Steps to Start Your Online Business

Licensing requirements for online businesses vary by state.

Starting an online business is both exciting and confusing. There are a wealth of great business ideas that work well in an Internet-only setup whether you want the business to be a part-time supplemental income or a lucrative full-time family income source. Specific laws and setup details vary based on where you live and what type of online business you decide to start, but the initial steps are generally the same.

Plan Your Business

Making a full-fledged formal business plan isn't necessary, but knowing the kind of business you want to start is. Running an online retail store is much different from running a virtual-assistant business, publishing company or advertising firm, for example. The type of business you choose determines what online tools and services you need, and what, if any, licenses or permits are required.

Obtain Licenses and Permits

Check with your state, city and county government small-business offices to determine whether you need business licenses or permits. Some states issue generic business licenses while others issue specific permits based on your professional occupation. Some areas of the country may require your online business to have a resale tax permit and some may require you to have a permit for running a home office. Determine the legal requirements for your area and comply with them as instructed.

Set Up Your Website

Select and register an Internet domain name for your business website. A domain name can be the same as your business name, the name of a product line or service you offer, a catchy phrase or just about anything else you'd like. Finding a good domain may take time and effort because millions are already registered, and you can only register one that isn't already taken. Once you find a domain name, you'll also need to choose and register with a website hosting company. Your business Web pages, files, shopping system and other tools reside on the web hosting company's servers so that your website can be accessed from around the world at any time off the day or night.

Build Your Website

How you choose to build your website depends heavily on the type of business you chose to start. Retail businesses need a website with a shopping cart system, for example, while a publishing business might choose to use a ready-made content management system. Some businesses also prefer to hire professional designers and programmers to set up the site for them.

Market Your Business

Once your website is ready to start taking orders and interacting with prospective customers, you'll need to advertise it so people know about your business. Include your website domain name in your email signature, post it on social networking profiles and create advertisements to post on free classified websites.

References

• Business.gov: Start an Online Business
• Business.gov: Home Based Businesses