In the past decades, due to technological advances, there has been a huge rise in people making their living as Digital Entrepreneurs. The problem is that Digital Entrepreneur is still a pretty new term and many people are unsure of what it really means. Besides that, it is a term very commonly misused or used in weird contexts which can be very misleading.
In fact, the internet provides many opportunities for entrepreneurship. But not all of them are worth pursuing, and entrepreneurship is not for everyone! In this article, we will break down the basics for you. We’ll explore what a digital entrepreneur really is, the pros and cons of being one, and how you can become one if you want to.
- What is a Digital Entrepreneur?
- Pros and Cons of being a Digital Entrepreneur
- Common misconceptions about Digital Entrepreneurship
- How to become a Digital Entrepreneur (5 steps)
- Important skills for a successful Digital Entrepreneur
- Ideas to become a Digital Entrepreneur
- Tips for succeeding as a Digital Entrepreneur
What is a Digital Entrepreneur?
A Digital entrepreneur is someone who finds a way to create, sell and deliver products or services using digital technologies.
They are, basically, entrepreneurs who use the internet as their main tool of business. Digital entrepreneurs normally use digital tools and resources to solve a problem in a specific market, to improve the lives of certain people, or to innovate and make the world a better place.
The truth is, with the rise of the internet, options are endless. Every day there are new tools to be used and new problems to be solved.
Being a Digital Entrepreneur, out of the 5 career types to work online, is the career capable of delivering the biggest freedom and the biggest income.
But it is not all sunshine and rainbows. A journey to digital entrepreneurship is unstable, unpredictable, and requires time and energy. It is definitely not a good fit for everyone!
Related: How to Make Money Online in 2021 – The ONLY 5 career types for Internet Money
Pros and Cons of being a Digital Entrepreneur
Being a Digital Entrepreneur is our choice of career online because we enjoy the process of problem-solving and creating, and we love the freedom it gives us.
We’ve been working online for years. From the beginning, we knew it was a perfect match for us. But we are very aware it is not for everyone.
Pros of being a Digital Entrepreneur (Benefits)
- You are your own boss.
Which means full freedom and flexibility. You choose when you work, where you work from, and how much you work.
- You decide what you work on.
Follow a passion, a talent of yours, personal values, or decide to make an impact on how society evolves. You choose the change you’d like to see, which can be very fulfilling.
- Independence.
You only depend on yourself and your work. You can go as far as you want as fast as you can.
- Opportunity for a scalable income.
Unlike employees and freelancers (other 2 career types for online work) that sell their time in exchange for money, Digital Entrepreneurs invest their time in creating systems and automations that can potentially work by themselves. This unlocks more time, which can be used in personal life or to launch other projects, creating an opportunity for scalable income which can, many times, be passive.
Cons of being a Digital Entrepreneur (Challenges)
- Takes time to see results
Being a Digital Entrepreneur has amazing potential, but it will take a lot of time and patience. It requires a lot of discipline and persistence to not give up when you are putting the effort in and the results are not immediate.
- Instability and unpredictability
You might have months with low to no income, but on others, you will make more than enough to live on. It’s harder to make long-term plans if you have no idea of how the next months will be in your business!
- Full responsibility and lack of security
The digital entrepreneur is the captain of his ship. This means that if you have an idea, it’s up to you to make it happen. If you have a business, it’s up to you to make it run. If you don’t work enough, you don’t earn enough.
- Time management and organization are vital
If you love what you do, or you are too engaged with it, it’s easy to get lost in your work and work more hours than you should. It is essential to keep a healthy work-life balance. Otherwise, both work and life will suffer.
Common misconceptions about Digital Entrepreneurship
There are some myths and misconceptions about digital entrepreneurs that you should know about and some facts to demystify them.
- Digital entrepreneurs are all young and carefree.
In fact, the younger you are, the better it is to try entrepreneurship because there are fewer responsibilities. But age is just a number, and there are digital entrepreneurs in any age range.
- Digital entrepreneurs need a lot of money to start.
Some projects require an initial investment, but many others don’t! And there are always ways to “bootstrap”, which basically means finding free or very cheap ways to make things happen. We started our business on a very low budget, and the only expense we had was to create a website as cheaply as possible.
