Sellr provides you with an easy way to turn your dreams of running an eCommerce business into a reality. However, while we give you the template to make your own customised website and provide you with all the tools you need to handle your own marketing, this is only half of the work. You're going to need to have a solid business plan if you want things to go well. That's where the PEST analysis comes in. PEST is an acronym that gives you four things to consider before starting any business venture and I shall go over each of them with you in this blog post.
The P stands for Political factors. Is there anything that's going on in the world of politics that will potentially harm your business? Maybe you sell antique gun replicas, do you know if that's legal or not? Laws around the internet, especially, are always changing and so you should definitely research the politics surrounding your product or service before getting started just to make sure that what you're selling is completely legal and is likely to remain so for the foreseeable future!
The E stands for Economic factors. How is the economy in your home country at the moment? Are things going well? Imagine you specialise in solid gold, engraved tooth brushes: a luxury item which I am sure would be hugely appreciated by many... But if the economy has just taken a huge down turn and the average person is suddenly a lot poorer, will anybody really be able to afford this? And, if they can't, will you be making enough money selling only to a richer minority? You need a clear idea of your target consumer.
The S stands for Social factors. This one isn't quite as simple to explain, but I shall try to put it as simply as possible: social factors are things which affect the attitudes and lifestyles of the general consumer. If, for example, you specialise in very fatty foods and a health craze has been spreading lately, you might want to reconsider your product, or to include more options to accommodate those with health concerns.
And finally, T stands for Technological factors. Technology is always evolving, so if you make a product specifically based around one piece of modern technology, there's going to be a risk that you'll be left behind as technology moves forward. If you make phone cases for a specific type of phone, for example, make sure that that phone still has a reasonable life left before becoming obsolete and that you will be able to adapt when that phone is replaced.
So take the time to do the research on each and every part of the PEST analysis. When you're done, come back here and sign up for Sellr right away! It is free, after all.
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