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How to Create a Successful Digital Business Plan 4 min read

4 minute read

Developing an effective digital business plan is critical for achieving digital transformation for any business. Whether your venture is large or small, keeping up with the constantly changing state of the online marketplace and social media channels can be challenging and overwhelming. Investing even a few hours in the beginning to create a concrete plan will save you time in the long run and help build a sustainable foundation for growth. Discover how to construct an actionable game plan and lay out the best digital initiatives for crafting a successful digital business plan .

What is a digital marketing strategy?

A digital marketing strategy is an effective way to get your message out to the right people. Utilising online resources enables you to connect with potential customers who are most likely interested in what you have to offer. Uncovering the source of a company’s profits, its purpose, and how it operates is essential in crafting an effective digital marketing strategy. Understanding these elements enables you to design a digital business plan that aligns with both business objectives and customer needs.

As part of any digital strategy framework , a brand must assess the value and benefits of its own communication channels (owned media), as well as external sources such as earned and paid ads. Earned media is any type of non-paid publicity that comes from another source rather than directly from the company itself. In contrast, paid media requires companies to pay for advertising space or time in order to get exposure.

Why do you need a digital marketing strategy?

The importance of a reliable digital strategy framework cannot be overstated, as it allows companies to effectively reach their target audiences through multiple channels such as social media platforms. Some of the key benefits of developing an effective digital marketing strategy include:

Outperform the competition

A digital marketing strategy gives businesses the opportunity to outshine their competitors. By harnessing creativity and encouraging innovation in product design, development, and promotion, digital marketing strategies can help propel your business toward success while leaving competitors behind.

Maximise profits

A carefully-devised digital marketing plan can help businesses increase sales and maximise profits. By analysing consumer preferences, tracking customer behavior, and leveraging data analytics, a digital marketing strategy allows companies to optimise their campaigns in order to attract more leads and boost revenue.

Stay current

In today’s competitive business landscape, staying current is essential for companies if they want to stay ahead of the competition and remain successful. A digital marketing strategy allows businesses to stay current and up-to-date with the latest trends, technologies, and practices in their field. By leveraging innovative marketing techniques, businesses can stay ahead of the curve and outperform their rivals.

How to create a digital marketing strategy

Develop a buyer’s persona.

One of the first examples of digital strategy is understanding your target customers. Creating detailed buyer personas allows you to better identify and communicate with your ideal customer, which enables you to create more effective campaigns. Bypassing the traditional data collected by digital marketers such as age, gender, occupation, preferences, and location, this goes beyond to provide a deeper insight into the target audience.

Quality digital marketing and social media campaigns start with understanding the people who are most likely to purchase your products or services. Buyer personas provide a great way of gaining insight into these potential customers, and there are plenty of free templates available online that you can use as a starting point!

Determine your digital marketing tools and goals

To ensure your business is successful, always make sure that the objectives of your advertising strategies are aligned with the overarching goals of your company. For example, if your goal is to drive more traffic and leads within the first quarter of 2023, then a specific digital marketing tool that you should be using is search engine optimisation (SEO), particularly for brands that have a global audience.

By analysing your current website and identifying traffic-generating opportunities, you can begin to improve its ranking on search results pages.

Assess existing digital marketing channels

Take a close look at the digital technology you currently leverage, including content marketing, pay-per-click advertising, and social media marketing. Evaluate their impact on your business goals to decide which advertising strategies have seen success – then refine them for next year. Additionally, consider if any online advertising methods should be added to the mix for maximum value.

Streamline your customer’s access

To effectively reach potential consumers, your website traffic must be significant. This is essential for positive success in the online business world. Your online marketing plan should guarantee that your prospects and visitors don’t feel overwhelmed when trying to reach out. Consequently, it is vital to display CTAs plainly and prominently on the landing page as well as other pages of your website.

Monitor the success of your digital strategy

In addition to these examples of digital strategy , it is important to assess how successful your digital and content marketing strategy has been. By tracking the results of your campaigns and activities on digital platforms – such as website traffic and optimisation on search engines, engagement levels, and sales data – you can begin to further refine and optimise for even better results.

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The Ultimate Digital Business Plan Template & Tips

Article Snapshot

Traditional business plans are long, comprehensive and difficult, and they take a long time to prepare. It is a task that will require the development of assumptions and projections based on vision, objectives, market conditions, and competitive analysis.

