Starting a New Business? Here’s What to Expect!

Lilith
Shopify Staff

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So you decided to start your own Shopify store? That’s great news! Whether you intend this to be your full-time business or a side gig to supplement your income, it’ll still take time and effort to get it right. Don’t worry, we’re here to support you every step of the way.

 

A common misconception new entrepreneurs make is expecting that starting a business means that they’ll be profitable and make sales instantly with little effort. Let’s address this topic in further detail in this post!

 

Starting a business isn’t about making a quick buck when you’re short on cash. Instead, it’s a commitment to serving the public, creating a compliant business, following terms and laws, and being a realistic goal setter.

 

Having a healthy set of expectations when starting a business for the very first time will be one of the most important things an entrepreneur must develop in order to succeed!

 

Was starting a business before the internet easy?

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The short answer is a resounding “no”! You’d need to put in 100% effort to build a legacy, also known as a thriving successful business.

 

To help put things into perspective, before the internet and online shopping was a mainstay, businesses operated mostly in-person and required thoughtful planning, budgeting and accurate marketing strategies.

 

Businesses like lemonade stands, run by children, weren’t long term growth legacies as these were temporary quick cash hobbies. However, it was an excellent way to introduce young minds to the art and craft of entrepreneurship while making a little cash to buy candy. Running a legitimate business on the other hand required more effort.

 

Bob’s 1989 General Goods Store Example

Imagine a new business owner opening a brand new shop near “pretty great” foot traffic in 1989. Let’s name this business owner Bob. Bob was eager to make some money to level up his life and wanted to do so quickly with as little work as possible since he was employed part-time. He decided to sell inexpensive easy to obtain general goods and the location was in a very high-end corner of town.

 

Bob knew that his friend John opened a general store the year before in another area of town and was doing very well. Seems easy enough right? Not quite. John had done research on the areas best suited for his shop, budgeted money in advance for his marketing and operating costs, made sure that his products were items that he felt proud to sell before placing them in his shop, and he spent time refining his customer service skills. John was prepared and dedicated to his business growth and customer satisfaction.

 

Bob didn’t do much research or preparation to open his local shop. Bob opened his shop in an area that wasn’t near his target customer for his bargain general store. Yes, the foot traffic that frequented the area had plenty of expendable income and he could make a sale once in a while, but the clientele in the area aren’t looking for bargain general products. The potential customers in the area were looking for high-end products and a high-end experience. Bob built his business in the same manner as opening a neighbourhood lemonade stand.

 

This is an example of how basic planning and research were needed to succeed in business before the digital revolution. Is it really that different from today? No.

 

Planning, research, marketing, perseverance are buzz words you’ll hear entrepreneurs mention frequently. Yet these words are tremendously impactful and important to understand. Business owners, before the surge of online shopping, needed to know the investment they put into their business wouldn’t cause them to lose their homes and livelihoods. Even farmer’s market participants would need a good plan to know the cost of production of their goods, space fees, quality control, packaging and many other things.

 

It’s not that different to this day.

 

What to Expect When Starting a Business in the 21st Century

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The internet has made it possible for anyone to start a business and reach a global audience. It’s also removed the barrier of leasing a commercial space and physical maintenance of a store. Although some of the larger financial obstacles have been lowered dramatically, it doesn’t exempt any new business from thorough planning, budgeting, preparation and research.

 

How Quickly Can You Get Rich?

 

As you know, there’s no such thing as a legitimate get-rich-quick scheme. When you hear anyone claiming they have the golden key to making loads of money in a very short period of time, then it’s about time to close that browser tab and focus on your own growth and long-term business objectives.

 

It may take some time to receive your first order. There aren't any guarantees in business, just like it was before the internet made access easier. Entrepreneurs that have done the appropriate thorough research, planning and execution can see a sale as quickly as the same day they open, however other well-prepared businesses can take months to become profitable. Like fingerprints, each business is unique and different.

 

FACT: Customers require an average of 7 touchpoints before they decide to buy from any business.


This means that opening your site and posting once on social media won’t get you where you want to be. The more your prospects see your business online (ads, social media, email, etc) the more they’ll know, like and trust your brand.

