Internet Entrepreneur - Create Your Own Online Business Plan
Are you thinking about owning an online business? If so, this article will help you through the thinking process and allow you to rise above other entrepreneur wannabes. We will first explore the characteristics of an online business before we go over the essential elements of a sound online business plan.
An online business is not too different from a brick and mortar store in the sense of cash flow. Both physical and online businesses pay expenses to keep the entities running, and both generate revenue through their products and services. However,there are 3 critical differences between the two:
1. The online business has the potential to market to the entire world, while the brick and mortar store focuses primarily on the local market.
2. The online business has almost unlimited earning potential. The local store would have a hard time getting additional customers without opening new stores or expanding its market territory.
3. It takes much less time and money to start a business online than to start one across the street.
On the internet, you can open up a store and start selling in the matter of hours. And depending on what you choose to sell, you may spend as little as $30 for a fully functional business. But to start a brick and mortar store, you first need to rent a storefront, get insurance, hire employees, and stock your inventory weeks before you open. Not only is this time consuming, you are putting a great deal of your own money at risk. Although the success rate of internet entrepreneurs is much lower than their traditional counterparts, the amount of investment involved is relatively small. As a result, vast numbers of ordinary people still turn to internet business everyday.
While becoming an internet entrepreneur is easy, staying as a successfully one takes work. The competition among internet start-ups is fierce. This is the reason that a good online business plan will set you above the rest. Let's go over the general steps.
First, do some homework before you start drafting your online business plan. For example, do some research on your target audience, your potential customers, and your competition. Calculate a budget and a time frame for your start-up. It is typical for a new business to be spending more than it makes in the first few months. This does not necessarily mean your online business is not viable. It simply needs the time to build up reputation and a customer base.
Second, define the details pertaining your business operation. Are you selling other people's product or your own? Are you going to have a website or blog? How do you market your products? The more thorough you are with this step, the better your online business will be.
Lastly, it is equally important to consider the possibility of failure. No business is fail-safe, and you need to take responsibility in case the unfortunate event happens to you. Set a loss limit for your business. If you have not hit the limit, your business is still running and has a fight chance. If you have reached it, it's time to move on to something else in your life.
After thinking through all these things, you are ready to draft your business plan. When writing it, be thorough and realistic. For creative business ideas, funding methods, and current trends, I suggest you read the Entrepreneur Magazine. It's available in most bookstores and online at Entrepreneur.com. For more detailed steps on how to plan out your online business, Click Here [http://www.squidoo.com/online-business-plan]. For additional business ideas, Go to DayJobIncome.com [http://www.dayjobincome.com].
An online business is not too different from a brick and mortar store in the sense of cash flow. Both physical and online businesses pay expenses to keep the entities running, and both generate revenue through their products and services. However,there are 3 critical differences between the two:
1. The online business has the potential to market to the entire world, while the brick and mortar store focuses primarily on the local market.
2. The online business has almost unlimited earning potential. The local store would have a hard time getting additional customers without opening new stores or expanding its market territory.
3. It takes much less time and money to start a business online than to start one across the street.
On the internet, you can open up a store and start selling in the matter of hours. And depending on what you choose to sell, you may spend as little as $30 for a fully functional business. But to start a brick and mortar store, you first need to rent a storefront, get insurance, hire employees, and stock your inventory weeks before you open. Not only is this time consuming, you are putting a great deal of your own money at risk. Although the success rate of internet entrepreneurs is much lower than their traditional counterparts, the amount of investment involved is relatively small. As a result, vast numbers of ordinary people still turn to internet business everyday.
While becoming an internet entrepreneur is easy, staying as a successfully one takes work. The competition among internet start-ups is fierce. This is the reason that a good online business plan will set you above the rest. Let's go over the general steps.
First, do some homework before you start drafting your online business plan. For example, do some research on your target audience, your potential customers, and your competition. Calculate a budget and a time frame for your start-up. It is typical for a new business to be spending more than it makes in the first few months. This does not necessarily mean your online business is not viable. It simply needs the time to build up reputation and a customer base.
Second, define the details pertaining your business operation. Are you selling other people's product or your own? Are you going to have a website or blog? How do you market your products? The more thorough you are with this step, the better your online business will be.
Lastly, it is equally important to consider the possibility of failure. No business is fail-safe, and you need to take responsibility in case the unfortunate event happens to you. Set a loss limit for your business. If you have not hit the limit, your business is still running and has a fight chance. If you have reached it, it's time to move on to something else in your life.
After thinking through all these things, you are ready to draft your business plan. When writing it, be thorough and realistic. For creative business ideas, funding methods, and current trends, I suggest you read the Entrepreneur Magazine. It's available in most bookstores and online at Entrepreneur.com. For more detailed steps on how to plan out your online business, Click Here [http://www.squidoo.com/online-business-plan]. For additional business ideas, Go to DayJobIncome.com [http://www.dayjobincome.com].
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