Introduction

You are reading this guide because you’re interested in starting a successful online business. We have many years of experience in the industry, and want to share our valuable knowledge with you, so that you can have success too!

Anyone with a home computer and an Internet connection can successfully run an online business - with very little financial outlay. There are literally thousands of companies selling ways to start your online business, through packaged websites, wholesale products and turnkey sites.

The trick, then, is to separate the viable business option from the scam.

Your online business

The appeal of an online business is obvious - you can work from your own home and spend more time doing the things you want to be doing, like spending time with your loved ones or watching the game.  We all have dreams about buying nice cars, not having a boss to worry about and no office politics!

Online business provides potential business owners with a way to make these dreams come true. Starting a business in a physical location is costly and comes with a very high risk - both of failure and of losing money. In the world of the Internet, the monetary investment is small and so the risk it carries with it is much lower. Hence the incredible appeal to anyone who has dreamed of owning a business, but was never able to!

How do they work?

There is a slightly unfortunate misconception that it is not necessary to have business skills to run an online business.  This is simply not true.  If you are hoping to be successful in business, you will not be able to sit idly and watch the money pour in.  Not yet, anyway!  You will need to be prepared to invest time and energy into growing your business.

Luckily, this is easy to do as long as you have the right information - and obviously you do, because you’re reading this! - and a website that works in your favor.  Having a professional create your website will make a big difference to the seamless operation of your new business.

Most online businesses operate via electronic commerce - or what has become known as “e-commerce”.  This method of online trading usually involves an “online store”, which runs on a database and administration system.  The business owner can quickly and easily add products to the store and keep track of sales, create special offers and generate more sales through affiliate programs. Of course, the most appealing part of such a store is that it can generate income even while you’re asleep. E-commerce websites are always “open”, so customers can shop in them at a time that suits them. This is great news for people particularly and rural areas and international locations, who may otherwise not be able to sell their products on a wide scale.

Running an online business is simple with the right tools.  If you have your website created by a professional, they may assist you in making changes and additions. Otherwise, learning some very basic HTML is a simple way to make sure you’re in charge of how your site looks and the information it provides.  There are many tutorials on the web and plenty of beginner books to get you started.

Customers can make their payments through “payment processors”.  These are third parties in charge of taking customer details securely, processing and validating their payment information and passing on the payment to you, the business owner.  Different types of payment processors exist, and they apply different fees and regulations to their services.  Some companies are stand-alone merchants, meaning that they are not associated with a bank, and others are a go-between for you and your bank account.  There are pros and cons of each of these methods, but some are certainly easier to set up and maintain than others!

Clearly, then, there are a number of things to consider when starting an online business. But it needn’t be difficult, costly or intimidating, as long as you do it right!

Turnkey businesses

Turnkey businesses are offered as a “complete package”.  They include both a website to sell your products through, and the products you will be selling, usually for an upfront fee but often on a monthly basis as well.

They can be a good choice for a start-up business, but should be heavily scrutinized.  You know what they say about things that seem too good to be true - they often are.  If you are planning to buy a turnkey business, it is vital that you do some research into the product market and the website you are buying before you begin, and ask yourself some important questions:

· Will the product sell?

· Is my website unique to look at and navigate, or is it a template?

· If it is a template, can I still stand out from the crowd?

· How soon can I expect a return of my original investment?

It is important to realize that most companies selling turnkey businesses are selling “clones” or “cookie cutter” sites, and these are not the best business option.

By,
WebsiteVenture.com

Extracted from our free guide "Starting a successful online business" - 2006 edition
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