Online Business - Your Opportunity to Build Income and Value
How to Build an Online Business
Ambition, motivation, change - these are all good reasons to start your own online business.
Failure is Not Even Trying
More than 90 percent of the people who try their hand at starting an online business quit after three months.
I don't consider them failures, I see them as trying something that just didn't fit. Have you ever tried on clothes and they didn't fit? You didn't feel like a failure did you? No, you just kept trying on other clothes until you found the right ones. This is the same mindset you need when searching for the right online business.
Don't Fall for the "Easy Money Pitch"
It's human nature to look for the easy way.
The so called "Internet marketers," the ones who early on took advantage of the vulnerable people who were looking to make extra income, they did quite a bit of damage to the reputation of online business in general. They focused on the sweet and left out the sour; this left many people with a lasting sour taste in their mouth for this business.
When this whole notion of "making money online" was in its infancy stage, yes, the people telling other people how to make money online were making a lot of money. This is always the way it is when a new fad comes to town.
The Keyword is...Build
To really build an online business, one that will last, you need to listen, learn, and do.
As mentioned, finding the right fit is vitally important for success and so many people do the opposite. Try buying pants with a 32 waist, while your waistline measures 38 - you'll have a devil of a time making them fit. This is the same problem people have when they look at online businesses - they buy the hype, not the fit.
Building a business takes time. You have to go through learning curves, you have to make mistakes, and you have to experience successes.
Finding the right fit, the type of online business that you work well in is the first step in the process.
Building Income From an Online Business
Building income is done in increments. You'll be lucky if you make money in your first three months online.
The Beauty of Online Business
Starting a traditional business requires a lot of cash to survive those first several months of negative cash flow. Surviving this cash flow dilemma in the online environment is not nearly as bad as traditional businesses.
In the online world you don't have rent, insurance, utilities, inventory, and a slew of other expenses at the start. This is one of the major reason people are attracted to this type of business venture.
Even if you don't know all aspects of starting your online business, you can learn and not have to worry about negative cash flow.
Getting to the Point of Making Money
You've heard of putting the cart before the horse? In this case the cart ends up going nowhere.
You will be in the same boat if you think about the money before the business.
I knew a guy who started a sandwich shop. The prior owner already had a self-serve, all you can drink soda fountain. This guy took out the soda fountain and started selling sodas by the can. How in the world can you stay in business when every place is offering soda refills and you are trying to squeeze pennies from customers who's one pleasure in life is getting soda refills?
Needless to say this guy didn't last long and he sold the business (or what was left of the business) for a substantial loss. You see he was thinking more about the money than he was the business, in this case his customers.
Three Steps for Building Online Income:
- Get a good, honest overview about what the Internet business is about.
- Find out what type of online business fits your needs.
- Think about your business, customers, and then money in that order.
And don't think we're oblivious to money, no, we know the importance of budgets and expenses and taxes, but don't do what my friend did when he started his sandwich shop...it never has a happy ending.
How to Increase Value in Your Online Business
One thing that's easy to lose sight of is the long term value of an online business. With the emphasis on making money, there's not much talk about building value.
I simply categorize value as how much I can sell my online business for. Know it or not, when you build a website and conduct business on it, you are now part of the virtual real estate crowd. How seriously you build your business will determine it's future value.
There are three factors that determine value in an online business.
- Customer Base
When you increase income you increase value, they go hand in hand.
When you hear over and over again, make 15k in two weeks, you don't think of the Internet as a long term business. If people can look out past 2 weeks, then we can get serious about increasing income and value.
The natural question is, how do you start? Lets do a quick outline:
- Get a good overview, understanding of what a real online business is about.
- Pick a subject that you like to start your first project with.
- Is there a market to sell to?
- What will you sell?
- What type of website will you need and what method of marketing will you use?
- What's you plan or routine each day for building your online business?
- Are you prepared to learn, so you can increase your income and value of your business?
If you can get the answers to these questions, man, you'll be way ahead from the way I started.
Things You Can Do to Increase the Value of Your Online Business
There are little things you can do to increase the value of your business such as finding new products and services, providing customers with useful information via email, and making your website more user friendly.
People always have opinions and they love to share them, so ask your customers what they need, what they want - this is a great relationship building technique.
Even though we're not at the beginning of the Internet craze, we're definitely not at the end - somewhere in the middle and there are plenty of opportunities out there to start your own online business.
Just remember - don't put the cart before the horse.