This article aims to outline how you can modernise your business plan in order to create a digital business plan for the contemporary age. Before you get started, it may help to briefly recall the purposes that a traditional business plan serves. It is, in essence, a strategic document, and needs to:

• Set out clear business objectives based on information and analytical data.
• Present the viability of a business venture.
• Detail the assumptions on which a business prospect relies.
• Outline cash flow projections based on assumed sales, expenses, market data, and competitive analysis.
• Include resumes which outline the strength and relevant background and experience of the most important staff members including the business owner.
• Outline business and market strategies in case of setbacks and adverse conditions.

The traditional business plan is a selling tool used in negotiations with lenders, banks, and investors. You can also use the business plan to solicit feedback and advice from your lawyer, bank, business mentor, trusted business friends, potential customers, and small business organisations. Finally, the business plan is a tool for measuring income, expenses and profitability against projections made in the plan.

The Digital Business Plan

Market conditions are changing rapidly in response to technological advancements. For this reason, a business plan has a progressively shorter life-span and needs to be revised and updated more frequently.

Both assumptions and market data needs to be reviewed and updated at least annually and quite possibly quarterly. Two separate market conditions have changed expectations about strategies that must now be incorporated into a digital business plan.

• Business organisations must now embrace technology to remain relevant and competitive.
• Organisations must develop a digital strategy with particular emphasis on mobile technology and mobile applications.

These conditions have given rise to what is now called the Modern Digital Business Plan, and this type of digital business plan is dramatically reduced in size. Entrepreneurs may wish to use an application called StratPad to guide them through the process of writing a shorter plan.

What is a Digital Business Plan?

A digital business plan is an extension of your regular business plan that details how digital initiatives can contribute to the success of the vision, the goals, and opportunities contained in the business plan.

For example, consumers today expect to communicate with a company using a website, app or phone, and the strategies outlined in the business plan should facilitate such communication.

What Needs to be Included in a Digital Business Plan?

There are some aspects of a business plan that will be applicable to both a traditional business plan as well as a digital business plan, and these include:.

Vision - A business vision statement will outline that you wish your business to focus on, and should communicate your long-term view for your organisation. It should include your mission statement, your goals, and your company’s values to your staff, your financial backers, and your customers.

Mission - Your mission statement is the core of your business objectives, and the principles underlying them. It should reflect every facet of your business, as this will help to clarify what you want to achieve.

Goals - By sitting down and taking the time to choose goals that are tailored to your company, you will be on the right track to achieving those goals. They shouldn’t be generic, but rather be specific targets that you can work towards.

For example, instead of setting a goal of ‘I will turn a profit in six months’, you should set a goal of ‘I will sell 200 units of Apple headphones in six months in order to turn a profit on this product’. By being specific you keep yourself and your staff on the right track of what needs to be done to achieve that goal.

Values - Your business values should be made up of three things: The principles you personally stand for; the attitudes and beliefs that everyone in the business has in common, and the standards of behaviour that your organisation subscribes to.

There are also aspects of every business that will have an impact on the actions you need to take, and these include:

• ‍ Finance - How will you generate revenue? What are your costs likely to be? What are your profit projections? ‍
• Staff - What positions in the business are there to be filled? What policies do you need to have in place? ‍
• Marketing - How do you plan to market your new venture? Include the four P’s of marketing: Price, Product, Promotion and Place. ‍
• Operations - What systems will your business use? What will your overhead be? How will you improve efficiency? ‍
• Customers - Who are your target customers? How will they find you? How will they purchase/hire your goods/services?

Cloud based accounting practices

How do you backup your financial data? Cloud computing offers a convenient and reliable method for backing up accounting data, and the primary advantage is that the data can be retrieved using a desktop or mobile device from any location.

However, before choosing a cloud provider it is essential to make sure that it offers more than incremental backups, as historical financial reports must be retrievable ongoing.

Online ordering and payment system

How flexible is your online ordering and payment system? Many programs and mobile applications are now available to allow customers to place orders and pay online, but some are still user-unfriendly. Ensure that the ordering and payment system you choose is suited to your products/services.

BYOD policy

Do your employees prefer to use their personal mobile device to perform work-related tasks? It can provide a significant cost saving for an organisation to implement a BYOD policy, as it reduces the amount of hardware that needs to be purchased upfront by the business. If you decide to allow your employees to BYOD, does your BYOD policy ensure that company data is not mishandled? And does the policy set out what to do if a mobile device is lost or stolen?

Regulated use of mobile devices

If your employees are allowed to use either their own or company mobile devices, do you have a system in place to regulate their personal vs professional use and their device’s security? It’s important that everyone is on the same page, particularly regarding what your staff’s responsibilities are regarding software and security updates, bills and liability.

