How To Kick-Start Your Digital Business

Are you an aspiring entrepreneur planning to start a digital business but unsure where to begin? Or are you a seasoned business owner taking your offline venture online? Whatever the case, “digital” is the new buzzword and has, in fact, become a necessity!

You can’t be without an online presence today—be it a website, a social media account, or an eCommerce app. But the digital space is vast and often confusing, and it’s natural to not know where to start. Should you build a website first or develop a mobile app? Is YouTube better than Twitter for reaching out to customers? The questions are many.

In this article, we discuss six steps to build your digital business. We also offer resources to help plan your digital marketing strategy as well as mention the things to avoid when going “digital.”

A digital business is a business that uses technology to sell to its customers and complete day-to-day operations. Digital businesses use technology to not only automate their daily business processes but also create new value in their business models, customer experience, and internal capabilities. 

This can include offering telemedicine services, providing customers a virtual shopping experience at retail outlets, and setting up a remote workforce. Amazon, Netflix, and Uber are some examples of digital businesses.

Starting a digital business takes less time and doesn’t require heavy investment in physical assets such as office space or inventory. Due to the availability of various free SaaS tools, building a digital business has only become easier.

But to have an agile digital core, you need to think carefully about the nitty-gritty of building your digital business model. Listed below are six steps to set up a successful digital business.

1. Prepare a detailed business plan

A comprehensive business plan is important to start any business. Your business plan should outline what your business is about, who’s going to lead it, what your goals and vision are, and how you plan to achieve them. 

Include details about your financing plans, marketing strategies, target customers, and unique value proposition. Also, mention which digital initiatives you plan to implement to meet your goals. For instance, if you’re planning to start an ed-tech business, mention which technologies (e.g., artificial intelligence or AI) you’ll use to build the digital platform and deliver the right courses to students. 

Here’s a free downloadable template of a digital business plan you can use to write down your vision, mission, and goals. Feel free to customize it per your brand colors, themes, and ideas.

Click here to download our sample digital business plan template

2. Create a digital strategy for your new business

A strategy is a document that explains “why” and “how” you plan to reach your goals. Creating a brand story (i.e., a story that explains why your business exists), developing buyer personas, and designing customer journey maps are some steps to building your digital strategy. 

Your strategy document should also explain how you plan to use technology to reach out to potential customers and manage operations. Align your strategy with your business goals to get maximum leverage, and evaluate it regularly to ensure it reflects the latest market trends and predictions.

3. Build a strong digital core using the right tech tools

Successful digital businesses invest in tech solutions that are scalable, flexible, and help adapt to the changing IT landscape. This helps create a strong digital core, which includes IT infrastructure that positions your business for long-term growth. Thus, invest in the right technology and tools to build a successful online business. 

Main tools you’ll need to build your digital business:

• Business website: Your website is most likely the first place customers will check when searching for more info about your business.

• Social media: You can’t do without social media presence today. Your customers and prospects will use social media platforms such as Facebook and Instagram to share their experiences with your brand and to connect with you for complaints, suggestions, and other needs.

• eCommerce website: If you’re into selling products, having an eCommerce website is necessary. Ensure your eCommerce website supports a variety of e-payment methods.

• Mobile capabilities: Having a mobile-optimized website or a mobile app will make it easier for customers to reach out to you.

• Digital tools for internal use: You'll need various software tools, including CRM, sales enablement, messaging, and marketing automation platforms, to automate your business workflows and communicate internally as well as with clients. 

• Emerging technologies: Embracing technologies such as IoT, artificial intelligence, blockchain, and augmented or virtual reality will help your digital business stand out from others and be better prepared to meet future customer demands and market trends.

4. Hire, train, and retain digital talent

It’s not easy to hire talent with core digital skills such as cloud computing, machine learning, analytics, and automation. According to a report, there’s stiff competition among employers to hire employees with skills in DevOps, cloud, automation, data management, cybersecurity, and customer experience. Hiring employees with the digital skills you need to build and run your business must, therefore, be one of your top priorities.

Besides hiring new employees, focus on retraining your existing workforce to help them gain speed on digital technologies. You can reach out to freelance professionals for specific skill sets such as website or mobile app development. You can also consider partnering with colleges and universities to identify potential candidates who can work with you as interns, full-time employees, or for individual projects.

5. Identify business partners and M&A targets for digital growth

Another way to build your digital strength is working with partners specialized in the field. You can outsource the task of building your digital core to somebody who has experience in it rather than trying to do it yourself, which can lead to errors or take more time to get to market. 

Look for vendors that offer digital consulting services. They can help plan your digital growth initiatives by providing necessary digital expertise and knowledge.

If you’re an existing business with extra cash to spare, mergers & acquisitions (M&A) can be a good option to build your digital capabilities. Identify potential companies that can be acquired for their digital products, service offerings, or talent.

*Full "Successful ‘Techquisitions’ Can Accelerate Digital Transformation" report available to Gartner clients only.

6. Measure the success of your digital model and innovate it continuously

The digital space is ever so dynamic. If you don’t adapt quickly to its changes, you may fall behind. To keep abreast of developments, read tech blogs, attend events and conferences, and network with peers, among others. 

Also, evaluate your digital business model regularly against industry and market changes. Accordingly, adjust your strategy and the way you operate to leverage emerging market trends and grow quickly.

Many things could go wrong when building your digital business. Let’s discuss some of the common pitfalls and how to avoid them.

A fuzzy or unclear digital business plan or strategy 

If you’re unsure of what you want to achieve from digital transformation strategy, your business may end up being half-baked or going in the wrong direction. Target digital goals that are SMART (specific, measurable, achievable, realistic, and timely), and mention them clearly in your digital plan. 

Business leaders who aren’t digital-savvy 

The vision for digital growth should be top down. If your management isn’t up to date with the latest tech developments, it's likely your digital transformation initiatives won’t bear fruit. Bring in leaders who understand and are equipped in change management, digital technology, and business management.

Investment in the wrong tech and tools 

Building a digital business requires investment in a variety of software tools and technologies. Choosing the wrong tools will cost you both money and time, lowering any competitive advantage you have. Therefore, research the technology well and read user reviews to make an informed purchase decision.

Noncompliance with data privacy regulations 

Governments across the globe are trying to regulate the digital space and protect the privacy of consumers. Ensure you comply with all local and global data privacy regulations, such as GDPR, CCPA, HIPAA, and PCI-DSS.