You’ve worked hard to ensure all boxes are checked for a successful product launch: you have a beautifully designed website, saved enough to cover three months of operating costs, and hired a virtual assistant to handle simple tasks you don’t have time to take on. What could possibly be risky about this business?

No matter the precautions you take, all businesses involve some risk. These may be internal risks from employee errors placing incorrect inventory orders, or external risks from a new competitor selling a lower-priced version of your product. By learning about the types of business risks you could face and how to address them, you can be better prepared with a contingency plan that helps ensure your business’s longevity.

What is business risk? 

Business risk is anything that could expose you to financial loss, reputational harm, or failure. To assess business risk, examine all pertinent legal, financial, and operational information relating to your business and take any necessary action to prevent or minimize negative outcomes. 

Most business owners design a risk management strategy as part of its business continuity plan, which helps protect your business from disruptions such as flooding of your warehouse after a hurricane or a viral video about a negative customer interaction. The strategy includes identifying risks, assessing them, taking steps to avoid or reduce risks, and, in some cases, accepting risk as part of the normal course of business.

Depending on the particular industry, business owners’ risk management strategies might include having comprehensive insurance coverage, minimizing debt, or retaining lawyers to address legal issues.

What causes business risk?

Business risks come in many forms. Examples of events that could cause business risks are:

• Natural disasters. Flooding, storms, wildfires, and other natural disasters can cause business loss.
• Human error. A production mistake, for example, might result in a recall or warehouse overstock.
• Regulations and laws. Rule changes or failure to comply with regulations or laws could impact business operations or financial performance.
• Uncertain financial or economic conditions. Global or national financial crises may affect business solvency, increase exposure to credit risk, and lower profits and revenue. 
• Tariffs and currencies. Changes in tariffs and trade policies, or fluctuating currency exchange rates, can impact risk. 

6 types of business risk

There are six major types of business risk that can affect how you do business. 

1. Financial risk

Financial risk is any situation or factor that jeopardizes a business’s finances and operations. Depending on the sector and a startup’s capital structure, financial risk could be caused by: 

• Too much debt
• High interest rates on loans
• Insufficient cash flow from sales 
• Poor investment strategies
• Inflation

2. Strategic risk

Incorrect assumptions about the success of a business’s product or service can lead to strategic risks, which involves your ability to execute key business objectives. Examples include: 

• There is little or no market demand for a product or service, like a $100 smart shampoo dispenser or a nail salon for pets.
• A brick-and-mortar shop operates out of a beautiful historic building, but its landmarked designation doesn’t allow for expansion to accommodate business growth. 
• A startup is creating an app, but in its pursuit of perfection, another startup builds it first. 

3. Operational risk

Operational risks are ones that have an impact on a business’s activities and daily workflow. You may face operational risk if you:

• Don’t consider your supply chain and business logistics needs working together holistically—proper supply chain management can help ensure your products are produced and distributed on time 
• Are lacking or have insufficient business insurance, which can leave your business exposed to losses from manufacturing breakdowns, product malfunctions, natural disasters or legal damages, among other issues 
• Have inadequate information technology (IT) protocols in place when computer systems fail 
• Hire employees that repeat human error due to insufficient training, causing harm to productivity 

4. Compliance risk

Compliance risk is either failing to qualify for or obtain the correct permits and licenses to operate in accordance with state or federal regulations or laws. Or, it’s being in noncompliance with industry laws and regulations. If you fail to take compliance risks or regulatory risk seriously, your business could be fined, shuttered, or reputation harmed. Actions that might be considered compliance risks include:

• A factory illegally dumping manufacturing byproducts into a local river to avoid waste treatment costs
• Food companies not adhering to health regulations to prevent consumer illness 
• Discrimination against job applicants based on gender, race, nationality, religion, or ethnicity, which is illegal under federal law 

5. Reputational risk

Reputational risks include actions, behaviors, or events that hurt public opinion of your business. Examples of things that could put a company’s reputation at risk include: 

• Social media postings of conflicts or hostile interactions between customers, business owners, or staff 
• Failing to honor a return policy or guarantee, selling defective products, or poor customer service
• Companies that experience a cyberattack or customer data breaches

6. Global risk

International businesses may experience global risk when they don’t follow the laws or respect the customs of the countries in which they operate. If your business is involved in international commerce, you may be exposed to geopolitical events such as wars, border conflicts, and elections that could harm your company’s ability to operate profitably and efficiently. Global risks can include:

• Overseas labor disputes
• Gas price hikes
• Border conflicts 
• Fluctuating currency exchange rates
• New or increased sanctions, tariffs, and taxes 

7 ways to minimize risk to your business

There are seven steps you can take to manage your business risk:

1. Calculate risk

The best way for a business owner to measure business risk is to conduct a risk analysis that assesses possible threats or adverse events that could hurt your business. A risk assessment may include making budgeting decisions, analyzing future costs, and estimating future sales.

2. Stay in compliance 

Staying in compliance with regulations can help ensure that your business avoids fines and penalties, can continue operating, and wins and retains the trust of customers. Compliance strategies include offering training for employees, consistently monitoring industry regulations, and documenting all compliance efforts.

3. Review the company’s finances to manage debt 

Regularly review your company’s financial picture to know when to spend and when to cut costs. Taking this approach can assist in managing debt. More specifically, you can:

• Avoid maxing out business credit cards
• Consider business financing options such as low-interest community development financial institution (CDFI) loans that lend money to small businesses that may be considered risky for conventional banks 
• Track and monitor cash flow and expenses regularly
• Keep financial obligations, including making on-time monthly payments toward any debt obligations 
• Keep a lean budget and low overhead costs
• Save three to six months of operational costs to minimize liquidity risk

4. Buy insurance coverage

Wildfires, hurricanes, floods, among other natural disasters happen, and equipment like ovens, sewing machines, and refrigerators break. Or, you may lose income due to theft or experience a data security breach of your customer information—there’s insurance options for that, too. To help protect yourself, thoroughly research the types of small-business insurance policies available, and pick the ones that best suit your needs. Together with a business continuity plan, you can be better prepared should a business disruption occur.

5. Cultivate a loyal customer base 

When customers know they are valued, they are more likely to become repeat buyers. Ways to cultivate customer loyalty include:

• Honoring return policies and money-back guarantees
• Creating loyalty programs 
• Addressing any customer complaints or negative online reviews

6. Diversify suppliers and vendors 

A diverse group of suppliers and vendors ensures that your business can continue if one suddenly goes out of business or experiences supply chain disruptions. 

7. Hire experts

If you don’t have the expertise or time to perform certain specialized tasks, hiring professionals could be the solution to keep your business running smoothly. For example, consider hiring accountants, financial experts, or ecommerce consultants to help with financial and compliance responsibilities and prevention of security risks. 

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

The article originates from: https://www.shopify.com/blog/business-risk

Every business must contend with a broad range of costs and expenses associated with startup, operations, and growth. Some of these costs remain relatively constant over time. For instance, unless you’ve moved or signed a new lease, the cost of rent for storage or manufacturing facilities will stay the same.

However, other costs can vary significantly as your business grows. These are called variable costs.Click here to start selling online now with Shopify

In this guide, you’ll learn the definition of variable cost, how to calculate variable cost, and how variable costs can impact the profitability of your business.

Table of contents

• What is variable cost?
• Types of variable costs
• How to calculate variable costs
• Importance of variable cost to business
• Variable costs and economies of scale
• Variable cost FAQ

What is variable cost?

Variable cost is a business expense that rises or falls in direct proportion to production volume. The more goods a company produces, the higher variable costs become, and vice versa. While total variable costs change based on production volume, the variable cost per unit produced remains constant.

Variable cost vs. fixed cost

Variable and fixed costs both represent key expenses of running a business. However, while variable costs change depending on production, fixed costs remain the same even as production and sales volume changes.

