Case Study: An eBook Online Business Plan
Case Study: An eBook Online Business Plan
The ebook business model is growing at a rapid pace, but it's not without its share of challenges. So, what are some of the most common mistakes businesses make when trying to break into this industry? For example, one study shows that 68% of ebook entrepreneurs fail in their first year. It can be a lot easier to succeed in this B2B business if you have clear and concise plans and strategies before you invest in any capital or scale your operation.
1) Not Enough Research and Industry Knowledge
There are a number of things you need to work on before you can even begin to think about your business plan. For example, you want to know what the market is looking for in terms of content and products. You'll also want to know specifically who your target audience will be. This will help you determine what kind of product or service to offer. You should also take some time to research the history of companies that have succeeded in this niche. This will give you a good idea of how today's eBooks are priced and formatted for their target audience.
2) Basing Your Business Plan on Wrong Assumptions
Ebooks are fairly new to the market, so you'll want to do some serious research before you begin. Don't assume that because an eBook is on a popular topic and sells for a higher price online, it will be easy for you to replicate. You also don't want to assume that because a particular niche is incredibly competitive there's no room for you in the market. Get familiar with the industry and trends before you make any assumptions about what's going to happen next.
3) Not Understanding What Kind of Work You're Getting Into
Some individuals have this "get rich quick" mentality when it comes to starting an online business. With eBooks, however, you need to make sure that your expectations are within reason before you get started. Even if you're going to be producing and selling digital content, you'll still have to invest a lot of time and effort into this business. For example, it's not reasonable to assume that you'll be able to easily write an eBook and sell 100 copies in the first week. You may want to think about what you can afford in terms of both time and money before you get started.
4) Narrowing Down Your Target Audience
It's important that you make a clear distinction between your target audience and others who might buy your products or services. For example, there may be a lot of people who buy your eBook on a regular basis, but they might not be the right fit for your business. You need to focus your efforts on selling to customers that have similar interests as yours.
5) Not Knowing How Much Your Customers Want to Spend
This is a big issue because it will impact how much you make per sale. For example, if you're creating an eBook about dog training and you only sell 5 copies for $29.95, you won't earn nearly as much as you would if you sold 500 copies for $9.95 each. You also don't want to make it too easy for customers to buy your products, if you're going to price them so high. The best way to do this is to make a really good first impression on customers with the way you package and sell your products or services. After all, the majority of customers are brand loyal from the first time they buy something from you -- so take extra steps (such as quality packaging) and be patient with what your customers are willing to pay for.
6) Lack of Planning for Product/Service Development
Ebooks are not stand-alone products -- in fact, it's much more important that you keep people coming back for more. This means that you'll want to develop a solid plan for future products and services. For example, once your eBook is released, you'll want to start thinking about how you're going to create an audio version of it. You also want to make sure that any future products or services are closely related to what you already have available.
7) Not Having a Way to Track Your Sales
You should always keep track of your sales numbers as well as determine how much each product or service is generating so far. It's important that you regularly make a record of this information for various reasons -- including keeping track of what strategies have worked over time and which ones haven't done so well. You should also work with a company that can help you create your own software to monitor your numbers and sales, as it will make it easier for you to take advantage of any current trends.
8) Not Calculating Your Product/Service Costs
If you're not making enough money and don't have a way to track revenue, you don't have a way to calculate your product or service costs. For example, if you're investing $1,000 in initial product development, but only making $120 in the first month of operation and $180 in the second month, then obviously this product isn't working for you. You'll want to take this information and adjust it against what you're making to figure out what's working and what's not.
9) Not Having a Way to Plan Your Marketing Efforts
The number one thing you should consider when planning your marketing efforts is tracking your costs. For example, if you only spend $1000 on advertising, but only make $300 in the first month of operation (as a result), then obviously this has not been an effective investment for you. You'll have to take these numbers and balance them against the amount of money you spend in order to calculate how much money your marketing is generating for your business.
10) Not Taking Advantage of Current Trends
If you're looking to make additional money online, there are plenty of current trends that could help you do so. The first is to be as active as possible on social media sites. For example, if you write an eBook about creating websites, you'd want to share information on Facebook and Twitter with your audience in order to build a following. You also want to work closely with bloggers and others who write about eBooks and the Internet. In addition to this, you should develop video tutorials that can be posted online for customers in your target market. Many of these assignments will give you the opportunity to build some extra marketing power and get your name out in the world, even if it doesn't lead to any direct sales.
11) Not Using a Professional Editor
No matter how good your writing skills are, you'll always want to work with a professional editor before releasing an eBook. After all, if you don't have enough confidence in how your content is coming across, then it's likely that customers will be turned off by what they see. You'll want to make sure that your book is free from spelling and grammatical errors -- as well as keep reading flows consistent throughout each chapter and within each chapter.
Conclusion
The good news is that there are many ways to make money online, even for those without a traditional job. While it's true that you could make more by working for an established company and taking advantage of their benefits, starting your own business from scratch can be just as rewarding in certain respects. The great thing about eBooks and other digital products is that they can be sold to interested parties without ever setting foot out of your home -- giving you the opportunity to enjoy a more flexible schedule and more time with friends and family.
About the Author:
Richard Foreman has been writing articles online since 2010. His main topics are content marketing, self-publishing, and freelancing.