Use of cloud-based applications and tools for projects

Have you thought of using cloud-based tools for project management and project collaboration? Cloud providers supply a range of tools on a subscription basis and can be an economic choice for startups and large enterprises alike.

Integration of digital technology and apps

Can your staff members communicate and collaborate regardless of location? Can they accept orders, process payments, and enter project time and expenses using a mobile device? There is a large range of business applications available on mobile stores like the Apple store and Google Play designed to provide mobility for staff, as it enables them to access project data from any location. For example, Google recently introduced a work-related mobile for Android devices called Android for Work .

Online Chat

How do your staff members communicate between themselves and with customers? Online chat can be implemented with a service provider like Skype, which provides voice, video, and conference call facilities.

Online presence

Does your website attract a sufficient number of visitors? Search engine optimisation (SEO) ensures the visibility of a website in Search Engine Result Pages (SERP). The purpose of SEO is to make a website appear in search listings in response to a person’s search intent. The major factor is the selection of a major and some secondary keywords (search phrases), but SEO is a complex process that involves more than 50 ranking factors.

Pay-per-click (PPC) is the use of paid advertisements ( Google Adwords ) to increase visibility and bring in sales/leads from the search engine Google. PPC is an essential part of any lead generation campaign for a business, and so should be implemented by the marketing department of a company.

Do you have a presence on social media channels? Social media sites like Facebook, Twitter, LinkedIn, and Pinterest facilitate engagement with potential or existing clients. Like website content creation, social media activities should be based on a content marketing strategy that defines what type of content to post, the frequency of posting, and analytics to measure what type of content produces the best engagement with clients. Facebook ads can also be a valuable lead generation resource for business, depending on your industry and target audience.

Google for Business

Can new clients easily find the location of your business? The Google for Business program suite is particularly important for promoting a business in a local area, as people will be able to look at Google Maps to find the business location. Once entered, the business will also appear in search and on Google+. You can begin the process of adding your business to Google here .

Email marketing

Having an email marketing system in place is a great way to take advantage of any contact information you may have in your database. This is effectively free advertising and can be a good way to encourage consumer engagement. There are a number of email marketing solutions available where a company will take care of your email campaigns, such as Direct Mail and Marketing , or there are DIY solutions available such as Hilltop Mail and MailChimp .

Responsive website design/Mobile site

Is your website optimised for mobile devices? This implies what is called responsive design. Wordpress sites use a responsive theme, while HTML/CSS sites can use different techniques to make the design responsive. A responsive design means that the site displays correctly on the narrow screen of a mobile phone, as well as on the size of a PC screen. All websites today should have a responsive website design or a mobile-friendly site, as Google is now prioritising those sites with mobile-responsive features over sites that are desktop-capable only. You can find out more about this here , and you can find out if your website is mobile-friendly by Google’s standards here .

Implementation of a content strategy

Do you have a website content strategy? It should set out the planning, development, and management of your website content, as Google and other search engines now emphasise website content as a critical factor for site ranking. Articles or posts should be longer and more comprehensive than regular page content, and in addition to main keywords the content must contain theme-related words and phrases, also called semantically related terms . Such terms ensure that the content is relevant to your target audience. An example template of a business’ content strategy can be found here .

Customer Relationship Management (CRM)

Do you have an integrated customer management system? A Customer Relations system is a prime software tool for managing a company’s interactions with customers. It can automate, organise, and synchronise sales, marketing, customer service, and customer support activities. There is a range of different CRM programs available, such as Microsoft Dynamics , Salesforce , and Infusionsoft .

Cloud-based file management

Have you considered the pros and cons of cloud-based file storage? Files stored on a cloud server can be retrieved from any location using a mobile device. It provides flexibility as project staff working in different locations can collaborate, share files, and assign project tasks easily.

Online security

How secure is your computer and communications network? Security systems must be implemented that prevent the intrusion of computer viruses, malware, malicious hackers, and spam mail.

Reliable backup process

How safe is your data? A reliable backup process is an essential requirement for any business. Apart from data loss caused by equipment failure or malicious hacking, the process should also provide off-site data storage as protection from theft, fire, or natural disasters.

SSL security

A Secure Socket Layer (SSL) certificate increases website security and provides encryption of data, and is recommended for all businesses with an online presence.

Cloud computing

What hardware and software could you potentially hire from a cloud service provider? Cloud service providers supply hardware and software on a subscription basis.

Source nationally and globally

Do you operate on a worldwide basis? Digital facilities enable companies to source products or services on a worldwide basis.

Customise software

Are your software systems optimised for the tasks they perform? Strategic reviews may reveal areas where existing systems can be customised to provide improved productivity.

