These days, the internet is a major part of both
small and big business. With extensive traffic on the web, from social media
advertising to new methods of merchandising online, a new generation of
business people is growing up: the internet entrepreneur is someone who is
looking at the vast power of the internet to start or grow a business. Whether
it's a physical merchandising business or a play on innovative modern services,
someone who wants to become a successful internet entrepreneur will often pay attention
to some startup basics involving blending this new technology with classic good
business sense.
Decide what you will do. You need to have an idea to have a business. Figure out
what parts of the economy are doing well and focus on them. You could, on the
one hand, provide a physical service for people, like arranging for the local
purchase and delivery of groceries. Or, on the other hand, you could provide a
virtual service like consultation or editing.
- The most successful internet startup ventures today are SEO consulting, business coaching, selling specialized goods as a retailer, social media consulting, and web design.
Do market research. Your idea may seem like something profitable, but until you
see who else is doing it, you won't know how you will fit in. Use statistical
data offered by government agencies such as the Bureau of Labor Statistics as
well as third party sources to find similar businesses. Do your own
word-of-mouth interviews, surveys and tests to see what people would spend
money on.
Have a concrete business plan. Just as in traditional business, internet businesses can
profit greatly from a well thought out business plan that will help attract
capital, guide leaders in starting and growing a business, and present this
fledgling enterprise to the outside world as something legitimate with great
potential.
- A business plan helps you structure your company and convince potential investors that you have a viable company.
- Look at the sector your product fits into, and design a marketing strategy.
- Structure your company according to this strategy.
- Write out projected expenditures and cash flow.
Look at the little details too. A detailed business plan should help present viable finance
for a business. It should also attract interest and enthusiasm by offering
investors and others a vibrant look at the potential for what the business is
offering. A business plan gives new businesses what they need to survive:
attention and the presentation of potential success.
- Putting together a projected budget will force you to think through your business model. It will also show investors that you know how to run a business. Start by making a list of all possible expenditures and all possible sources of income. Then calculate how much each should cost you.
Choose a complementary partner(s). You and your new best friend will be responsible for every
aspect of business until you are big enough to expand. That means that you
don’t want someone who has the same skill set as you. If you are better with
creating and maintaining the website, pick someone with exciting business
ideas. If you can’t do basic coding and website building, find someone who can
do that in addition to helping run a business.