Common fixed cost examples include:

• Rent
• Salaries
• Insurance
• Property taxes and interest
• Depreciation
• Some utility costs

Variable and fixed costs are key elements of break-even analysis, which helps businesses determine what they need to do or produce in order to make a profit on their initial investment.

Variable cost vs. marginal cost

While variable cost often measures the cost to produce each unit, marginal cost considers the total cost of production (including both fixed costs and variable costs) to find the cost of producing one additional unit with the goal of maximizing efficiency in the manufacturing process.

Types of variable costs

Common variable cost examples include:

• Raw materials. If you’re manufacturing your own product, these costs are allocated to the materials you purchase in order to produce the goods. This is a variable cost that should remain fairly consistent.
• Sales commissions. If you operate on a commission structure, either for associates or brand ambassadors, for example, this is another variable cost to consider. It changes depending on the way you have commission structured and number of products sold.
• Packaging. Product packaging and shipping materials are another necessary cost. These vary depending on the quality, material, and design of packaging as well as the total amount of packages and their sizes.

• Shipping costs. Shipping expenses vary depending on the shipping method, location, and package size and weight.
• Labor (when workers are paid per unit completed). The one variable cost you may have difficulty negotiating is direct labor costs. One strategy for reducing those costs is to switch to a payment-per-piece produced, rather than an hourly wage. That way, labor costs are truly tied to production.
• Credit card fees. Credit card fees are a variable cost because they vary depending on sales volume. In some cases, you may pay a flat subscription fee for credit card processing, but these vary for most businesses.

How to calculate variable cost

Where fixed costs are simply added together to find a company’s total fixed costs, variable costs must be multiplied. The formula to calculate variable costs is:

Total variable costs = production output x variable cost per unit

For example, the total variable cost for 10,000 units produced at a per-unit cost of $2.57 would be $25,700. (This cost per unit is often referred to as average variable cost, as it’s calculated by dividing total variable cost by the number of units produced).

Importance of variable cost to business

Variable costs can have a significant impact on the profitability of a business. Below are some ways variable costs impact your business.

• Consistent profitability. A business with higher variable costs relative to fixed costs is likely to have more consistent profitability. That’s because the break-even point is lower, due to lower fixed costs, and higher variable costs yields lower profits per unit sold.
• Protection during slow sales periods. A company with higher variable costs can bear economic downturns more easily by reducing production.
• Competitive advantage. Conversely, a company with a higher proportion of fixed costs to variable costs requires a significant upfront investment, but will likely enjoy lower competition and higher profits once fixed costs are covered. That’s because once break even is achieved, profits are higher per unit, thanks to lower variable costs.
• Inform pricing. Knowing your variable costs is important to ensure you’re pricing profitably.

Variable costs and economies of scale

While variable costs generally increase with more production, it’s possible to lower variable costs by achieving economies of scale. For instance, by focusing your manufacturing on fewer products, you can save on costs associated with running multiple product lines, including sourcing materials, maintaining equipment, and managing different business units.

In addition, as your production volume increases, you gain leverage to negotiate more competitive prices for variable costs like raw materials and shipping, further decreasing your variable cost per unit.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

The article originates from: https://www.shopify.com/blog/what-is-variable-cost

Running a small business definitely has its appeal, but it also comes with its own set of challenges. The truth is, starting a business of any kind is hard work, and the first step is thinking of an idea. In this guide we’ll give you several online business ideas for beginners and experienced entrepreneurs alike, as well as steps for setting up an online business.

Countless people have already made the leap to entrepreneurship. And with the right online business ideas and plenty of sweat equity, you can too.

This isn’t about one simple life-changing trick. Starting an online business doesn’t work that way. Instead, to help you find profitable online business ideas, we’ve put together a collection of simple tips on how to start a business without quitting your day job.

29 best online business ideas in 2023

1. Start your own clothing line

If you have some designs in mind and a little bit of time on your hands, you can get your clothing company off the ground.

If you already own a Shopify store, you can set up your own clothing line using Printify, Printful, or a similar product-sourcing app. Each automatically links your store to apparel printers and clothing manufacturers. They also handle every step of the retail fulfillment process for you, giving you the freedom to design and ship a wide range of pieces right out of the gate.

Why start a clothing line?

• There’s nothing more satisfying than creating products people will use every day.
• As soon as you build your Shopify store, you can start selling instantly. Thanks to print-on-demand apps, the process of designing and delivering your own custom-made clothing has been streamlined and simplified.
• You’ll love the feeling of seeing your designs come to life by transforming your creativity into something real and profitable.

We used Printful to create THINK PUP, an apparel store for dog owners, and ended up making over $1,200 in just three weeks. With some time and research, you could be well on your way to building a successful t-shirt company, too.

2. Start a dropshipping business

Think you need a warehouse full of inventory to run your own business? Think again! Dropshipping is a great way to start a business on a budget. You can hit the ground running by sourcing a pre-existing product from a supplier and having them take care of things like packaging and fulfillment.

This process lets you skip a lot of obstacles that might be standing in the way of you starting your own business. More importantly, dropshipping eliminates the risk of finding out there’s no market for your product after investing in a huge order with a manufacturer or supplier.

Why choose dropshipping?

• You don’t need to stock products in a physical location, meaning your cash flow won’t get tied up in inventory. There’s less of an upfront cash risk.
• Whenever a purchase is made, you place an order with a third party that handles the rest of the process for you. Since you don’t have to deal with things like tracking inventory or mailing packages, dropshipping eliminates a lot of potential headaches for budding entrepreneurs.
• No warehouse means you can run your business from anywhere. Whether it’s your living room or the café down the street, you decide where you want to work from.

3. Sell your art online

Whether you’re a painter, photographer, or musician, there are plenty of online business ideas and ways to turn your latest masterpiece into a source of revenue with a beautifully designed ecommerce website.

If painting or photography is your forte, you can sell your art as prints, canvases, and framed posters using Printify or Printful. This is a fantastic way to turn your art into something tangible that people can take home and integrate into their space. Is music your thing? You can sell your beats, songs, samples, and more as digital downloads.

Just take a look at The Drum Broker, the largest online drum sample business in the world. Its founder created a successful and sustainable small business model with the help of apps like FetchApp and ShipStation.

Why sell your art?

• You’ll be part of people’s lives by getting your work into customers’ homes.
• You’ll create a platform for showcasing your work by setting up shop online.
• As an artist, creating art isn’t just a hobby—it’s a way of life. This is your chance to turn your passion into an income stream and potentially do what you love for a living.

Free Guide: How to Find a Profitable Product to Sell Online

Excited about starting a business, but not sure where to start? This free, comprehensive guide will teach you how to find great, newly trending products with high sales potential.Get the free guide

4. Become a freelance writer, designer, or developer

Writers, graphic designers, and developers can start a low-cost business based on their talents. As a freelancer, you’ll be able to put your skills to good use by helping people across the world with their projects (while making some money yourself, of course).

Freelancing doesn’t mean committing to months-long projects that eat away at your free time. You can easily pick up bite-sized tasks that fit your schedule.

To find people that need your help, try freelancing marketplaces, like Upwork and Fiverr.

It’s worth noting that Fiverr is a little different from a traditional job board. As the name suggests, a lot of the posted jobs pay $5. The key to making big money on Fiverr is carefully setting up your offers so you can easily upsell the client.

For instance, you could offer to write a 150-word introduction for a blog post as your initial $5 service. As an upsell, you could charge another $10 for every additional 150 words. You can tweak your services until you’ve found a combo that makes it worth your while.

If you want total control over how much you charge, create a Shopify store. You can list your services as products and disable shipping, since you won’t actually be physically delivering anything to your customers. You can even use apps like BTA: Appointment Booking App and Events Calendar to give your customers the option to schedule appointments.

