How to Create an Online Business Strategy in 7 Easy Steps

There's something exciting about starting an online business. You can sell your products, offer your services and reach customers well beyond your neighbourhood, all without needing a physical shop.

But having a great business idea and an Instagram page doesn't automatically mean the sales will start rolling in.

You'll need to think about what you're selling, who you're selling to and how people are actually going to find and buy from you.

That's where an online business strategy comes in.

Don't worry, we're not talking about a 50-page business plan that takes weeks to put together. Just a practical plan to help you work out what needs doing, where to spend your time and how to grow your business without guessing your way through everything.

Here are seven steps to get you started.

What is an online business strategy?

An online business strategy is a plan for how you'll run, market and grow your business online.

It covers things like who your customers are, what makes your business different, where you'll sell your products and how you'll get paid.

Think of it as having a plan before spending money on a website, stock or advertising.

For example, if you're starting a clothing business, you'll need to know more than which items you're going to sell. Who's buying them? Where will you find those customers? How much can they afford? And how will you deliver their orders?

Working through those questions early can save you a lot of unnecessary spending and frustration later.

The good news is that your strategy doesn't have to be perfect from day one. You can change it as you learn what works for your business.

1. Find a business idea that works online

Got an idea for a business? Great! Before you order a mountain of stock or spend your savings on a fancy website, it's worth checking whether your idea makes sense.

There are plenty of ways to make money online in South Africa. You could sell handmade products, offer bookkeeping services, start a clothing brand or even turn a hobby into a side hustle.

But not every idea will suit your skills, budget or lifestyle.

Start by asking yourself a few questions:

• What am I good at? Think about your skills, hobbies and experience.
• What problem am I solving? Are you making something easier, more affordable or more convenient for customers?
• Who would buy from me? Is there a group of people who actually need what you're offering?
• Can I sell it online? Think about how people will order, pay and receive your products or services.

Let's say you love baking and everyone keeps asking you to make birthday cakes.

That could be a business worth exploring. But before you start taking orders, you'll need to work out what ingredients cost, how many cakes you can realistically make and whether you're able to deliver them.

Having a good idea is one thing. Making sure it can earn you money is another.

If you're still figuring out what kind of business to start, have a look at our online business ideas for South African entrepreneurs.

2. Research your market and get to know your customers

You might think your product is brilliant. Your friends and family might agree.

But will people actually pay for it?

That's what market research helps you find out.

And no, you don't need to hire an expensive research company. You can learn quite a lot by having conversations, looking at competitors and paying attention to what people are asking for.

Start with your competitors

Search for businesses selling similar products or services.

Look at what they charge, how they advertise and what customers say about them.

Pay attention to their reviews too. If customers keep complaining about slow deliveries or poor communication, you might have spotted an opportunity to do things better.

The idea isn't to copy another business. It's to understand what customers already have available and where you could offer something different.

Find out who your customers are

It's tempting to say your product is for everyone. But trying to sell to everyone can make marketing a lot harder.

Think about the people most likely to buy from you.

Where do they live? What can they afford? Are they buying for themselves or someone else? Do they spend time on Instagram, Facebook or Google?

You can also ask potential customers directly.

Try an Instagram poll, a short survey or a few conversations with people who fit your target market.

For example, if you're selling lunch meals to office workers, you might discover that customers care more about affordable delivery and ordering before lunchtime than having a huge menu.

That's useful information. It tells you what to focus on before you've spent money getting things off the ground.

3. Decide what makes your business different

Let's say there are already five businesses selling something similar to yours.

Why should someone buy from you?

That's the question you need to answer.

In business terms, this is called your unique value proposition. It's a fancy name for something quite simple: what makes your business worth choosing?

Maybe you offer:

• Better prices for customers on a budget.
• Faster delivery in your local area.
• Products that are handmade or locally sourced.
• A more personal service.
• Something customers can't easily find elsewhere.
• An easier way to order and pay.

You don't have to reinvent the wheel.

For example, there might be loads of bakeries selling cupcakes. But if you're offering customised cupcake boxes delivered around Durban North every Friday, that's a much clearer reason for someone in the area to choose you.

Try writing down what your business does differently in one or two sentences.

If you struggle to explain it, your customers might struggle to understand it too.

4. Choose where you'll sell online

Here's something worth knowing: you don't need a full ecommerce website to start selling online.

Some businesses do perfectly well taking orders through WhatsApp or Instagram, especially when they're starting out.

Others need a website where customers can browse products, add them to their carts and pay without having to message anyone.

It depends on what you're selling and how your customers prefer to shop.

Selling through WhatsApp or social media

If you're running a small business and dealing with customers directly, WhatsApp, Instagram or Facebook could be a good place to start.

Let's say you're selling personalised gifts. Someone sees your products on Instagram, messages you about an order and you arrange the details through WhatsApp.

You don't necessarily need a website for that.

The downside is that managing everything through messages can become a bit of a headache when orders start picking up.

You'll need to keep track of customers, payments and deliveries without letting anything slip through the cracks.

Selling through an online store

If you've got a larger product range, an online store might make more sense.

Customers can browse what's available, check prices, place orders and pay without needing you to respond to every message.

There are plenty of ecommerce platforms available, including WooCommerce, Wix and Shopify.

Before choosing one, think about what you'll actually need. Can you manage stock? Set delivery costs? Accept payments? Update your products without calling a developer?

And remember, not every website platform works with every payment provider.

If you're still weighing up your options, our guide to choosing the right ecommerce platform for your business can help.

Whatever you choose, make sure it's easy for customers to use on their phones. You don't want someone struggling to place an order just because they're not sitting at a computer.

