How to Start a Home Internet Business

A home internet business is one that is conducted out of your home, using a website in order to attract and interact with customers. Starting such a business can be an exciting and relatively low-cost way to make extra money or launch a new career, whether you are providing services online or using a website to market your products or skills. But it’s not easy. Most internet businesses fail.[1] To make yours a success, you will need a clear plan, a polished website, and an effective marketing strategy.

Part One of Four:
Planning Your Business
1
Decide what service or product your business will provide. Try to pick a service that you have special training or expertise in, or a product that is either unique to you, like art, or which you can provide a better or cheaper version of. Building off your hobbies or skills will not only give you a competitive edge, it will help to ensure you enjoy the business you are starting.
Consider if you want a business that can be done exclusively online, like editing or website design, or if you will be starting a business that deals in physical products, like arts or crafts.
Consider how much time you are willing to put into your business. Some businesses, such as freelancing as a web designer or selling crafts, are easier to do as part time jobs than others, like day care or consulting.
2
Choose a business that works online. Businesses based on buying wholesale and selling retail usually fail, as do specialized delivery services (delivering dog food, baby supplies, ice cream, etc.) The margins for these sorts of businesses are too small.[2] Here are some ideas for businesses that require little capital and you can run from your home:[3][4][5]
Accountant or financial planner
Affiliate marketing (promote other company’s products on your website)
Artist
Blogging
Consultant
Craft maker
Editorial and writing services like copywriting, proofreading, indexing, technical writing or ghost writing
Gift basket service
Graphic designer
Internet researcher
Jewelry maker
Virtual assistant
Website developer
3
Know the costs of starting a business. Internet based businesses are less expensive than brick and mortar establishments, but they are not without cost. It will probably take time before you start generating revenue, so you will need to have money or credit on hand to cover the following costs:
Hosting – Webhosts are the services that keep your website up and running. They usually cost $7-$19 per month, depending on how much technical support they offer and the size of your site.
Email Marketing Service – Building an email mailing list is key to advertising your product and making money.[6] Start building your list right away. The typical service costs about $20 per month.
Shopping cart – If you are selling products and services that can be bought online, you will want an online shopping cart for your customers to put them in. Some payment processors (which are free to set up, but charge a fee per transaction) offer shopping carts free with their service. Otherwise, they generally cost about $5 per month.
Website design – The cost of design will vary depending on whether you use a site that builds business websites for free, build your own site using a service like WordPress (starts at about $70),[7] or hire a designer (usually ranges from $1000-$5000).
4
Make a business plan. No matter how small your business, it will benefit from a strategic plan that will guide you in achieving your goals. You can find more details about how to write a plan here, but broadly, you will want to include:
Your business concept: what you are offering, your strengths and weaknesses, long term goals, and performance indicators, beyond the bottom line, which will let you know you are succeeding or failing.
Market research: the nature of the industry, who are your customers, who are your competitors, how will you get your product out there.
A marketing plan: how you will communicate with customers and grow your customer base.
An operations plan: identify the individual projects that will lead to completing your larger goals. To begin with, these might include things like: hiring a designer, registering your domain, and finding a webhost – all to build a website; or picking and email marketing service, starting an email list, and writing a weekly newsletter – all to begin attracting customers.