Why freelance?

• When you freelance, you choose which projects you want to work on and set your own schedule and workplace.
• Getting paid to do something you’re good at is a rewarding feeling, whether you’re looking to strike out on your own or just want to make some extra cash on the weekend.
• If you’re new to writing, designing, or developing, freelancing is an excellent way to build your portfolio and get some real experience in a wide range of industries. You might discover that you have a knack or passion for something you never expected.

If freelancing sounds like it might be a good online business idea for your lifestyle, we’ve put together some great articles that can help you make the most of your time:

5. Teach an online course

Teaching an online course is a low-investment online business idea for generating passive income. All you need to do is put together a video walkthrough explaining a subject you’re familiar with and then host it on your own personal website.

Although it requires effort up front, if you manage to design a popular high-value video tutorial series, you can make money on an ongoing basis as people continue to enroll in your course.

To start creating your first online course, brainstorm a topic you know well enough to teach someone how to do from scratch. This can be anything—music production, social media marketing, web development, you name it.

Next, you’ll want to grab a screencasting app, like ScreenFlow, to record your screen and voice while you walk your students through your tutorial. ScreenFlow also comes with a built-in video editing suite, so you can shoot and cut your videos all on the same platform.

Why teach an online course?

• With an online course, you can set it and forget it. Take a few days or weeks, depending on the complexity you’re aiming for, to build an online course, and you could reap the benefits for months.
• You already have the knowledge, you just need to share it. Focus on teaching something you’re already an expert at and the rest will come naturally, whether it’s building iOS apps, creating monthly budgets, or running Facebook ad campaigns.
• Teaching someone a new skill is its own reward. While there’s definitely money to be made teaching online courses, helping other people is always a satisfying experience in itself.

6. Flip your thrift store finds

If you love hitting up thrift stores and hunting down great deals, then one great online business idea is selling your second-hand treasures online.

Your potential customers want to buy cool stuff, but they don’t want to dig through old soccer jerseys and braided belts to get their hands on that one amazing find. Take advantage of this by positioning yourself as a trustworthy curator who can go out and uncover those great vintage pieces for others.

Why sell your thrift store finds?

• Let’s face it, you’re combing through thrift store racks anyway, so you might as well make some money while you do it by putting your shopping addiction to work.
• The margins are huge. That $2 RadioShack ball cap you found over the weekend? You can turn it into a $40 vintage hat.
• You’re selling something unique. Nowhere else on the web will people be able to find the vintage collections that you put together.

Want to turn your cool stuff into pizza money? Take a look at these guides to making your products look great in photos:

7. Publish your own book

It’s OK to admit it: you’ve thought about publishing your own book someday. While seeing your name on a list of bestsellers might seem like a pipe dream, it’s actually not that far out of reach.

It doesn’t matter if it’s a science-fiction novel, a marketing guide, or a children’s picture book, there are now plenty of options for successfully self-publishing your work. These include releasing your writing as an ebook with the Digital Downloads app or using on-demand printing services like Blurb.

To sell ebooks through your online store, install the Digital Downloads app and you’ll instantly be able to stock digital files as products. Once purchased, your ebooks will be sent to your customers via email or as a direct download link.

If you choose to sell physical copies of your book, you’ll just need to place an order whenever your work is purchased. They’ll custom print your book and handle the entire storage and fulfillment process.

Why publish a book?

• What’s the point of writing something if there’s no one around to read it? Self-publishing is the quickest way to get your book into the hands of potential readers.
• Printing, storage, and delivery are taken care of thanks to services like Blurb.
• Creative writing is your passion and you deserve to be able to make money while doing something you enjoy.

8. Start a blog

Blogging has come a long way since its inception. What was once a virtual journal has now turned into a marketing and a monetization tool. 

Whether you make money from publishing sponsored posts, hosting third-party ads, or selling your products, a blog is a great online business idea you can start at home.

The key to starting a successful blog is to focus on building an engaged, loyal audience. When you start with an audience-centric approach, you’ll cultivate a community that trusts you. And when you can earn trust, you can start to drive revenue.

That’s how Mr. Money Mustache started his popular personal finance blog. What began as a movement has turned into a successful business that’s earned national media coverage. 

Why start a blog?

• Blogs have unlimited growth potential. You can expand into affiliate marketing, ecommerce, courses, and essentially any other online business venture. Some blogs even use a paid subscription model to drive revenue.
• A blog is a long-term play. While you won’t see overnight results, they are likely to be more sustainable. A blog lives on the web forever—or at least until you delete it.
• It lets you practice your writing—an essential skill to have in business and communication. Use tools like Grammarly or Hemmingway to improve your writing. 

9. Become a virtual assistant

Are you super organized and love working behind the scenes? If so, you might be the perfect candidate to start a virtual assistant (VA) business.

A VA helps entrepreneurs, businesses, and executives organize their personal and professional lives. There’s a broad spectrum of duties, ranging from appointment scheduling to basic marketing management and everything in between. And everything is done online.

Why become a VA?

• Work with your ideal client. Even if you don’t know at the start, over time you’ll find out who you love working with and what you love to do for them. You can evolve your business to cater to those preferences.
• Interact with people from all over the world. All you need is an internet connection to do your work and you can have the chance to work with international clients and professionals. 
• Grow your business into a network of VAs. If you become too busy or have growth goals, you can hire and train VAs to work under you and increase profits.

10. Become an influencer

Influencer marketing has exploded on the marketing scene, and though consumers are becoming more savvy, there are still plenty of business opportunities to be had.

Because influencers have gotten in hot water for dishonest practices, there’s been a movement toward micro-influencers—profiles with smaller but more engaged followings. Good news: you don’t need millions of followers to earn money on Instagram.

Why be an influencer?

• It’s an opportunity to get an introduction to marketing—particularly valuable if you’re interested in pursuing it as a career or additional business venture.
• You’ll learn about new and interesting brands. You might discover products and companies you love that you never would have found had they not solicited your services.
• It’s so easy a monkey can do it. Well, not literally—but you can make your pet the star if you’re camera shy.

11. Build apps and websites

If you’re tech savvy, acquire some coding skills and start building. Whether it’s mobile apps, Shopify apps, or websites, you can create digital products for purchase or as a service provider.

For example, you can create a custom Shopify theme template and sell it to merchants looking for an affordable DIY approach to designing their website. Or work with clients directly to build websites and apps tailored to their specific needs.

Why build apps and websites? 

• Technology isn’t going anywhere, and the demand for the technical skills necessary to build apps and websites will only continue to grow. 
• There’s an endless number of platforms and systems out there. If you get bored of one, learn and transition to another.

12. Launch a podcast

If you like the sound of your own voice, consider recording it for a podcast. Podcasts are a great home business idea with multiple monetization options, similar to starting a blog. 

Here’s what you need to start your podcast: 

• A high-quality microphone 
• Audio recording software 
• Call recording software

To promote your podcast, consider collaborating with prominent figures as guests on your show. Encourage listeners to leave reviews and share your podcast with their friends and family. 

Why start a podcast?

• Podcasts continue to grow in popularity. According to Statista, 79% of Americans have heard of podcasts and 38% have listened to one in the past three months.
• A successful podcast can lead to endless possibilities: turn your episodes into a blog, solicit sponsors and advertisers, and make connections you never would have been able to before. 

Get some inspiration for your own podcast with these best business podcasts for entrepreneurs.

13. Become an affiliate marketer

Affiliate marketing is when you recommend a product or service by sharing it on your blog, social media, email list, website, or other channel. You earn a commission each time someone converts through your unique referral link or code.

Find an affiliate program that suits your interests, personal brand, and target audience. Affiliate Future, ShareASale, and FlexOffers are a few examples. Amazon has its own affiliate program, and you can also check out the Shopify Affiliate Program. 

