I remember the first time the idea of starting a business online popped into my head. Pumped and full of enthusiasm, I was scared but also ready to jump right in and make myself a whole load of money.
Well, despite all the hype about getting rich off the ‘net, it turns out that starting an online business is in many ways just like starting one in the ‘real’ world. Here are a few things to consider before jumping into the Internet business world:
__1. Take a Personal Assessment.
What type of skills and interests do you have? Many people start businesses in areas in which they already work – for example, someone who works as programmer might start an Internet business writing custom scripts.
Identify the types of businesses you think you’ll love to do; after all, there’s no point in leaving a job you hate for a business that makes you miserable!
__2. Conduct Market Research.
It would be a real shame to pour your heart, soul, and funds into a product or service that no one wants!
All too often, usually out of sheer enthusiasm, people create a product or service that *they* want or like. Then they try to find a market for it.
You can’t force an unwilling market to buy your product or service. Instead, through research, you can find out what your market wants – and then create a product to satisfy that want.
Every business contains an element of risk. Researching your market will help to reduce that risk, by helping you to make an educated judgment on whether or not people are willing to pay for your product – and at a price that will allow you to make a decent profit.
__3. Research Your Competition.
I’ve often heard people say that they want to be the first into a market. The risk you take with this approach is that perhaps there *isn’t* a market — which is why you have no competition!
Entering a market where there’s plenty of competition, on the other hand, probably indicates that there’s sufficient interest to sustain at least some of these businesses. The risk is that there might not be room for *you*.
Find out what your competitors are doing, how they’re doing it, what appears to work well for them and what doesn’t. What can you offer that they can’t? The more knowledge you have, the better equipped you are to make the right decisions for your business.
__4. Plan and Prepare.
Ever heard the saying, “No one ever plans to fail… they just fail to plan.” Some things to consider include…
__5. Marketing.
A great product just isn’t enough. Your potential customers have to be able to find you first before they can buy from you!
Your Internet business may benefit from a combination of online and offline marketing. It’s a continuous learning experience; read and learn more every day to find the marketing techniques that work best for you.
There are many resources available online to teach you the basics of marketing and copywriting. One excellent site with helpful tips and strategies is Jay Abraham’s, http://www.abraham.com/. Online marketing strategies for beginners are also available at http://onlinebusinessbasics.com/articles/.
__6. Logistics.
This includes the investigation of zoning regulations, business structures, registration of a business name, licenses and permits, bank accounts, insurance… all that boring but necessary stuff. The US Small Business Association, http://www.sba.gov/starting/, is a good place to start. Also check locally; many cities have organizations dedicated to helping small businesses.
Research, planning, and preparation can help you to avoid headaches and mis-steps later on – and help you to make smart decisions for your business. Good luck and good planning!
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Angela is the editor of Online Business Basics, a practical, down-to-earth guide to building an Internet business on a beginner’s budget. If you enjoyed this article, you’ll love the book! Visit http://www.onlinebusinessbasics.com or request a series of 10 free reports to get you started.