Part Two of Four:
Taking Care of Legal and Tax Matters
1
Consider hiring a lawyer who specializes in internet law. A lawyer can help you decide on the most advantageous legal structure for your business and walk you through tax procedures and the necessary licenses and permits, if any.[8]
2
Determine the legal structure of your business. This will have implications for how you file taxes and how much you will need to pay. Most small businesses are sole proprietorships, which are the easiest to set up and require the least paperwork. If you are considering another legal structure, you may wish to consult a lawyer who specializes in internet law and who can help you pick the structure best for you.[9]
Sole proprietorship – An unincorporated business run by an individual. No special steps are needed to form a sole proprietorship, and since there is no distinction between the business and you, the owner, the income from the business is reported as your income. You pay self employment tax.[10]
Partnership – A business where two or more people share ownership. To form one you must choose a name and register your business with your state. You must also register with the IRS and get a tax ID. Profits are passed through to the partners, who pay taxes on them on their individual tax return. This includes self employment tax. Partners are liable for their own actions and those of their partners.[11]
Limited liability company (LLC) – To start an LLC, you must, at a minimum, choose a name and file articles of organization with your state, often for a fee. LLC owners pay taxes on profits through their individual income tax returns and have to pay self employment tax, but are protected from personal liability for the decisions and actions of the company.[12]
Corporation – An independent legal entity owned by shareholders. To register your corporation you must choose a company name and file articles of incorporation with your state. You will also need to register with the IRS and get a tax ID. Corporations file taxes separately from their owners. This may prove advantageous, allowing owners to take advantage of the corporate tax rate, but it may also lead to double taxation. You should speak with your lawyer or accountant to see if this form of business will benefit you.[13]
S Corporation – An independent legal entity owned by shareholders, like a typical corporation, except that to avoid double taxation, profits and losses are passed through to the owners’ personal tax returns, instead of the company paying taxes.[14]
3
Register your business name with your state government, if necessary.[15] A DBA (Doing Business As) is needed whenever you are doing business under a name other than your own. If you are working as an independent contractor under your own name, you don’t need one. But if your business has a name other than your own, you will need to register that name as a DBA.[16]
4
Determine if you need to get a tax identification number for your business. Corporations that must file tax returns will need one, as well as partnerships, which don’t file taxes, but do have to file business information annually with the IRS[17] You will also need a tax ID if:
You have employees. Your company will be responsible for half their payroll taxes, and must thus have a tax ID with which to pay them.
You file employment, excise, or alcohol, tobacco and firearms tax returns related to your business.
You withhold taxes on income other than wages paid to a non-resident alien.
You have a Keogh plan (a tax-deferred pension plan for self-employed individuals orunincorporated businesses).[18]
You are involved with trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmer’s cooperatives, or plan administrators.
5
Register to pay taxes in your state and understand local tax laws. Most states and some localities levy a business or corporate income tax. If you are a sole proprietor, you will pay this tax as part of your personal income return, while LLCs and corporations will be taxed separately from their individual owners. If you have employees, you will also need to pay state worker’s compensation insurance and unemployment insurance taxes.[19] You can find more information on tax laws for businesses in your state here.
6
Obtain the necessary licenses and permits to run your business. For example, if you are offering accounting for financial services, you will need a license in most states. Check here to see if your business needs any federal permits or licenses, and here to see if it needs a state permit or license.

Part Three of Four:
Creating Your Website
1
Choose whether you will use a web designer. If your business is exclusively online or an e-commerce business, you will probably want to hire a professional to create a polished website. On the other hand, if your site is more of a marketing tool for a business that mostly takes place offline (like dog walking or writing novels, for example), then a simpler do-it yourself site will probably suffice.[20]
Web designers will build your site and take care of registering your domain name and selecting a webhost. The more you pay, the more input you will have in creating a unique site.
The cost of web design varies depending on whether you use a solo developer in the US ($25-$100/hr), an offshore web company ($10-$40/hr), or an established US agency ($60-$200/hr).[21]
Offshore firms can design sites starting at around $500,[22] while the cost of a US firm will usually range from $5,000-$10,000, with solo developers falling somewhere in-between.[23]
E-commerce sites typically cost more. Consider using your webpage mainly as an advertisement for your goods, with links to another site like Amazon or Etsy to take care of the actual billing.
2
Decide how you will build your website if doing it yourself. There are a number of options for building your own website, depending on how tech savvy you are and how much work and money you want to put into it.
Use templates – Sites like WordPress offer free or professional templates that you can customize to create your site. Working with these services requires both time and a good bit of knowledge of web design.[24]
Free business website services – Services like Moonfruit, Weebly, Qapacity, Jimdo, and Yola offer website construction where all you have to do is pick a format and provide content. Many are free, with inexpensive upgrades for premium services.[25]
Contact your local or state business office – Many states will assist you in building a business website for free. Check here for a list of state business offices.
3
Register your domain name with the Internet Corporation for Assigned Names and Numbers (ICANN). Your domain name is the web address of your online business. Once you choose it, you will need to pick an accredited registrar service and pay a registration fee ranging from $10-$35 in order to register your name for a year. You will need to renew it annually at the same cost. Most webhosts will do this for you.[26]
4
Select a webhost. The webhost provides the space and support services necessary to run your website. They own the physical servers that your site exists on. When picking your webhost, be sure to:
Use sites like HostMonk and WHReviews to compare prices from a variety of hosts.[27]
Understand how much processing power and disk space your site will need. If you’re hosting an e-commerce site, videos, or other memory-intensive content, then going with a cheap webhost may leave you with a slow, poorly functioning website.[28]
Check the reviews. To avoid fly-by-night companies, be sure to pick a site with multiple good reviews.[29]
Choose a company with good tech support. That means if your site goes down, you should be able to call someone to get answers.[30]
Pick a site that backs up your website and provides technical patches automatically. Unless you’re a tech wiz and really want to do it yourself, these services will give you one less thing to worry about.[31]
5
Decide whether you want to install ecommerce software on your site or have your transactions handled by a third party. Hosted ecommerce solutions like Shopify or Esty are much easier to set up and provide more technical support. Or, you can install an ecommerce platform directly on your website with services like Magento, Bigcommerce, Woocommerce (works with WordPress) or Webs. These services are more powerful and customizable, but also require much more time and technical know-how. For most newcomers to internet business, a hosted solution is the way to go.[32]
6
Organize your site and provide content. Whether you build your site yourself or use a designer, you will still need to create the content that fills the site. This includes:[33]
Pictures and descriptions of your services / products.
A business value statement that indicates why your business is better than its competitors.[34]
A business history or personal bio.
A blog or any other additional content you wish to add.
7
Follow these best practices to ensure your website is successful. As you build your website, keep in mind that it serves two main purposes: to advertise your product / service and to facilitate sales. It should do both as simply and clearly as possible. Make sure your site:
Is simple and looks professional.
Loads quickly and is viewable on all browsers and devices.
Is easy to navigate in order to find necessary information and purchase goods or services.[35] To test this, watch your friends navigate the site for the first time.
Features attractive photography, particularly if you are selling tangible objects that can be photographed.[36]
Provides contact information including your phone number.[37]