 

Businesses need promotion, maintenance and care. Opening a new site and leaving it alone won’t work for any business. Your new store is your new baby. Nurture it and it’ll grow. The bare minimum won’t help it thrive nor will you get the results you’re looking for. The more effort you put into your new business, the better the results are likely to be. So be ready to put effort, time and dedication into your new business.

 

Expect your business’ output to be equivalent to the effort and time you put into it.

“There are no quick wins in business - it takes years to become an overnight success.”

- Richard Branson

 

What Do You Need To Do To Make Shopify ‘Work’?

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The beginning of this post dropped some clues on the secrets to success with your online business. The key things you need to do are research, plan, budget and commit to your business. Remember that this is your business and want to help it grow. It needs to be nurtured for it to grow properly.

 

Spend some time researching your business idea. Is there a market for it? Who would your competitors be? Make sure you clearly define your audience and how you intend to reach them. Knowing and understanding who buys, or will buy your products is important for helping you maximise your Return on Investment (ROI). Remember Bob? Bob didn’t do his research and wasn’t able to make a profit. This research phase is one of the greatest things you can do for your business and the longevity of your new income.

 

All successful businesses have a well thought out business plan. Many new entrepreneurs think they won’t need a business plan if they aren’t going to apply for funding or that their business isn’t a multimillion-dollar enterprise yet. However, a plan is your GPS for the business. It’s your goal list and definition of everything that represents your business. The plan will also help to:

  • Define your brand, language, and tone
  • Understand how to engage your audience
  • Put a real number on what the cost of acquisition (COA) will be to convert brand new visitors
  • Understand that COA is always higher than converting your existing followers/customers
  • Clarify your strategy
  • Identify potential roadblocks
  • Know your competition and how to stand out from them
  • Decide what resources you’ll need
  • Evaluate the validity of your idea or your growth plans


Without a plan, it’s difficult to measure the success of your business and identify if you need to make adjustments. If this is your first time creating a business plan, don’t worry, we have a free template you can use.

 

Before you do any marketing, you’ll refine your site, ensuring it’s both professional and trustworthy. It’s a good idea to request feedback on your store before you launch. Our Shopify Community forums are a great place for this. You can receive feedback from Shopify Staff, Shopify Partners and fellow entrepreneurs who can also provide advice based on their experience.

 

Once you’re confident you have the right aesthetic and feel of the site, it’s time to further develop your marketing plan.

 

Check out the list in the Resources section at the end of this post for ideas on some marketing tips and platforms you can try out depending on your target customer and business plan. Focus on the techniques that are most likely to reach your target audience while keeping your budget in mind. This blog post has a free template you can use to create your marketing plan.

 

Always invest in yourself! Learn and keep learning. At the end of this post, you’ll find some links to help you learn more about running your new business and how to continue to improve your skills and results.

 

How Do You Know You’re On The Right Track?

Numbers are a good measure of how well your store is doing. A few very simple checks can give you a ton of information on the health of your business.

 

You should be looking to pull in at least 1000 visitors to your store each month before other numbers on your analytics dashboard will have a significant impact on your next business decisions. The reason for this is that at the 1000 mark your average customer behavior will be more consistent, predictable and have fewer outliers in your statistics. In addition, with 1000 visitors it’s a matter of the law of averages, you’d be able to view more realistic long-term statistics on average sale amounts, product popularity and quantity related to conversion (which we’ll talk briefly next). Remember that visitors won’t just find your site on the infinite size of the internet, stick to your marketing plan to achieve that level of consistent traffic.

 

Once you have a consistent flow of traffic, check your conversion rates. A purchase conversion rate is the percentage of people that came to your site and made a purchase. On average a very good conversion rate is between 2 - 4%. With your 1000/month traffic, discussed above, you could be receiving 20-40 orders. Referring back to the minimum traffic being 1000/month to make sense of your data: If you only had 100 visitors your average of 2-4 sales would mean very little as they wouldn’t have consistent characteristics you can make sound decisions off of.

 

Here’s a scale of conversions that you can keep on hand to make sure you’re checking your store’s health.

 

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Consider installing the Lucky Orange app to get insight into customer behaviour and work on improving your customer experience.

