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Starting a new business can feel both exciting and overwhelming. Would-be entrepreneurs can shift some of that overwhelming feeling toward the exciting side by following a few basic steps that help ensure a smooth launch. We’ve put together 9 of them in this checklist, broken down by category for easy browsing.
First steps for an Online Business
1. Deciding on an online business type
Nobody can start a business without first deciding what type of business it will be. Finances Online released an article detailing the top 12 most profitable online businesses. Unsurprisingly, those with the lowest startup costs dominated the list. Some, such as selling your own services, might require significant startup capital, depending on the equipment needed to perform that service at a professional scale. Others, such as flipping domains, cost very little and can start as side hustles.
2. Developing a business plan and defining company goals
Although it’s possible to start a business without a business plan, it’s often a recipe for failure. A business plan, even a basic one, will force entrepreneurs to understand exactly what will go into launching the business and plan accordingly. Many of the following steps discuss elements that would go into any effective business plan, so make sure to give this article a good read before drawing up and finalizing your business plan.
3. Choosing the right business structure (LLC, sole proprietorship, etc.)
There are several options for business structures. The most simple is a sole proprietorship. In this structure, the business’ income is simply the owner’s income. But its liabilities are the owner’s as well. If the business gets sued, all of the owner’s assets are on the hook. For small businesses, an LLC is typically used to separate the owner’s assets from the business in the event of legal trouble or bankruptcy. Once a business model is chosen, be sure to register with local governments and, if required, state governments.
Market Research and Target Audience
4. Identifying potential customers and competitors
Before pulling the trigger on a new business, it’s wise to make sure that the business idea is sound. A business that plans on selling pizzas and finds itself in a community of gluten-intolerant people with dozens of other pizza places nearby might not be the best idea. Of course, this is an extreme example, but entrepreneurs still need to make sure that there’s a solid customer base in place and be prepared to offer a value proposition that potential competitors don’t.
5. Developing a marketing strategy to reach the target audience
Sole proprietors can do this exactly the way the big boys do, just on a smaller scale. Think of the demographics of an ideal customer. Are they single moms with busy schedules, or are they retirees with lots of free time but little disposable income? They’ll likely be something else entirely. Whatever the demographics are, the tone used to communicate with them and the channels used to connect with them will all be different. Understanding the customer base is a key first step to marketing effectively.
Financial Planning
6. Creating a budget and estimating start-up costs
Unexpected expenses are likely to come up, but new online business owners need to have some idea of what is involved financially before spending money. What equipment does the business require? Is there a need to purchase inventory? What services will the business need to make use of? These are all important questions to ask in order to get a complete picture of the financial commitment.
7. Planning for ongoing financial management and record keeping
Running the finances of a business can be quite different than running household finances. This is especially true when using a business structure other than sole proprietorship. Those just starting out might not be able to afford an accountant, but should still become well-versed in the financial obligations of their chosen business type and decide which tools will be used to track income and expenses.
Getting a Business Online
8. Choose a domain name
At the risk of stating the obvious, it isn’t an online business without a website. Additionally, a business can’t present itself as a professional entity without a domain name. When choosing a domain name, pick something that will be easy for potential customers to remember, and also accurately reflects what the business does. Something may come to mind right off the bat, or it may require some inspiration. In the latter case, browsing domain name auctions can help get some ideas flowing. There may even be a domain worth purchasing at auction.
9. Find A Hosting Provider
When it comes to building a website, the platform you choose will have a significant impact on your hosting options. For example, if you’re using WordPress to create your website, you’ll want to consider managed WordPress hosting options like BetterWP. BetterWP provides optimized servers specifically designed for WordPress websites, ensuring faster loading times and improved website performance. It also offers a variety of tools and themes that make website creation and maintenance much easier, providing businesses with a hassle-free website solution.
It’s worth noting that while managed WordPress hosting options like BetterWP can provide superior performance and ease of use for WordPress websites, they may not be suitable for all types of websites. For example, if you’re using a different platform to build your website, or if you require more control over your server environment, web hosting may be the better choice for you. If that’s the case, Namesilo has you covered with a variety of web hosting options that cater to all types of website owners. Their hosting plans are affordable, feature-rich, and designed to accommodate both WordPress and non-WordPress sites. Namesilo’s hosting plans include a free website builder tool that you can use to create a website with ease, even if you have no technical experience
10. Create a website
The website itself is just as important as the domain name. When just starting out, the expense of a web designer is probably off the table, but there are plenty of website templates that can give a business a professional appearance without much effort. It’s also a good idea to look at some rudimentary information about SEO to help create a website that can draw in organic search traffic. While building up website copy, remember to keep the buyer personas in mind and write in a tone that will appeal to them.
Find the Perfect Domain
When it comes time to get the perfect domain for a new business, NameSilo can help you out. Whether it’s registering a new domain or finding an existing one that’s up for sale, NameSilo has a service for all of an online business’ domain needs. You can even use our domain marketplace to find potentially profitable domains for a domain-flipping business. Visit us here to find promotions and coupons.