- Digital entrepreneurs need specific degrees or studies.
Do not confuse schooling with education. Entrepreneurs don’t need degrees to make things happen but need a lot of education. With the amount of information available on the internet nowadays, we are a few clicks away to learn anything.
- Being a Digital Entrepreneur is easy and you don’t need to work hard
That is the potential outcome of a successful entrepreneurial journey. However, before that, are years of hard work, multiple failures, lots of problem-solving, financial instability, few weekends or days off, and other endless efforts. Don’t be fooled!
Related: How to Start a Website in 2021 – Step by Step Guide
How to become a Digital Entrepreneur (5 steps)
Digital entrepreneurs don’t need any formal training to start an online business. But the journey isn’t simple at all. It is required a lot more than just an idea or good intentions!
If you feel like you have an entrepreneurial spirit, follow these 5 steps to become a Digital Entrepreneur:
1 – Discovery & Decision
One of the most important steps in the entrepreneurial journey is to find any of these:
- A problem in a specific market;
- A solution to improve the life of certain people;
- Innovation to make the world a better place.
It is much easier to find a market need or understand something that should be improved if you are involved in a specific industry. The more involved you are in an industry, the better you understand it. Thus, we recommend getting involved in an industry you really care about, related to your passions or values.
2 -Education and Preparation
It is very unlikely that you won’t need to learn something new or educate yourself before starting your entrepreneurial journey. And the more educated you are, the higher the success rate is.
Luckily for us, the internet allows us to learn about almost everything in a matter of clicks. This can be done at different levels:
-Self-education through reading books and articles, watching videos or listening to podcasts;
-Education by attending workshops, webinars, online courses, or mentorships with experts in the industry;
If you want to save time and learn from the best, we highly recommend Skillshare. A gigantic online university, with thousands of courses in every field you can imagine, taught by the best in the industry. Try for free!
3 – Production, test and launch
The hardest and the slowest phase. Here is where you design your product, determine your service, develop your software, create your platform, online store, etc.
It is important to work on the product/platform/service before launching it. But it is also important to launch it before you think it is ready. Because that probably won’t happen.
Regardless of what your online business is, it is an ongoing process of tweaking, improving, and problem-solving. What really matters is to listen to feedback, whether that is coming from your customers or experts in the field, and improve your product or service over time.
4 – Digital Marketing plan
You may have the best product or service available, but without marketing, no one knows about it and a business can’t succeed.
Marketing strategy must be planned in advance and executed since the launch of the product/service. A decent amount of time and energy should be spent on marketing because that’s what will drive revenue to your business.
The internet allows endless different strategies of digital marketing, for every taste and every wallet.
For example, on the organic side (free) there is content marketing targeting search engines or content creation targeting social media platforms. If you’d rather pay for traffic you can use Google Ads, Facebook ads, etc.
5 – Optimization and expansion
If your online business is set to fulfill a specific market need and you are already having some traffic and generating some income, it’s time to optimize and scale it.
An online business requires constant tweaking and improvement. By optimizing the weakest points, your business progresses.
Some ideas you can use to optimize your business:
- Gather feedback and deliver a better product or service.
- Optimize your marketing. Focus energy on the channels that generate more traffic and higher conversions.
- Improve your relationship with your customer base, nourishing loyalty.
If you feel like it is time to scale up your business, you can:
- Increase the amount of products/services you provide
- Amplify who your target audience is. (Target other markets or locations)
- Diversify and invest in other marketing channels.
- Outsource secondary tasks and focus your time in the important ones.
Important skills for a successful Digital Entrepreneur
Apart from the technical skills (hard skills) that you definitely need to create and manage an online business, there are some soft skills that will be essential in your digital entrepreneurship journey:
- Ability to adapt
Digital entrepreneurs should never stop learning and adapting themselves as technology evolves so fast nowadays and what the market needs may change too.
- Persistence and determination
Your goals will probably take a lot of time and energy. You should never give up because obstacles come in the way. They are part of the process. Embrace them!
“Problems are an opportunity to learn and not obstacles that threaten our goals”
- Researching skills
Researching is a big part of the problem-solving process. With the amount of information available online, who can research, can find answers for everything!
