If you are a business owner, you know that several steps must be taken before you begin a business. If you don’t know how to start a business – or, in this case, a profitable Web site with an online community following – I’ll take you through a few beginning steps below along with examples of businesses that seem to maintain successful communities. Granted, you and I may want to redesign some of the sites you’ll see as examples, but that isn’t the point of this article. I want to show you how these online sites utilize both community and business savvy to reel in regular customers. In this case, we’ll call the regular customers “community.”
First: The Business Plan
The first step to a profitable Web site is to build a business plan before you build a site. A business plan is a resume, financial health statement, mission statement, and a crystal ball all rolled into one package. Despite the need for a little fortune-telling, the business plan isn’t about hopes and dreams – it’s about reality. If you want or need to borrow money for your venture, you must show your lender how you intend to repay that money. The business plan will help you in that regard. And, if you ever feel you’re getting off-track, the business plan will help stabilize you as you face possible problems. Before you build a business plan, you must decide the following:
Product or Service?
The only way to make a profit is to sell a product or service. What product or service do you provide (or want to provide), and why is this product or service important?
I discovered the “Stress-Free Community” site above through a press release (good marketing). Notice that the site offers something that a lot of people want – a stress free life. While a stress-free life is impossible to achieve (and some stress is good), Denver Hudson does appeal to a certain market. How does he propose to make money from this site? He solicits memberships for a service:
“Hudson also commented that the SFC pricing structure allows him to serve more individuals for longer periods of time. ‘In fact," says Hudson, ‘individuals can be a member of SFC for one full year for the price of a typical month of coaching. That’s important. Because reducing harmful stress, building resiliency, and taking on new directions in life require time and support to accomplish.’"
Individuals can also participate online through weekly conference calls, discussion boards, and weekly chats. How does he propose to build this business? He already began his marketing with a press release, and he intends to multiply his business with referrals. Since he offers a service, his overhead is very low. He doesn’t need to maintain a product line, storage for the product, or shipping costs. Profit might be good.
Linda Goin carries an A.A. in graphic design, a B.F.A. in visual communications with a minor in business and marketing and an M.A. in American History with a minor in the Reformation. While the latter degree doesn't seem to fit with the first two educational experiences, Linda used her 25-year design expertise on archaeological digs and in the study of material culture. Now she uses her education and experiences in social media experiments.