With job layoffs rising, personal debt at all time highs
and home equity values falling, the sensible among us are
developing an extra revenue stream. One way to do this is
to set up your own online business.
Starting a new online business does not mean that you have
to give up your current job. You can set it up doing extra
work in your evenings and weekends and keep your income
from your current job while the income from your new
business grows.
So what do you need to do to maximise the chances of
success of your new business?
Find something that you're either good at or passionate
about. Then you need to research and plan properly.
Here are 8 questions - answer them in full for your
situation and you'll have the basis of a sound plan for
your business:
1. What are your skills?
Can you teach? Can you write? Can you sell? Are you
technically proficient?
2. What do people want to buy? In a recession.
Luxuries and frivolous things are not going to be at the
top of people's shopping lists if they are struggling with
the effects of recession. Necessities are.
3. Is there a market?
Is there a demand for it? How much would people be prepared
to pay for it? What will affect demand for it (e.g.
weather, strikes, competition) and how? How much
competition is there? How much is your competition charging?
4. What will the process be?
How are you going to make it? How are you going to market
and sell it? How are you going to deliver it? How are you
going to get people to pay you for it?
5. What are the dependencies?
Do you need premises - if so what type? Do you need outside
suppliers - if so for which parts? Do you need licences -
if so what licences? Do you need special equipment? Do you
need staff?
6. What are the costs?
Premises, raw materials, suppliers, marketing, delivery,
license costs, staff costs, lawyers and accountants,
day-to-day operational expenses.
7. How much money can you make?
How much can you sell it for? How many can you sell in a
week/month/year? What sales channels will you use? How
will you promote it?
8. Do you have sufficient funds?
What are the start-up costs? What are your marketing and
promotion costs? How long before you can break even? Where
is the funding going to come from?
It doesn't matter what type of business you're thinking of,
going through that checklist is a good way to make sure
you've got most things covered.
Use the answers to those questions to create your business
plan.
The good news is that you can mark a lot of the items above
as 'not applicable' if you can start an online business.
With an online, affiliate marketing business, for example,
your start up costs would be negligible, your delivery and
logistics costs zero, you would have no need for special
equipment or premises and no need for separate outside
suppliers.
But you still need to develop a plan!
It's important to remember that, whether your business is
online or off-line, it's still a business.
Don't be taken in by all the promises of easy money online.
It simply isn't the case - if it was everyone would be
doing it!
But it IS possible to make good money online - as long as
you treat it like a real business.
There are lots of resources available to help you with
developing and promoting your online business - just make
sure you pick top quality ones.
And run as fast as you can from anyone who promises that
you can be making thousands of dollars each month for
little or no work.
----------------------------------------------------
I'm a webmaster who writes a business blog providing help,
support and resources for people running a small, home or
online business. I grew up in Zimbabwe and now live in Hong
Kong.
For more information visit:
http://www.wealthydragon.com/blog
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