digital entrepreneurship

What is digital entrepreneurship and how to make money

It’s not that the term “digital entrepreneurship” is on people’s lips, it isn’t! But compared to previous years, this digital business model has never been as hot as it is now.

The main reason for this growth is, of course, the greater access to the internet and the growing digitization of our lives. In other words, we do more and more things, including shopping in the virtual world.

So, if you want to benefit from this digital entrepreneurship, come with me, because I’ll explain everything about this topic in this post!

What is digital entrepreneurship?

Let’s start from the basics: what is the concept behind the term digital entrepreneurship? After all, if you want to know how to make money with something, first of all, you need to know what it is, don’t you?

Therefore, let’s understand more deeply what digital enterprise is and how the virtual environment has become a great space for business.

Basically, digital entrepreneurship is the creation of a digital business, which depends on Internet access. Since, necessarily, the product or service offered needs to be marketed within the online environment.

According to the definition of the Survey of Digital Business 2020, digital entrepreneurship refers to “the development of a business model that aims to offer a product or service through the internet”.

That is people who own a digital business. Anyone who works with the sale of online courses, e-commerce, affiliate marketing, dropshipping, infoproducts, provision of digital services in general, content, among others, can be considered a digital entrepreneur.

Every year more people are leaving their traditional jobs to enter the world of digital entrepreneurship. The reasons are the most diverse and have already been seen before, such as:

  • Highly scalable businesses;
  • Low initial investment;
  • Time and location flexibility;
  • Possibility of becoming your own boss;
  • Worldwide reach.

If “only” these facts didn’t impress you, maybe this data impresses: 54% of digital entrepreneurs created their businesses less than 1 year ago. Of those, 23% started less than 3 months ago, the report points out.

These data show, in fact, that digital entrepreneurship is becoming a trend in Brazil. With the advancement of technologies and, mainly, the sharing of information, Brazilians are starting to lose their fear of entering this market and setting up their digital business.

Within digital ventures, a model that has gained considerable prominence is online courses. Mainly, when the subject is open courses focused on a certain area of ​​knowledge.

First, Forbes magazine had made a survey pointing out that by 2015 e-learning was worth 107 billion dollars in the United States, but this mark ended up being beaten.

Now, more recently, the same magazine pointed out that this market will move $325 billion in the country by 2025.

As far as the Brazilian numbers are far from the North American ones, the tendency is for our market to follow this growth. Currently, we have many influencers launching online courses and making this modality better known among Brazilians. Erico Rocha, Nathalia Arcuri and Thiago Nigro are just some of the successful examples.

Proof that online courses are gaining a lot of space in Brazil is the fact that 55% of entrepreneurs use e-learning to learn new content and update themselves. Do you want to check out more numbers regarding expanding remote learning? So here we go!

As mentioned above, the e-learning scenario in Brazil is very exciting. About 2 years ago, for example, many people associated Distance Learning with EaD universities. Obviously, this is a very large market, as there are more than 1.5 million students enrolled in non-face-to-face universities.

However, nowadays, many people when they hear things like “Distance Learning” or “online courses” can already think of free courses. Do you who is interested in becoming an online entrepreneur knows how to create a course that sells millions?

Of the active entrepreneurs in Brazil, 34% of them work in the online courses market. This number, although still quite modest, has grown exponentially.

Furthermore, when we talk about digital entrepreneurship, whether it is affiliate marketing, online courses or e-commerce, the entrepreneur has the possibility to sell to the whole world. This, for sure, is one of the great advantages of working in the digital environment.

How to be a digital entrepreneur? 

After understanding what digital entrepreneurship is, the time has come to effectively build your digital business so you can effectively start making money from it.

1. Choose your market niche

Deciding what your market niche will be, that is, the segment, sector or specific segment you will work with, is a factor that will influence (a lot!) in the success of your digital venture.

Therefore, the market niche is basically the choice of what will be sold by your digital business. This decision should be the first step to be taken and needs to take into account some points, such as: if the planning is feasible if there really is space in that market niche for the product or service you want to market and if there are people willing to pay for the price you want to charge.

However, the most important factor is having an affinity with the chosen market niche. You should not only take into account the financial return to make this decision. That’s a big mistake. It is necessary at least to like and have knowledge about the area. That way, the chances of success are greater.

