When starting digital lifestyle business, the future entrepreneur has to be equipped with basic knowledge of business principles, marketing strategies, and most importantly be able to crystalize his/her lifestyle goals.

Starting a digital lifestyle business

This type of business mainly focuses on lifestyle. It can derive from passions, hobbies, and beliefs. Though, lifestyle entrepreneurs most often are portrayed as travellers to exotic places, the reality may be different. The purpose of this kind of business can be flexibility when having a family or hobby, ability to spend more time on charity or volunteering, or to be able to lead healthier and happier lifestyle.

1. Set up personal goals

The first step helps to see the broader picture of desired lifestyle business. It is important to have a clear vision of personal goals. When defining goals, they might consider the following:

• The amount of financial, location and time freedom needed.
• The amount of income needed to support the lifestyle he/she wants to lead.

Setting personal goals means knowing why they are starting lifestyle businesses and how all elements fit in this picture. It may take some time until the vision becomes clear, however this is the first step and should not be missed.

2. Identify personal interests and passions

In order to define desirable lifestyle, one should identify personal interests and passions. It is recommended to write it down and filter until find what matches to the personal goals. Professional background, hobbies or self-acquired skills should be considered when filtering the interests as it most likely would turn into a source of income. To make the idea profitable, they might think of what customers value, as they should be interested in the products or services as well.

3. Identify the problem and decide on business

Every business fills a need in the market by solving problem that its customers are facing. For this reason, entrepreneur should find a problem and propose a solution by providing services, information or products to their future clients through knowledge on the topic that they are passionate about.

Researching for problems or ideas online and getting to know examples of similar businesses, helps to see if the things he/she is passionate about can become the source of income. There are three ways of receiving income in digital lifestyle business:

• Selling skills (e.g. services)
• Selling physical products (e.g. books, handmade jewellery)
• Selling information (e.g. teaching)

It is advisable to choose few ideas and do research to see if there is market for them and if it combines both lifestyle and business. At this step he/her should think:

• If it is going to be a small business in the future or it can become something bigger.
• If it can be automated or not (automation gives more freedom to hobbies)

After setting personal goals that meet interests and passions and considering the business direction, they can clearly decide what lifestyle business to set up.

Source:https://pixabay.com/vectors/business-idea-strategy-marketing-4271251/

4. Define target market and audience

When the business idea is clear, it is crucial to define the target costumer as they will provide the income necessary for chosen lifestyle.

Suggestions on defining market and target clients[1]:

• Describe ideal audience (client) by checking competitors’ target customers. Such features may be considered: Age, occupation, values, lifestyles, beliefs, education, location, gender, interests/hobbies, mindset.
• Find out how and where to reach them; (when knowing the target audience, it becomes easier to locate them online).

Many sources emphasize that having an own website is the most essential basis for a lifestyle business. Even though, there are options to use other tools like social media, eventually own website will be needed to promote and sell skills, products or information. The valuable content such as articles, videos, webinars, products and services can be placed there.

5. Develop a business plan

A business plan can be considered as a tool for understanding how the business will work. There are three purposes of business plan:

1. To check if the business idea is achievable
2. To gain insight about target market/ ideal costumers
3. To research competitors

A variety of business plans templates can be found online, they can be more detailed or short. Most often it includes such parts like executive summary, business description/ mission statement, SWOT analysis, market analysis, marketing plan, operation plan and financial plan.

Marketing strategies for successful digital lifestyle business

In digital lifestyle entrepreneurship marketing plays major role and can lead business to success. Entrepreneur both can offer marketing, consulting services to other companies, or promote his/her own products and services. Either way, knowing how, when and which tools to use enables to save resources and reach the largest audience. Every entrepreneur should know how to connect with the clients, be memorable and do it effectively. In order to market the lifestyle business, it is essential to identify the right strategies accurately.

In general marketing strategy refers to a long-term strategic plan that aims to understand the needs and wants of customers and in this way achieve competitive advantage. It is part of overall strategic business plan. Marketing strategy includes the following methods[3]:

• Target audience and segmentation
• SMART method, PEST and SWOT analysis
• Competitor analysis
• Marketing Mix
• Marketing channels
• Marketing strategy analysis

Source: https://pixabay.com/photos/whiteboard-marketing-idea-concept-4876651/

Target audience and segmentation

Before creating a marketing plan, the lifestyle entrepreneurs have to precisely define their target audience. On the other hand, defining the audience is continuous process and with experience comes more insights, so the necessary changes can be made later on. Understanding the target audience contributes to a more affective marketing strategy and marketing campaigns. Knowing how to relate to the audience and how to construct the message, by using their language, slang, emotions and interests, is the key when creating a successful strategy.

The segmentation helps to identify and group various types of customers to those having similar wants and needs. There are four factors that can be used to group the target audience – demographic, geographic, behavioural, and psychographic. Demographic grouping is based on age, gender, level of education, religion, etc. Geographic – country, region, culture, climate, language, etc. Behavioural – based on how customers behave on store (online or physical). Psychographic – personality traits, values, interests, lifestyle choices, etc.

SMART method, PEST and SWOT analysis

SMART technique is commonly used in marketing and businesses to set the goals and objectives. SMART stands for:

S – Specific (goals should be as clear and specific as possible)

M – Measurable (measurable results)

A – Achievable (realistic and achievable goals)

R – Relevant (relevant to business strategy, helps to achieve something that will boost the business)

T – Time bound (needed time to achieve the goals)

PEST analysis refers to external factors that influences businesses. It is useful to understand common market trends and conditions, threats and opportunities. PEST stands for such factors P – Political, E – Economic, S – Social, T- Technological. PEST analysis shows how each of these factors affects business world – government regulations, economic climate, social environment, how customers behaves or latest technological innovations.