5. Plan how customers will pay you

You've worked out what you're selling and where customers will find you.

Now for the important part: how are they going to pay?

Say you're baking birthday cakes and taking orders through WhatsApp. You probably don't need a full ecommerce website just yet.

But if you're selling clothing through an online store, you'll want customers to choose their items and pay at checkout without having to message you first.

There's no single payment option that works for every business.

Selling through your website?

If you've got an online store, you'll need a way for customers to pay at checkout.

A payment gateway connects your website to the payment process, allowing customers to pay online using supported payment methods.

For example, iKhokha offers a payment gateway for South African businesses that works with WooCommerce, Wix, Shopstar and Savvy. It also supports custom-built websites through iK Pay API.

Customers can pay using cards, Instant EFT, Apple Pay or Google Pay.

Before choosing a gateway, check whether it works with your website, which payment methods it accepts and what you'll pay in transaction fees.

Taking orders through WhatsApp or social media?

Maybe a customer spots your product on Instagram, sends you a message and wants to place an order.

Instead of sending banking details and checking proof of payment emails, you can send a payment link.

With iK Pay Link, your customer opens the link and pays online, even if you don't have a website.

This can be useful for taking deposits, selling products through social media or getting paid after you've sent someone a quote.

Need to send invoices?

If you're a freelancer, consultant or service provider, your customers might expect an invoice before making payment.

With iK Invoice, you can create and send digital invoices by email or WhatsApp.

Your customer receives an invoice showing what they're paying for, along with a payment link they can use to pay online.

It's particularly handy if you're billing customers for services rather than selling products through a traditional online store.

Don't forget about the costs

Whichever payment option you choose, make sure you understand the transaction fees and when you'll receive your payouts.

That money might need to cover stock, deliveries, suppliers and all the other costs that come with running your business.

It's worth checking the latest online payment rates before deciding what works for you.

6. Create a marketing plan that suits your business

You could have the best product in the world, but if nobody knows about it, making sales is going to be difficult.

That's why marketing needs to form part of your online business strategy.

The good news is that you don't need to be on every social media platform or spend thousands on advertising.

Start by thinking about where your customers are most likely to find you.

If you're selling handmade jewellery, Instagram or TikTok could be useful places to show off your products.

If you're offering plumbing services, people might be more likely to search Google when they need help.

And if you're selling to other businesses, LinkedIn or email marketing might make more sense.

Organic marketing vs paid advertising

There are two main ways to get your business noticed online.

Organic marketing is how you reach people without paying for every click or view.

This includes things like helpful blog posts, social media content, search engine optimisation (SEO) and recommendations from happy customers.

Paid advertising is when you pay to promote your business, using platforms like Google Ads, Facebook or Instagram.

Both can be useful.

Paid ads can help you get your products in front of people sooner, while organic marketing can help you build visibility over time.

You don't have to choose one or the other. But if you're working with a tight budget, be realistic about what you can afford.

Give yourself a manageable marketing plan

Instead of promising yourself that you'll post five times a day on every platform, start with something you can actually stick to.

For example:

• Share new products on Instagram twice a week.
• Post customer reviews or photos, with their permission.
• Update your website with useful information customers often ask about.
• Try a small advertising campaign when you're running a special.
• Keep in touch with previous customers, where they've agreed to receive your marketing.

See what gets people interested and what leads to actual orders.

You can always do more once you've found what works.

7. Set goals and keep track of what's working

It's easy to get caught up in the day-to-day running of your business and forget to check whether you're actually making progress.

That's why it's worth setting a few goals.

They don't need to be complicated.

Maybe you want to make your first ten online sales, get more customers onto your website or increase how many people order from you each month.

The trick is making your goals specific enough to measure.

Instead of saying, "I want more sales," you could say, "I want to make 30 online sales in the next two months."

Now you've got something to work towards.

What should you measure?

Depending on how you sell online, you might want to keep an eye on:

• Online sales: How many orders are you getting each week or month?
• Website visitors: Are more people finding your store?
• Customer enquiries: How many people are messaging you about your products?
• Checkout abandonment: Are customers adding products to their carts but leaving before paying?
• Marketing results: Which posts or adverts are bringing in customers?
• Repeat customers: Are people coming back to buy from you again?

You don't need an expensive reporting system to get started.

A simple spreadsheet can help you record your sales and costs. If you've got an online store, your website platform may also have reports you can use.

Use what you learn to make changes

Let's say you're getting plenty of visitors to your website, but hardly anyone is buying.

Before spending more money on advertising, check whether there's something stopping customers from completing their orders.

Maybe your delivery fees are too high. Maybe checkout is difficult on a phone. Or perhaps customers aren't finding the information they need.

Our guide to improving your ecommerce checkout covers a few things worth checking.

The same goes for your products and marketing.

If a particular product keeps selling out, it might be worth stocking more of it. If your customers respond better to WhatsApp messages than Instagram posts, you can put more effort into the channel that's working.

Your strategy should change as you learn more about your customers and your business.

Get set, get strategic, get selling

Starting an online business comes with plenty of decisions, and you probably won't get every one of them right the first time.

That's okay.

You might start selling through WhatsApp and decide to build a website later. You might discover that your customers want something slightly different from what you originally planned.

That's all part of running a business.

The important thing is having a plan you can work with.

Know what you're selling, understand who you're selling to and make sure customers have an easy way to buy from you.

Then keep an eye on what's working, what isn't and where you could do things a little better.

You don't need to figure everything out today. Just give yourself a good starting point and take it from there.