2. Market analysis

To succeed in digital entrepreneurship, it is also important, after identifying if there is space in the chosen market niche, to check if the market can offer you enough sales so that you have the desired financial return. After all, the objective of the digital business is to make a good profit, which is worth the effort and investment.

If you analyze the market and see that there is room and potential for profit, then there is a business opportunity. Otherwise, your digital venture still needs to go through new adaptations and more research before actually receiving an investment.

3. Study the target audience you want to reach

This step is directly linked with the choice of your market niche and is essential for your digital business to work and generate profit.

Do research first! Only then profile your target audience and the persona of your digital enterprise. Talking to potential and potential customers will help you discover what the needs, wants, pains, and expectations are for the product or service you want to sell or produce.

4. Define the format of your products

The ideal for your digital venture to be successful is to have an innovative product. For this, study opportunities and materials, talk to other professionals in your market niche, participate in events and analyze some of your competitors.

5. Have a plan for your digital business

The first planning you will do is financial! Once you’ve decided if it’s worth investing in your niche market and your product, now is the time to carry out financial planning for your digital business. See how much you want and can invest in it.

It is also important to define how much each step and category needs. For example, in digital entrepreneurship, it is necessary to allocate funds for digital marketing, domain, product development, among other factors.

Also, estimate how much profit you can make and when you will receive that financial return. Over time, you can fine-tune this schedule. Don’t forget to also plan the launching and operational stages of your digital business. This will prevent you from getting lost along the way.

Create a calendar for digital entrepreneurship, which contains all your strategies. This plan will be the place to turn to if something goes wrong or goes unplanned in your business.

6. Choose a domain to buy

Now it’s time to start realizing your digital venture. Choose a domain to buy, this will be your web address. Then comes more fundamental technical parts for the digital enterprise such as the face of your website, usability and functionality.

Your product or service needs to be made available for purchase somewhere online. In addition to a website, there are platforms that allow you to make your product available and also allow you to carry out the entire sales process safely and also interact with your customers.

7. Think about your marketing

Study the possibilities of digital and content marketing. This will be fundamental for the promotion of your business. After all, it’s no use mastering the concept of digital entrepreneurship, but not letting anyone know your product.

Think about which social networks have the most to do with your niche market and target audience. Create content for blogs and produce videos. This attracts a lot of audiences, which is critical to converting sales.

But for that to happen, it is necessary to have authority and conviction about what is said. That way you transmit more credibility. Don’t forget to maintain a good relationship with the consumer to retain them.

8. Have an affinity with the Internet

It is not enough to just have access to the Internet, it is necessary to master it. If you don’t like or don’t want to learn about virtual spaces and elements, it will be difficult over time to maintain a digital enterprise. This is a fact that will affect the development of your digital business in the future.

What is a digital product? 

Before deciding to own a digital business, you need to know what you can sell. Digital products are all materials produced precisely digitally and made available for sale online. It is from them that you will build your digital business. Therefore, pay close attention to its development.

These products can be, for example, online courses, e-books, and even applications. An advantage of infoproducts is that as they are produced and sold digitally, their costs are much lower.

Ideas and types of products for digital entrepreneurship 

If you want to start a digital business but have no idea, no problem! There is a world of things you can do and adapt to your preferences and lifestyle. Like infoproducts, which don’t require as much investment, but have a good return.

Courses

Short and practical courses, regardless of the market niche, are a great bet. The contents can be about writing techniques, digital marketing, financial education, among others. Create a blog for this niche market with frequent and relevant content to generate engagement and an audience. After that, just start selling the products.

E-book

Create a digital product about easy tips for common everyday activities that are relevant to your chosen market niche. Nothing prevents your digital venture from being an e-book on tips for studying, investing, taking care of your pets and so on. From then on, just sell on affiliate platforms.

Consultancy

If you have the authority, knowledge and experience on a subject, don’t waste your time and start consulting through Internet access. Then, just start looking for customers in your market niche for your digital venture.

Applications

This form of digital entrepreneurship can be more complex and require more experience. However, it is a great option for those who are knowledgeable in the area of ​​technology. The important thing here is to create an application that solves people’s problems and generates solutions.

How to reduce risks when opening a digital venture? 

Obviously, any kind of entrepreneurship will involve some risks. This is part of any activity that involves customer relationships, investment of resources and entrepreneurship.

