A Step-by-Step Guide on How to Start an Online Business from Home

Last Updated: 

September 30, 2023

Gone are the days when starting a new business used to sound scary and a risky move. Today in the digital era, every individual is willing to jump into the lucrative field and gain a competitive edge in a short span of time. Once your online business is ready to launch from home, the next step is to bring legal structure to your operations by establishing an LLC, which limits your financial liability. Reviewing the best llc service options to help formalise your business can make this process as easy and smooth as possible for you as a new entrepreneur. And that’s only possible when you plan to commence an online business. Almost every business can benefit or gain an upper hand by having a strong online presence. Those who aren’t able to keep at it might fail eventually. 

Especially after COVID-19, working from home is no longer an unknown concept and the enterprise world is no exception here. Several small or medium size businesses are seen making profits by simply working from their homes. Changes are inevitable, they were and they will always be but the key is to put in that effort or to walk that extra mile to keep up. The following post focuses on how to commence a successful online business from home.

The first and foremost thing that might come to anybody’s mind is whether it is even possible to start an online business from home and that too without investing hundreds and thousands of dollars. Well, to cut the long story short, the answer is yes and for a detailed answer, keep reading the post.

Key Takeaways: Starting and Online Business From Home

  1. Choose your business type: Consider various online business ideas such as blogging, web designing, drop shipping, SEO, affiliate marketing, or becoming an influencer to find the right fit for you.
  2. Discover your niche: Identify what you love, what you're good at, and what the market needs to find the perfect niche for your online business.
  3. Identify your target audience: Understand your potential customers, their preferences, and behaviours to effectively tailor your marketing strategies.
  4. Set up a website: Choose between self-hosted websites or platforms like WordPress, WooCommerce, Shopify, or BigCommerce to create your online presence.
  5. Leverage digital marketing: Utilise paid ads, SEO, and social media to build brand awareness, grow your community, and reach your target audience effectively.
  6. Monitor and adapt: Continuously track your business's performance and adapt your strategies to stay competitive in the ever-changing online landscape.
Online Business Startup

The power of the internet cannot and shouldn’t be underestimated at any cost. Today, anyone can commence an online business right from their home, all they need to have is a kick-ass idea. In the virtual world, there is nothing like technical experience, do you know why? Because you will find a plethora of tools and technologies at your service that can do all the monotonous chores for you and you can simply focus on your core competencies.

Money has always been a major barrier for entrepreneurs across the globe. Fret not, the situation is not the same anymore! One of the obvious and pivotal benefits of creating an eCommerce store is that here you do not require much capital. All you can do is get in touch with a reliable eCommerce development company and share all your needs and requirements and let them provide you with the best possible solution from their space.

Further, I would like to mention certain reasons why you should consider establishing an eCommerce store or any online business instead of a brick-or-mortar store.

Why take a leap of faith in the eCommerce Realm?

The competition between commencing a regular business (the one with the physical presence) and the one with the .com presence is pretty much fierce. Of course, online businesses or eCommerce stores are relatively new but till now several individuals have managed to create billions and millions of dollars from these stores. So what exactly is an eCommerce business? Well, it's buying and selling goods online. Yes, one must have strong internet connectivity to do so. Also, here there is no need for creating any physical storefront or any kind of operational unit.

By the end of 2022, I am pretty sure you must have realised how crucial it is to leverage digital technology. After the COVID-19 impact, giving in to the giant eCommerce boom is the wisest decision to take. Now before even, before we begin with why you should start a business online, you must be well-acquainted with the fact that more and more of your customers tend to purchase products online. 

  • Can shop or look for products 24/7
  • It doesn’t matter whether they are sitting at their office or at home, they can shop from anywhere and anytime
  • A lot of transport costs can be saved
  • Apart from money, online shopping whether it's buying apparel, accessories, home decor, ordering groceries, or lip-smacking food, etc is quite time-saving.
  • The benefit of free shipping
  • Easy and faster return
  • Shopping while doing other chores such as dining or having coffee or watching a movie.

As from the business point of view, pros of commencing an online business.

Wider Reach - One of the obvious benefits attained by commencing an online business is here you are supposed to get a wider reach in regards to customers or the target audience. Though this scenario cannot be the same about the brick and mortar store, Since it’s a physical store, limited people especially those who reside in the same region can get in touch with you or know exactly what you are trying to sell. Of course, there is one thing you can do, you can open different branches within different locations but that’s it! Also, this could be quite costly.

When you plan to start an online business, you can reach around 4.66 billion internet users in a short span of time.

Cost-effective - Selling online or commencing an eCommerce store turns out to be pretty cost-effective than opening a new storefront. Also, here you no are no longer required to take care of any overhead expenses or employee salaries, bonuses, leaves, recruitments, maintenance costs, etc. In addition, utility bills, insurance costs, rent, and all these unnecessary expenses can be surpassed seamlessly. 

Marketing - Another benefit of commencing an eCommerce business is that you get to advertise your business online seamlessly. Social media platforms, PPC ads, and Google ads can provide you with a global reach and amazing customer engagement. Also, here you get to monitor your ads and cut back on platforms that do not provide you with many leads.