Part Four of Four:
Marketing Your Business
1
Improve your website's placing in searches with search engine optimization (SEO). Search engine optimization will help your website to show up near the top of searches. You can hire a company to do it for you, or try some of the following on your own:
Put keywords in the copy on your webpage. Think of words or phrases customers might use to search for your product, then use the Google Keyword Tool to find similar phrases. Include these phrases on your home page and throughout your site.[38]
Add links to sites your customers might be interested in. Links into and out of your site are another factor in how high you rank in search engines.[39]
Update your site regularly. This will push your website higher in the search rankings. Consider writing a blog twice a week, and use keywords whenever possible. If you can’t write a lot, add pictures regularly.[40]
2
Write a blog. Blogging not only improves your search engine ranking, it is also a good way to draw customers to your site.
Try to make your content useful, rather than a simple sales pitch. For example, if you offer computer training, you might review a newly released computer, or if you’re an accountant, you might discuss some new rules impacting this year’s taxes.
Consider guest blogging. Contributing quality content to related blogs shows off your expertise and can bring people to your site.[41]
3
Try pay-per-click advertising. Buying traffic is the quickest way to bring people to your site. However, make sure you are targeting the right audience. Clicks cost you money, and if tons of visitors leave without purchasing your services or product, you can lose money.[42] There are two major advertisers:
GoogleAds – Your adds appear in the sidebar when someone enters certain search terms that you select.
Facebook – Your adds appear in the newsfeed for an audience that you select according to location, sex, age, and interests. The more specific your audience, the more successful you will be.[43]
4
Make contacts and establish affiliate sites. Find quality sites related to your business and ask if you can advertise on their site, in return for their advertising on yours. Affiliate sites bring high quality traffic that often translates into sales.[44]
5
Create a social media presence. Americans spend 1 out of every 7 minutes on social media. Your company should be there, too. Start by focusing on the platform your customers are most likely to be on and built a presence there.[45]
Create a FaceBook page. Every business should have one, even if this isn’t your main social media outlet.
Post pictures on Pinterest, particularly if targeting women 18-65.[46]
Don’t forget video sites like youtube.com, particularly if you offer services that translate to film, like giving a massage, zipping across town as a bike messenger, or reupholstering a chair.[47]
Post on social media frequently – at least several times a week, and preferably once a day or more. Pictures are an easy way to do this. Also, keep followers up to date on new products, sales, and other business-related info.[48]
6
Publish an e-newsletter. A weekly or monthly newsletter is one of the best ways to use your email list. Make sure to provide value-added content that people want to read, instead of a sales-pitch.[49] For example, if a massage artist, you might recommend 5 ways to stay relaxed between massages. Or if you are an interior decorator, you might write about choosing the right paint.
7
Use press releases. A quality press will be picked up by major search engines and hundreds of websites and posting one is relatively inexpensive, typically $200 to $300. There are several wire services to choose form, including PR Newswire and PR Web.[50]
8
Promote your website in the real world. Mention your site to customers and friends, and make sure your web address is printed on everything, including your letterhead, business card, and any brochures you might have.[51]
9
Keep up withreviews on sites like Yelp and Kudzu. Good reviews are a great way to get business, and the best way to get them is to provide friendly, quality service and great products. But you should also keep an eye out for negative reviews so that you can post your side of the story.[52]
How to Start a Home Internet Business How to Start a Home Internet Business Reviewed by Fazal abbas on 1:43 AM Rating: 5

No comments:

Powered by Blogger.