Once you’ve signed up, start sharing. Create social media posts, blog articles, emails, and other content about how great the product or service you’re promoting is. Don’t oversaturate your audience with ads, otherwise you risk coming across as spammy or inauthentic.

Why do affiliate marketing?

• It’s easy: you likely already promote the products and services you use. Now you can get paid for it! 
• Affiliate marketing is a great source of passive income. With the Shopify Affiliate Program, affiliates earn an average of $58 for each user who signs up for a paid plan and $2,000 for each Plus referral.

14. Curate subscription boxes

Subscription boxes are themed packages of various products. There are subscription boxes in pretty much every industry, from meal-prep kits and craft snacks to fitness products and makeup. You can curate subscription boxes around virtually any theme of your choice.

Bokksu, for example, curates Japanese snacks and sends them to customers each month.

When you curate subscription boxes, you work with brands and artisans to purchase and resell their products in a bundled offering. Typically, consumers expect to be surprised by what’s in the box, though there are some (like meal prep kits) where the customer chooses what they receive.

Why curate subscription boxes?

• It’s a viable seasonal business. Subscription boxes are often purchased as gifts. So if you’re only interested in running your online business for part of the year, this could be a model worth checking out.
• It’s a growing industry. Subscription commerce sales are exptected to hit $38 billion by the end of 2023.
• You don’t need to create your own products. Instead, you can use proven, successful products and simply put them together in a nice package.

15. Develop a niche product

If you recognize an opportunity in a certain niche, you might be on to your next successful online business idea. Niche products cater to a unique audience. When done well, they serve a specific community. 

Niches could be based on industry, demographic, price point, geography, values, product attributes, and more. Really, a niche could be anything specific enough to target a small group of potential customers. For example: 

• Conscious consumers: think vegan, sustainable, and eco-friendly products and brands. 
• Pet owners: you could even drill down by pet type.
• Remote workers: these professionals have specific attributes different from the traditional office worker.

Why develop a niche product?

• Niche products are unique and, thus, buzzworthy. Early success can be all you need to drive press coverage with zero budget. 
• Though niching down might be scary to some, choosing a specific target customer makes it easier to create marketing and messaging that resonates. Rather than trying to speak to a broad, diverse group, you’re talking to a group of individuals with lots of shared characteristics.

16. Create handmade goods

If you’re particularly crafty, selling handmade products would be a great online  business idea for you. Whether you make jewelry, picture frames, or furniture, one way to monetize your craft skills is to sell products online. Handmade goods is a great industry for creatives and even an achievable business idea for kids.

While you can use platforms like Craigslist or Etsy, your own online store will give you more control and make it easier to track and fulfill orders. 

Why sell handmade goods?

• Devote as much or as little time as you want. It’s your choice how big you want to grow.
• Create on your schedule. Make your handmade goods when you have spare time or whenever you want. 
• Turn your passion into income. Like many of the online business ideas on this list, an entrepreneurial endeavor backed by passion leads to a more fulfilling experience. 

17. Become a social media manager

Effectively managing and growing social media accounts is a skill. If you have the chops, consider becoming a social media manager or a consultant for brands. 

You’ll be responsible for maintaining a company’s social presence online, developing its social marketing strategy, managing campaigns, and other related tasks. It’s a solid online business idea with plenty of demand, with jobs in social media expected to grow by 10% through 2031, and it doesn’t take that much startup capital to begin. 

To start, get a website, your own social media profiles (grow them and use them as social proof to win clients!), and a payment processing system. As you gain more experience, you can start catering to a wider array of social media needs, like profile growth, outreach, or brand sponsorship management.

Why start a social media management business? 

18. Invest in real estate

It might sound scary when you hear it, but investing in real estate isn’t hard to break into once you’ve done your research. Depending on the market, getting your hands on opportunities like accessible FHA loans can be the kickstart you need to ensure a cash-flowing business from the start.

With real estate, you don’t have to worry about stocking inventory or supply chain troubles. Instead, you can scout properties from the comfort of your couch. There are startup costs and purchase requirements to account for, but you can get loans to help cover them.

The cash flow you establish with your first property can be reinvested into buying your next. Do this enough times and you can start making some serious revenue.

Why invest in real estate? 

• It’s a long-term investment in a business with appreciating assets and almost immediate cash flow. 
• Real estate will always be in demand as a need rather than just a want. 
• It can be relatively hands-off with the right management structure in place.

19. Sell on marketplaces 

The ability to sell your goods on marketplaces isn’t new. Yet it’s still a very lucrative way to start a sustainable online business. Seller platforms like eBay, Bonanza, Etsy, OfferUp, or Facebook Marketplace make the process of listing products, capturing contact information, and receiving payments easy. 

The best part? These massive seller platforms already come with built-in traffic. As the seller, it’s your job to get strategic with your listing and keep track of what sells and how well so you can optimize your efforts. You can do all of this from the comfort of your home, too. 

Why sell on marketplaces? 

• It’s affordable to start, without a hefty upfront investment.
• You get access to a pool of traffic you might not be able to tap into on other platforms.
• The online selling skills you acquire can translate into adjacent businesses down the road.

20. Become a translator

Knowing more than one language can make you money. Along with internet access and a laptop, you can be well on your way to starting an online translation business. The translation industry is booming—it doubled in size in the past decade. 

As a translator, you can apply your skills to translating content, meetings, résumés, books, or even online conferences. As you refine your skills, you can charge by the hour or by the project. Either way, the bottom line is that a translation business can be both flexible and lucrative once you get started with your first few clients.

Why start a translation business? 

• There are plenty of translation platforms, like Gengo, willing to pay competitively for your skills in case you don’t want to start your business on your own. 
• Alternatively, it’s easy to list your translation services on platforms like UpWork for a more independent approach to translation where you get to set your own prices.
• Translation can be a flexible business that doesn’t require ad management or dealing with inventory. 

21. Start an accounting or bookkeeping firm

Take advantage of the steady market demand for accounting and bookkeeping by going freelance and offering your services to clients looking to outsource this part of their business. Granted, the more experience and education you have in the field the better your chances of success.

You can bootstrap an accounting or bookkeeping business with access to software like QuickBooks, some word of mouth, and some tenacity. As you begin to gain clients and deliver great work, referral clients start coming your way. As a service-based business, the hardest part about starting an accounting or bookkeeping venture is getting started.

Why start an accounting or bookkeeping business? 

• It’s a great way to put your math skills to use while leveraging the flexibility of being your own boss.
• You don’t need a ton of customers to generate sustainable income each year. 
• A service-based business like accounting and bookkeeping thrive on building relationships and returning customers, which makes the digital marketing part of the business more manageable. 

22. Become an online fitness trainer

Fitness trainers like Kayla Itsines are making a killing online through memberships, fitness apps, and ebooks. If you’re naturally adept at being active, starting an online fitness business might be a no-brainer.

As you get started, don’t forget to leverage social media—fitness is a visual industry. Being present on platforms like Instagram and TikTok can be a great way to build an audience and win clients. With a digital fitness business, you can also create several streams of income that can be set up passively (think digital guide books or PDFs of workout plans).

Why start an online fitness trainer business? 

• There is already an existing demand for people that want help with their personal fitness journey. 
• It can all be done online. You don’t ever have to meet people in real life for fitness training if you don’t want to. 
• You can create evergreen content like courses, cookbooks, or fitness plans that can continue to bring in revenue in the background and require minimal upkeep. 

23. Create and sell NFTs

Creating and selling NFTs is one of the newest ways to start an online business. There is a passionate niche market worth tapping into if you leverage community building and manage to sell NFTs on platforms like OpenSea.

If you’re an artist already making physical art, translating those skills into marketable NFTs can prove to be a solid pivot into the online business world. First, get informed on what NFTs are, where their value really lies, and what tools you need to get started generating NFT art on the blockchain and developing a brand.

