This is a frequently asked question on Google and various media and communities by people of different age brackets and gender but in this article, I will open your mind to so different perspectives that will answer how and what types of online business are best and most profitable for you as a beginner

When it comes to the different types of online business, it has to do first with your motives (what you want to gain) and values(which interest you).

For anything to be done in the online marketplace such as social media, e-commerce, digital marketing etc, you must offer something of value

You can trade as in buying and selling of goods and services, educate, entertain, and inspire people via the internet.

The question then can be reframed as Which is the best online business for beginners in 2023?

Starting an online business is a great way for beginners to start their entrepreneurial journey. It provides a flexible work schedule, low startup costs, and access to a global market.

However, with so many online business opportunities available, it can be overwhelming to choose the right one. In this article, we will explore the best online businesses for beginners and help you make an informed decision.

What is an Online Business?

An online business is any transaction carried out via the Internet, such as buying and selling physical or digital products, offering services such as management/consulting, or monetizing content through advertising or affiliate marketing.

An online business can be carried out from the comfort of the home, with a smartphone connected to the internet and from anywhere in the world. It has been the bedrock of many successful entrepreneurs in the last 5 -10 years, many of which began by turning their passion into a profitable business.

What does an Online Business mean to Beginners?

For a beginner, an online business is any activity carried out via the internet (such as social media or website) which converts to money in a bank account or our pocket

There are several ways by which people do this all over the internet but one area highly misunderstood is how some of these businesses convert to money in the long run

Here is an example

Facebook and various social media platforms are areas where people build a community of customers/users, the person in charge discusses an array of topics relating to the subject of interest. For example, a club football fan (for example) can create a Facebook page, youtube channel where he discusses various information relating to that particular club such as the latest news information, review of the past game, give perceptions of the next game, talk about players’ injury etc.

The community starts growing from views to subscribers, and then he or she can leverage the community of subscribers and sell products relating to fitness or health (because it goes in sync with soccer)

The way by which this person earns money is the number of views he has (the social media platform will pay because he has earned the trust of those who watch or view), various other businesses can also reach out to the person to help in selling one product or the other and he or she can become an authority who people can regard for a solution on one area or the other

One thing you should know as a beginner is that starting an online business as a beginner is like building a house, first preparation and then execution (arranging one brick over the other). This means you must prepare and plan adequately in order to have a successful online business

Advantages of Starting an Online Business

Starting an online business has several advantages, making it an attractive option for beginners:

Low Startup Costs

Starting an online business requires minimal investment compared to a traditional offline business that operates in the market and by the roadside. All you need is a laptop or a mobile device/smartphone/tablet connected with an internet connection, and maybe a website to get started.

Flexibility

Online businesses allow you to work from anywhere in the world, giving you the flexibility to create your own schedule and work-life balance.

Global Market

With an online business, you can reach customers from around the world, giving you access to a global market.

Scalability

Online businesses can be easily scaled as your business grows, allowing you to increase your revenue and profits.

Best Online Businesses for Beginners

There are several online business opportunities available for beginners to exploit but some are easier and more convenient to start with. Here are the best online businesses for beginners:

Dropshipping

Dropshipping is a popular online business model anyone can begin with, it is not determined by location or gender. Anyone can start dropshipping with his/her smartphone by leveraging Facebook marketplaces, communities, WhatsApp status and e-commerce stores/websites to sell products without keeping an inventory.

Instead, it involves partnering with a supplier/seller/manufacturer who has a large stock of the product and can ship directly to the customer when an order is made. This eliminates exorbitant fees of warehousing, storage, and customs fees, thus making it a low-risk business model for beginners.

To start a dropshipping business, you need to find 2-3 reliable suppliers for a particular product and set up an effective way to market the product via an online store or social media.

Affiliate Marketing

Affiliate marketing is another popular online business model where you earn a commission selling or promoting other people’s products. This business is all about advertisement and marketing plans and you don’t have to create or store any products, making it a low-risk and low-cost business model for beginners.

To start an affiliate marketing business, you need to find a niche and choose products that align with your audience’s interests. You can promote these products through your website, social media, or email marketing.

