understand what it is and how to create a digital business – WAU
Digital entrepreneurship is a business model that has its commercial base in the online environment. Find out more about how to have your own digital business in this content!
Many plans to venture into digital entrepreneurship come at the end of a stressful day at work. That certainty that, if you were the owner of a business, everything would be different always hangs in the air and makes dreams take over thoughts.
The digital concept also makes candidates for entrepreneurship believe that the modality is much simpler to manage, requiring little effort and investment, after all, everything is online.
Without a doubt, the possibilities of doing an online business are tempting and can bring substantial results, but also require dedication and studies, starting with understanding the market, which type of product or service is most aligned with your profile, the tools needed for its management and which business strategies to apply.
To help in this understanding and plan to realize this dream, we have prepared a complete material, with concepts, tips and better opportunities to undertake digitally. Want to find out which one is most compatible with you? Check out this post right now.
What is digital entrepreneurship?
It is easy to conclude that digital entrepreneurship is a business model, whether for selling products or services, which has its commercial base in the online environment.
The big question is that, with so many technologies that can be applied in this environment, the range of possibilities for building an online venture is plentiful.
An e-commerce is an online enterprise, just as a professional who sells his courses or third parties through social networks is also.
So, from the moment a commercialization starts from the online environment, digital entrepreneurship is put into practice.
What are its advantages?
There are some advantages that investing in the digital environment to open your own business, among them, we can point out the following.
Current consumption behavior
In the 2018 E-commerce trends survey, 98% of its respondents declared themselves consumers of virtual stores, almost a unanimity of potential buyers, isn’t it?
The research on the use of Information and Communication Technologies carried out by CETIC in 2017 also revealed that London has 126.3 million Internet users. Of these, 78% use social networks to connect with friends and companies.
In other words, current consumer behavior is geared towards Internet relations. If well planned, an online business has enough market and acceptance to promote its sales.
Uninterrupted sales and flexible hours for its owner
Internet sales can be made 24 hours a day, all week. That is, an online enterprise does not necessarily need the presence and performance of its owner for purchases to happen.
Obviously, in the case of physical products, the shipping and billing process will need to be carried out by someone or an employee, but, in general, the procedures that convert the sale can happen at any time.
This dynamic even allows the business owner to act in parallel with other ventures or work. An accountant, for example, can have an e-commerce of fishery products, after all, he can manage his time dedicated to each of his sources of income.
It has low investment cost
Most online businesses do not need large upfront investments, physical structure or large staff. It is even possible to start an e-commerce with little or no stock of products.
Some companies consolidated in the physical and online market allow people to register to sell their products. In this case, it takes care of all the logistics of delivery when purchases are made. This is the case of Polishop, for example.
Its entire strategy reinforces that it is not necessary to make initial investments to sell its products, just to engage their contact networks and make them buy the products from the store through a link from the seller. Even the prices charged are the same if purchased directly.
No geographical barriers
Whether in this reseller bid, or in a private label business, sales can be made to anyone interested, and not just those who would go to a physical store to buy.
It is possible to close a contract with specific carriers or use the freight services of the Post Office for the case of physical products, including passing on the choice of which logistics service to use for the customer.
Infoproducts are even simpler. As they are consumed online or by digital means, not even this cost needs to be calculated separately, it is enough to just allow access to the content sold.
Which digital businesses to bet on?
In order to choose which type of product or online service to work with, it is important to understand the characteristics of each of them, the effort to market them and, of course, the identification that the entrepreneur has with this modality.
Among the best known, we can mention those that offer real earning opportunities.
Infoproducts are items consumed online. They can be e-books, courses, video classes, computer programs, consultancies, etc.
To deal with them, the entrepreneur can be the generator of the content or just an affiliate seller. You can use a personal platform, or one that broker your sale by a commission on the sale. To make it easier to understand, see some examples below.
Hotmart is a Distance Learning platform (EAD) that offers both opportunities for marketing infoproducts.
The first is when an individual has a knowledge he wants to commercialize. In that case, he creates content in digital format such as e-books, spreadsheets or video lessons, and inserts in the platform for sale.
He also needs to determine the value of the infoproduct, disclose it to his interested audience and determine how much he would pay platform affiliates to resell, which would increase the number of offers for his work.
Affiliates are those individuals registered with Hotmart who wish to market the platform’s infoproducts and earn commissions on their sales.
Hotmart has an incredible variety of topics and infoproducts, and therefore, it leverages sales opportunities for affiliates. It is possible to offer cooking courses, study techniques, physical exercise series, etc.
Another important detail is that the affiliate does not need to have a website to offer the products, he can use his social networks and even WhatsApp groups, as, like Polishop, he will also have a link that validates the sale made from his indication.
Blog managers can make a selection of infoproducts that are in line with their motto, and then link to their posts and ad areas. A fashion consultant can create a WhatsApp group and offer e-books on colorimetry, which explains which colors best match your clients’ skin tone.
FLIGHT IN V Online Consulting
VOOEMV is a company that offers online consultancy, mentoring and coach sessions.
Your customers can choose which of these modalities is the most suitable for their demand. Then, they perform a free initial consultation by videoconference, thus ensuring that a personalized effort plan is carried out. Then, a schedule is presented to the interested party, who chooses the payment plan and starts their sessions.
Among the advantages of this type of online service is the versatility offered to the customer, who can follow up wherever he is, whether at home, at the office or even traveling, with just an internet connection.
Alura is an online course school specializing in technology-oriented content.
In a 100% EAD environment, your students can choose specific courses or hire packages for a period to have access to all courses.
Another segment that Alura explores is the sale of its course packages to companies, which they can pass on to their employees as part of the regular training program.
Also included in the category of infoproducts are e-magazines, which have the format of a magazine and are digitally sent to their subscribers, podcasts and subscriptions to news sites.
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Online store and e-commerce are two other terms used as a synonym for e-commerce, but, for experts, there is a difference for the first.
THE virtual store would function as a showcase and sales channel, but e-commerce and e-commerce are more comprehensive and involve the entire administrative process for such, from the conception and formalization of the business to its sales itself.
That is, it is possible to have an e-commerce without necessarily having a virtual store, just use other platforms, such as social networks, for example. Facebook and Instagram have tools for sale that have great features.
When we talk about e-commerces, the biggest representatives are the most remembered, like americana.com and submarino.com.
But, to understand how they can be implemented from scratch and by smaller entrepreneurs, other examples can be useful.
The brand has a physical store of stylish shirts and some accessories, but its concept of e-commerce is much more feasible for entrepreneurs who want to start venturing into digital commerce.
Another e-commerce that is worth studying is Enjoei, which is an e-commerce platform for used products. Clothing, accessories, electronics and even furniture can be traded there.
It offers several forms of negotiation, including. An entrepreneur can have an internal store on the platform and sell his used products. You can also negotiate for professional e-commerce sellers to conduct negotiations, paying a fee for this service, obviously.
In this way, e-commerce buyers can either buy directly from the seller, or from e-commerce itself. For those who want to have the experience of selling online to find out if they would be able to manage their customers’ purchases, this can be a safe environment, after all, it offers the buyer and seller facilities such as credit card installments, for example.
Software as a Service (SaaS) are applications and tools that can be accessed in the cloud. Thus, its commercialization ensures that the customer can use the service for a specified period.
These are usage signatures, and offer technological services, such as data storage. This is the case of Dropbox, or restaurant management services, for example.
How to become a digital entrepreneur?
Once the choice of which niche to follow is made, some doubts may arise, such as the need to have a registration with the National Register of Legal Entities (CNPJ).
Therefore, the ideal is to carry out an action plan based on steps so that the business can emerge from dreams and be put into operation.
Choose your business model
Given all these possibilities, the first step is to choose that business model compatible with the profile and needs of the digital entrepreneur.
If he already has his own business, he can create a virtual store to expand his sales channels, or, if he is an expert, offer infoproducts and consultancies. There is no obligation to maintain only one line of work, but it is important to remember that leaner businesses at the beginning may be easier to manage.
