20/20 Vision for E-Commerce Startups: Article #1
If you’ve landed here, it’s probably because you would like to start your own business or already have.
In the “20/20 Vision for E-Commerce Startups” articles, I’m going to share insights about the various stages of getting a new e-commerce business off the ground, both from my experience working with clients and starting my first brand back in 2018, in hopes of bringing clarity to the process so your journey can be easier and faster.
With that out of the way, let’s dive right into the real first step.
Best Business For You > Best Business Idea
If you asked most people for the first step of starting a business, many would say that everything starts with the idea. Makes sense, right?
I would agree if you have unlimited resources, are able to fully comprehend complex yet unfamiliar subjects at a glance and are exceptionally talented at everything you do. The rest of us have limiting factors and weaknesses, so a great business idea for you may be terrible for the next person.
Let me ask you this. When you shop for an automobile, do you look at every single model and then figure out which one you want? Do you settle for the first one you think of? Probably not. There isn’t a “best automobile”. There is only a “best automobile for you”.
If you’re looking for the best business idea, I wish you luck. If you’re looking for the best business for you, I believe you’re off to a great start!
Let’s imagine that I call you today and say, “I think I want to become a professional basketball player by the end of the year. Do you think that’s possible?” You’ll probably want to know more information if you plan to give me your honest opinion.
- What if I’m 5-foot tall? (That certainly isn’t helping me.)
- What if I’m 60 years old so I can’t run fast or jump high anymore? (That rules out having much athleticism to offset my height challenges.)
- What if I am a very strategic and composed person? (This could be helpful, but isn’t nearly as important as the first 2.)
With all of these things considered, would you think it would be more realistic if I wanted to become a professional poker player within 5 years instead? Probably.
Sure, this is an extreme example, but I think you get my point. You’re better off when you’re aligned with your best chance of success. Let’s talk about how this relates to e-commerce and starting your business.
Common Misalignments
Over the years, I’ve found 2 areas that are most commonly misaligned with entrepreneurs starting a business. The most common being the products they sell, followed by the business model they choose.
Misalignment #1: The Products They Sell
Have you ever found yourself shocked after meeting an entrepreneur because their products seem to be completely unrelated to them? This was me when I met a gentleman that started a brand that sold indoor gardening accessories and he didn’t know the first thing about gardening. What about one that was so enthusiastic about their products that you could feel their passion? If you haven’t, just watch any episode of Shark Tank and you’ll find plenty.
When I think of the entrepreneurs that I’ve encountered, I believe most of them fit into 1 of these 2 personas that I’ve named:
- The “Hustler”: They know that they want to make money and own their destiny, but they rarely start a business that stems from a passion (other than working for themself and making money) or something they know extremely well. They usually aren’t picky about what they sell, but often underestimate how important it is to know their product and customers.
- The “Customer-preneur”: They want to improve or create a product they would buy because it solves a pain-point they have. They usually want to stick with what they know, but often underestimate the other functions that are necessary for the business to succeed.
Sure, there are other types that are less common and each entrepreneur is a unique mixture, so this isn’t meant to be definitive for each person. This is just a generalization based on what I have encountered most frequently.
My next article will dive deeper into why people start businesses, so we’ll talk more about these 2 personas and what it means for the business at a later date.
Misalignment #2: The Business Model They Choose
There are different business models within e-commerce. Although all of them sell things to people on the internet, they go about it in different ways. This also means that running each of those business types will require different skill sets and knowledge to be successful, and will look very different on a day-to-day basis.
Let’s look at the personas I mentioned earlier.
If you’re a “Hustler” that wants to offer a wide variety of products that sell themselves with little marketing effort, creating your own private-label brand and launching a Shopify website would be like standing in the rain to dry off. You should consider a wholesale business where you buy well-known products and sell them on a marketplace.
If you’re a “Customer-preneur” that has been a plumber for 20+ years, selling an online course about becoming a stock broker would make as much sense as opening a snowboarding shop on the beach. Your chances of success creating an online course about plumbing or an innovative plumbing product would be much higher.
It’s very important to take the time to understand each business model to ensure you’re picking the right one for you.
Let me know if you want me to make an article about the most common e-commerce business models and who they might be a good fit for.
The Takeaway
When we think about nearly every aspect of life, we think about whether it’s the right fit. We don’t try to grow pineapples in cold climates or keep pet goldfish in a cage because neither would be in a place where they could thrive. Entrepreneurship is no different. Creating a business that fits you, your goals and strengths is arguably the most important part of starting a business. After all, most businesses are just one person in the beginning, so you are just as important as the idea itself.
Are you looking to start an e-commerce business and want personalized assistance from an expert? Reach out to us today!