Why create and sell NFts? 

• It’s extremely easy to get started and mint your own NFTs once you learn the basics.
• It’s a solid way to leverage your creative skills and generate income as you tap into a wider digital audience. 

24. Start an online coaching business

Have coaching skills? Join the online coaching industry and start coaching clients in your niche. How? Start by getting clear on what you offer and the results clients can expect from your coaching efforts.

Online coaches like Simone Seol use Instagram to access clients who want the results she offers. If you’re going to go the coaching route, social media marketing is a must. Taking the time to get certified in your particular area of expertise can help establish you as an expert in your field and increase credibility.

Why start an online coaching business? 

• Online coaching has high income potential if you have solid interpersonal skills and can get clients results
• There’s no gatekeeping to the industry. You can start coaching in any subject you’re knowledgeable enough in to charge for. 
• Word-of-mouth marketing can be a powerful client generation source once you get started. 

25. Do voiceover work

You can become a voiceover artist from the comfort of your home once you’ve built a voiceover brand producers can trust. There’s no telling what you can voiceover after you’ve set up your own home recording station.

You can voiceover audiobooks, YouTube videos, internet commercials, webinars, coursework, and more. To start, consider recording a demo reel, establishing a professional website, and establishing a social media presence that will attract potential voiceover customers to you.

Keep in mind that the voiceover industry is creative, which means you might need to be creative in how you attract clients and generate revenue.

Why start a voiceover business? 

• Starting a voiceover business can be a niche opportunity for a candidate with the right skills.
• It has high income potential depending on how it is leveraged.
• It can be an unconventional way to make money in an industry that isn’t oversaturated. 

26. Become an ad consultant

Ads are everywhere. Why not be the one who gets to make a consulting fee from businesses looking to optimize their ad strategy? Yup, that’s a business you can run fully online. Ad consultants like Monica Louie are already doing it (and doing it well!).

Pick the types of ads you want to specialize in—whether that’s PPC ads on Google, Instagram ads, Facebook ads, TikTok ads, or even display ads—and then start marketing your services with a professional website and different service offering packages.

Keep in mind that consulting isn’t for everyone. You want to have plenty of experience under your belt to ensure you can deliver results to the clients seeking your ad expertise. If you’re brand new to ad strategy, you might want to hold off on consulting until you gain more experience. 

Why start an ad consulting business? 

• What you charge for an ad consulting business can be scalable and highly dependent on perceived value.
• It’s a great online business idea if you’re savvy with people, management, and meeting KPIs.
• If you enjoy networking it’s one of the best ways to earn consulting clients.

27. Build niche websites

The only obstacle standing between you and building niche websites as a service-based business is a learning curve. Not only are there tons of free resources online you can tap into to learn the ins and outs of web development, you can also learn website builder platforms like Shopify to gain marketable skills clients are actively looking for.

While learning to build niche websites isn’t hard, it’s the marketing part that might take more legwork. Consider finding your first handful of clients on platforms like UpWork, Indeed, or Fiverr. As you get the ball rolling, don’t forget to collect testimonials from past clients so selling your services to new clients becomes easier. 

Why start a niche website business? 

• There’s very little to no cost to get started in a service industry that’s in-demand.
• You can cut the time you spend creating niche websites in half once you create reusable website templates for yourself. 
• Building niche websites can be an engaging business venture if you have an eye for design.

28. Start a membership community 

Can you say recurring monthly payments? That’s exactly what a membership business idea can do for you. Membership business ideas are limitless.

You can create content and set it behind a paywall, or create a members-only community that gets access to your niche expertise on a monthly basis. Check out membership communities like Peak Freelance or Superpath for inspiration. 

As you decide on a membership business model, get clear on your value proposition. You can deliver value in the form of written content, video content, exclusive group coaching, PDFs, guides, courses, or downloadable workbooks. It’s also possible to provide a monthly physical product to each member—though keep in mind this means dealing with mailing, more overhead expenses, and inventory logistics.

Why start a membership business? 

• A membership is a great business model because of the recurring monthly income potential. 
• You can leverage the build-once-sell-multiple-times model to content creation that software makes possible. 
• There are plenty of out-of-the-box membership creation tools to get you started quickly building a hub where users can create their own profiles and consume your content. 

29. Promote sponsored posts on Instagram

Instagram accounts in all kinds of niches are making bank through sponsorships. Here’s a quick rundown of how it works:

1. Grow an Instagram page in a relevant industry that lends itself to sponsorships. Accounts like Mochi In The City and Studio DIY are great examples of this. 
2. Make sure you cultivate an engaged audience that interacts with your content.
3. Create a brand kit and reach out to potential brand partners to discuss a collaboration. 
4. Set your prices, publish your sponsored content, and get paid. 
5. Rinse and repeat. 

Why start an Instagram sponsorship business? 

• You don’t need any money, certifications, or clients to get started.
• Instagram sponsorships can be a sustainable business that doesn’t have to take hours of your time.
• You can grow your Instagram profile organically, without having to invest upfront money into marketing. 

What were the best online business ideas in 2022?

According to the Bureau of Labor Statistics, as reported by Forbes, the following niches had the most growth and success in 2022:

• Information technology (IT)
• Construction
• Personal services
• Food services
• Health care

Online businesses that operate in those industries had lots of potential for success in 2022. This includes SaaS companies, online stores that sell home improvement products or materials for construction, and anything else related to the list above.

How to start an online business in 6 steps

Once you’ve decided on an online business idea, you’ll want to do your due diligence and, eventually, give it life. Here’s how to start a business online, step by step.

1. Validate your idea with research

It might sound harsh, but it’s true: just because you think you have a great idea doesn’t mean there’s a market for it.

Before investing your time and energy into starting your business, research how feasible it is and whether there’s any potential buyer interest. You can hire an agency to conduct market research for you, but if you’re on a shoestring budget, you can also take the DIY approach:

After conducting market research, write a business plan to clarify your ideas. Having a business plan will help you stay organized and focused as you go through the ups and downs of starting a new business.

2. Develop your product or service

You’ve validated your idea, now it’s time to turn it into a reality. Whether you’re selling a product or service, you need to create it. Find a manufacturer to bring your product to life, create packages of your service offerings, or write your book and identify a self-publishing option to bring it to fruition.

If you go the dropshipping route, the product has already been developed for you. It’s up to you to choose the products you’re passionate about or that you’ve identified a hot market for. To help you, we’ve put together a guide to finding the best products to dropship.

3. Set up your business finances

“How do I open a business bank account?” is a common question for many new entrepreneurs. After you’ve officially registered your business with your local government, you should have the tax identification numbers and other information required to open a business bank account.

As you grow, you might need funding for future endeavors, be it a new product launch or marketing and advertising spend. Having business bank accounts makes it easier for you to manage that capital, as well as track your revenue and expenses.

Having a bank account is also helpful when it comes to tax preparation, since your business-related transactions will be in a single place. As your business finances get more complicated, hiring a professional accountant or tax professional could be a viable option.

4. Find vendors and suppliers

Product-based online businesses in particular may require lots of business relationships. For example: a manufacturer, a dropshipper, or a third-party logistics coordinator. When identifying which partnerships you want to move forward with, it’s best to shop around and compare your options to make sure you’re getting the best solution for your needs.

Other online business ideas may require different relationships or contractors. If you’re writing a book, for example, you may want to hire a professional editor and book designer.

5. Build your business website

If you want to start an online business, you need to have a website. And to make money online, you’ll need to incorporate payment processing functionality. 

First, come up with a business name. You can use a business name generator to help you if you’re stuck. You’ll need one to start building your website.

Then choose a domain name and verify that it’s available. You can purchase a domain name for less than $20 a year in some cases. From there, you can build your own store on a platform like Shopify and start accepting payments from customers right away.

