Thinking about starting an online business? Check out these 21 proven ideas, with a step by step guide to start your own business today
If you’ve dreamed of one day starting your own online business from home, you’re not alone.
Starting an online business from home isn’t easy. You might be stuck wondering what you can offer potential customers, or even just where to begin.
To help you get started, we’ve written this step-by-step guide with everything you need to know about successfully launching an online business.
We’ll teach you how to find your perfect niche and develop a as well as the necessary steps to take when setting up your venture—whether you’re selling a product, a service, or know-how.
Top 21 online business ideas to start
If you’re struggling to find a good business idea, here are some ideas you can try and why they’re worth it:
- Ecommerce business: and sell products directly to consumers via your own online store. You can reach customers around the world and the overheads are low.
- Online coaching/consulting: Leverage your expertise in a certain field to provide guidance and advice. People always value personalized, expert advice.
- Affiliate marketing: Promote other businesses’ products for a commission. It’s profitable and doesn’t require you to create a product.
- Dropshipping business: Sell products without holding any inventory. is a good way to get into ecommerce with less financial risk.
- Online courses: in your field of expertise. People are always looking to learn new skills.
- Blogging: Write about your passions or expertise, It’s a great way to connect with like-minded people and earn money.
- SEO consulting: Help businesses optimize their online presence for search engines. As more businesses move online, you’ll be in high demand. You can even leverage to plan, write, and edit content for your clients.
- Web development: Create websites for businesses and individuals. Nearly every business needs a website, and many individuals want one too.
- Virtual fitness training: Provide fitness classes or personal training online. The pandemic boosted the demand for at-home fitness solutions.
- Influencer marketing agency: Connect brands with influencers for promotional campaigns. Influencer marketing is an increasingly popular and effective way to reach consumers.
- Online market research: Conduct surveys and focus groups online for businesses. Excellent market research can give businesses a competitive edge.
- Digital marketing agency: Provide a range of online marketing services for businesses. This can be highly profitable and provide good cash flow.
- Podcast production: Create and market podcasts on a variety of topics. Podcasts are a popular way for people to listen to the news, inspiring stories, and other types of audio entertainment.
- Content creation: Develop content for businesses’ social media accounts, blogs, etc. Businesses need to publish content regularly to connect with their audience.
- Got a good story to tell? Write and sell digital books online to earn extra cash.
- NFT artist: Create and sell digital art as non-fungible tokens. The NFT market is growing and can be very lucrative. You can to bring your artistic vision to life.
- Online event planning: Organize and coordinate virtual events for businesses. Virtual events have become popular due to convenience and global reach.
- Virtual reality development: Develop VR games, experiences, or applications. VR is a rapidly growing field with many untapped opportunities.
- Subscription box service: Curate and send out themed subscription boxes. It’s a fun way to engage customers and generate recurring revenue.
- Translation services: Translate text or audio for businesses and individuals. As the world becomes more globalized, translation services are in high demand.
- Online personal stylist: Provide fashion advice and personalized outfit selections online. People value personalized services and convenience.
2. Prove your business idea is valid
When you conduct you are simply gathering information about the market you will be entering, as well as your competitors and customers.
This is an essential step in starting your online business, as it helps you determine if there’s a healthy demand for what you plan to sell.
When we talk about demand, it refers to:
- The need for your product/service/know-how
- Who wants to purchase what you’re selling
- How much are customers willing to spend
To understand these things, you’ll want to understand where your customers spend time online. Do they use forums? Spend time on Facebook? Or do they prefer to read blog articles? Knowing this will help you get the best information to understand your customers.
To begin conducting your online market research, you’ll want to research your competitors and define your target audience first. If you’re stuck, it’ll help to on Fiverr to get the job done efficiently and effectively.
Research your competitors
(those who offer a similar product or service to you) helps you collect important information regarding their website and online business in general. By using a free tool such as SimilarWeb, you can easily see how much traffic the competitor website brings, what type of keywords they are ranking for, and more.
Here are some of the things you should understand about your competitors when doing this research:
- Products/services
- Customers
- How they carry out business
This competitor research then allows you to spot any potential gaps in the market that your business can fill.