Digitise processes

What manual processes can potentially be automated? Manual processes should be reviewed and analysed with the intention of integrating them with online computer systems.

Automatic inventory control

Is your inventory management a manual process? Computer systems are available that can re-order products on the basis of sales volume and inventory holdings.

Online purchasing

Review and implement systems that improve online purchasing as a service for customers, and as an internal process for inventory management. A variety of mobile applications are available.

Software-as-a-Service (SaaS)

Save capital costs by paying a subscription service to software programs.

Online purchasing capability

An increasing number of Australian people now prefer to shop and pay for products and services online. As outlined in the operational section, potential systems include payment gateways and mobile applications.

Channel development

What channels can customers use to order and pay for your services? These can include the Internet, mobile applications, Facebook or online ordering applications.

Create FAQs

How do your customers find common information and problem solutions? Publish an FAQ on your website. It can save your staff a lot of time by not having to answer the same questions repeatedly.

Online support

Who and how do your customers contact your business for support? Customers today expect fast turnaround and good customer support service. Implement a live chat system or a ticket system, or alternatively, have a dedicated email for contact.

Call to Action apparent throughout the website (CTA)

There is a saying that people browsing a website will only take action if told to do so. Be clear what action you want people to take, and spell it out on every page.

Use of social media for engagement

Implement a social media strategy, and establish a presence on social media channels like Facebook, Twitter, LinkedIn and Pinterest. This will increase the engagement with your customers and potential customers have with your brand.

**This article is limited to the incorporation of a digital strategy in the appropriate segments of the business plan

If you’d like more detailed instructions on how your digital business plan needs to be filled out, this YouTube video from the Queensland Government could be of use. Based on a recording made from a June 2013 webinar, this clip is an introduction to digital strategy for small businesses, but can also be applied to larger enterprises that are moving online.

Remember, the right talent is critical to success. At Expert360 we connect the best talent with the right project.

Digital Business Plan Template

If you’d like to use our outline to create your own digital business plan template, download the PDF here.

• http://www.digitalbusiness.gov.au/getting-online/planning-your-online-activities/online-business-plan-template/
• http://www.myownbusiness.org/s2/
• http://www.entrepreneur.com/businessplan/index.html
• http://sethgodin.typepad.com/seths_blog/2010/05/the-modern-business-plan.html
• http://www.businessplanarchive.org/
• http://www.discoverbusiness.us/business-plans/
• https://www.business.qld.gov.au/business/running/technology-for-business/digital-strategy/creating
• http://websprint.me/blog/business-planning/digital-agency-business-plan-template-target-market/
• http://www.entrepreneur.com/article/224460
• http://www.plan2profit.ca/modern-business-plan/

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Gabe is part of the content marketing team at Expert360. He is a classically trained journalist, with strong interests in the future of work, the consulting industry, startups and technology.

Guide to Creating a Digital Business Plan: Essential Steps for Success

Creating a digital business plan is a critical step in launching or expanding your online venture. It's more than a roadmap; it's the strategic backbone that guides every decision you make in the digital space.

Starting with a clear understanding of your objectives, which should be grounded in research and data analysis, you'll be better positioned to evaluate the feasibility of your business idea.

A digital business plan isn't static; it evolves as you gain deeper insights into your market, competitive landscape, and customer behavior.

To build a strong digital business , it's essential to align every element of your online strategy with your company's broader goals. Whether you're aiming to increase traffic, generate leads, or boost sales, the tools and tactics you choose must fit seamlessly into your overall plan.

Tailoring your approach to the unique dynamics of the digital ecosystem can help you overcome challenges and capitalize on the opportunities that today's online world has to offer.

As you're crafting your digital business plan, remember to include detailed cash flow projections and performance metrics. Your plan should also outline the assumptions your projections are based on, such as assumed sales volume and operational expenses.

Incorporating a thorough competitive analysis will further strengthen your strategy, providing you with the insights to position your business effectively in the marketplace. With careful planning and a robust digital business plan, you're setting the stage for success in the digital realm.

Vision and Goals

Your digital business plan hinges on the clarity of your vision and the specificity of your goals. These elements provide direction and form the bedrock for long-term success.

Defining Your Vision

Your vision encapsulates where you want your business to be in the future. It’s ambitious, yet achievable—a clear articulation of what sets your company apart and how it will shape the industry landscape. Consider it a north star, guiding every strategic decision you make.

• Drafting a Vision Statement: Express in a sentence or two what your digital business ultimately aims to achieve.

