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5 Essential Techniques for Mastering Online Business

The online world is packed with imitators, wannabes and semi-dedicated people destined for failure and mediocrity. For every one online success there are thousands of failures, most of which are caused by a lack of skill in assessing risk, moving forward and business, and most importantly, providing what people want. There are some essential skills and techniques that can help you minimize your chances of ending up an online wannabe, and maximize your ability to succeed.

These five techniques aren’t the be all and end all of online success, but are certainly a good blueprint for online business. In a business world that moves much more quickly than the traditional channels, absorbing these techniques is essential for mastering success, using failure constructively, and forging a long-term online presence.

Stay one step ahead of your competitors through a knowledge advantage.

Blogs are a hugely important knowledge asset, but they’re not the beginning and end of information. The real keys to absolute knowledge are experience and reflection, but they can be synthesized somewhat. Keep in touch with people two steps ahead of you, be it in life, business or any other discipline that requires strategic thinking. While the most valuable knowledge relationships are two-way, books — whether autobiographical or narrative — provide a great avenue into building a knowledge advantage.

However, it’s unwise to limit yourself to a particular set and slice of knowledge. While it may seem most fruitful to focus on knowledge that’s industry or sector-specific, doing so ultimately leaves you without a full understanding of how online business operates. 100 books on SEO won’t teach you a thing about how to run a service business, just like 100 philosophical books will ultimately teach you very little about usability testing. A mix of strategic information and technical knowledge are essential for online success.

Internalize failure and use it to build success.

Steve Jobs, arguably the most innovative and inspiring businessperson of our time, has suffered colossal failure. It doesn’t come much more humiliating than being directly fired from a company that you founded. But what separates Jobs from the thousands of other business failures out there is that he processed that failure, internalized it, acknowledged it, and finally learned from it. Without that failure there would be no Pixar, no Apple, and no inspiring business story.

This is a lesson that any wannabe online entrepreneur needs to make part of their DNA. You will fail at some point. It could be something small, it could be something big. The size doesn’t matter, in fact the larger the failure the more important in the long run. What matters is that the failure leads to learning, to understanding, and ultimately, to a better execution next time.

Learn the technical know-how.

You don’t need to know PHP to be technically savvy, nor do you need to understand machine code. What technical know-how boils down to isn’t the ability to code perfectly or operate complex software, it’s the ability to visualize how things will turn out, understand complex systems and understand how you’re going to achieve your goals.

For a clear example, lets take a look at Blue Collar Comedy, a website that went out of business last year. Blue Collar came into the online world with a large amount of funding from major Hollywood studios, a large amount of security and a much lower risk than its competitors. But it failed miserably. It failed because it couldn’t see its audience, it couldn’t understand the system that it operated in, and it couldn’t perform. It wasn’t a failure of content or business, it was a failure of technical ability.

Create networking and communications ability.

The internet has opened huge doors in trade, particularly in skills and services. Add to that the vast powers of automation that technology has opened and you’re left with a lot of jobs that simply aren’t hugely valuable any more. When you can outsource your work to India, automate your finances and bypass a real estate agent with Google, where does that work go?

The one thing that automation can’t take away is service and communications. If you run an online service business, these communications are absolutely essential for staying on top of competitors. Blow people away with service, ability and convenience and you’ll consistently win against the less expensive alternatives. Deliver mediocre results and there’s no reason to stay with you.

And if you’re not marketing yourself on factors other than price, you should be.

Surround yourself with no-nonsense employees and advisers.

Look at the board of any failing company. It’s packed with yes-men and no-name time wasters. What separates the online successes from the imitators is the people that they surround themselves with. Whether it’s a highly able mentor or a specially skilled engineer, you need to make sure that your employees, adviser and professional relationships aren’t just there to make you feel good. Sure, yes-men are comforting and confidence building, but that kind of company alienates you from the truth and insulates you from the knowledge that really matters.

Truly smart online entrepreneurs look at things objectively, and hire people that do the same. When you’re hiring someone to help with your online business, don’t go for the first person who promises to make you succeed. Go for someone that is clear, direct, and knows exactly how to add worth to your business. The same goes for mentors. Avoid fluff, maximize involvement and don’t ever get comfortable with where you are. There’s always somewhere to move to, and with objective assistance you’ll find yourself moving at light speed.

I hope these techniques will help you build your online business. I’ve certainly found them useful in building mine, whether in small strategic decisions or major changes and developments. You’ll only ever get as far in the online world as you allow yourself to go, and without a firm understanding of where you are, where you’re going and how you’re going to get there you could easily fall off track. These techniques will guide you, help you build your online presence, and protect you from ignoring the value of failure.