 

Beyond traffic and conversion rates, there are plenty of other numbers you can dive into to determine the health of other areas of your site and sales. In this post we won’t cover those more intermediate or advanced statistics, however, we have a great guide on what the other numbers refer to on your overview dashboard. Moreover, if you’re a fan of numbers and really want to succeed in your business, you can dive into the Shopify Analytics Reports, Google Analytics and the Facebook pixel data among many other analytical tools!

 

Keep a keen eye on your Shopify Analytics within your admin to stay on top of how your business is doing on a weekly or monthly basis.

 

Jane’s 2021 General Goods Online Store Example

Jane, a new entrepreneur, starts a new business online in 2021. It’s a post-COVID-19 world and online shopping is on the rise. Jane has had financial challenges due to current events in 2020, but is now working part-time and wants to create an additional source of income. She knows entrepreneurship takes time to learn, she’s not a tech expert, but she’s determined to put in the effort and commitment to create a business she can maintain long term, pass on to her family or sell in the future.

 

Although it’s a digital world, Jane will still need to do the same amount of research and planning as she would have needed to do in Bob’s time. The big difference here is that now she can easily reach a multitude of audiences quickly, use the internet to do the majority of her research from the comfort of her couch and the cost of leasing a retail space is now optional.

 

To open a general goods store online, Jane takes time to plan and implement. Here are the 10 steps she took to become successful in her new business:

 

1. Writing down the “Why” - She knows that her reason for starting a business will be her driving force that’ll motivate her to learn, research and build. This “why” is more than just extra income for her, it’s about her family and serving a specific market of customers.

2. Defining the customer - Jane sees opportunity in her region for those who aren’t able to shop in-person at any general store. She wants to serve this target market to help them easily obtain their basic essentials.

3. Researching products - Jane isn’t looking to ride temporary trends and “hot products”, she knows those will create unrelenting work to maintain daily and they aren’t a source of long-term growth for a new business. She looks up products that her target market needs or wants, but also provides good profit margins without price gouging.

4. Researching customers and competition - She’s got a keen interest in knowing what works and what doesn’t work. Jane scours legitimate sources online for information to help her with her business and marketing plan.

5. Creating a business plan - All of that research gets put into a solid plan that‘s the cornerstone of everything she’ll do in that business.

6. Creating a store - She signs up for a Shopify free trial to test out the platform and gets some idea of how it works. Jane is aware that opening a store within 2 weeks isn’t quite realistic so instead, she uses her time wisely to learn the platform and take advantage of free support to help her with anything she is struggling with. She also proactively asks Shopify support for some business advice to help her with her plans and execution.

7. Learning - Jane accesses the immense library of resources that Shopify offers to learn more about building and running a business as a new entrepreneur. She values education and knowledge, which will be a huge advantage for her when owning a business.

8. Creating a marketing strategy - She already had a high-level idea in her business plan, but now she dives deeper into the finer details on how she’ll promote and track results. She researched a bit more on the best place(s) to promote her store and where her audience is generally found online.

9. Build the store - She spends time building out her store and decides she may want to level her store up in the future with the help of a Shopify Expert, but for now she uses the simple tools provided in the Shopify admin to easily create her site. She reaches out to Shopify support for any further questions and advice.

10. Implement! - Jane starts her business and regularly checks her analytics and results. She’s got a plan so she knows when to pivot or ask for help.

 

Entrepreneurs Don’t Succeed Without The Help of Others

Because you have 24/7 access to our Shopify Support Team you can reach out for some guidance on your business. Our advisors are there to help you achieve your business goals as well as solve your technical questions.

 

Mentorship and continuous learning are some of the biggest factors that separate those who’ll succeed and those who won’t. If you don’t have an entrepreneurial mentor, jump into our Shopify Community forums, join a Facebook/Reddit entrepreneurship group, read some great entrepreneurship books, watch some amazing TED Talks, scroll your way into #smallbusiness or #entrepreneurship TikTok, or talk to one of our Shopify Advisors. You don’t need to be in the midst of chaos or obstacles to ask for guidance.

 

The help and mentorship is all around, you just need to reach out and grab it.