However, following the steps mentioned above already minimize the chances of your digital business going wrong right away. But there are some mistakes you can avoid making. This already greatly reduces the risks of your digital venture going wrong.

1. Don’t think digital marketing is important

The main one of the most common mistakes is not investing in digital marketing, which is fundamental for the promotion of your product or service. People often downplay its importance.

It is quite normal for people to assemble websites and pages on social networks, but fail to supply frequent and relevant content. In addition to not investing effectively in digital marketing. That way, it’s no use waiting for a return on sales, is it?

2. Invest in a safe market niche

Preferring a secure market niche is by no means synonymous with success. There is something called disruptive innovation, meaning that what is new can be more attractive and interesting for a digital business that is just starting out. As with physical entrepreneurship, innovation and planning are the best formula for success.

3. Not having patience

Many people when they start a digital venture think that at the beginning they will earn lots of money or that to be successful you just need a website and choose a market niche.

In fact, unfortunately, that’s not how digital entrepreneurship works.

For a digital business to go forward, much more is needed. It will require a lot of dedication and work from the entrepreneur, as well as patience. That’s because it takes reasonable time for a large profit margin to be achieved and for your digital enterprise to develop.

4. Think only about financial returns

It may seem like a romanticized view of digital entrepreneurship. However, it is still true. Any physical or online entrepreneur shouldn’t just think about profit. Of course, the financial return is a goal, but it shouldn’t be the only or the main reason why you are opening your digital business.

You must always seek to make your digital venture bring positive impacts to society through quality content. These are the products that are successful. If you’re just focused on making money, you won’t be able to dig deeper and really think about how to offer solutions to people. If you have this mentality of providing changes, your digital business will certainly work, as this way it is very easy to win and retain customers.

A very common mistake is to forget about this as you manage to gain an audience for your website. When this happens, it is normal for entrepreneurs to start offering third-party products, just because the commission is good from a financial point of view.

However, customers of your digital business buy from you because of the existence of a trusting relationship. So they probably bought this merchandise that is not as good, at least not as their standard had set, and they will be frustrated. Consequently, you will lose that relevant audience that took so long to acquire.

Is it possible to make money from digital entrepreneurship? 

You must have been wanting to ask this question from the beginning of the text, right? The answer is yes! It is possible to make money with digital entrepreneurship and the chances of this happening are not few.

Remember: it’s neither easy nor fast, but don’t give up. The possibility of your digital business succeeding is proportional to the amount of time, study, effort, planning and work you have invested in it.

Furthermore, digital entrepreneurship is a vast space that has not yet been fully explored. There is a niche market, for example, that was neither sufficiently known nor sufficiently known or discovered. Not to mention that this is an expanding market. That is, if many people have access to the Internet today, in the future this number will grow substantially.

SparkStart: The Gateway to Digital Entrepreneurship 

On the internet there are several contents teaching common people how to create profitable businesses. On the one hand, this is very good, not least because much of this content is available for free. But looking at it from another angle, this behavior is very harmful to aspiring digital entrepreneurs.

The overload of information and the level of content of dubious origin delay the life of those who do not know how to get their bearings. Thinking about solving problems like these, HeroSpark developed SparkStart , a program capable of taking you from scratch and taking you right up to the moment of the first release.

The Start methodology is validated by the market and, above all, developed by entrepreneurs who have been on this journey for years.

Together with SparkStart, we launched the Survey of Digital Business 2020, aiming to guide entrepreneurs who do not know how to position themselves. The research report counts graphs, data, and insights that can open anyone’s mind. In it you will find information such as:

  • Where are your competitors investing?
  • What social networks are most used by entrepreneurs?
  • most abundant niches
  • Most used platforms
  • What are the references for those starting out?
  • Insights developed by crossing multiple data.

Therefore, it is clear that the owner of a digital business earns money through Internet access. Whether or not this digital business is your main source of income. There are many ways to put the concept of digital entrepreneurship into practice. The most common are: developing your own product or service and then selling it on the internet.

The other widely used form of digital business is selling third-party products through a blog or website. In this model, the affiliate, who is a developer or producer of that merchandise sold by you, must work together and in harmony with the platform owner.

