Top 5 Considerations Before Starting an Online Business

Are you thinking about starting an online business? If so, you’re not alone. There are virtually millions of them out there on the Internet; ones that are taking advantage of all of the benefits that e-commerce has to offer.

On one hand, this is evidence of the fact that it can be done; and not just done, but done successfully. On the other, it is a blaring reminder that there is a lot of competition out there in the cyberspace workplace.

So, in order to have an online business that will prove to have longevity and lots of profits, here are 5 things to consider before starting one of your own.

1. Be Your Business’s Biggest Fan

No one is going to purchase anything that you, personally, do not believe in.

That’s probably a given, but the bigger point here is that when you’re dealing with consumers online, they do not get to see your glowing disposition before seeing your Internet presentation.

Therefore, your website, your copy and your product all have to be clear, concise and uniquely memorable.

2. Do Your Research

We’ve already discussed the fact that you’re going to have a lot of competitors, no matter what it is that you have to offer.

So, it’s a good idea to do some research on what is already out there (you can do this by putting the name of the service that you want to provide in any search engine).

There are a few reasons why you should do this. One, it helps you to size up the competition. Two, it gives you firsthand insight on how to present your business in a way that differs from the others.

And lastly, it can provide you with an idea on ways to tweak your company to seem a bit more distinctive.

3. Get a Great Name, Web Developer and Host

The name says it all… literally! So, be sure that you select one that is not just representative of your company, but is catchy, too.

When it comes to web development, if that is a skill that you already have, great! If you’re not, this is one area where you don’t want to do a lot of experimenting.

It’s worth a few extra dollars to contract a web developer to design your website for you.

If you are extremely crunched for cash, iPage.com, JustHost.com, FatCow.com, InMotion.com and HostHero.com are all website companies that will build your site free of charge and also provide some pretty competitive rates on web hosting, too.

When it comes to web hosting, make sure that it features ways for you to do online transactions. Most web hosting companies will at least make it possible for you to have a PayPal link on your site.

And, if you know a little HTML, you can easily add your own PayPal buttons into your webpages.

4. Network

A lot. Now under this umbrella, there are a lot of different recommendations.

When it comes to social media, it’s a good idea to do things like start a Facebook fan page and build a Twitter account that is solely dedicated to your business.

LinkedIn is another great site that can connect you to potential customers and other business owners.

However, one thing that some online business owners overlook is the importance of networking through their very own website.

For instance, many profitable online business owners will tell you that if you don’t blog (in both print and video form), you are basically non-existent on the web because blogging is a way to personally connect with your customers (or potential customers).

It’s also wise to have a company newsletter that goes to directly to people’s email accounts. It can feature updates, discounts and even surveys (ConstantContact.com is a leading website in this area).

Also be sure to remain abreast of the newest ways to communicate with people on the web. There’s something different transpiring in technology on an almost daily basis.

5. Have a Budget

Although being online can cut things like advertising/marketing costs down significantly, in order to run any kind of company, capital is still needed. If you’re actually selling a product, one of the biggest mistakes that people make is having too much demand and not enough supply.

This is because they overlook the fact that an online business doesn’t just connect you with people in your city, state or region, but with potential buyers from all over the world.

So, how do you know how much money is enough? Well, in figuring out your start-up fees, put figures into the following categories: technology, product, administrative, salaries (for you and your staff) and marketing.

Be realistic about how much you will need in each area for the next 1-3 years before your company goes viral.

There are a lot of businesses that fail because of a lack of financial planning more than any other reason. Don’t be a statistic. Be a success story.