Round-the-clock Services - I am pretty sure you will agree with me when I say the retail sector has developed to a great extent. Today every business, irrespective of its size and industry vertical, plans to offer 24/7 services to its end users. Those who simply rely on brick-and-mortar stores are simply missing out on the chance to make money while they are sleeping. 

Here all the unnecessary constraints of operating within standard working hours are ignored. Though you don’t need to be present 24/7, your store must be well-functioning all the time.

Brand Value - All the aforementioned factors certainly lead to a severe increase in brand value. All the geological borders can be blurred and your business can gain the top spot on the search engine page as well as potential shopper’s radar. 

Enough said about how commencing an online store can be beneficial. Time to focus on the how part. How to start an online business from home.

A Step-By-Step Process  - Commencing an eCommerce store

Decide on the Type

Have you thought about what type of business you are willing to start? Well, ideas can be many. I mean you can think of creating blogging, web designing projects, selling your services, drop shipping, SEO expert, Bug testing, selling digital products, social media manager, online news publications, affiliate marketing, becoming an influencer and so on.

Some of the most popular types or approaches worth considering include:

  • Selling your products - Selling your products on third-party marketplaces such as eBay, Amazon, Etsy, Flippa and so more!
  • Advertising revenue - Money can be generated by selling ad space whether to advertisers directly or on different ad platforms.
  • Affiliate marketing - Referring clients to the seller’s website and you getting a commission.
  • Subscription-based model - Paid for providing consulting services online.
  • Revenue from consulting services - The more people subscribe to your channel, the more money can be earned. 

Have you discovered your niche yet?

The next step to keep in mind while commencing an online business is finding your niche. I am sure you must have become well-acquainted with the different types of businesses available around. Now it’s time to consider the niche. Now, this is one such step that features lots and lots of uncertainties and what if’s! You exactly have no idea whether your business will succeed or fail but still, you have to do the drill.

Finding a niche is possible only when you know-

  • What do you love?
  • What are you good at?
  • And what the market needs right now?

Commencing an online business is a pretty difficult decision, so you don’t have to come up with a unique idea. If you do then it can give you an added advantage but even if you don’t, it’s completely fine! Simply pick any existing idea and try creating something that is far better than the one which is already available. Think about the three aforementioned questions. I am pretty sure you can generate numerous ideas by simply pondering yourself with these questions. Also, once you get to know your ideas, make sure to evaluate them before proceeding further.

  • Do a relevant google search, check out for relevant looking keywords
  • See which idea gains the most organic traffic
  • Search on renowned marketplaces such as Amazon, Udemy, Flippa, etc.
  • And above all, try analysing all your potential competitors

Who is your TG?

Have you identified your target audience yet? If not, then it’s right now! Not considering this step can create a huge blunder. After all, you must know your customers well in advance. How to choose target audiences?

  • Look for the ones who are capable of visiting your website
  • Are they willing to buy your products?
  • Is your website male-oriented or female-oriented?
  • Where do they live?
  • How many languages do they speak?
  • Their educational level, cultural differences, point of view, political opinions, etc
  • Which social networks do they mostly prefer?
  • Are they using any specific groups or online forums?

Of course, you won’t be getting answers here in yes or no! However, as a business owner, you need to make sure to keep on exercising things before you start your online business and keep on enhancing with time passing by. On and all, it is very important to get acquainted with your niche right before you launch your eCommerce store. So, create an outline of your target audience or the buyer’s persona in prior and then proceed further. 

Setup a Website

The very next step to consider is setting up a website. Now if you are planning to develop an ecommerce store then you can either choose a self-hosted website or consider using known platforms such as WordPress and WooCommerce. In addition, you even think of using Website builders such as Shopify and BigCommerce.

Well, if you ask me in person, I would say using website builders such as Shopify and BigCommerce is really worth considering. In fact, after a while when you want to grow your business, you will require more and more options for customization and flexibility.

Now in case, if you want to create a different website such as some kind of a niche blog or you are planning to sell some kind of services, or affiliate with big sharks such as Amazon, eBay, Alibaba, the ultimate solution to consider here is WordPress.

On and all, WordPress is no longer just a blogging platform it turns out to be way beyond. This one is pretty flexible and user-friendly and of course, not to mention here you will find tons and tons of ready-made themes both free and paid and you can set up a professional website within a span of just a few minutes.

Ride on the Digital Marketing Wave

Last but certainly not the least step is to ride the digital marketing wave. Yes, for that you must consider hiring services of a reliable eCommerce development service provider who has the knack of making such things work. Further below are some tips and tricks to keep into account.

  • You can think of paid ads such as Google ads, Bing ads, Facebook Ads, Instagram Ads.
  • Also, don’t rush into every channel and create campaigns
  • It’s all about building brand awareness
  • Try developing a large community
  • SEO is extremely important if you want to be seen and loved by your target audiences
  • Don’t forget to enhance your social media presence 


Staying competitive in the market is something that every business, whether small or large craves for. I hope now you know how to start an online business that too from sitting at home. I hope you enjoyed reading the post. If so, feel free to share among your peers and help us in spreading the word.

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