Biz Mgmt-PlanBreview - What You Need to Know FIRST to Make Money Online Internet Marketing

Starting A Business

Note: This section contains information applicable in the USA only. Please check the laws and rules governing businesses in your own country.

What Does It Take to Start Your New Business?

So far, all the money-making, Internet Income, "be your own boss" materials I've found on the Internet have not had a single word about setting up a new business. They seem to believe that you should start using their program first, and then when the money comes in, you can make all the business decisions.

Actually - this is TRUE! Until your business is profitable, you don't need to worry.

However, when you become self-employed and are managing a your new small business, some expenses can be deductible here in the US. To learn about what you are getting yourself into, please read on.

First of all, before you "quit your job", fire your boss, etc., you should realize that you will be responsible for your own benefits (in the USA, I mean). That means health insurance and retirement plans, etc.

The Small Business Association - the SBA is a great resource and you can often find Saturday classes that cover the basics to starting a small business with some record keeping and filing requirements for which a business owner will be responsible.

State websites (in the USA, obviously) contain forms, instructions, and useful information for small business owners. My state of Illinois has a business name availability checking tool on it's website which was very useful. Your company name needs to be unique in your state.

Major Steps to Start a New Business

First Things First

You may have heard that starting a business requires creating a Business Plan. If you need funding, that plan needs be formalized to get approved for a business loan.

If you have a credit card, you can get started yourself with your own Internet Business. If you don't need funding, nobody will ask for your Business Plan.

At least they won't "UNTIL YOU GET RICH"

Face it; when you get rich - when you make real money, it means you have to be serious about your recordkeeping, as it can bring on the auditors.

When you reap your profits, plan on working with your CPA - way before year-end to be sure you are filing all needed forms and taxes. If you proceed to follow my tips, you will be on the right track when you need the experts.

I hope you get rich and can afford the professionals to help you out. But if you are still struggling for awhile, here are the basics to managing your "start up" home business.

Business Basics

A new home-based business entrepreneur can Start an Internet Business with confidence by following this little section on Business Management. It applies to most any home-based business startup (in the US) especially Internet Businesses.

What is your Business Plan? It doesn't have to be on paper, but it should be thought through.

Do you have an idea how to make money online, or do you need one?

The great thing about starting a home-based Internet business is that you can research and try out ANY business opportunities or ideas that you might have or can afford. You might try several, but you should focus on one at a time. If you are looking for ideas, read about the Internet Business models of estores, affiliate marketing and information marketing to find one that seems right for you.

Your business plan should include:

What product(s) or product lines will you sell?

Who will buy your product(s)? What is your "market" and how will your product fix their problem or benefit them?

What are your funding resources?

With Internet Marketing, your products and markets are more likely to change, making a "standard" Business Plan useless. If you get a business credit card, you can certainly try a few of your ideas, get scammed, and still keep going. Don't quit your day-job yet though!

The Magic of an Internet Business IS that there is NO Limit to what you can try. You can have several websites that fail, and try the next thing, and it WORKS WONDERS!

Truly, the cost for starting an Internet Business is so low, that you can just keep trying things. There seems to be plenty of opportunities for anyone with interesting ideas that work. Some ideas don't pan out; you move on and try something else. Some ideas are better than others, but once you know how the system works, you should become profitable.

Executing Your Business Plan

Be LEGAL - Know your legal responsibilities and rights

1. What legal business structure do you need to run your business?

If you are just starting most any home-based business, it is likely that you can "work for yourself", or be self-employed, as they say, and report your income and expenses on your Schedule C in your personal 1040 forms. Once you need to hire employees or earn any income, you need to check with an accountant, CPA, or business lawyer to proceed with proper recordkeeping.

To understand more about the Legal Business Structures and when to incorporate, read Incorporate?.

Forms may need to be filed with your state, county, and/or city. Some will require fees, though they are not expensive. Check with your SBA or expert to ensure you know what and how to file all the forms you will need to proceed with your business. I have even found legal services on the Internet that will tell you what forms you will need, send them to you for your signature with instructions for mailing. Zappo, you are legal!

2. MAKE SURE your products and services are legal.

Don't cross a line, but if you might be pushing it, then talk to a lawyer. Seriously. You will need to agree to contracts with your Domain Hosting Service for one, that you won't be doing anything illegal on your website. If you offer adult only items, say so - clearly. Don't trick people. Don't "do unto others" what you would hate to have happen to you, you know.

Use a Business Journal

You should log all your business activities, ideas, and TODO lists, by date. Keeping track of your resources, phone calls, accounts, and expenses is so useful that I can't recommend it strongly enough. After all, you are trying to become successful. You would be less likely to be successful if you don't have access to your business information when you need it.

I keep a separate spiral notebook next to my PC and record anything that I might need later. You may also want some spreadsheets for recording accounts and passwords, links, inventory, customers, leads, etc.

Be sure to Avoid Fraud!

Before using the Internet as a tool in your business plan, you should definately read Internet Scams and Fraud Advice. Please be aware of what to expect - and avoid when doing business on the Internet. The Internet brings all kinds of new schemes and scams. If you think something sounds too good to be true - it probably is! Check it out thoroughly. Don't be scammed yourself!