 

The earlier you reach out to someone to assist you along your journey, the sooner you will be able to see positive results from your efforts!

 

Learning & Resources for the New Entrepreneur

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Learning will be your best friend! The more you learn and research, the less daunting your entrepreneurial journey will be. Never expect things to be easy, but expect obstacles to shrink along the way.

 

Throughout the post above there are several resources that have been linked to assist with context and concepts. Here’s a collection of the must-have resources for new entrepreneurs, the large majority of these below haven’t been listed in the rest of the post above.

 

These links and resources will help you understand the need for setting realistic goals and expectations as well as some actual strategies you can implement to help your business get off the ground!

 

Self Development

 

Planning & Research

 

Strategy Options to Implement

 

Marketing Options to Consider

 

Shopify FREE Compass Courses & Tools

 

Finding Mentorship & Community


Tell us in the comments what were the best lessons you learned about yourself from your first business venture?

44 Comments
Mad_Modeler
Pathfinder

Quoting Sir Richard Branson is a bit of an own goal, you obviously don't know a lot about the man.

His "entrepreneurship" involved selling records earmarked for export through his magazine "Student" by avoiding the purchase tax on the records he was able to significantly undercut high st retailers. Branson only escaped court (and probably prison) because he agreed to repay the 33% purchase tax and £70k fine imposed, well his parents did by re-mortgaging their house to pay it.

Source: https://en.wikipedia.org/wiki/Richard_Branson

houseoffaiza
Visitor

Thanks for sharing this great topic it will be very helpfull to me and for my business

Mad_Modeler
Pathfinder

@Stacy_Zhuk wrote:

Running any kind of business is a pretty tricky endeavor, but it’s an exciting adventure you can take.

The major stop-factor here is the fear of money loss. The more money a business owner contributes – the stronger the fear is. However, one of the most crucial benefits of e-commerce business is that it requires minimum funds to get started. By taking your business online, you’re absolutely free from such expenditures as:

Leasing commercial real estate – no brick and mortar means no rent payments.
Renovations and fixtures – no need to worry about preparing any new retail space for work!
Managerial and inventory costs – initially you can do all the managerial work yourself.
Impactful, isn’t it?

Truthfully, that’s the main reason opening an e-commerce store is so popular among business newbies – risks are fewer, and the amount of money required for opening and running a business is less.

If you’re looking forward to starting your own online business, I am completely sure that Whidegroup https://whidegroup.com/ will be the best option for you. The company has huge experience to walk you through this task.


A lot of suppliers in my niche will only supply you if you have a bricks and mortar presence

RaymondGalla
Visitor

Very useful article, thank you.

Merm1456
Tourist

I agree very informative. Well done 

dani9721
Visitor

Hi, my account missed 3 cycles of billing because of wrong payment info. 

Shopify suspended my account. is there a way to retrieve it and pay for the missed payments? Could not open the store anymore

Lilith
Shopify Staff

Hi, @dani9721! This might not be the best place to ask this question as it can get lost in the thread due to it being a different topic altogether.

That said if your account is frozen due to missed payments you can log into your account and add a new payment method to clear up your old invoice and pay for your new month. If you're still not able to access your account, definitely reach out to our 24/7 live support team. They can authenticate you securely and can assist further if you still have some trouble with the account.

Kayceepins
Visitor

Do I need to file for a sellers permit and register as a business? 

Lilith
Shopify Staff

@Kayceepins in order to use Shopify, no you don't. However, you should be checking your local country, region, or town's laws and regulations to have a better understanding of whether you'll need any registration to run a business in your area. Remember Shopify provides the tools to help you run a business, but we don't regulate or enforce the local laws or tax requirements in each merchant's specific region. Most countries, regions, or towns have their own government-run website that can help you with more information on any tax and regulation details you'll need. In addition, most towns will also have some non-profit organizations that can help with setting up a compliant business to fall within your local laws and requirements.

emmawade
Tourist

Thanks for sharing your thoughts and idea's with us. Greatful to you. I am just asking if we start a job type buisness. imagine we work in online field or want to enhance our work?

cherylfoh
Explorer

You can also expect to fall victim to their "review" process that happens without warning.

