long, then the secret comes out. There are people who are not afraid to expose scams and always remember to search to find out if something is a scam or not before you invest any money into it.
For instance, let’s say you receive an email or something where someone tells you how much money they’re making through profit maximizer. All you have to do is type into Google: “Is Profit Maximizer a scam?” and you’ll receive websites full of information and then you can decide whether you want to invest or not (in this example DON’T!!) as you can see in this review about Profit Maximizer.
But just a bit of warning here, I know this should actually be in its own post, but my main purpose for Success Online Site is to save as many people as I can from losing money to scams, that is why I just want to mention here again: when you search for something to see if it is a scam or not, remember there are people promoting these as affiliate links, who will obviously tell you that it’s a good product or system. Don’t just accept the first review you read, look further.
Okay, sorry for going off point, but let’s get back so unless you create value, you will be building a sandcastle that will stand for a while, but soon the big wave comes and it all falls to the ground.
You just make sure you create value for your visitors and the rest will follow naturally.
Principle 3: Profits
Offline business owners tend to confuse revenues with profits and in the same way online entrepreneurs confuse traffic with profits.
They follow this idea: build a website, work until it gets a massive amount of traffic and then figure out how to monetize that traffic.
This method might work if you get lucky, but it’s definitely not the best way to follow.
There are a lot of cases where websites or Web 2.0 companies went bankrupt even though they had millions of monthly unique visitors.
How can this be? Well, they couldn’t monetize the service efficiently and sustain the servers and the staff was using up far too much money.
Sure, traffic is vital on the Internet, but it should be seen as a means to an end, and not the end itself.
Consider this: Which would you prefer, a website with 200 million unique visitors a month and that makes $5 000 in profits or a website that receives 40 000 unique visitors monthly but makes $50 000 in profits?
When you start to work on the idea of a new website or company, you must first figure out where the profits are going to come from.
Here are just a few questions that you might consider asking yourself first:
- Who is going to gain value from my service or product?
- Who is going to pay for it?
- How is the person going to pay?
- Will my costs be lower that my revenues?
Always remember, with your online business, you’re aiming for profits, not traffic.
Principle 4: Strategy
Sometimes you read about overnight success stories around the web and they might lead you to think that all you need is a good idea and a bit of luck and then you too can strike it big.
Let’s take Google as an example. Two Stanford graduates decide that they want to create a search engine that is based on a new algorithm 💡 . They put it online, people like it and BANG, Google becomes one of the most valuable companies in the world. This, of course, making the two founders instant billionaires.
Yes, this is such an inspiring story, but let’s look at reality. Did it really happen that way? Nope, sorry.
Most people discovered Google in 2002 and 2003. At that time Yahoo! was still the most popular search engine that was used by everybody. Larry Page and Sergey Brin was working on the project almost 6 years prior to that time.
It was hard work to develop the algorithm that took the numbers and quality of backlinks that a web page had into consideration. They also had to lay down a carefully designed strategic plan to outrun their competitors like Yahoo!, Hotbot and Excite. And they also hat to be able to profit from the services they would provide.
In your strategic plan, you should include 3 main elements namely:
- analysis of the competitive environment
- appraisal of your own resources
- your goals
It is where you analyze the external factors.
If you understand where you will be competing and the different players that are involved, you will have a higher chance of achieving your goals and ultimately succeeding.
Your strategy must always take those factors into consideration.
If you look at a Formula 1 driver who has to choose what tire he will use in a race. The only way he can make the right choice is if he analyze the atmospheric conditions as well as the characteristics of the circuit.
This is where you analyze all of the internal factors. You must evaluate which resources you have, your strengths, your weaknesses and how you can combine all of them in a strategy that will work towards your goal and objectives.
If we continue with the Formula 1 example, they have to tune the car before a race. This is extremely important, and drivers that know their driving characteristics and strengths have a huge advantage.
Let’s analyze what the purpose of goals are: They help organizations and individuals to focus their energy and to define priorities.
Goals are also used to monitor the performance of certain activities, which makes it possible to revise and adapt the overall strategy as you go.
Remember, your goals should be
- measurable – otherwise you won’t know when and if you achieve them
- realistic – or you won’t have the motivation to pursue them
- consistent over the long term – otherwise you would risk leaving before you reach them
Principle 5: Action
You can plan, have strategies in place, know you’ll give value and know all about your competitors, but if you do not take action – you’re going nowhere slowly.
Being able to take action based on your plans and strategies and to implement everything is one of your most crucial strategies to be successful online.
Let me put it in another way: although strategic planning is necessary, it is seldom a competitive advantage. This is because most people are able to do it. Taking action and making things happen – that is the rare ability and the trait of successful entrepreneurs.
