How to Do Business Over the Internet

Looking to conduct business over the Internet? Both established entrepreneurs and aspiring small business owners need guidance. The former may require revisions to existing operations to successfully migrate or expand from a brick-and-motor business, while those new to self-employment may benefit from additional small business savvy. Thankfully, it is easier in recent years to do business over the Internet, with more DIY and budget-minded options, and these tips can help.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Web hosting E-commerce solution Basic HTML knowledge Merchant account (optional)

1. Complete and/or review the home or small business plan and establish business fundamentals (such as legal structure, banking and company branding). Identify items that may require adjustments, such as hard copy marketing, for online publication. Conduct market research to determine consumer demand and online competition prior to setting up an online business.

2. Determine the necessary elements to do business over the Internet. An example checklist for an online business might include: e-commerce setup, website development, customer service options (email, phone, live chat), accounting, online marketing, order fulfillment, inventory management, Internet security, computer hardware and software, technical support and independent contractors. Learn more about these Internet business essentials here at eHow and via e-commerce directed websites. (See Resources below.)

3. Identify the supply and distribution demands of your products and/or services. Selling a low-volume product may require little more than a simplified accounting system such as Excel and Quick Books) and shipping via the U.S. Postal Service, whereas an online store requires more complex order fulfillment, an online catalog, photos, shopping cart and a robust inventory management system. Look to companies such as Intuit, NetSuite, Microsoft and IBM for packaged solutions and free trials. See steps 4 and 5 prior to committing to a solution.

4. Determine which payment method(s) and merchant account services are needed. Visit PayPal.com and view their easy and low-cost solutions for taking payments over the Internet, including via credit cards, bank cards and online invoice. PayPal also lists third-party shopping cart compatibility.

5. Select a reliable, experienced e-commerce Web hosting company. Consider the complexity involved to do business over the Internet and how capable the Web host is to meet these demands. DIY and budget-minded entrepreneurs may prefer a turnkey e-commerce solution, provided by the Web host or otherwise. Alternatively, outsource the e-commerce and database management to a programmer or website developer. Visit WebHostingTalk.com for additional guidance and personalized advice.

6. Register a domain name. Select a name that represents the business website well, preferably one that is memorable and easy-to-spell. Domain name registration may be available through the e-commerce Web host or a domain registrar such as GoDaddy.com

7. Create the structure and content for the business website. Make the website easy to navigate and instill buyers' confidence through testimonials, warranties, clear buyer and return policies and professionalism in both aesthetics and content. When you do business over the Internet, view the business website as a storefront --make first impressions count.

8. Learn how to market your Internet business in a cost-efficient manner. Depending on the type of business and the marketing budget, areas to explore include Google AdWords, Craigslist, business cards, press releases, SEO (search engine optimization), Twitter, opt-in newsletters and social networking.

Tips & Warnings

• Before you do business over the Internet, ensure that orders can be filled promptly and that shipping costs, state and local taxes and related fees are understood and factored into final pricing.

Resources

• Guidance for e-commerce choices at WebHostingTalk
• E-Gov Access to Doing Business Over the Internet
• http://www.business.gov/business-law/online-business/