Money coming in from credit card purchases is put on hold for an undetermined amount of time. During the process, you can't email to ask what is going on, because they will then push you back in the support queue and make you wait even longer.

I'm not making this up. They actually emailed that information to me and I have it on record.

They say they have a right to hold your funds without your consent at any time, so I cannot recommend having your business on the Shopify platform. They will show their true colors in time and you will regret it.

Please note, we did nothing wrong to trigger this review. They just dropped it on us for unknown reasons after being in business for about 4 months.

Mad_Modeler
Pathfinder

This wont work in my niche.

Competitors discount to the bare minimum profit, it's a race to the bottom.

emmaava6
Visitor

Thank you for this informative article. Keep it up.

PeterBoyd
Visitor

I think today it is better not to start a new business in connection with the pandemic, lockdown and quarantine. It's better to wait for the pandemic to come down to 0.

georgiepeters24
New Member

Thank you very much for putting this together.

 

I will be passing this along to other sellers that I help mentor.

 

Lot of insight can be pulled from this.

Lilith
Shopify Staff

@georgiepeters24 Thanks. It's good to have business owners well informed to help them succeed with their stores.

bracknelson
Excursionist

Thanks to offer such a helpful post, keep sharing more knowledgeable content.

Mad_Modeler
Pathfinder

Wordpress is total rubbish.

Most themes are subscription based, so when Wordpress is updated (which is very often) your site breaks.

Also stop spamming sites for work and backlinks

arturradukevic4
Tourist

Where can I find the Shopify Help Center or Shopify Blog? post the link if it does not bother you.
Thank you

Lilith
Shopify Staff

Hi, @arturradukevic4! Not a bother at all, happy to help!

You can find all the guides on how to work with the platform in the Shopify Help Center here.

Shopify Blogs here are a great place to see what new trends, strategies, case studies, inspiration, or other business-related articles can be found.

I also recommend checking out these other resources as well if you'd like a bit more visual help or other formats:

 

 

Was there anything specific that you were hoping to get answers to?

 

 

emmawade
Tourist

@ yeah you should need to wait.

SteveBuysHouses
Visitor

Great information and very timely! Thank you.

rightapp4u
Visitor

Hi,

Thanks for such a nice information and that too in detail. Really, I was searching for someone to help me out starting my first online store.

I have a question though; can I integrate my wordpress website with shopify store?

Best.

Lilith
Shopify Staff

@rightapp4u We do have a ton of great resources to help you with getting started, don't forget to take a peek at the resources listed at the end of the original post. With WordPress, you can certainly integrate them to an extent. If you already have a blog on WordPress and want to leverage the traffic you already get there, you can use the Buy Button feature to embed HTML code into your WordPress site to sell products. This means that you can downgrade from the Basic plan to the Lite plan (lower price since you won't need a new website). 

Here's the guide on our Buy Button feature and more detailed instructions for implementing it into your WordPress site.

Did you have a specific type of product you were hoping to offer your audience on your site?

Sharmapinky
Visitor

Thanks for sharing most valuable information..Thanks in advance..Looking forward a lot from you

Lilith
Shopify Staff

@majidkhan6213 I'd be happy to help point you in the right direction. What are you currently selling and what did you want to expand in?

Shawna_Jeneen
Explorer

Nothing written in this article will help your business become successful. Long story short, without money you won’t make money. You’ve gotta have money, big money to buy traffic. Without visitors to your site, you won’t make sales, and Google Facebook, Instagram, Twitter and Pinterest all cost. Social media sites will not allow you to use their platform for free to sell your products. You gotta buy your way in. Anyone who says otherwise is a liar. I’ve been selling for 4 years and I’m just now figuring this out. Truth is,  my store is a flop and most of everyone here store will flop too if you don’t have money to make money. 

Mad_Modeler
Pathfinder

Hi

Nowhere does the opening article say that building a business online will be easy, or an overnight success, granted it also doesn't say that it will require some monetary investment either.

As you point out, the reality is that is does take time to grow a business, but I disagree that you need loads of cash in order to succeed, you may need some, and you will definitely need to push some of your profits into marketing on social media, however a lot of social media marketing can be done for free, or with minimal investment.