Here, on the internet, the business environment changes so much faster than in the offline world. This means that you will not only need to act – you need to act fast.
At least you have one big advantage, testing and implementing decisions on the web is both easier and cheaper. With the right tools and techniques, it is possible to test any market or business idea with a few hundred dollars.
The overall most important part is that you need to be sure you’re entering the game with the right mindset.
Don’t let perfectionism paralyze you. I used to have a huge problem with perfectionism, but the more I found out that most successful people had to first conquer their perfectionism before moving forward, I too decided to step out and just do things.
You must try things out, even if they’re not as good as you want them to be. Put your website live and start promoting it.
Experiment with different revenue models and so on.
One good example is my first website. But that website is my guinea pig. That is where I test out new ideas, implement new programs or try new products. Like I keep saying, I won’t promote anything to you if I haven’t paid for it or tested it myself. These things have to be tested somewhere and All-about-life-tips is where I test. I test plugins people say are better, I test programs people say to try out, I test about anything you can think of there. If it doesn’t work, I get rid of it and never mention it to anyone. If it works, I’ll write about it.
Sadly, of course along your journey, you will make a lot of mistakes as well and will inevitably have to adapt your initial strategic plans here and there, but that is the only way to go to move forward and keep moving forward.
Principle 6: Perseverance
Like I told you before, there are so many stories of “supposedly” overnight fortunes that are being made on the Internet, but behind most of them there is an immense amount of hard work by the people involved.
Most of those entrepreneurs tried and failed with many ideas and businesses before they hit a home run.
Even offline it works that way and always has. Take, for example, one of our biggest inspirations: Thomas Edison. Do you think he tried 2 or 3 methods for a lightbulb? Do you think he got an idea and just started out a massive success? No, he had to persevere.
Or another example is Wikipedia. If you don’t know the real story, you could assume that Jimmy Wales woke up one day with the bright idea to build an online encyclopedia where every user would be able to submit and edit any article, right?
Yes, you guessed it, wrong. Actually, in reality, the initial idea was something completely different. That idea was called Nupedia and Jimmy Wales wanted it to be an online encyclopedia written, reviewed and edited by experts. He thought that this would guarantee that the articles are extraordinary quality. Nupedia would be free for users and Jimmy Wales expected that the experts from around the world would spontaneously volunteer and write articles – serving a noble cause. As things turned out, they didn’t.
Nupedia was an absolute flop, the number of articles on the site was inadequate and the site was growing very slowly. But, like Thomas Edison, Jimmy Wales refused to give up, though. Instead, he brainstormed with Larry Sanger how to solve the problem. Larry suggested the use of a wiki. A wiki is a website where all the users can create and edit all the pages. And so Wikipedia was born.
Conclusion to 6 core business principles to be successful online
You’re going to have to work hard, no matter what.
And sadly, but true, it is very likely that you will fail a lot before you find a venture that will make you a millionaire or make you achieve whatever goals you might have.
But as long as you have the perseverance to keep moving forward despite all of that, and you will not give up – NO MATTER WHAT – you already have an incredible advantage above most of the people out there.
Now it’s time to take action
I want you to do the following:
Think about your vision
I want you to spend some time in thinking about what your vision is.
What is it that you want to build – exactly?
No matter how long it is going to take for your vision to materialize or how difficult it is, you need to know what your website or company will look like when it is complete. Have the end-product in mind. Once that vision is clear, it will only be a matter of getting busy and making it happen.
Write it down
Get a pen and paper ready, or use the word processor on your computer.
Write down the different ways and models you can use to create value.
Keep in mind that you are just brainstorming at this point, so there’s no need to censor your ideas.
Write down everything that comes to mind.
To get you started, think about things that people want or need. See if you could provide them somehow.
How would you generate profits?
Again, start brainstorming about how you would be able to generate profits out of the activities you wrote down in the previous point.
Here are some questions that you might want to answer:
- Who will get value from my service or product?
- Who will pay for it?
- How will that person pay?
- Is my cost going to be lower than my revenues?
Draw up a simple strategic plan
Choose the ideas that are the most promising and draw up a simple strategic plan out of them.
Perform an analysis of the external factors, for example, who are your customers, your competitors, and the market forces.
Also, perform an analysis of the internal factors, like what are the resources you have, what strengths do you have, or what weaknesses and so on.
Figure out what your primary goals will look like, for example, how many readers or clients would you need to have, how much money you need to make in your first year and so on…
Were these 6 core business principles to be successful online helpful?
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Remember, done is better than perfect. As long as you do something and take action, you can keep moving forward.
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