Establishing Clear Goals

Goals translate your vision into actionable steps. They should be SMART: S pecific, M easurable, A chievable, R elevant, and T ime-bound. This framework ensures that you're setting targets that are clear and quantifiable.

• Short-term Goals: These might cover things like launching a new product or growing your social media following within six months.
• Long-term Goals: Consider where you want your business to be in five years. This could include market share you aim to capture or revenue targets you hope to hit.

Market Analysis

In shaping your digital business plan, market analysis is the cornerstone that'll ensure you're aligned with customer demand and equipped to outmaneuver competitors. It's the detailed examination of your industry landscape that'll steer your approach.

Target Audience

Identify your potential customers : Begin by narrowing down who your target audience is. Consider demographics like age, gender, income, and location. Understand their needs, preferences, and how your product or service fits into their life.

• Demographics : Age, Gender, Income, Education, Location
• Psychographics : Interests, Values, Lifestyles

Competitive Analysis

Know your competition : Identify direct and indirect competitors and evaluate their strengths and weaknesses. Focus on how you can leverage your competitive advantage to stand out. Use market research to learn from their positioning and customer feedback.

• Direct competitors : Similar products/services
• Indirect competitors : Different products/services that satisfy the same need

Understanding Customer Behavior

Study consumer behaviors : Look into how potential customers make purchasing decisions and what influences them. Analysis of these behaviors will guide your marketing strategies and product development , ensuring they resonate well with your audience.

• Influences : Social media, peer reviews, marketing campaigns
• Purchasing patterns : Online vs. in-store, one-time vs. subscription-based

Business Model

Crafting an effective business model is crucial as it defines how you'll offer value to your customers and generate income. It's a core part of your digital business plan, outlining the products or services you're selling and the ways you'll earn revenue.

Products and Services

Your offerings are the lifeblood of your business. They should not only meet a need or solve a problem but also stand out in the digital marketplace. When mapping out your products and services, consider the following:

• Value Proposition : Clearly express the unique benefits your products or services offer.
• Alignment with Customer Needs : Ensure that your offerings align with what your customers are actually looking for.

Here's a quick summary of what to think about:

Ensure your products or services are adaptable to the changing digital landscape, be it through technology upgrades or new, innovative features.

Sales and Revenue Streams

Turning your products and services into revenue requires a clear sales strategy and diversification of income sources. Consider these key components:

• Sales Channels : Identify where you'll sell your products—will it be through your own website, third-party platforms, or both?
• Pricing Structure : Determine how you'll price your offerings. Will you use a one-time fee, subscription model, or a freemium approach with premium upgrades?

For your revenue streams, think about:

• Diversifying to protect your business from market fluctuations.
• Creating a mix of recurring and one-time income that can scale as your business grows.

Your sales strategies should be flexible to adapt to customer feedback and market trends. Keep them agile for long-term sustainability in the digital economy.

Marketing and Sales Strategy

Your marketing and sales strategy is a critical component of your overall digital business plan . It's the roadmap that guides how you attract, engage, and convert your target audience into loyal customers.

Branding and Positioning

Your brand's position in the market is what sets you apart from competitors. Craft a unique selling proposition (USP) that resonates with your audience and consistently reflect this in all aspects of your marketing.

• USP : Define a clear and memorable statement that captures the essence of your brand.
• Visual Identity : Keep your logo, color scheme, and design elements consistent across all mediums for immediate recognition.

Content Marketing Strategy

Content marketing is about creating valuable, relevant content to attract and retain a clearly defined audience. It's a long-term strategy that focuses on building a strong relationship with your target audience.

• Blog Posts : Provide informative and engaging articles that address your customers' needs and pain points.
• E-books and Whitepapers : Offer in-depth content that educates your audience and positions your brand as a thought leader.

Social Media Marketing

Social media platforms can increase your brand awareness and foster a community around your business. These platforms are also powerful tools for promoting content and engaging directly with your audience.

• Platform Selection : Choose platforms where your target audience is most active.
• Consistency : Maintain a regular posting schedule and a cohesive message across your chosen platforms.

Search Engine Optimization (SEO)

SEO increases your website's visibility in search engine results pages. High rankings mean more exposure, driving organic traffic to your site which can lead to increased conversions.

• Keyword Research : Identify terms and phrases that your target audience uses to search for solutions you offer.
• On-page SEO : Optimize your website's content and HTML elements to rank higher on Google.

Email Marketing Campaigns

Email marketing remains one of the most effective channels for maintaining relationships with leads and customers. Personalized campaigns can drive engagement and sales with relatively low costs.

• Segmentation : Group your audience based on behavior or demographics to tailor your messages.
• Automation : Set up email workflows that are triggered by specific actions, like signing up for a newsletter or abandoning a shopping cart.

