Tips for starting an online business

Although starting an online business may sound like an easy and fun way to start a business that has the ability to reach millions of consumers, there are some things that should be carefully considered before a decision has been made.

Time & dedication
Like any other business, an online business takes time to build. Especially in the early stages, you may find yourself working many 8 hour plus days simply building your site and getting it to function properly. Afterwards, considerable time will need to be sent promoting your business and developing a customer base.

A word to the wise... Even though running an online business gives you an opportunity work in a relaxed atmosphere, the business cannot be approached in a casual manner. It is especially hard to earn a customers trust and loyalty due to the high incident of online fraud. You will have to run a consistently professional business to be successful.

Here are some things to consider:

Start-up costs
It costs significantly less to start an online business then it does to open a business in a physical location. At a minimum, you can acquire a domain name from GoDaddy for less then $10.00 per year, and webhosting can be found for $10.00 per month. There are other costs associated with running an online business that need to be considered, however.

The above scenario does not take into account the actual creation of a website. Many web hosts offer web design wizards as part of their web hosting packages. This is a good option for people who want to build their own sites without hiring a web designer. However, most wizards create code that isn't necessarily search engine friendly. If your business falls into a highly competitive arena where search engine rankings are of great importance, or if you are intimidated by the idea of setting up your own eCommerce store, it would be wise to hire someone to create the site for you.

Website promotion & search engine ranking
Due to new standards put in place by Google (the mostly highly used search engine) over the past couple of years, it is very hard for a new business to get good rankings right off the bat. It may be necessary to purchase advertisement from Google for a period of time (at least 6 months) until natural rankings kick in.

Helpful links:

Free shopping cart software - OsCommerce
Inexpensive domain names - GoDaddy
Inexpensive, reliable hosting - Hostgator
Web Design - KimiWeb.com

Skill Requirements
Although it is possible to start an online business with very little skill by utilizing web design wizards and "wysiwyg" (what you see is what you get) editors, you will inevitably run into problems down the road that cannot be solved without a little knowledge regarding web design. The cost of running an online store can dramatically increase if you have to hire someone to do all of the problem-solving for you.

You will benefit in the long run by gaining knowledge in the areas of web design, graphic design, search engine optimization, and running an eCommerce store.

Helpful Links:

Web design/html - Free html tutorials at W3School
Graphic design - Free graphic design tutorials at IdeaBook.com
Running an eCommerce store - Multiple articles regarding eCommerce at Self SEO
Website optimization tips & Articles - HighRankings.com

Related links:

helpful small business resources
information regarding small business grants
starting a home-based business
starting a mail or phone order business
osCommerce - a free online shopping cart
What is Authorize.net
The Importance of Accountability - Better Business Bureau Online