Blogging

Blogging is an online business that involves you creating content to educate, entertain or inspire your potential audience on a certain area or subject. it is a great way to turn your passion into a profitable online business. You can monetize your blog through advertising, affiliate marketing, or sponsored content. However, it takes time and effort to build a successful blog, and it may not generate income right away.

To start a blog, here are what you must do

a. choose a niche

b. create valuable content that resonates with your audience.

c. provide valuable thought via articles, vlogs or podcast

Freelancing

Freelancing is a great way to turn your skills into an online business. You can offer services like writing, graphic design, or web development to clients around the world. Freelancing allows you to set your own rates and work with clients that align with your values and interests.

To start freelancing, you need to identify your skills and create a portfolio that showcases your work. You can use platforms like Upwork, and Freelancer, To start freelancing, you need to identify your skills and create a portfolio that showcases your work. You can use platforms like Upwork, Freelancer, or Fiverr to find clients and start offering your services.

Online Courses

Creating and selling online courses is a profitable online business for those with expertise in a particular field. You can create courses on platforms like Udemy, Skillshare, or Teachable and sell them to students around the world.

To start an online course business, you need to identify a skill or topic that you are an expert in and create a course that provides value to your audience. You can use marketing strategies like social media, email marketing, and paid advertising to promote your course.

Social Media Management

Social media management involves managing social media accounts for businesses and individuals. It includes creating content, engaging with followers, and analyzing performance metrics.

To start a social media management business, you need to have a strong understanding of social media platforms and their algorithms. You can use platforms like Hootsuite or Buffer to manage multiple accounts and schedule posts.

Virtual Assistant

Virtual assistants provide administrative support to businesses and individuals from remote locations. It includes tasks like scheduling appointments and managing emails and social media accounts.

To start a virtual assistant business, you need to identify the services you want to offer and market them to potential clients. You can use platforms like Upwork, Freelancer, or Fiverr to find clients and start offering your services.

Starting an online business is a great way for beginners to enter the entrepreneurial world. It provides a flexible work schedule, low startup costs, and access to a global market.

The best online businesses for beginners are an unlimited list, you can streamline them based on interests and skills that are high in market demand.

Frequently Asked Questions (FAQs)

1. How much does it cost to start an online business?

The cost of starting an online business varies depending on the business model and industry. However, most online businesses require minimal investment compared to traditional businesses.

2. Can I start an online business without any experience?

Yes, you can start an online business without any experience. However, it may take time and effort to learn the necessary skills and build a successful business.

3. Which online business is the most profitable?

The profitability of an online business depends on several factors, including the business model, industry, and market demand. However, some of the most profitable online businesses include e-commerce, affiliate marketing, and digital products.

4. What skills do I need to start an online business?

The skills required to start an online business depend on the business model and industry. However, some essential skills include digital marketing, website development, and customer service.

This question is not restricted to one age bracket or a particular gender, we all want to make money online especially seeing the astronomical earning of celebrities and icons such as Broda Shaggi, Kiekie, Toke Makinwa, Macaroni etc.

As much as they earn, you too can earn like them if you are ready to play by the rule of the internet or the digital world, it is full of numerous opportunities for people with or without skills, experiences and time. It is a world on its own where you can play, carry out tasks, and interpret what you know with little or no capital, either with your smartphone, tab or laptop.

The digital world is liberal with various devices (so far it can connect to the internet), and it has the power to attract and connect people from all corners of the world in real time (although this can be a disadvantage, as you are competing with several millions of people)

With a smartphone, you can start an online business without needing a physical store or significant startup capital. This article outlines some online business ideas that can be done with a smartphone and provides tips on how to start.

