A million dollar, one-person business is otherwise known as a micro-business that has one to nine employees. The number of these businesses has grown by 50%. They’re up from 3.5 million in 2000 to 5 million. This growth is remarkable in comparison to the decrease or fall of other types of businesses during this time.
Many people are launching one-person businesses, hoping to break $1 million. There’s a growing trend of the $1 million dollar business in construction, healthcare, leasing, real estate rental, retail, social services. However, it’s not clear if all of these businesses were really one-person businesses, even at the beginning.
The secret to reaching this type of success and reaching to the masses is experimentation. You don’t know how people will react until you try a combination of things. It’s imperative to adapt quickly to change and to think outside of the box. Here are six key components to building a million-dollar e-commerce business and increasing profits in less than a business quarter.
1. Don’t Try to Reinvent the Wheel
Many business owners think they must reinvent the wheel with the products and services they sell. Focus on products that have a proven track record of success. This involves a little research on your part. Spot market trends by noticing how certain products perform on social media. If a product or service is getting thousands of likes in a few hours, then that’s a tell-tale sign that it’s selling well.
When starting a million dollar business, it’s important to notice the difference between commoditized and unique products. Commoditized products are mass produced while unique products are handmade or niche products that are less accessible. If you niche your business, create demand. Find out what people are looking for. You’ll be surprised to see what sells.
2. Create a Formula, Then Rewrite It
The e-commerce industry involves coming up with a formula and rewriting it. The formula should include a combination of variables such as advertising, customer lifetime value, product, and landing page optimization. When you determine which product has the best profit margin, copy that formula. Businesses that fail in the e-commerce world are 90% there but haven’t calculated all the variables in their formula.
Drop shipping is critical to your online business. You should spend most of your time bootstrapping your companies. Drop shipping allows you to advertise before securing that inventory, leading to increased revenue and sales.
3. Build a Legit E-Commerce Store
A successful e-commerce store is a determining factor in your online success. It can help build confidence with your brand. It’s important to find an e-commerce platform that offers free shipping and a money-back guarantee. You should also use a platform that offers a theme that fits with your industry. Take advantage of the tech, plugins, and features it offers such as inventory management in Magento, which manages all of your inventory in one place.
When it comes to branding, you want to look professional rather than spammy. Sometimes having a bright and colorful website with precise language is better than having a white website with technical jargon. If you’re running a women’s clothing store, you should change your theme to one that reflects your brand and merchandise. Branding is important when it comes to turning customer views into sales.
4. Find Winning Ads With ROI & Scalability
Your marketing campaigns come down to one word: testing. The only way to figure out what works is to test it. Test each product on your target audience, so you know where to invest most of your time and energy. When you land on a successful ad, copy it, but scale it so it’s specifically targeted to your audience.
You should only spend 20% of your time on ads, not 500%. When building marketing campaigns, it’s important to use language that’s creative and shareable. Use sale techniques that have been around forever such as, “Buy one, get one free.”
Starting an email list is also important. Email campaigns have a higher conversion rate than social media campaigns. You can even incentivize your email campaigns with sales, promotions, and rewards. You can increase sales by simply sending emails to your customers.
5. Hire a Virtual Assistant
Even if you’re starting a one-business, a virtual assistant is critical for scaling your business. In the beginning, your VA should help you with everything. As your business grows, you should then hire people to perform specialized jobs for certain tasks.
Having clear procedures and onboarding processes with your team is vital to your growth. Make sure your systems are easy since you need to keep up with the growth of your sales.
6. Get the Right Customer Support Staff
Your customer support is imperative to increase your profits. You need your customer support to be available 24/7, when possible. Online shopping takes place at all hours of the day and people will place orders during those times.
To offer support for concerns and questions, having live chatbots and around-the-clock customer service is something you shouldn’t go without. The last thing you need is for your website to crash or for a technical glitch to mess up a potential sale.
The e-commerce industry allows you to reach untapped markets and reap the rewards. Your e-commerce site will give you more freedom than your brick-and-mortar business will. By implementing a few of these strategies, you’ll be able to build an e-commerce site that you can run from anywhere in the world. It could become your million-dollar, one-person business.