Starting an Online Business

**Motor Jax** · 12-03-2008, 08:20 AM

so, here in today's e-commerce and e-business where everything is at your fingertips, how does one start such a business from scratch?

this would be an insinuation that i am interested in. knowing my knowledge, my background, how can i sell my services online and have a business for myself?

but also for others to gain some knowledge in e-business.

i worked in telecommunications in the US Navy for 9 years, so there's a head start.

so, any ideas?

-----edit-----

this could also be considered Work/Education, right?

i figured since it mainly concerns online and such... well, if it needs to be moved... i don't mind...

*blushes*

**void** · 12-03-2008, 04:48 PM

Pardon my ignorance, but isn't e-business just another buzzword that simply means using the Internet as a sales medium? It should be largely equivalent to setting up a physical shop, the only exception being that rental costs are replaced by (much lower) IT costs associated with designing/maintaining the website, data transfer, etc. As usual, the "e" shouldn't be your primary focus. Your business model reigns supreme. What exactly are you selling and what differentiates it from the competition?

There isn't much room for innovation in the 'e' part of things. You can copy the business infrastructure design of Amazon, Overstock or any of the other gazillion retailers.

**PRBori** · 12-03-2008, 05:52 PM

Hmm... Let's see

1. Formulate the idea of the business you wish to start
2. Think of the "Business Name"
3. Obtain an EIN Number and associated it with the business name for tax purposes, and to give out instead of your social security number
4. Select the domain name and purchase it for 5+ years
5. Identify the type of skeleton website you need... SharePoint is a good choice if you want to have off limits pages or open to the public for sites that are not necessarily for selling products, but services
6. If you want to sell items, buy a skeleton site or check the domain sellers to see what they offer for one already made where you only have to worry about uploading and updating.
7. For services, provide an overview of your experience and a breakdown of the type of services offered

The list can go on and on.... but you get the point. Just remember that you will be responsible for paying taxes all the time... always keep aside 20%+ of your earnings to cover up for the hit. You also need to keep up a very organized bookkeeping record of income and expenses in case you get audited.

When I did bookkeeping I always made copies of the checks received, add it a spreadsheet with a list of the checks summary, the copy of the checks, and the bank deposit slip. Same goes for all other expenses... keep all receipts and attached them to the credit card records... Try to have a credit card specific for business expenses and nothing else, that will make it easier for you at the end of the year to deduct the expenses from your taxes.

I believe you need to keep those records for up to 10 years in case you get audited, it may be less... but this is something you will need to check on

**ScottH** · 12-03-2008, 08:43 PM

Business plan. Really. Start there.

It's not clear from your post what your business would actually be, but the technical details, "steps to completeion" if you will, are trivial. The hard part is building the business model (how you do what you do, and how it makes money). That's your business plan.

Over the years, I've owned a couple short-lived businesses, provided reviews and feedback on business plans, and I'm fairly well versed on internet business (starting one now, in fact :-)

Let's take an example. Say you are a brilliant writer and you have knowledge in a topical area that is valuable, so you decide to write and sell "e-books" online.

Your business plan will lay that out, cover any research you've done about why your material is valuable. It will contain predictions (backed up with argument and/or evidence) that you will sell [x] copies per month for price [y], resulting in [z] total dollars of revenue.

Next, you'll lay out the fixed cost of startup (writing your e-book, buying materials, etc.), the recurring cost of your business (what it will cost to operate it month to month), and show that when you subtract the recurring costs from [z], the result is positive.

Of course, you'll also cover your advertizing plans, some evidence why you think it will work, and then the obvious:
1) What if I don't meet my expectations plan (how to scale back)
2) What if I exceed my expectations plan (how to scale up)

It's not rocket science, but it requires a non-partial, critical mind to reivew your plans.

Internet hosting is super cheap: $4.99 per month for a sizeable site. Shopping-cart software is about the same price. Web-design is another matter, but not too bad if you shop around.

Does any of this help answer--or inspire--any questions?

**pure potential** · 12-03-2008, 11:00 PM

	Originally Posted by ScottH To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
	Business plan. Really. Start there.

Great guidance, SH! The business plan is also a tool that will help you realize where you are with your "great ideas" and where you need to be to succeed with any product/model. If you can't fill in the blanks of a business plan (and there are many types/templates/softwares to choose from), you won't be able to successfully launch anything. Its the plan that builds a strong business boat and keeps it on course.

Either way, good luck! This is definitely the direction we all (if so inclined to) should be looking at: providing a service/product to our communities that we enjoy and are knowledgeable of!

**LiamWolf** · 12-04-2008, 03:14 AM

How much money you got? I have a plan for something that could be bigger then Wikipedia.

**pure potential** · 12-04-2008, 11:18 PM

More than you can imagine (more than I can too). PM me if you are serious- and have a plan. A solid one is all that is needed to inspire an investment in quality.
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**LiamWolf** · 12-05-2008, 12:53 AM

Hmm, really? Because I do have a plan, and you know us ENTs are really good at spotting gold mines.

**pure potential** · 12-05-2008, 12:56 AM

Gold is not my bag baby, I'm more interested in blue carbon.
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**Motor Jax** · 12-05-2008, 04:50 AM

tks PRBori and Scott... those replies definitely helped define my research a bit by covering more than i was initially pondering...

@PRBori - i am pretty good at record keeping... i keep some pretty good files on all my stuff.... but 10 yrs of files? i'm gonna need a bigger file cabinets...