- Persuasion
Persuasion is one of the most important human skills in the business world. It is essential for marketing and sales, but also to attract collaborators or investors.
- Networking
Networking has been essential for our businesses. Building human connections with like-minded people that share the same goals and values, might unlock professional collaborations and skill-sharing that can have a tremendous impact on each other’s projects.
Ideas to become a Digital Entrepreneur
There are endless ways to become a Digital Entrepreneur. Here are some popular ideas:
- Create a website and sell your own products or services
- Create an E-Commerce store and sell products in social media and paid ads.
- Start a blog and do affiliate marketing with relevant products
- Create a social media page targeting a specific niche and sell advertisement (or a YouTube channel).
- (re)Sell products on Amazon or other platforms
- Create e-books or online courses and distribute them in the appropriate marketplaces.
Regardless of what business you create, what is essential is to find a way to add value or solve problems in a specific market niche. Then focus your energy on finding digital marketing strategies to attract your target audience.
Tips for succeeding as a Digital Entrepreneur
The life of a Digital Entrepreneur is a rollercoaster. A wild ride totally worth trying. Here are some personal tips on how to succeed as a Digital Entrepreneur:
- Strategy design and goal setting
It is vital to have a wider vision of your business. Set a clear strategy and define goals, on a yearly, monthly, and weekly basis.
- Planning and organization
Don’t ever think having everything on your head will work out for you. Using project management tools (we use and love Asana) will boost your productivity and allow you to focus on what really matters.
- Try new things, fail and learn
Don’t be afraid to try new things, new approaches, techniques, or models. Failing is part of the process. Embrace your failures and learn with them! Fail a lot, fail faster, and smile. 🙂
- Focus
A classic mistake digital entrepreneurs make is to split energy and focus between different tasks (or ideas) at the same time. That slows you down and limits your progress. Chose where to focus and go all in. We are still mastering this!
- Analysis
Regardless of what you try, or what strategies you’ve been using, it is vital to stop and analyze what has been happening. Only this way, you can know what is getting you closer to your goals, and what is not.
- Work-life balance
Taking care of your body, mind, and soul has to be a priority. Otherwise, both your personal and professional life will suffer and your productivity and happiness will be just a fraction of what they could be.
- Collaborate!
You can go fast by yourself, but if you want to go far, go together! Collaboration is one of the most powerful tools the human species has. Combine your talent with others and enhance your limits!
- Create a routine and be disciplined
One of the biggest advantages of entrepreneurship is also a disadvantage: Full responsibility for whatever happens in your business. Discipline is what will keep you going even when things aren’t going the way you want them to. And trust me, it won’t be always easy. Creating a routine can only help you!
- Surround yourself with like-minded people
Networking, skill-sharing, and brainstorming are incredibly beneficial for entrepreneurs. Especially because problem-solving is a big part of the equation for every entrepreneur. Search for events, coworking spaces, destinations, accommodations, and activities where other entrepreneurs can be and show up.
- Get involved in your industry
Find ways to connect more with your industry. Meet people in your space. Follow influential people. Learn with them and their mistakes. Go to events and expose yourself. Share your story and project. These types of connections can only help you!
- Ask for feedback and improve
Be humble and don’t be afraid to ask for feedback. There is always room for improvement, and other perspectives can help you understand a lot about your business/product/service.
- Quitting is not an option
The number 1 reason why most businesses don’t work out, is because they give up too soon. Don’t be one of them!
What about you? Do you think Digital Entrepreneurship is a good fit for you? Let us know in the comments.
Useful links for your business!
Some tools and platforms we use and recommend. By using these links, you help TravelB4Settle! Thanks 🙂
- Create your website in a fast, simple and affordable way with Bluehost. Read our Free guide for more info.
- Achieve more results online with E-goi – a complete platform of marketing and automations. Try for FREE
- Learn anything you want with Skillshare – a platform with thousands of online courses taught by the best in their fields.
- Revolut Card – Free transfers, safe payments and several investment options in 1 platform. Get your FREE card
- Get cashback in more than 120.000 online and offline stores with CashbackWorld . Read our complete guide
More tools, equipment and services we use and recommend on our Resources Page.
