Starting an Online Business Rated:

If you are looking for a relatively inexpensive and convenient way to work for yourself, starting an online business may be a great choice. You can start up from anywhere in the world and reach customers across the globe. There are even suites of small business software to help you start and grow your business.

Here are some things to consider when planning your virtual business:

What's your plan?

Remember that even though your business exists in a virtual environment, it follows the same rules as any small firm. First, you will need to make sure you have a sound business idea, which is backed up by a business plan, market research and a sales forecast for at least a couple of years into the future. To help in preparing your plans consider using one of the popular small business software package in the market today.

Even if you have run a traditional business in the past, there still may be more to learn when you move online. In fact, running an internet business can present some unique challenges. Marketing on the web is different from marketing in local newspapers, for example. Do your research to make sure you know what is required for online success.

Choosing a domain name

Before creating your website, you will need a place for it to live. Registering a domain name is typically an inexpensive task, as long as you are not trying to land one of the top-selling names. There are a number of services that allow you to find out if a domain name is taken, how much traffic it commands, if there are any variations on the name available.

Keyword-based or brand-based? You should consider whether you want to choose a keyword-based domain name (e.g. www.discount-pet-foods.com) or a brand-based name that is completely original (e.g. www.eBay.com).

Many small businesses who do not have the budget for a large marketing campaign may find it is more cost-effective to choose the first option - plus, it increases the chances that someone will find your website when they are searching for a specific term. However, if you plan to do most of your business locally, it may make more sense to use your firm's name, because that is how your customers will know you.

Obviously, the ideal scenario would be to purchase the most direct, uncomplicated domain name for your business that describes exactly what you sell. Unfortunately, those names are probably already taken. You may have to use a lot of creative energy - and testing - before you arrive at the perfect domain name, but ensuring that customers can easily find you is worth the effort.

Web hosting considerations

Once you secure a domain name, you can find a location to 'host' or store your website online. Your web host is like your online neighborhood - it provides the server where your virtual business will "live," as well as tools and support. There are a number of options to consider when choosing a host, such as cost, how much space you are likely to need, how much support you will require and what types of programs you are likely to be using.

Web hosts may offer a variety of services, so make sure you are clear about your business' needs before you begin investigating. For example, retail businesses may want to make sure their host offers a shopping cart facility, while other types of firms may require sophisticated email-handling capabilities. It is a good idea to speak with other online business owners about their experiences with a web host before choosing one.

Creating your site

Should you build your website on your own or hire someone to do it for you? Many experts advise that unless you have experience in web design, you are likely to get better results from a professional.

For those who do decide to go it alone, there are a number of do-it-yourself web design packages available. You should keep several factors in mind when creating your site, including user-friendliness, how to draw people's attention to the most important information and how to keep the design simple enough so that visitors will not be overwhelmed. It may be helpful to visit a number of other websites - including competitors - for ideas.

Accepting payments

If people are going to buy products from your website, you will need to set up a way to accept payments, called a merchant account. You can achieve merchant status through your existing bank or you can look into using one of the many companies that exist for this purpose. There are a variety of online payment solutions and ecommerce payment systems out there, which may even be included in the small business software you own or plan to buy.

A secure server is another requirement, to encrypt and protect your customers' credit card details. Customers are unlikely to feel comfortable buying from a company that does not provide this important security measure, which is typically included as part of a credit card processing package.