6. Market your new small business

Getting your first paying customer is a huge milestone for a new small business owner. Now that you’ve got your store set up, you’ll want to start getting your business out there. But finding new customers and creating convincing promotions takes time and energy.

There are so many channels to choose from—email marketing, Messenger marketing, mobile marketing, etc.—it’s hard to know the best way to grow your online business. It’s easy to get caught up in the wrong tactics and invest your time and money in the wrong places.

Start your online business today!

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

The article refers to: https://www.shopify.com/blog/online-business-ideas

TikTok has taken the world by storm, but it can be tricky to figure out what content to create. The platform requires a different approach to other social channels, but coming up with a TikTok marketing strategy for your brand doesn’t have to be difficult.

With so many new TikTok trends popping up, it can be tempting to jump on every one. But, it’s vital to consider what your audience wants to see. Once you understand your target audience, you’re on your way to getting your brand noticed, growing your following, and engaging your community.

Ahead, find 15 TikTok video ideas you can use for your brand. Whether you’re just getting started or need some inspiration to get you out of a creative rut, there’s a TikTok idea for everyone.

15 TikTok video ideas

The best TikTok video ideas are the tried and true formats that pop up in TikTok trends over and over. For brands, however, choosing the right TikTok video ideas is important to attract the right audience. From TikTok challenges to educational videos, explore these ideas in depth before you post videos to your brand account.

1. Human moments

Get real with your followers, and don’t be afraid to break that fourth wall. We’re all people here, and your audience loves hearing from the people behind the brand. 

Isabella Lin of Fizzy Soaps took a break from the brand’s typical content to talk about and rate the videos that had previously gone viral. It’s refreshing to see a brand’s founder take center stage and discuss the realities of social media. 

If you have something you want to share or discover something that inspires you, your brand’s audience will most likely love it too. Try sharing favorite book recommendations or the Netflix series you can’t stop talking about.

You don’t need to talk to the camera to make your brand feel more human. Using images and captions can work just as well. Imagine you’re sharing with a friend, and keep it short and sweet. 

2. Trending and topical content

It’s tempting to create content in advance, and this certainly works for other social media channels. When it comes to TikTok account ideas, it’s all about balance. Keep track of holidays and events and see what’s trending on TikTok at that time. Make sure you’re ready to react and create topical and relevant content.

Topical content doesn’t have to be complicated. In fact, sometimes simple posts are best! Natural deodorant brand Wild filmed this short video for its followers at Easter, showing its reusable deodorant cases repurposed as an Easter treat. It’s just a few seconds long but was seen more than 100,000 times.

Trends can be even trickier, and they come and go quickly. While there may be trends like lip syncing videos, animal videos, or dance videos, they might not be the right fit for your brand. Hop on trends that are relevant to your audience. Your next viral video might not be a trend at all. 

3. Inside the creative process

Revealing your brand’s creative process is another great TikTok idea. This could be a video of you making products by hand, sketching new ideas, or anything else that shows followers the creativity and skill you put into your brand. 

Burn.in Candle Co.’s TikTok account is full of videos showing how its various candles are made. Not only are they satisfying to watch, but they also show how much time and effort goes into each and every one of its candles.

If there’s anything more satisfying than shopping with small brands, it’s seeing the product being created by hand.

4. Inspiration TikTok videos

Your TikTok account is the perfect place to share your brand’s values and ethos, reaching like-minded viewers and converting them into followers. 

Share what inspires you and any other content that aligns with your brand values and mission. Your brand is more than just its products, and your TikTok account is a great place to make that stand out.

Sustainable swimwear brand SevenSeas Swimwear is all about summer vibes, so it’s no surprise that this dreamy video got almost two million views. 

Create and post content that fits your brand’s mood and it’s sure to resonate with your followers. 

5. Sneak peeks

Engage your followers and build anticipation for upcoming launches or campaigns by teasing new products and giving your TikTok audience a first peek.

Give followers the first look at new products, colorways, or anything else exciting your brand is working on. Offering sneak peeks also encourages your followers to come back for more.

Elyse Breanne Design took a trending song and created this simple but effective video, 

revealing her newest product range to her followers and showing her taking the product photos.

If something is exciting to you, then chances are it will be exciting to fans of your brand, too. Use this as a part of your TikTok ecommerce strategy to build momentum for a new product launch.

6. TikTok video Q&As

TikTok’s new Q&A feature allows your audience to submit questions to your account. It’s the perfect way to engage with your followers and get invaluable customer insights and new content ideas. 

By enabling the Q&A feature, you can allow your audience to flag their comments as questions, making it easier for you to spot them and reply. 

Soap brand Fizzy Soaps recently created this video in response to a follower’s question, which got almost half a million views. Combining a voiceover with a video of the soaps being created it’s a simple way to engage with followers.

The best part is that Q&As provide you with ready-made TikTok video ideas: you can dedicate multiple videos every week or month to answering the questions asked by your community. 

7. Ask your audience videos

It’s not just your followers who can ask questions. Putting questions out to your audience is a surefire way to boost engagement and find out exactly what your followers think.

What colors do customers want next season? What do they want to see more of on TikTok? Give them the opportunity to get involved and share their views and you’ll gain valuable input from your target audience. 

Parakeet Slimes Shop cleverly combines both ideas into one. The slime brand created this video responding to a follower’s question and threw it open to their audience, asking them for their thoughts—a sure-fire way to get even more engagement.

8. Educational TikTok videos

Whatever your industry or specialist subject, it’s time to share your skills. Own your niche and share your knowledge with followers in informative videos, from breaking down complex topics to creating fun how-to videos. 

It’s a great way to reach more viewers within your niche and convert them to followers. Make it a regular series and consider making a TikTok Playlist so all your informative posts can be stored in one place as a go-to resource.

Peach & Lily created a series revealing the little-known facts about Korean skin care. The video below got almost one million views, and it’s also part of a series that guarantees viewers will be back for more. 

Not sure where to begin? Ask your followers or check for commonly searched questions within your niche. Answering commonly asked questions will create valuable evergreen content that people will return to again and again.

9. Behind the scenes TikTok videos

Giving your followers an insight into what goes on behind the scenes of your company is a great way to get them involved and boost your engagement. 

Behind-the-scenes content makes things more personal. Whether you’re a one-person show or have a team of 100, TikTok ideas that provide a peek behind the scenes will always be engaging. Show your team at work or behind the scenes at your photoshoots, or share something as simple as your morning coffee. Followers value this honest approach.

New York–based fashion brand Cee Cee’s Closet NYC shared this authentic behind-the-scenes moment with followers, getting almost 300,000 views.

XXL and Co brand founder Tina Nguyen created this heartwarming video showing how her mother helps behind the scenes, and with 3.1 million views, it’s one of her brand’s most viewed posts to date. 

10. Vlogs and recaps

Putting together a recap of your day, week, season, or event is a great and easy TikTok video idea. Add a trending sound and give your audience a quick and authentic insight into your brand.

These vlogs act like a diary or scrapbook, and they’re perfect for rounding up a specific time period or event. Just throw together all of the best content that you’ve captured. 

This example from jewelry brand Uncommon James stitches together video clips to capture the mood of a whole day, from buying flowers and hanging out with the dog to visiting the brand’s store and showcasing products. 

You don’t need a physical store to create something just as effective. Snap moments wherever you go and you’ll have a constant supply of engaging vlogs. Give followers a real insight into your brand and effectively capture your aesthetic and ethos in these short posts—and the best thing is, you can rely on them repeatedly. 

11. Collaboration videos

Teaming up with other TikTok accounts is a sure-fire way of reaching new audiences. Influencer marketing allows your brand to reach a whole host of potential new followers who most likely have interests that align with your brand.

