From online shopping and telehealth services to remote work and virtual workout sessions, digital products are growing rapidly to meet market demands. Consumers rely on digital platforms for many daily activities, and there is no better time than now to start a digital business.
But with vast opportunities also comes fierce competition. You need to not only get your business off the ground, but set it up for sustained growth for long-term success. Here's how:
1. Strategy with a comprehensive business plan
If you run a digital business, you're probably tempted by “bright shiny objects.” However, these distractions not only waste time and money, but also prevent you from achieving your long-term goals. A well-written business plan will help you stay focused on your goals and allow you to invest your time and resources on what's important.
A business plan includes vision, mission, values, goals, financial plans, operational strategies, target customers, unique selling proposition, and competitive landscape analysis. Also, consider what digital initiatives and technologies you might consider.'Use it to achieve your goals and differentiate your brand from your competitors.
2. Design a digital strategy based on your business plan
A strategy details a plan to achieve the long-term goals stated in the business plan. The document should include high-level action items such as: Create a compelling brand story Develop buyer personas that resonate with your target audience, guide your marketing efforts, and map your customer journey to inform your marketing channel choices.
Your digital strategy should outline how you will do it.'How to establish an online presence'd carry out e-commerce activities whether or not you are'd if and how you offer your digital product or service;'d Leverage digital workflow and communication technologies to increase cost efficiency.
3. Build a digital foundation that aligns with your strategy
Next, you need to identify the appropriate IT infrastructure and technology to execute your strategy and achieve your goals. For most digital businesses, cloud-based applications offer a scalable, flexible, and secure solution that cost-effectively supports long-term growth.
Essential tools for digital business include corporate websites, social media management applications, e-commerce platforms, mobile apps, CRM systems, and marketing automation software. Also, stay up to date on emerging technologies such as the Internet of Things (IoT), artificial intelligence (AI), blockchain, and augmented or virtual reality.
4. Hire people with the right digital skillsets
Digital skill sets in DevOps, cloud computing, business process automation, data management and analytics, cybersecurity, and digital customer experience are in high demand.Don'Don't skimp on recruitment and employee retention. Hiring quality team members with the right background and expertise is key to running a successful digital business.
But finding the right people is just the beginning. You need a comprehensive employee onboarding process to help your employees perform their jobs effectively and make the right decisions for your company. Proper onboarding and training can also increase employee satisfaction, which is key to retaining top talent in any digital business.
5. Protect your business with the right insurance
No matter the size of your team, remember to protect your business and your employees in the right way. Worker's Accident Compensation Insurance SystemEven if you have a remote team or don't sell physical products. This insurance covers not only rehabilitation and physical therapy, but also medical expenses and lost wages. Needless to say, many states require it.
Technology employees are more prone to injuries caused by repetitive physical movements, such as carpal tunnel syndrome. Workers' compensation insurance can cover necessary rehabilitation and treatment and pay a portion of an employee's wages as they recover, eliminating the financial responsibility of businesses.
6. Identify the right partners and vendors
Running a digital business requires many moving parts and a wide range of expertise. Instead of building all functionality in-house, you can partner with other companies to extend your product, reduce product development costs, and speed time to market.
Look for vendors with a robust digital consulting component in their service packages to ensure that the products and services you purchase support your digital strategy and help you achieve your goals. If you have the funds, you can consider expanding your digital capabilities through mergers and acquisitions (M&A).
7. Track the right KPIs for continuous improvement
“What gets measured gets done.” The good news is that collecting data and tracking progress through digital channels has become easier. The bad news is that data collection is so easy that many companies chase vanity metrics, picking up the wrong tree and spending resources improving metrics that don't contribute to their goals.
To make sure you're tracking the numbers that matter, take the time to identify the right numbers. Key performance indicators (KPIs) Align with short-term and long-term business goals. Then, create systems to collect, process, and analyze data to generate insights to make accurate, data-driven decisions.
8. Don’t forget data security and compliance
Whether it's lead generation or processing online payments, you'll likely be collecting a lot of personal data from prospects and customers digitally. All platforms, systems, and processes must comply with various data security laws such as GDPR, CCPA, HIPAA, and PCI-DSS.
Compliance is especially important if you work in a highly regulated field, such as healthcare or finance. Not only do businesses need to follow all the rules, but they also need to work with vendors that comply with industry regulations.
conclusion
There are many moving parts to manage when building and managing a digital business. From creating a business plan and designing a strategy to hiring the right people and working with the right partners, nothing can be left to chance. It's worth the effort to build a solid foundation by following these tips to set your company up for long-term success.