Digital Infrastructure

Building your digital infrastructure is a vital step in aligning your business with modern technological advancements. It lays the foundation for your operations and supports your digital strategies , ensuring that you're efficient, competitive, and resilient in a digitally-driven marketplace.

Website Development

Your website is the cornerstone of your digital business. When developing your site, focus on both form and function:

• Design : Ensure your website is visually appealing, aligns with your brand identity, and provides an intuitive user experience.
• Performance : A fast-loading website is critical. Optimize your site to load quickly in any browser, minimizing bounce rates and maximizing user satisfaction.

Online Presence and Engagement

Having a strong online presence is more than just being found. It involves engaging with your audience through various digital channels:

• Digital Marketing Plan : Create a well-rounded digital marketing plan that includes strategies for SEO, content marketing, and social media to drive traffic and engage with your target audience.
• Analytics : Use analytics tools to track your online performance and understand user behavior. This data is essential in refining your digital strategies for better engagement.

Digital Tools and Software Automation

Leveraging the right digital tools can transform your business processes:

• Technology : Identify and implement digital tools that enhance your productivity such as CRM software, project management tools, and cloud computing services.
• Digital Transformation : Embrace software automation to streamline your operations. From marketing to customer service, automation can significantly reduce manual workload while boosting efficiency.

Execution Roadmap

In crafting your digital business plan, it's crucial to carefully outline your execution roadmap. You'll need to set clear milestones and plan growth strategies that are pivotal for your business's long-term success.

Milestones and Benchmarks

It's all about knowing where you're heading. Set specific milestones and benchmarks to measure progress across your digital business journey. These should be tied to quantifiable outcomes and aligned with your overall strategic objectives.

• Establish Milestones : Think of these as key achievements on your path to digital transformation. For instance: Quarter Milestones Q1 2024 Launch new online customer service platform Q2 2024 Achieve 25% increase in digital sales Q3 2024 Deploy analytics tools for customer data
• Benchmarks : These are your performance reference points. Compare your progress against industry standards or past performance figures to assess your traction and make necessary adjustments. Benchmark Goal Industry Average Customer acquisition cost Decrease by 15% $60 Digital campaign ROI Increase by 20% 4x spend

Growth and Scaling Strategies

How will you escalate your efforts to meet demand? Your roadmap should include strategies to intelligently scale your operations and sustain growth without compromising quality or overextending resources.

• Automation of tasks to reduce labor costs and increase efficiency.
• Outsourcing non-core services to specialists as your business grows.
• Calendar Planning : Keep a detailed calendar to synchronize your growth efforts with market opportunities and customer needs. For instance, you might target product releases to coincide with industry events or seasonal trends.

Remember to consider the following tactics for sustainable growth:

• Diversify your service offerings to mitigate risk.
• Optimize your user experience (UX) to retain customers.
• Continually analyze data to inform decisions and pivot when required.

Performance Measurement

In your digital business plan, performance measurement is crucial to understand how well your strategies are working. This involves analyzing data to gain insights, conducting experiments to refine tactics, and tracking productivity and success through metrics.

Key Performance Indicators (KPIs)

KPIs are quantifiable measures that help you gauge your company's performance against your strategic goals. When selecting KPIs, you should consider:

• Relevance : Choose indicators that directly reflect your business objectives.
• Clarity : Make sure KPIs are clear and understandable for all stakeholders.
• Measurability : Each KPI should be easily measurable to accurately track progress.

Examples of KPIs could include :

• Conversion rates
• Customer acquisition costs
• Retention rates

Analytics and Reporting

Analytics tools provide the raw data and insights you need to evaluate your digital efforts.

For effective analytics and reporting, you should :

• Set up analytics platforms on your digital properties to collect data.
• Implement regular reporting cycles to maintain up-to-date insights.
• Leverage A/B testing or other experimental methods to optimize digital strategies.

Keep in mind that the way you interpret and act on the analytics is as important as the data itself. Regular reporting helps maintain a clear view of your business's performance and guides actionable steps to improve productivity and performance measurement outcomes.

Risk Management and Contingency Planning

In the fast-paced digital business landscape, you can't afford to ignore potential hiccups. Risk management and contingency planning are crucial in staying ahead and ensuring business continuity should challenges arise.

