Steps to Starting an Internet Business
It sounds like the ultimate, entrepreneurial adventure -- starting your own internet business. The captivation is understandable. An internet business offers the opportunity to work from home, to profit from a long-time hobby, even a chance to earn millions by tapping into the swarms of consumers who gather on social media sites. Behind the allure, however, stand the same fundamental tasks that come with starting any business -- online or off.
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Planning to Succeed
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The Bureau of Labor Statistics states that the first three years are the most critical for a new business, with those reaching the four-year mark surviving at much better rates, in years that follow. While it may sound rote, and is oft repeated, "Write a business plan" is a cliche for a reason. A business plan helps a fledgling entrepreneur avoid the traps that cause so many young companies to fold. Knowing the odds is just as important as knowing the opportunities, and a good business plan reveals both.
Doing the Groundwork
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Running an internet business doesn't mean you can pass on the things an offline business is forced to endure. Depending on the nature of your business, you may want, or need, to form a corporation or partnership. Almost without a doubt, you'll have to obtain a federal tax number, and at least minimal licensing, to operate a business, at a federal, state and local level. You should consider conferring with a lawyer and an accountant, as they may help reduce your tax burdens and help you avoid other legal or financial issues.
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Establishing a Web Presence
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Virtually all internet businesses need a web presence. Some businesses simply can't function without one, particularly those that rely on advertising or affiliate programs to generate revenue. The importance of having an easily navigated, professional website can't be overstated, and for many new companies, this means hiring or contracting an experienced web developer. While a web presence is essential, having this alone isn't enough. A successful internet business also needs to build brand awareness.
Internet Marketing
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In 2008, engineers at search-engine giant Google watched as their systems processed one trillion web URLs. In such a sea of web pages, getting noticed isn't easy. Savvy businesses know that internet marketing is the answer, and no small amount of effort is placed into the endeavor. For most companies, search-engine optimization (SEO) of web content is the answer. Good SEO means good rankings in search engines like Google and Bing, and that means more visitors. Other strategies include blogging, participation in social media such as Facebook, Twitter or a variety of internet forums, and using more traditional approaches such as television or radio advertising.
Getting Paid
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One thing is certain -- if you're going to run a successful internet business, you'll have to get paid. Sometimes, this is harder than it sounds. Many businesses, particularly those selling a product or service, need to offer at least one payment method to consumers. Accepting credit cards, such as with Visa or MasterCard, requires the establishment of a merchant account and a method of processing transactions, often in real-time. Other options include eBay's PayPal, and the lesser known eGold payment system. The latter allows for currency-neutral transactions with any other eGold user around the world.
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