List of Online Businesses with a Smartphone

1. Ecommerce
2. Content Creation
3. Online Services
4. Web/App Development

1. E-commerce

This is the buying and selling of goods online from the comfort of your home, whatever form of goods you can buy traditionally from nearby shops or supermarkets can be sold online via the internet

The goods are divided into

a. physical goods: these are goods that you can see, feel and touch, for example, generators, phones, laptops etc

b. digital goods: these goods are available in a variety of forms, they can’t be physically touched or felt. They are bought or sold as intellectual or commercial property, for example

• software for the installation of programmes, games etc
• templates for website development, graphics, and social media ads
• ebooks, video guides, practicals on one subject area or the other
• graphics etc

Under this e-commerce, several online business ideas which you can explore with your smartphone are

• Dropshipping
• Online Store
• Logistics /Courier services
• Preorder
• Importation and Exportation

Dropshipping

Dropshipping is an online business model that enables you to sell products without physically owning a physical shop where you can manage and store the inventory of goods. It’s a business model which includes you selling a product(s) on behalf of a supplier or manufacturer to the customer, the farther you move down from the primary supplier (the lower your profit margin)

This business model is easy, and profitable to start and scale using your smartphone, all you have got to do is ensure your smartphone has an excellent camera to shoot quality product photos because that’s like the first force of attraction from your customers. Once a customer places an order, the supplier can ship directly to you before you ship to the customer or he can ship it directly to the customer.

Online Store

An online store is another online business idea that can be done with a smartphone, it can be illustrated as having a physical shop on the Internet where you have your products or services listed for patronage by online customers. There are several ways to do this such as

a. free platforms to leverage such as Facebook marketplaces, jumia, jiji, Konga, eBay, amazon etc. These platforms have significant traffic from customers who visit them on a frequent basis, you can leverage this and sell your products. In this method, competition is high but it is highly advisable for beginners who want to start selling online

b. paid platforms such as creating a website with WordPress, Wix, and Shopify. This is like building a shop from the foundation of a piece of land, you are responsible for driving traffic to this store with little or no competition. This method is advisable for people who want to build a brand or name for themselves in little or no time

With your smartphone, you can manage your store, process orders, and communicate with customers.

Logistics/Courier Services

As a result of the movement of goods and services online in e-commerce, logistics remain a crucial factor. Logistics can be otherwise referred to as courier services, it is the movement of goods/services from one place to the other via different modes of transport such as air(aeroplane), land(bus, kekenapep, bike) or sea

With your smartphone, you can begin as a logistics or courier services expert because of the high volume of goods people want to move vis dropshipping or importation. All you have to do is understand what kind of logistics or courier services you want to do because it can be broken into two

• Local Logistics
• International Logistics

Local Logistics is the movement of goods from one place to the other within a country, this can be via air or land. Most of the movement of goods is majorly done via land within a particular state but if it exceeds or moves out of a particular state/region, air can be utilised

International Logistics is the movement of goods from one country to another, this is carried via air, sea or land for example the movement of goods from Nigeria to Ghana can be carried out via air or land. The various mode of business which explore this method are Importation or Exportation

To begin with this, you have got to find out existing and top logistics companies in your country/area which can easily be done via the help of a smartphone.

2. Content Creation

This business involves you curating, and creating content for a product or service, there are various types of content you can produce based on your experience, skill set etc. Examples of content vary from media to media such as articles, videos/vlogs, graphics, podcasts etc, doing this over time can make you an influencer or a go-to expert in a variety of topics.

Online businesses you can explore under content creation are

• blogging
• podcasting
• video creation
• Graphics

Blogging

Blogging is an online business idea which includes visual content such as writing articles based on your review, critique and understanding of a subject or topic, With a good smartphone, you can write a guide, share ideas or product reviews etc which can then be monetized through various means, such as affiliate marketing, sponsored posts, or advertising.

Podcasting

Podcasting is another content creation business idea similar to blogging which can be done with a smartphone, this business idea is all about an audio discussion via a phone microphone or a random smartphone speaker published and uploaded on various media to educate, entertain and inspire a set audience. This audio discussion is called a podcast which can be monetized through sponsorships or advertising.

Video Creation

Video creation is an online business idea that includes audio-visual content (content that people can see, watch and hear), this type of content is available in long and short formats such as Youtube videos, youtube shorts, training videos on udemy, Coursera, entertainment videos such as Facebook reels, TikTok, Instagram reels etc. It can be monetised through advertising or sponsorships.