Thus, both will be able to establish together the decision criteria in relation to what will be commercialized. This is a fundamental factor to achieve success and financial return, in this case of digital entrepreneurship.

Advantages of Digital Entrepreneurship

The work reality behind digital entrepreneurship is quite compelling. For this reason, many people have entered this market. That’s because Internet access allows for some advantages.

For example, automating processes, making your own hours, being your own boss and having real chances of having a financial return. These are just some of the main reasons why many people get into this business.

What is it to be a digital entrepreneur?

We already know that the digital entrepreneur is the one who owns a digital business. However, it’s not that simple. This person will be a professional who obviously needs to have a taste for the Internet as a profile. It is not necessary to master it, but at least be interested, since the focus of a digital enterprise is to be able to develop within the virtual space.

In addition, it is also necessary for anyone who wants to open a digital business to study the finance market a lot and understand the target audience. As well as delving into important issues that will interfere in the structuring of your digital business. For example, niche markets and digital marketing, which we’ll look at in-depth later on.

Digital vs. Physical Entrepreneurship

Both digital and physical entrepreneurship have the same goal: to generate profit and promote positive change. Even so, opening a digital business has some differences that end up being much more attractive.

This is because a digital enterprise does not require as much infrastructure as, for example, facilities, large spaces, vehicles, or at least initially, employees. Thus, the costs of a digital business are considerably lower than those of a physical enterprise.

Digital entrepreneurship also opens up a number of other possibilities, which are not possible when opening a physical business.

For example, a digital business allows you to work with whoever you want and not just people who can travel to where you are. You can choose your team according to its functions and qualities, without any restrictions.

Also, contrary to what many people think, you don’t need a super application for your digital business to work. Most Brazilian websites do not have their own or exclusive applications.

The growth of digital entrepreneurship with Internet access

Today it is not difficult to find or know a digital business with a distinct market niche. The main responsible for this was the popularization of Internet access. With the significant increase in its users, digital entrepreneurship has gained strength in Brazil and in the rest of the world.

Virtual space has come to mean much more than just an informational, fun or entertainment field for us. Nowadays, Internet access also represents an opportunity and a place for the development of a digital enterprise, which grows exponentially in number, market niche and sales every year.

Certainly, greater access to the Internet has allowed the world to become more globally connected and dependent. And these are fundamental factors for the expansion of the digital business. In addition, the convenience of being able to shop without leaving home, also provided by access to the Internet, generated growth in digital entrepreneurship.

Digital entrepreneurship is a new form of business that has been gaining ground | Photo: Freepik

Digital entrepreneurship is a new form of business that has been gaining ground 

According to the Ebit portal, people spend triple the time surfing the web compared to the amount of time they spend watching television. While 94% of consumers search online for the desired product before buying something. As a result, Brazil has now become responsible for almost 60% of all online commercial operations in Latin America.

If you’re not convinced of the power that digital entrepreneurship has gained, this data will prove to you how this is an expanding trend. In the first half of 2016, e-commerce grew by 5.2%. Its consumers registered a growth of 31%, adding more than 23 million people who actively buy through the Internet.

But this growth is also due to another factor: the suitability for mobile, that is, for cell phones. According to Digitalks, 79% of web traffic originates from mobile devices and more and more shopping sites are adapted for devices other than the desktop.

Types of digital business

There are several forms of digital entrepreneurship. This is an area that is developing more and more, aiming to meet people’s needs and solve people’s problems. Therefore, new formats and types of online businesses appear seeking to be more functional for the public and thus increase sales.

1. Physical companies with virtual stores

Large companies already consolidated see the virtual environment as a possibility to further increase their sales. Thus, today it is difficult to find a famous brand that does not have a store for customers to shop online. Many physical stores have also become digital businesses.

2. Exclusively virtual

Digital entrepreneurship has enabled the emergence of large companies, which are exclusively digital businesses. Many businesses took advantage of the wave of popularization of Internet access and were visionaries! These are the cases, for example, of Netshoes, Submarino and Amazon, which currently have enormous relevance in the market and in the consumer public.

3. Marketplaces

Marketplaces are great portals. This type of digital entrepreneurship brings together several stocks from different companies in one place, it can be goods from large or small stores.

So, this type of digital business creates a purchase intermediation platform and then distributes the goods. Examples of famous marketplaces are Walmart, Dafiti and Magazine Luiza.