We’ve already shown how skin care brand Peach & Lily shares its knowledge, but it also teamed up with one of TikTok’s favorite dermatologists, Dr Zion, in this video.

This video not only spreads the word about Peach & Lily’s products but also builds trust. When it comes to skin care, is there anyone more reliable than a dermatologist? It doesn’t always need a doctor’s opinion, though. Well-known faces and relatable, trusted opinions work just as well.

12. #StoryTime videos

Who doesn’t love a good story? The #StoryTime hashtag is an excellent source of TikTok ideas and lets you get honest and personal with your followers. 

From the story of how your brand started to your biggest inspirations (or even your biggest fails), these stories provide insight into your brand and are simple to film. Tell your own story or shine the spotlight on your team. Authenticity is key, and what better way to be real with your followers than by sharing stories yourself. 

The creator behind Elyse Breanne Design uses a question from a follower as the starting point for this story video. Combining a personal story with footage of the artwork being created makes it extra personal.

13. TikTok video introductions 

This one might seem like a no-brainer, but introducing your brand, yourself, and your products in short videos is a great way to get exposure and ensure you’re reaching your target audience. 

Take a look at this video from skin care brand aavrani: It’s a short and sweet introduction to the brand, its product, and its story. It’s not only effective at explaining the product and its benefits, but it also gives the brand a friendly and relatable face. 

Feel Your Soul’s intro video is another great example of making a brand feel human and introducing new audiences to the people behind the brand.

Even if you’ve been posting for a while, it’s never a bad idea to introduce yourself and your brand to your followers. Why not take every new follower milestone as an opportunity to re-introduce yourself and say hi to new followers? Or pin your introduction story to your profile so any new followers can get to know you.

14. TikTok video tips and tricks

Who doesn’t love a good life hack? Share your best tips and tricks to create videos to get people talking. Focus on your niche and share product or life hacks that will interest and engage your audience.

Skin care brand Drunk Elephant created this simple video to show how its products can be mixed and matched to create a “smoothie.” Some product images, trending audio, and a caption are all it takes. 

15. Duets and stitches

TikTok’s Duet and Stitch features can be found in the Effects menu and allow you to collaborate with other TikTok users.

They’re the perfect way to react to or elaborate on content you’ve spotted that hits a nerve with you—and, ideally, your audience. They can even be a good way to create funny TikTok videos, as you’re really relying on whoever you’re dueting or stitching with to make the bulk of the content. While Duet will create a split-screen effect that lets you react in real-time alongside another video, the Stitch feature allows you to clip and edit a recording responding to an existing video.

These TikTok video ideas are just the beginning

These TikTok video ideas are a great starting point to help you find what works for your brand and your audience. Many of these videos result in even more content, meaning you’ll never be stuck wondering what to post. 

Remember that, as a brand, it’s important to experiment with TikTok video content to see what inspires the most engagement with your target audience. Social media marketing should always involve two-way communication—listen to your audience, gather feedback and center their stories.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

The article refers to: https://www.shopify.com/blog/tiktok-video-ideas

It’s no secret that in order to run a successful business, you need to turn a profit. But not all profits are created equal.

For instance, if your goal is to make enough money to cover your operating expenses and support yourself as a business owner, then a modest profit will be sufficient. However, if you’re interested in expanding your business, hiring more employees, and investing in research and development for your next product line, you’ll need profit margins that can sustain the total cost of those objectives over the long term.

What is Profit Margin?

Profit margin is the measure of a business, product, service’s profitability. Rather than a dollar amount, profit margin is expressed as a percentage. The higher the number, the more profit the business makes relative to its costs.

Businesses with high profit margins

Some businesses and products with higher profit margins include:

• Luxury goods. Companies producing high-end and specialty products, like apparel, jewelry and watches, cosmetics, and sportscars, tend to have high profit margins. Because brands that make these products have a reputation for luxury, exclusivity, and status, they can afford to mark up their retail prices significantly, helping them turn a significant profit despite lower sales.
• Software and video games. While game and software developers may spend years perfecting their products, they often enjoy a high profit margin on each copy or license sold thereafter.
• Pharmaceuticals and medical equipment. Similarly, medical equipment and drug companies spend billions up front on research and development, but are eventually able to recoup those costs by selling patent-protected devices and treatments at a significant profit.

Businesses with low profit margins

Some businesses and products with lower profit margins include:

• Restaurants: Because they have to contend with a variety of costs, including ingredients, labor, overhead, and rent, restaurants tend to have lower profit margins.
• Transportation: The high cost of infrastructure, maintenance, and fuel or power keep profit margins low in the transportation sector.
• Agricultural products: A combination of high inventory and major demands for resources, land, and storage space make agriculture a low profit margin business.

A lower profit margin doesn’t necessarily mean that a company isn’t making money. On the contrary, most of these businesses compensate for lower profit margins by increasing the volume of customers, products, or materials sold.

Types of profit margin

Small businesses, including retailers, often look at three types of profit margin:

1. Gross profit margin
2. Operating profit margin
3. Net profit margin

What is gross profit margin?

Gross profit margin is a type of profit margin that measures the difference between sales revenue and the costs of goods sold (COGS), which includes direct product expenses like raw materials, packaging, and direct labor (i.e., labor related to manufacturing or selling your products).

To calculate gross margin, start by subtracting the cost of goods sold from net sales. Divide the resulting number into the net sales to get the ratio, which represents the percentage. For example, if sales are $8,000 and costs total $6,000, the difference between the two is $2,000. Divide that difference by sales – $8,000 – and multiply by 100 to get 25 percent. That is the gross profit margin.

When to use gross profit margin

Gross profit margin usually applies to a specific product or line rather than an entire business. Calculating the gross profit margin helps a company determine pricing decisions because a low gross profit could mean that the company needs to charge more to make selling a specific product worthwhile.

What is operating profit margin?

Operating profit margin is similar to gross margin in that it measures revenue against cost of goods sold. However, operating margin also incorporates fixed costs of running your business that aren’t directly related to making your products. This includes rent, office supplies, and other administrative costs.

To calculate operating margin, start by subtracting the cost of goods sold (COGS) and administrative expenses from net sales. Divide the resulting number into the net sales to get the ratio, which represents the percentage.

When to use operating profit margin

Operating profit margin can provide insight into how well your business is performing compared to your competitors and peers. The higher your operating margin relative to someone else’s, the more efficiently you’re managing your expenses.

What is net profit margin?

Finally, net profit margin incorporates all of your business expenses, including COGS, administrative costs, taxes, interest, and depreciation. In other words, this ratio compares net income with sales. Net margin comes as close as possible to summing up the financial health of your business in a single figure.

Calculating the net profit margin is very similar to the steps for gross and operating profit margin, but requires the entire company’s revenue and costs. Divide the company’s net income (the profit after expenses are deducted from gross income) into total sales, then multiply the result by 100 to get the answer expressed as a percentage.

Let’s say gross sales are $150,000 and expenses are $75,000. That means net income is $75,000. Divide that number into gross sales, $75,000 divided by $150,000, to get .50. Multiplying .50 by 100 equals 50 percent, the net profit margin.

When to use net profit margin

Because it provides a snapshot of your business’s overall profitability, net profit margin can be especially useful as a metric to share with potential investors. 

Profit margin FAQ

What does profit margin mean?

Profit margin is the difference between the total cost to run your business and the total revenue it brings in. The higher your profit margin, the more money your business gets to keep.

Is a higher profit margin better?

Generally speaking, a higher profit margin is always better. That said, average margins vary widely across different industries, so take caution when comparing your profit margin to that of another business.

What’s a good profit margin for a small business?

While profit margins differ from sector to sector, a good profit margin for online retailers is around 7-8%.

How do I calculate profit margin?