A very good smartphone with an excellent camera and good storage is a very good way to start and scale a business online

Graphics

This is the online business idea which includes visual or illustrative diagrams/patterns of content, they are used to convey/interpret information graphically to customers. This kind of content is used in social media, media and advertisements, they are also used as artworks which can be monetized through advertisements, sponsorships and affiliate marketing

3. Online Services

Freelancing

Freelancing is an online business idea which affords you to offer your services in exchange for money, it basically links a potential business owner or client with a specific task to be done with the recommended expert who can carry it out easily. There are several freelancing platforms (Terawork, Upwork, freelancer, fiver, Guru) which you can leverage easily with your phone today and earn massive income with your services as a freelancer, such as writing, graphic design, or web development.

Online Consulting

Online consulting is an alternative to Freelancing, here you utilise your experience/expertise to help another business in an area of need. With your smartphone, you can begin a consultation business on a variety of topics such as social media management, finance, inventory management

Virtual Assistance

Virtual assistance is an online business idea in which you can offer your services such as email management, social media management, pick/end calls, listing products or appointment scheduling tasks etc to businesses or individuals. With your smartphone and good internet, you can leverage working as a virtual assistant.

4. Web/App Development

Gaming Apps

Creating gaming apps is an online business idea you can use with app development tools to create games that are both entertaining and monetizable through in-app purchases, ads, or sponsorships.

Educational Apps

Educational apps are another development business idea you can create to help users learn new skills or knowledge. Educational apps can be monetized through in-app purchases, ads, or subscription models.

Utility Apps

Utility apps are also app development business ideas you can create to provide solutions to specific problems, such as language translation or photo editing. Utility apps can be monetized through in-app purchases, ads, or subscription models.

How to Start an Online Business with a Smartphone

Starting an online business with a smartphone requires planning, dedication, and effort. Here are some tips to help you get started:

Build a Strong Online Presence

Building a solid online presence is essential for any online business. You can use social media platforms like Facebook, Twitter, or Instagram to promote your business and engage with your audience.

Identify Your Niche

Identifying your niche is crucial for the success of your online business. It would be best if you focused on a specific niche that you are passionate about, solves a problem and has a market demand.

Conduct Market Research

Conducting market research is necessary to understand your target audience and competitors. You should analyze the market trends, consumer behaviour, and competitors’ strategies to create a unique value proposition.

Use Social Media

Using social media is crucial for any online business for promoting its products or services, engage with its audience, and build brand awareness.

Invest in Your Skills

Investing in your skills is essential for the success of your online business. You should continuously learn new skills, such as digital marketing, content creation, or app development, to stay ahead of the competition.

Challenges of Online Business with a Smartphone

Starting an online business with a smartphone has its challenges. Here are some of the challenges you may encounter:

Limited Screen Size: The limited screen size of a smartphone can make it challenging to perform complex tasks. You may need to invest in a larger screen or use external peripherals to overcome this challenge.

Inadequate Storage: The limited storage capacity of a smartphone can restrict your ability to store large files or data. You may need to invest in external storage devices or use cloud storage

Limited Battery Life: The limited battery life of a smartphone can limit your productivity and disrupt your workflow. You may need to invest in a portable charger, or power bank or optimize your battery usage

Inability to Handle Complex Tasks: The inability of a smartphone to hang or respond slowly to some specific tasks can be frustrating, the solution is to get a powerful device with a very good RAM

Starting an online business with a smartphone is possible with the right mindset, tools, and strategies, irrespective of the challenges. You can use your smartphone to create a successful online business and achieve financial freedom.

Don’t be dismayed using your smartphone, Lasisi Elenu (a Nigerian comedian uses his phone to shoot his comedy skits and he gets a high number of views which makes him quite a fortune). All you have got to do is ensure you have a good smartphone with a good camera, internal storage and random access memory(ram)

What have you learnt from this article? Comment with the very business idea you will want to start/scale with. We are here to help you with whatever form of consultation/inquiry, feel free to contact us