Identifying Potential Risks

To safeguard your digital business plan, it's essential to first identify the various risks that could derail your progress. These risks can broadly fall into several categories, each with its own set of challenges:

• Technological Risks: Issues like data breaches, system failures, or rapid obsolescence due to the speed of technological innovation.
• Operational Risks: These include supply chain disruptions, technical glitches, or loss of key staff.
• Market Risks: Changes in market trends, consumer behavior, or new regulations that could impact your business model.
• Strategic Risks: Competitor actions or shifts in the industry that could undermine your position.

Understanding these risks helps you anticipate and prepare for potential problems, ensuring the resilience and flexibility of your digital strategy.

Developing Contingency Plans

Once you've pinpointed the risks, developing robust contingency plans is your next step. This process involves:

• Outline Potential Scenarios: Document what could happen for each identified risk.
• Craft Response Strategies: For each scenario, devise a plan that details the steps you’ll take, resources you'll need, and who’s responsible.
• Establish Monitoring Systems: Implement systems to watch for signs of risks materializing so you can respond with speed and precision.
• Test Your Plans: Run simulations to evaluate the effectiveness of your contingency plans and make necessary adjustments.

These proactive steps don't just mitigate the damage of unforeseen events—they also position you to pivot and embrace innovation, turning potential setbacks into opportunities for growth.

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Rich Kainu is the founder and a main contributor to Deal In Digital. He has over 12 years of experience in digital product creation, sales, and marketing as well as content creation strategies..

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Market Research

Business planning, website development, product or service selection, marketing and promotion, the bottom line.

• Small Business
• How to Start a Business

How to Start an Online Business: A Step-by-Step Guide

Crafting a winning business plan: Setting goals and strategies

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations.

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide CURRENT ARTICLE
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

Oscar Wong / Getty Images

If you want to get into the online business game, it’s a good time to start. Since the COVID-19 pandemic, online sales in the U.S. have surged, reshaping consumer spending, including how people shop online and how they research products.

Today, 76% of Americans buy products online. Furthermore, roughly a third of people purchase items online at least weekly. From setting up an ecommerce business to offering web design services, there are countless avenues to explore as an entrepreneur.

Below, we’ll walk through each step to building an online business.

Key Takeaways

• When starting an online business, comprehensive market research is critical for identifying your target audience and learning how to resonate with your customers and understand their needs.
• Creating a business plan is an important step for outlining your business goals. It also includes your product description, target market, and financial projections, among other core components.
• Building your website involves setting up a domain name, finding a hosting company, and designing a strong website with consistent branding that allows your customers to navigate it intuitively.
• Choosing the right product or service to sell is essential. It’s important to think about how you’re addressing an unmet need.
• You can utilize several digital marketing strategies, from content marketing to paid advertising, to help your business grow.

Successful online entrepreneurs study hard in order to have a thorough understanding of their market. This is important for knowing exactly how to reach your target market because these are the people who will buy your products and drive your business growth.

At its core, market research is about understanding your customers’ needs, pain points, and desired solutions. It is designed to help your business better meet these needs.

Steps to Conduct Market Research

Market research involves understanding key aspects of your current and future customers. To get a clear sense of your target market, outline the characteristics of your audience—for example, age, location, gender, income, job title, and key pain points.

Once you have identified your target audience, conduct research on the following topics, which will tell you about how they make decisions and how you can better position your business:

• What are the challenges that your target market faces?
• Where do they research a given product or service?
• What are their views on pricing for this product or service?
• What factors influence their decision to make a purchase?
• Who are your competitors?

To put this market research into action, there are a number of different avenues you can take:

• Focus groups
• Competitive analysis
• Brand awareness research
• Market segmentation research

Consider the following questions that may be asked in an interview or focus group to learn more about your audience:

• “How do you search for that product?”
• “How useful was it?”
• “What words do you use when you search on Google?”

When you have completed your market research, identify what you have learned as well as your next steps based on these insights.

Creating a business plan is a key first step for all business owners . It is important for companies looking to secure funding resources. It also serves as a blueprint to summarize your key business objectives and goals.

To write a business plan , incorporate these eight main sections, which are often found in traditional templates:

• Executive summary : This is typically a one-page section that explains your objectives and includes your mission statement, core team, and why your company is positioned for success.
• Company description : This describes what you offer, your competitive advantages, and your business goals.
• Market analysis : This is where you explain your target market, market size, market trends, and competitive landscape.
• Organization and management : Explain who is working on your team and their professional background and experience.
• Service or product line : Describe the product or service you are offering, including any copyright or plans for patenting.
• Marketing and sales : Discuss your marketing and sales strategy. Discuss your pricing, key metrics, and sales plan.
• Funding request : If you are a company looking for funding, this is where you outline the capital you are requesting and how it will be allocated.
• Financial projections : Include projections for your company’s revenue and expenses. Consider including an income statement, balance sheet, and cash flow statement in this section.

