How To Create Your Online Business
Making the decision to start a business online can be a confusing one, so here are a few tips to help you along the way. Let’s say you have a great idea for an ecommerce site. Or, perhaps you don’t know exactly what you want to sell or even if it is a good idea to try this business model.
Either way, you have to have a plan…
Like any good business venture, the more prepared you are, the more likely it is you will be successful.
– First you need to figure out what you want to sell.
– Then you have to do some research to see if there is a demand for this product or service and whether it is currently being sold successfully online.
– The next step is to figure out who your competitors are and to see what THEY are doing online to get customers. What does their web site look like?
– How easy is it to find a product on their site, and purchase it and pay for it quickly and efficiently? What kind of content does your competitor have on his or her site, or do they just have a storefront for sales?
Before you settle on a product or service, check your local discount stores and the large online chains like Amazon and others to see if they are already selling what you plan to sell.
It can be VERY hard to compete with the big guys.
They can afford to give deep discounts and unless your product or service has some other valuable feature to distinguish it from all the others, your target customers are probably going to go to the big discount chain in their community, or look online to buy from a large retailer at a lower price.
– After this research is complete, if you are still excited about the opportunity of online business, you will next need to establish your business (choosing your business ‘type’ – sole proprietorship, partnership, limited liability partnership, corporation, etc.).
You will need to choose a business type that gives you the best tax benefit and the most protection against liability.
– You will get a Tax ID number when you set up your business. This number allows you to collect state sales tax and establishes your ability to buy products wholesale so you can re-sell these products on your web site.
– Next, you will need a business bank account. Some banks require you to wait three months after your business paperwork is filed, before you can open a business account.
– Since your business is an online business, you will have to get a ‘domain’ name. This name is the name of your web site and the ‘address’ your customers will type into their web browser when they want to visit your site.
You should be prepared with several options and spin-offs of the name you think you want, since your first choice may not be available. If the name is already registered to another business, you will not be able to use it for your web site, and will have to find another domain name
– The next item on your list is to find a web host. A web hosting company will store all the files that make up your web site, including a database of information, prices, and content.
Some web hosting companies are much cheaper than others. However, you have to look at the features and services your web host will offer before you choose the host that is right for you.
– Next, you will need to decide if you are going to design your own web site or hire professionals to do it for you. You can compromise by purchasing web ‘templates’ from a professional company.
With a little training and a little effort, you can learn to update these templates to change or add information to your web site.
– Whether you are designing your own web site or hiring professionals, you need to figure out what ‘content’ you want on your site. Will you have educational information, write articles, provide a description of your services or just sell products?
If you are selling products or services on your web site, you will need some way to accept payments. Make no mistake you must provide a method to accept payments on the spot, rather than asking your customer to send a check or money order.
– If you intend to be recognized as a professional business, you must offer your customers a simple way to order your products.
– After you have done all these things, you will need to either stock your product or hire employees to perform services.
– Your web designer (maybe YOU) will have to consider advertising techniques and other methods to get customers to find and buy from your web site.
As you can see, starting an online business will require an investment in both time and effort.
Your expenses may not be high, but you do have to put in the planning time and ensure you have thought through all aspects of the business. The bottom line for prospective online business entrepreneurs is to consider the time and effort, the cost and the findings from your research.
Next, decide whether you really want to make a go of it … then go for it!