If you use a tool like , you’ll also be able to get information such as:
- Where the competitor’s main traffic is coming from (organic, paid, or social)
- Who other niche-related competitors are
- The types of other niches people are interested in
- Target markets
Define your target audience
Your target audience is a group of individuals sharing similar characteristics or needs that your online business is aiming to serve. Therefore, they are most likely to purchase your products or services.
The easiest way to define your is to segment them based on demographics. Going back to SimilarWeb, you can have a general overview of your competitor’s target audience and start to gather information such as:
3. Create a business plan
A business plan is your roadmap. It outlines your business strategy, how you plan to achieve your goals, and the resources you’ll need. Without a plan, your business is like a ship sailing without a compass.
The core elements of a business plan include:
- Executive summary
- Company description
- Business goals
- Organizational and management structure
- Services and products
- Sales and marketing plan
- Funding requirements
- Financial projections
You can learn how to create a business plan by reading on Fiverr guides. Or, you can to help you with the process.
4. Choose a business name
is a crucial step in the creation of your online enterprise. Your business name will be a significant part of your brand and identity. It’s the first thing customers will see, and it needs to make an impression.
When selecting a name, consider something that’s unique and easy to remember, and that reflects the essence of your business. It’s advisable to brainstorm several potential names and then check their availability. You also need to ensure the name doesn’t infringe on any existing trademarks.
Use an AI tool liketo quickly generate a business name. Just enter a few keywords and brand info, select a “Name Style”, and Namelix will create hundreds of names for you to choose from.
Here’s an example for a pet products company.
Once you’ve chosen your name, secure a domain for your website that matches or closely relates to it. Your business name and domain name should ideally be the same to maintain consistency and make it easy for customers to find you online.
Find a brand style specialist for hir
5. Fund your business
You need to have money in your business bank account before launching. There are a few ways to fund your venture as a small-business owner:
- Personal savings. One of the simplest ways to fund your business is through your personal savings. This method has the advantage of not owing anyone anything, but requires you to have sufficient savings.
- Crowdfunding. Another funding option is crowdfunding, where individuals collectively contribute to support your business. Websites like Kickstarter and Indiegogo make this possible.
- Venture capital. If your business idea has high growth potential, venture capitalists might be interested. Venture capital is a type of private equity where investors provide funding in exchange for equity.
6. Decide on your business structure
Deciding on the legal structure of your business is a fundamental step in starting an online business. This decision will impact various aspects of your business, such as taxation, liability, and regulatory obligations.
The most common legal structures for businesses include:
- Sole proprietorship. This is the simplest business structure, where you, as the owner, are solely responsible for all liabilities and debts. It’s easy to set up, but there’s no separation between your personal and business assets.
- Partnership. In a partnership, two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor, or skill. In return, each partner shares in the profits and losses of the business.
- Corporation. A corporation is a separate legal entity owned by shareholders. It means the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts the business incurs.
- Limited liability company (LLC). An LLC is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
It’s ideal to seek legal counsel or consult with a business adviser or accountant when choosing a business structure. It’s essential to understand each type’s implications to make an informed decision that suits your business needs and goals.
7. Take care of the legal tasks
Before you launch your online business, you’ll need to make sure , to avoid any fines or legal issues.
The information below applies to US-based businesses only, so it’s vital that you check your own country’s legal requirements for starting a business, as laws vary.
Additionally, the licenses, permits, or certificates you require to stay legally compliant vary based on your industry and state/country, so always check with local authorities first to ensure you know exactly what is required of you legally before you start your online business.
US-based businesses are required to apply for a business license, as this provides the government with a way of tracking enterprises operating within the area, as well as tax revenue generated.
To obtain a business license, you’ll need:
- A detailed description of your business’s activities
- A legal structure. Will you be operating as a sole proprietorship, limited liability company, or corporation?
- Any required inspections or permits, based on your region’s rules and regulations
- A sales tax license, if required, from your state agency
You’ll also need to maintain relevant licenses, permits, or certificates and prevent them from expiring.
8. Build your own website
can be thought of as the central hub for your online business. There are plenty of platforms you can use to build your online business. WordPress, Shopify, Wix—the list goes on.
Example of ecommerce store,