To calculate profit margin as a percentage, divide your company’s net income by total revenue, then multiply the result by 100.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

The article refers to: https://www.shopify.com/blog/what-is-profit-margin

Amy Chambers spent 21 years in financial services and has 15 years of experience in leadership, leading over 500 people to success. 

It’s wonderful to imagine that when you start a business, you’ll instantly be successful. That’s not always what the first year of entrepreneurship looks like. Here are five things you can do to jumpstart your momentum.

In late 2021, I left a 21-year career in financial services and started my own coaching and consulting business. I quickly realized I was somewhat clueless about how to scale.

It only took a matter of weeks before I was inundated with messages from coaches, influencers and promoters all promising to find me speaking gigs and clients. I ignored these because I knew I wanted to grow organically. But, it wasn’t long before I wondered if I had made a mistake: I realized I was uncomfortable and didn’t quite know what to do since I’d never done it before. Here are the first five things I chose to do, which all worked wonders.

1. Have a marketing strategy and don’t be afraid to hire help

I knew I needed to develop marketing materials. But, I also know what I’m good at and not good at. Since I’m not classically trained in marketing, I hired people to do it for me. I stayed in my lane, but I also stayed involved in the process.

I hired a former contact from a university alumni club that I felt I could trust to design my website; I hired a Fiverr designer to create a press kit; I hired another Fiverr designer to design my book cover; and I hired an executive coach who has done everything I want to do to give me feedback on it all. Once these things were all produced, I directly sent them to all my prospects and also shared them with the world.

These marketing materials have repeatedly come in handy. When I meet with prospective clients, I now have several things I can send them. As part of my marketing strategy, I also asked my first 10 clients to write recommendations for me. I’ve been told by clients that seeing these testimonials on my website and media kit was very influential. Getting people to endorse your work as soon as possible can make a material difference in your business.

2. Know what exactly you offer

My second step was calling old contacts and colleagues from my network and telling them about what I was doing. While I absolutely recommend reaching out to your former connections and network, it’s important that when you do, you know what you offer and are prepared to voice that.

When starting out, the second person I called was the COO of a major national bank. He immediately asked me what it was that I was really wanting to offer his organization: coaching or consulting. I honestly had no idea, and without a reason why, I said both. In a different call with a regional executive of another bank, I couldn’t quite articulate what I hoped to get out of the call.

What I learned was this: Be clear with yourself (and others) about what it is you do and what you hope to gain from spending time with people. Successful people are busy — don’t waste their time. Have a clear and concise plan and know what it is you want them to buy from you and why. Then, don’t be afraid to ask for the business.

3. Produce content that keeps you in front of your audience

For the 18 months that I’ve served as a coach, consultant and author, I’ve been producing content:

• I produce a series of weekly videos on LinkedIn and YouTube called “Transformation Tuesdays.”
• I created a free leadership assessment that’s available on my website.
• I write articles regularly.
• I wrote a book.

Many clients have told me that watching my videos or reading my articles was a major factor in their decision to hire me. My shared content gives others a sense of who I am and what I stand for. No matter what business you’re in, find opportunities and ways to give people a little taste of you and whatever it is you do. When people like what they see, they’ll be more apt to engage with you.

4. Do something to push forward every day

So often, we look far into the future but forget about the present moment. We dream about where we want to be in five years or what it might be like when we’re rich and famous. This is great, but it doesn’t help us figure out the day-to-day.

Throughout the last year, I’ve always focused on simply identifying the 1-2 next steps I should or can take to grow. Do something every single day, or at a minimum, every single week that gets you closer to your goals. Perhaps it’s reaching out to one new prospective client a day or a week. Perhaps it’s attending a conference or seminar where you might meet prospective clients. Perhaps it’s taking a class or certification so you can get stronger at your craft. Perhaps it’s bettering your product or service. Whatever you do, it’s important to stay in motion and always be taking additional action.

5. Take good care of the customers you have

When growing a business, it can be tempting to focus on what you don’t have yet (but want). Once you sign a client, it can be easy to mentally move on to the next five prospective clients you’d like to sign. Acquisition is important, but so is retention.

If you’ve recently made a sale or done work with someone, make sure to treat those people like gold. If clients are leaving out your back door at the same rate clients are coming through your front door, you’re static. It’s vital that you’re constantly generating reasons why the people you’ve already got should stay with you, as well as tell their friends and family about you. A few of my clients have been great referral sources for me and I can’t express enough gratitude for that, but that’s not an accident. That only happens when people are treated well.

These practices might seem simple — and they are. But, it’s the consistency in doing them that makes the difference. It’s easy to get discouraged when you start a business and don’t become an overnight success. However, when you invest in these things steadily, your success will come steadily as well.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

The article refers to: https://www.entrepreneur.com/starting-a-business/try-these-5-things-to-jumpstart-your-new-businesss-success/449594

Women entrepreneurs face unique challenges in starting and growing their businesses. Some of these challenges are very familiar: limited access to funding, lack of mentorship and bias that many experience in the marketplace.

Supporting women-owned, small businesses is not only a matter of closing the gender gap but also a way to boost the economy and foster innovation. Shifting habits and cultural norms can seem impossible, but making these significant changes in behavior can be done in small, straightforward ways. These small habits add up to monumental change. Here is a list of the best ways to support women-owned businesses and empower women entrepreneurs:

1. Shop at women-owned businesses

One of the most direct ways to support women-owned businesses is simply to spend your money with them. Women entrepreneurs are represented in virtually every industry, from retail to technology to professional services. You can find women-owned businesses in your local area or online. There are dedicated directories on a local, national or regional basis to assist in locating these businesses.

When you shop at a woman-owned business, you support not only the owner but also the employees, suppliers and the community surrounding that business. Women-owned businesses positively impact the local economy by creating jobs and increasing the tax base. In choosing to spend your money at women-owned businesses, you are making a statement about the importance of gender diversity in the marketplace.

2. Spread the word

Spreading the word about women-owned businesses is an excellent way to support them. When you use your social media channels or personal networks to share information about the women-owned businesses you buy from, you are helping to build knowledge and increase awareness of these businesses and that there are choices in the marketplace.

Word of mouth is “old school,” but still one of the most powerful ways for any business to gain traction. Using your personal and professional networks to promote women-owned businesses and sharing that information with your friends and family members can help drive immediate revenue. It can also help expose that business to its next big opportunity.

3. Attend events

Attending events organized by women-owned businesses is a great way to show your support and learn more about their products and services. Many women-owned businesses host pop-up shops, networking events or workshops. These events can be an excellent opportunity to meet the owner, connect with other supporters, and learn more about the business.

Attending events also shows the owner that their business is valued and appreciated. When you attend an event, you support the owner and the other attendees and vendors. This can create a sense of community and support that can help the business thrive.

4. Write reviews

Leaving positive reviews after shopping online, leveraging review platforms like Yelp, Google, or Trust Pilot or writing a review and sharing it on social media is another way to support women-owned businesses. Reviews can influence potential customers’ purchasing decisions, help increase the business’s visibility online, and encourage others to support those businesses. When you leave a positive review, you support the owner, the employees and other stakeholders.

It’s also important to note that negative reviews can significantly impact a small business, so it’s essential to be thoughtful and constructive in your feedback. If you have a negative experience with a women-owned business, consider reaching out to the owner directly to share your concerns and allow them to address the issue before taking it public.

5. Partner with women-owned businesses

If you own a business or work in a related field, consider partnering with a woman-owned business to offer joint promotions, events, or services. Partnering with a woman-owned business can help you reach new customers and grow your business while supporting another entrepreneur.

When you partner with a women-owned business, you can share resources and expertise to help each other succeed. This type of collaboration sends a strong message and can create a sense of community and support that can benefit both businesses.

These are simple things you can do every day that will directly impact your community and the large economy. What are you waiting for?

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

The article reference:https://www.entrepreneur.com/leadership/5-ways-to-support-women-owned-businesses/451933