Research your formalization
After the choice, it is important to analyze what are the technical and legal requirements for its effectiveness. At that moment, the doubt about the formalization of the legal entity may arise.
Platforms for selling online courses, affiliate programs and even the transactional credit card solutions that would be included in an eventual e-commerce do not always require the CNPJ for their use. Online businesses such as shops on the Enjoei website, for example, are designed to be managed by individuals.
In the case of more robust businesses and aligned with a larger audience, not having the CNPJ can make the entrepreneur stop making important sales, do not pass credibility to the customer and still have a revenue in his CPF that can generate higher tax rates Revenue Service or disputes from the Federal Revenue Service.
To this end, it is possible to adapt the business in the format offered to Individual Microentrepreneurs (MEIs) or to evaluate the best tax regime together with an accountant.
Another point of the legal aspect is whether the service can be offered online, whether it is necessary to be registered with some class entity, etc.
Plan your sales actions
There are several platforms for online stores, as well as solutions for accepting credit cards.
All of these strategic issues related to the sales process must be studied in advance so that they do not compromise the sales of the business.
Attention to fees charged by credit card operators in the case of e-commerce and the definition of the sales commission for affiliates who offer their infoproducts are also fundamental actions. This will define the pricing policy applied.
If the choice is to become an affiliate, it is necessary to choose the most appropriate infoproducts for the target audience you want to reach, which will be the dissemination channels and other points of your strategy.
Another precaution that needs to be taken is the analysis of the competition, evaluating what are its differentials, products being offered and others.
Create an online domain
If the idea is to create an e-commerce, it is necessary to choose a domain that communicates the business message.
The Enjoei e-commerce domain itself is a clear example of success. As they sell used products, suggesting that salespeople “get sick” of them makes sense, in addition, of course, to having a suggestive name.
Promote your products or services
Finally, it is necessary to create means to promote services and products. As the digital medium is the chosen market, using social networks, promoting ads and disseminating among partners and acquaintances is essential.
What are the best books on the topic?
To inspire, give some tips and serve as a case of success, some books on digital entrepreneurship can be valuable.
Work four hours a week
This book is subtitled “Escape the routine, Live wherever you want and Get rich”, which seems tempting. Written by Timothy Ferriss, its concepts speak about the valorization of time, of how to make each hour of work yield more and better.
Among its topics are time management, prioritizing the most important things, automating work and more. For digital entrepreneurship, such lessons are invaluable.
Another book acclaimed by digital entrepreneurs and bestseller. Alan Pakes organized 17 successful cases in the digital business, making an assessment of which strategies were used by each of them.
Suitable for new entrepreneurs who want to understand this universe, it has a logical and detailed reasoning of the first steps that need to be taken in the direction of success.
The 8 P’s of digital marketing
Written by Conrado Adolpho, this book with a focus on digital marketing also offers a series of insight into business design in the online market.
The store of everything, Jeff Bezos and the Amazon era
Written by Brad Stone, it tells the story of the owner of the biggest e-commerce ever known: Amazon. There are several lessons on innovation, courage with a touch of the vision of your family and closest collaborators.
Required reading for those who work or want to work with digital businesses.
Gary Vaynerchuk addresses the theme of entrepreneurship aligned with motivation. However, its chapters also offer the content in a didactic way.
Thanks for marketing
Vitor Peçanha offers a Content Marketing lesson that can be applied in all spheres of a business, be it online or physical.
However, as stated in this post, the online environment is rich and offers opportunities both to create online businesses, as well as to promote them, and there is nothing better than inbound marketing to optimize your approaches.
Digital entrepreneurship is a movement that serves both consumers, who prefer to make their purchases over the Internet instead of physical stores, and for entrepreneurs, who see in this niche the possibility of making extra earnings or working the dreams of 4 hours a week.
But, to reach that level, of course, it takes a lot of effort to prosper even with a lean structure, study to make the right decisions, in addition to knowing which tools and strategies are more efficient as is the case of Content Marketing.
Do you want to understand why it is so strategic for your business? Understand once and for all what Content Marketing is and what it can do to optimize your entry into digital entrepreneurship.