Ten Tips for Choosing the Right Internet Business
Use these guidelines to help you hone in on the perfect
internet business to meet your skills and income needs
Ten Tips for Choosing the Right Internet Business
1. Don't quit your day job - Since there are no guarantees
in life, it doesn't make sense to quit your day job until
your internet business has proved it can replace the income
your day job provides. Even then, you may want to keep your
day job.
2. Understand that internet businesses fail - As proven by
the dot com collapse, there is nothing 'magical' about
having a business on the internet that guarantees success.
In fact, most attempts at creating profitable businesses on
the internet have failed. Even the big companies that have
poured billions into their internet businesses have seen
the majority of their efforts fail.
Don't let this discourage you - just understand that
failure is more frequent than success.
3. Establish your working parameters - Before you start
evaluating different internet businesses, clearly establish
your working parameters. Define how many hours a day, week,
or month you are willing to work on the business. Define
how much money you can afford to invest in start up costs.
Define how many employees (if any), you are willing to take
on and manage - (it was 2 years before I took on a part
time member of staff), and define your exit strategy.
It is a good idea to discuss these parameters with your
spouse or family partners before you set them in stone.
Their input is important to your success.
4. Define your goals - Define what you want to accomplish
with your internet business. How much income must the
business generate before it is a success? How much a day, a
week, a month, a year?
The amount of income you desire directly impacts which
business models you choose.
5. Review the business models that have proven successful
on the internet - The recent shakeout on the internet has
left only a relatively few businesses standing. By looking
at the survivors, we can see that a few business models
seem to work well on the internet, while others have little
chance of success.
Those business models that work well include:
* Subscription sites - charging a membership or
subscription fee in return for providing access to a web
site
* Applications on tap - charging a fee to use a product or
service on the net
* Specialised software - developing and marketing
specialized software to fit the special needs of higher end
customers
* Support services - offering products, tools, templates,
training on how to improve internet businesses
* eBay sales - selling items on eBay, either your own
products, or working as an eBay Trading Assistant helping
others sell their items.
The common denominator in all the above business models is
the product is information or service based, and is
delivered over the web. Choose a business model built on
this and you have a much better chance of success.
6. Avoid business models that are failure prone - The
massive failure of so many well-funded internet business
ventures has shown the following business models should be
avoided:
* Any business model that involves the physical delivery of
products with minimal profit margins. Don't try to sell dog
food, groceries, furniture, or other widely available
products via the net.
* Any business model that puts you in direct competition
with Tesco, Amazon, Dell, or eBay. These larger companies
can do it better, they can buy products cheaper, they have
deeper pockets, and can sell at a loss longer than you can.
The only way to win - don't compete with them.
* Any business model where you buy wholesale, and try to
sell retail. The margins are too slim, too much volume is
required to make a profit. (If in doubt, ask Amazon.)
For the best chance of success choose a business model
where you create or own the product you sell, the product
is delivered digitally, you have little direct competition,
customers can order online, and a single copy of the same
product can be sold many times.
7. Evaluate your goals and parameters against each of the
successful business models - Since it will be you who
actually has to spend the hours working on your internet
business, it should be you who decides which of the
business models mentioned above best fit your time, talent,
and desires. Some business models will produce lower
incomes, but will require less work. While others will
require much more work, but can produce much higher income.
Be sure to take into account how you might become a
'prisoner of your own success' if you choose a business
model that requires your full time attention as your
business grows.
8. Don't overlook the obvious - You may already have the
skills, expertise, inside knowledge, or niche hobby
interest that could be the basis for a great internet
business. For example, if you have several years experience
running a bed & breakfast, then you might want to consider
offering an internet based information product for those
wanting to open their own bed & breakfast (a newsletter, a
subscription web site, a buy/sell service, etc.)
9. Be careful who you take advice from - There are a lot of
people offering advice on the subject of creating a
successful online business. The only problem - the vast
majority of these people haven't had any success in
creating or running their own online business. Most just
jump into the advice or 'guru' business because it seems
like an easy thing to do.
If you want to rely on gurus to lead you down the path, be
sure they've been down the path themselves.
10. Listen to your heart and your head - Get involved with
those businesses that make you happy and give you a reason
to get up each morning. Avoid the 'sounds too good to be
true' pitches, and the 'I wouldn't do this, but I really
need the money' excuses. Keep your priorities straight -
family, health, spirit, community, and then, business.
One final tip - often it is a lot easier to get into a
business than it is to get out of it.
Choose your business with as much diligence as you would
choose a wife or husband. Because in the long run you may
end up spending as much time with your business as you do
with your spouse!
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Nick James is a UK based direct marketer and product
developer. During the last 5 years Nick has sold in excess
of £1.6 Million Pounds worth of products and sevices
online. Subscribe to his Free Tip Of The Week email at:
http://www.Nick-James.com