A business plan is important because it helps clarify your action points, who you are, and what you offer, all in a coherent template.

Getting your business online is the next key step. In an ever-changing environment, it is important to know the tools, trends, and strategies for building a strong online presence to allow your business to grow.

Registering Your Domain

The first step is registering your name, or your website address. This can be in the form of your business name “.com.” To purchase your domain name, you can go to sites like GoDaddy or Namecheap . If you decide to build your website using WordPress, you will need to use a site such as these to host your website.

Web Hosting Companies

Alternatively, you can buy your domain name at a hosting company. These are companies like Shopify , Wix , or Amazon Web Services , which may also offer tools to build your website and release content on them. 

Website Design

A well-designed website is important for many reasons. Using a website builder, such as Mailchimp or Squarespace , can allow you to choose a theme, customize your pages, create relevant content, and set up a payment page.

Other key aspects of your website design include its functionality, simplicity, and ease of use. Allowing your potential customers to navigate the site intuitively will be key to their experience. Brand consistency—in your logo, colors, and typeface, for example—is also key to creating a unified brand.

Another essential part of website design is its mobile application. You’ll want to ensure that your website runs smoothly on mobile, that images load properly, that the text is legible, and that buttons are intuitive to click.

This step focuses on how to choose the right product or service to sell. At the heart of this choice is the goal of solving a customer’s problem. But there are a number of strategies you can use to identify your product idea.

For example, you might consider analyzing companies with high-profit margins, products that align with your passion, burgeoning trends, items trending on online marketplaces, and/or customer reviews.

With this in mind, analyze how this product will get to your customers. Additionally, you may consider products that are not available in stores in your local market but are offered in communities such as Europe or Japan, for example.

Marketing strategy and promotion is an essential driver of business growth. As the digital landscape evolves, it’s important to have an effective marketing plan that resonates with changing consumer preferences and needs.

BIPOC and LGBTQIA+ small business owners can now apply for a chance to win $250,000 in advertising and consulting services from Good Impressions.

Here are questions that companies can consider as they create their marketing strategy, navigating today’s environment:

• Impact, value, and growth : What are the goals and key performance indicators (KPIs) that will measure success for your business? How will you explain the value that the business provides to its customers and/or society? Create an “elevator speech”—a 30-second description of what you offer and why it’s special.
• Customer need and brand promise : How does the brand meet a customer’s need through its products and services?
• Customer experience : How will the business deliver the best experiences at each stage of the customer journey?
• Organizational model : How will the business operate to serve the customer with the most impact?

These will help you understand what types of strategies can have real impact.

Types of Marketing Strategies

Consider the following digital marketing strategies that can be used for your online business:

• Email marketing
• Social media marketing
• Paid advertising
• Search engine optimization (SEO)
• Content marketing
• Influencer marketing

Each of these presents a different way to reach your target audience, drive conversions, or build brand awareness, depending on your marketing goals.

Is It a Good Idea to Start an Online Business?

You need to determine that for yourself. But before starting an online business, it’s important to assess the time, investment, and resources you’ll need to get it off the ground. While the barrier to entry can be quite low, it’s worth considering your goals and strategies for making it a reality.

However, compared with starting up a traditional brick-and-mortar business, the risks of launching an online business may be reduced due to lower upfront costs such as rent, staff, and materials, among others.

Can I Start an Online Business with $100?

The short answer: yes. While it depends on the type of business you hope to pursue, there are many ways to set up an online business at very little cost. For example, you could offer your services doing freelance work, photography, bookkeeping, or personal training. The primary costs involved include setting up your business website, which can cost as little as $2 to $20 each year with companies such as GoDaddy.

What Are Different Types of Online Marketing Strategies?

There are a number of digital marketing strategies that online businesses can use, such as content marketing, email marketing, paid advertising, SEO, and influencer marketing. Each of these strategies can be useful, depending on your product and goals.

Starting an online business can be a powerful way to launch a new product or service while reaching a wider audience. With market research, a solid business plan, a strong website, and a digital marketing strategy, you can get started in growing your company effectively. As customers increasingly make decisions virtually, building an online business is vital to any business owner’s success.

Federal Reserve. " E-Commerce Retail Sales ."

Pew Research Center. “ For Shopping, Phones Are Common and Influencers Have Become a Factor—Especially for Young Adults .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Write Your Business Plan .”

Ogilvy. “ Getting Future Ready With Marketing Transformation ,” Page 15.

GoDaddy. “ How Much Does a Domain Name Cost? Find Out! ”

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