My advice would be to stay away from paid apps, the get rich quick video's on Youtube, and all those that crop up in your feed on Facebook.

I am two years in to my website, my main focus for marketing is local, no more than 50 - 100 mile radius of my brick and mortar shop, my sales are no fantastic, but I am starting to see some regularly on a weekly basis.

Shopify as it is out of the box, is not very SEO friendly, so your first goal should be to make better in that way, that can be done relatively cheaply, Google actually push out video's very regularly on Youtube for free.

Some say that they are not that important, but improve your meta titles and meta descriptions for each page, the title should be about 70 characters long, the descriptions at least 250 words.

Also check your URL handles, if you leave Shopify to allocate them, they will be given a number, they need to be your product titles, improve your Snippets, edit them, so there are no orphan words, or worst still orphaned sentences.

Make sure your site is easy to navigate, get people to check it out for you, (not friends or relatives, they will say it's great, even if it's not).

It's hard work running a bricks and mortar business, it's even harder running an online one, I'm trying to do both!

Mad_Modeler
Pathfinder

The thing to remember is that despite what you read, Shopify is not a goose that will lay the golden egg.

An awful lot will depend on what you intend to use Shopify for, is E Commerce, a magazine or simply an info site.

Whichever platform you decide on, it will be an awful lot of work

ralfziegler
Visitor

When starting out, your product or service has to be at least good if not great. It must be differentiated in some meaningful and important way from the offerings of your competition. Everything else follows from this key principle. Don’t drag your feet on getting your product out to market, since early customer feedback is one of the best ways to help improve your product..... Thank you for sharing your valuable information. It is very useful for us, Please visit below us:- 

Lilith
Shopify Staff

@ryendentkhan Thanks for taking the time to read the post! I'm glad that the information is helpful!

Lilith
Shopify Staff

@ralfziegler Very true! Product choice or offerings play a significant role in success for any business. Thanks for sharing!

Stacy_Zhuk
Shopify Partner

Thanks for sharing your experience.
I would like to add that when coming up with an idea to start an online business, you will face numerous elements that need to be comprehensively considered.
These decisions include defining the target audience, presenting the business’ unique value proposition, creating the product range, choosing partners and setting up a supply chain, deciding on delivery methods and more. All these considerations form the initial budget, which becomes decisive for the e-commerce business launch.
One of the main expenses in this budget should be dedicated to e-commerce website development and support.

Lilith
Shopify Staff

@Stacy_Zhuk thanks for adding your comment. Different businesses will require different pre-launch work. Thank you very much for mentioning some of the aspects that some businesses should consider.

Lilith
Shopify Staff

@kugugibi thank you for reading the post and commenting. I'm glad that it's helpful for you. Let us know if you need any help with your Shopify store anytime!

ColinKnox
Tourist

Thanks for sharing!

It is a good information for the beginners.

nbaever3
Visitor

i want to start my own business 

alicemoore
Visitor

Thank you for such a piece of useful information! You inspired me to read more about this.

Lilith
Shopify Staff

@ColinKnox Thanks for reading! We appreciate the comment!

 

The post is definitely intended for beginners, but it's also a great reminder and refresher for anyone that already owns their own business.

Lilith
Shopify Staff

@nbaever3 That's great! Starting a new business is a fun adventure and I think it's a good way to learn a lot about the skills you have and the potential of your ideas.

 

I've included links in my post, but I wanted to highlight these 2 below since you're in the process of creating an idea for a business:

 

 

Do you have a plan on what you think you'd like to make your business about?

Lilith
Shopify Staff

Thanks @alicemoore. I'm excited that you're inspired to learn more! We have a blog post here that's also a great read on this subject.

Lilith
Shopify Staff

Thank you for the comment @phddiscussions. Have you been able to start the process of redesign on our platform?

Lilith
Shopify Staff

@William1122 happy to hear that you're enjoying our platform and its features! 

AshleeCate
Visitor

@Shawna I created a 6 figure company with $0 savings $0 money to budget or spend, no plan..nothing. My 4th year of biz this Jan and my shopify Was hacked and I still made 6 figures. Didn’t work for a year. Some people do get lucky 

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