We surveyed active small and medium-sized business (SMB) owners from English-speaking countries, mostly in the UK, US, and India. They all sell physical or digital products online, and 9 out of 10 created their online shop themselves.
Our survey revealed that the biggest challenges businesses face include:
- Attracting customers and building trust (48%)
- Lack of technical knowledge (40%)
- Time or money (27%)
Motivational constraints are the least common challenge (7%).
Attracting customers and building an online reputation are significant challenges for all businesses. However, these hurdles particularly impact small business owners because they often lack the brand recognition, resources, and marketing budgets that larger companies have.
Driving traffic: Strategies that work
For an online business, potential customers come from multiple channels, such as search engines, social media platforms, paid advertising, and even your personal network.
Over half of all website traffic comes organically from search engines like Google or Bing. Search engine optimization plays a key role here, helping your website get discovered in search results. While it takes time and effort, this traffic is your target audience because visitors are already searching for what you offer.
The best website builders come with integrated search engine optimization tools that help you organize your website for online searches. Consider using AI-powered content writing tools to publish articles related to your niche. The more content you have, the better the chances of attracting potential customers.
Remember, you shouldn’t just copy the AI-generated content. Think of it as a guide to writing, and add something of your own so that search engines don’t treat it as spam content.
Paid traffic is the answer to quickly boost visitors. Setting up ad campaigns on Google Ads or Meta Ads takes just a few hours, and you’ll start receiving visitors the same day.
Social media platforms are another important traffic source, and their influence is growing. For some businesses, they’re even more important than online searches.
You can attract a target audience through organic social media posts and stories related to your niche. Share the content with your network, and advertise it to gain traction. Influencer channels can also significantly increase interest in your services or products, especially when combined with social media advertising.
Managing online reputation
Meanwhile, managing an online reputation is an ongoing process that requires constant effort. It involves continuous, transparent, and clear communication, listening to customer feedback, and excellent customer service.
Data security is a crucial aspect of online reputation. Start by choosing a clear and credible domain name for your business, and use SSL certificates to encrypt and verify sensitive customer data.
When choosing one of the best web hosting providers, look for an ISO 27001 certificate, continuous server monitoring, advanced DDoS protection, a malware scanner, and other robust security measures to avoid data breaches.
Remember – managing an online reputation is a marathon, not a sprint. Establishing a strong online presence can take weeks or even months, so be patient.
How AI can help reach online success
Two out of five respondents said they lacked technical knowledge when starting their business online.
The top three technical challenges these businesses encountered were building a website (69%), using eCommerce tools and features (58%), and attracting customers with SEO and online marketing tools (57%).
When it comes to building a website, it’s important to assess the needs and requirements. Medium or large projects, such as an online shop with hundreds of products, require technical knowledge and skills. However, for most SMBs, a simple yet elegant website will suffice.
The best AI website builders offer AI-powered engines that can create a professional website with just a description. Then, all that’s left is updating the information, photos, or products by dragging and dropping elements anywhere on the site.
AI tools such as ChatGPT, Midjourney, or DALL-E can further help you fill your website with text and images, and even create a logo for your business. There are plenty of AI tools that can help you solve almost any technical problem. Sure, they may not be as good as a professional in the field, but they will get the job done.
Meanwhile, customized eCommerce onboarding guidelines help users take the most relevant actions needed to start selling online.
Whether it’s building a personal brand, offering freelance services, or launching an eCommerce platform, the tools and resources available today make starting an online business more accessible than ever.
What the future holds for small businesses
We were also curious to learn about the significant challenges entrepreneurs expect in the near future. Their concerns vary, although one answer stood out the most. Almost half of small business owners (45%) are worried that market dynamics, such as growing competition and changes in consumer trends and demand, could put their businesses at risk.
Check out our list of the best small business website builders.
With the rise of eCommerce platforms, it has become easier for new players to enter the market, increasing competition for existing businesses. At the same time, today’s customers are more informed and value-driven, looking for products and services that align with their personal values and needs.
To adapt and navigate these market changes, small business owners should focus on customer-centric strategies. Consider how your business can better meet specific customer needs, personalize your offerings, and engage directly with your audience to stay competitive. Additionally, managing costs wisely, exploring financing options, and building strategic partnerships can help ensure stability and create opportunities for growth.
Anyone can start their own business and reach online success today. It’s all about choosing an area or activity you like and offering something others don’t – better, faster, more convenient. Challenges can always come, but if you choose the right partners who are ready to help you 24/7, you’ll be able to handle anything.
About the survey:
Hostinger surveyed 208 active business owners from English-speaking countries, mostly the UK, US, and India, during July and August 2024. Nine out of ten (87%) respondents created their online shop at Hostinger using either Hostinger Website Builder or WordPress.
This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro