How to Start a Small Internet Company

The best way to start a small Internet company is to choose products that you like. Sell products related to a hobby. For example, sell martial arts uniforms and supplies if you like karate. Visit competitive websites and get ideas on how these online businesses display their products. Find out whether competitors use multiple websites, then study how they promote them. Start your Internet company from home so you can take advantage of the home-office tax deduction.

Instructions

1. Create a business name for your Internet company. Register your business name as your DBA (doing business as) through the county or city hall administration office in your area. Apply for a vendor's license through the same office, as you will need to collect sales taxes on in-state customers.

2. Find a manufacturer or wholesale supplier for your Internet company. Visit the Thomasnet.com site for a list of manufacturers, according to Businessknowhow.com. Contact the NAW (National Association of Wholesaler-Distributors at Naw.org for wholesale suppliers. Find out what products these companies sell. Ask the wholesalers and manufacturers if they drop-ship products, which means they will ship products out for you. Use a drop shipper if you want to avoid carrying inventory at home. Visit Doba.com or Dropshipdirect.com for a list of suppliers who offer drop-shipping services.

3. Call several of the wholesale, manufacturer and drop-ship suppliers. Find out which companies sell the products you will be marketing online. Select the supplier that offers the quickest shipments and lowest unit costs on products.

4. Create a website for your Internet company or hire a website designer to create it. Ask your supplier to send you digital pictures of the products. Help your website designer create descriptions of the products. Provide your website designer with a price list of all your products.

5. Create a website address or URL (Uniform Resource Label) for your Internet company. Use your company name in your URL such as "Johnspetsupplies.com." Search sites such as Godaddy.com and eNom.com to see if the domain name is available, according to Entrepreneur.com. Register your website with the domain company if it is available. Choose another website address if the domain name is unavailable.

6. Find a host for your website. Use companies such as Yahoo.com or Godaddy.com to host your site. Pay your host company the one-year hosting fee.

7. List your website in major search engines such as Yahoo.com and Google.com. Hire a search engine optimizer to help you achieve a first-page ranking in these search engines. Help your search-engine optimizer develop key phrases that best describe your products and services, which will enhance your rank when people search for your products.

Tips & Warnings

• Keep track of your customers' e-mails in a database. Send e-mails out to your customers every month or so, offering them coupons and special deals on products. The bulk of your sales will come from repeat customer purchases.

References

• Business.gov: Business Name Registration (Doing Business As)
• Business Know-How: Find Suppliers for Your Business
• Entrepreneur: How to Find a Drop-Shipper
• Entrepreneur: 10 Basic SEO Tips to Get You Started
• Internal Revenue Service: What You Need to Know About the Home Office Deduction
• Entrepreneur: Find the Perfect Domain Name

Resources

• National Association of Wholesaler-Distributors: Source for Wholesale Suppliers
• Thomasnet.com: Manufacturer Supplier Source
• Dropshipdirect.com: Drop Shipping Wholesaler Source
• Doba.com: Drop Shipping Wholesaler Source
• Powerhomebiz.com: Starting an Internet Business