SWOT analysis as mentioned above in the business plan part, can be successfully adapted in creating marketing campaign or project. Further reading about SWOT:

https://www.mindtools.com/pages/article/newTMC_05.htm

Competitor analysis

Competitors analysis gives insights on what factors lead to success and what to failure. It provides understanding of pricing or helps to make market trends forecast. There are various ways on how to perform this analysis. It is suggested to pick 1 – 3 competitors, then determine if they are direct (with same products and target customers) or indirect (products and services differs but target customers and their needs are the same) competitors, and lastly add to the list products and services they offer including pricing, production, distribution.

A simple way to experience what is like to be competitor’s customer is to purchase a product or try their services and leave the costumer experience evaluation, subscribe their blog or follow on social media.

Marketing Mix

Marketing mix refers to “set of marketing tools that the firm uses to pursue its marketing objectives in the target market[4]“. It traditionally includes 4 Ps – price, product, promotion and place.

Product. Under product section goes physical and non- physical products and services. It is important to determine market (mass or niche) and ensure that it meets the market and customers’ needs.

Price. How to set the price? The price should match the client expectations and quality of the product and services.

Place. Where the products and services will be offered and sold.

Promotion. How to get products/services in front of an ideal customer? The marketing tactics using different marketing channels.

Marketing channels

In the context of digital lifestyle entrepreneurship digital marketing becomes irreplaceable instrument in promoting business and attracting customers. There can be distinguished main roles of marketing channels[5]:

• Links producers to buyers.
• Influences the firm’s pricing strategy.
• Affecting product strategy through branding, policies, willingness to stock.
• Customizes profits, install, maintain, offer credit, etc.

Source:https://pixabay.com/illustrations/digital-marketing-product-content-4229637/

In order to promote products or services, digital marketing employs digital devices, platforms, media and technologies.

The list of commonly used marketing channels can be divided into free or low-cost and paid advertising.

Free and low-cost marketing channels[6]:

Social media marketing – one of the most popular and powerful tools to advertise services and products. There are many social media channels like Facebook, Twitter, Instagram, Pinterest, etc. Businesses can connect with their customers, use social media analytics to track tendencies, users’ behaviour, to focus on target customers, to increase traffic to website by using pay-per-click method.

Email marketing – is considered cheap way to connect with the customers and, similar to social media marketing, enables to segment the target audience. Email marketing is a way to promote by sending discounts, offers, follow-up emails, newsletters, news and events, etc. to loyal or new clients.

Content marketing – refers to meaningful and relevant to audience marketing. It aims to deliver valuable or helpful content for customers at the same time promoting products or services. The content can be educational, practical, inspiring and can come in different forms such as articles, blogs, podcasts, video content, animation, design and illustration, etc.

SEO marketing – stands for search engine optimization. This type of marketing focuses on the visibility of business websites or content with the help of search engines. SEO analysis how search engines work, how people behave when searching for relevant information, which search engines they use, what keywords they type. There are different kind of searches from video to academic or specific to industry. Businesses seek to have high rank on the search engine results page, so their websites would attract more customers. If you want to learn more about SEO, do not miss module 6.

Mobile marketing – recent years smartphones and tablets have become technologies of everyday use. It is quick, easy and convenient way to check emails, read news, search for products and services. Mobile marketing focuses on targeted advertisements that appear on consumers’ mobile devices.

Paid advertising channels usually applies PPC (Pay-Per-Click) approach.

Some of the Paid advertising channels:

Ad retargeting – simply put, the marketer by using cookies can run a retargeting ad campaign and send personalized marketing messages to those users who visited the website and checked products or services but have not made a purchase, signed up for trial or made other expected action.

Display advertising – by using texts, gifs, video and other “rich” media, encourages to purchase a product or services by clicking on ad. Display ads focuses on attracting users’ attention to lead them act – make a purchase, subscribe, etc.

Search engine marketing (SEM) – focuses on increasing website visibility in search engine results through paid advertising. SEM as well can include SEO to achieve higher ranking and increase Pay-Per-Click. If you want to learn more about SEM, do not miss Module 6

Marketing strategy analysis

The last step is to measure, analyse and review the results of marketing strategy. There are many helpful and free of charge tools like Google Analytics or Google Ads. With Google Ads entrepreneur may get insights of number of people who seen, clicked on ads, visited website or called. This overview helps to rethink the strategy, search for new methods or channels. If you want to learn more, do not miss module 6.

Google Marketing Platform is great solution for small businesses or enterprises, that seek to create successful marketing strategy

https://marketingplatform.google.com/about/

[1] Amin, N. (2019, April 18). What is a digital lifestyle business and how to start? Website: https://aminick.com/2019/04/18/what-is-a-digital-lifestyle-business-and-how-to-start/

[2] Odjick, D. (2020, December 11). Need a Roadmap? Here’s How to Write a Business Plan You’ll Actually Use. Website: https://www.shopify.com/blog/business-plan

[3] Huree. (2021, January 4). The Essential Guide to Marketing Strategy. Website: https://info.hurree.co/en/marketing-strategy-essential-guide#marketingchannels

[4] Kotler, P. (2000). Marketing Management, p. 9.

[5] Chand, S. (2021). 10 Most Important Functions of Marketing Channel. Website: https://www.yourarticlelibrary.com/marketing/10-most-important-functions-of-marketing-channel/5784

[6]Amin, N. (2019, March 22). Fundamentals of Affiliate Marketing—Part 2: Traffic generation with Paid Advertising. Website: https://aminick.com/2019/03/22/fundamentals-of-affiliate-marketing-part-2-traffic-generation-with-paid-advertising/