With the ups and downs that occur every few years within the global economy, coupled with the constant fear of losing one’s job and being financially handicapped, It has become apparent that there is a need for diverse income streams.
Or maybe you are tired of working a 9 to 5 job and you are looking for a way to branch out, and start doing something that you are either passionate about or executing an idea that has been nudging at you for far too long.
Whatever the case may be, do not be perturbed as there is an escape route to propagating that idea or goal you have in mind.
There has never been a better time than now, in launching an internet business—why—because, with the advent of the world wide web, the world has become a single market, thereby giving you and your business a global reach.
We are going to try and give you a few tips on things you need to arm yourself with before launching an online presence. Entrepreneurship, be it the traditional brick and mortar venture or an online enterprise— is no joke, and as such should have caution as the watch-word.
Research is the first and most essential thing you want to do when it comes to establishing an online venture. No matter what you think you know or how excited you are about an idea, It is profitable wisdom to first embark on extensive research before even thinking of starting up.
Not only will this save you money, pitfalls, and sometimes even litigations in the long run, but you will gain clear insights as to what others within your target niche or industry are doing. There are a lot of tools (like eCrawl, Google survey, ahref.com, etc.) out there that can help precipitate proper research.
Choosing a Niche
The standard practice will suggest that you should first pick a niche before even doing any form of research, which in its own right, is solid advise, but most often, you find that a particular niche might already have several businesses offering the same services you already planned to give. Or in some cases that your proposed niche might not be as lucrative as you thought.
A better system will be first to choose an industry, then research that industry for a particular niche that you think will best suit you and your aspirations.
Registering your Business
Deciding on what type of registration you want for your enterprise is a crucial step because it is not just a website you are creating; it’s a business. Depending on the size of your site and ambition, you might want to carefully consider which structure, best suit your needs in terms of;
- Sole trader
- Limited liability company
- Public limited/Public traded company
Making a business plan is an excellent strategy when launching an online business, because not only will it help you in the smooth implementation of your business but will also help an investor to see the growth potential of your well laid out plan.
But if on the other hand, you intend to bootstrap (self-funding) your online venture without the need for external funding, then you can go ahead and make a not too professional business plan. All in all, it is a smart thing to do, because without it— it’s like coaching a football team without a playbook.
A small site could be easy to set up with some free and less complicated web tools such as “Wix” in your spare time or with just a few hundred dollars; whereas a big site will cost millions. So depending on the size of your business and goals; thus, the level of funding required.
Here are some funding options you might consider:
Bootstrapping: this involves the funding of your website by yourself, or perhaps through a financial institution, or better still, keep your day job while running your website.
Equity Finance: this involves swapping a stake in a business for cash. Other sources can include friends and family, angel investors, or venture capital funds.
Debt Funding: this involves taking out a traditional bank loan.
In a Nutshell
In conclusion, we will close off with “choosing the right premise or working environment.” It is also a very vital part of your online business. A lot of small-scale online startup make the mistake of using their homes as the companies front, and by so doing fail to recognize the impact this will have on their tax, mortgage, and insurance payments.
But on the plus side, working from home could give you the benefit to claim tax relief on utility bills for the parts of the house you use for your work.
If you choose to rent or buy your own house, you will most certainly have to pay business rates.
It is always advisable to check with your Valuation Office or agency to obtain a rateable value before making an informed decision.