@Scott - tks for opening some doors... i'm sure i will inspire some questions in the future...

**OrrDavey** · 12-07-2008, 12:19 PM

Just start a porn website. Those are pretty big nowadays.

**Motor Jax** · 12-07-2008, 12:43 PM

hahah... actually, i was thinking about starting a business in something i like, like being a general electronics/electrician and fixing peoples' stuff... that way, i can make my own hours and my own price... i just have to get out there and start putting myself out there...

**reb** · 12-07-2008, 05:56 PM

Motor Jax,

that's basically 'it'. if you do something like computer/radio/electronics repair, you are likely going to have more of a local slant with older folks, and perhaps some bidness from younger ones off the net. you won't have much inventory cost to worry about, unless things take off big. the initial investment, presuming you don't already have the tools, will be the tools and a place to work. if you have a spare room, you got half that covered. if you got the tools, and the desire, it's time to print some business cards, put them up on restaurant 'stick boards', and pass a few out when you talk electronics with people. just my opinion, but 'word of mouth' is the best advertising...someone does me right, i pass it on. they do me wrong, i pass it on 10x. put your customers first, and i think you'll shortly be quite busy...i have a half decent computer tech here local, and i drive 25 miles to see him if i have something cranky i can't fix myself.

business is simple...treat the customer like they are king or queen (whichever they prefer, and don't make faces if the queens wanna be kings or vice versa); keep your expenses down; don't be jerky to anyone if you can help it; do good work; pay your taxes. this is the basics...i think you got a great idea. most of us know 'online support' is not there when you need it, and i'm danged if i want to send my hard drive to someone i dont know across the country, or my cpu, either. the older i get, the more i want to see some person's face when they are working on my rig....

**Motor Jax** · 12-08-2008, 09:05 AM

tks, reb...

i am presently staying in the basement at my aunt's house, and its a pretty good size (of course, before i moved in, it was the kids playroom so there are toys in one corner of it)... but if i wanted to move those things, i could.. she already gave me permission to do that if i need the extra room...

i don't think it would be too much trouble to get my name out there... i'm a social butterfly, so meeting new people are easy...

but i don't know what kind of price range to go for... heh, i will look around at local repair shops and see what they charge...

**reb** · 12-08-2008, 06:14 PM

Motor Jax,

don't overlook the 'net...i.e., search term 'elecronics repair' on blackle:

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To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.

To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.

this was off the first page. i KNOW for a fact there are manuals detailing repair cost for auto/trucks...there must be one for electronics somewhere. persistence is the best advantage a person can have in my outlook...without it, i'd been sleeping under a bridge somewhere.

12-03-2008, 08:20 AM	#1
Motor Jax Veteran Member [52%] MBTI: INFJ Join Date: Mar 2008 Posts: 2,105	so, here in today's e-commerce and e-business where everything is at your fingertips, how does one start such a business from scratch? this would be an insinuation that i am interested in. knowing my knowledge, my background, how can i sell my services online and have a business for myself? but also for others to gain some knowledge in e-business. i worked in telecommunications in the US Navy for 9 years, so there's a head start. so, any ideas? -----edit----- this could also be considered Work/Education, right? i figured since it mainly concerns online and such... well, if it needs to be moved... i don't mind... blushes
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12-03-2008, 04:48 PM	#2
void Member [18%] MBTI: INTj Join Date: Jun 2008 Posts: 758	Pardon my ignorance, but isn't e-business just another buzzword that simply means using the Internet as a sales medium? It should be largely equivalent to setting up a physical shop, the only exception being that rental costs are replaced by (much lower) IT costs associated with designing/maintaining the website, data transfer, etc. As usual, the "e" shouldn't be your primary focus. Your business model reigns supreme. What exactly are you selling and what differentiates it from the competition? There isn't much room for innovation in the 'e' part of things. You can copy the business infrastructure design of Amazon, Overstock or any of the other gazillion retailers.
void is offline post a comment

12-03-2008, 05:52 PM	#3
PRBori Core Member [109%] MBTI: INTJ Join Date: Feb 2008 Posts: 4,373	Hmm... Let's see 1. Formulate the idea of the business you wish to start 2. Think of the "Business Name" 3. Obtain an EIN Number and associated it with the business name for tax purposes, and to give out instead of your social security number 4. Select the domain name and purchase it for 5+ years 5. Identify the type of skeleton website you need... SharePoint is a good choice if you want to have off limits pages or open to the public for sites that are not necessarily for selling products, but services 6. If you want to sell items, buy a skeleton site or check the domain sellers to see what they offer for one already made where you only have to worry about uploading and updating. 7. For services, provide an overview of your experience and a breakdown of the type of services offered The list can go on and on.... but you get the point. Just remember that you will be responsible for paying taxes all the time... always keep aside 20%+ of your earnings to cover up for the hit. You also need to keep up a very organized bookkeeping record of income and expenses in case you get audited. When I did bookkeeping I always made copies of the checks received, add it a spreadsheet with a list of the checks summary, the copy of the checks, and the bank deposit slip. Same goes for all other expenses... keep all receipts and attached them to the credit card records... Try to have a credit card specific for business expenses and nothing else, that will make it easier for you at the end of the year to deduct the expenses from your taxes. I believe you need to keep those records for up to 10 years in case you get audited, it may be less... but this is something you will need to check on
PRBori is offline post a comment

12-03-2008, 08:43 PM	#4
ScottH Member [16%] MBTI: INTJ Join Date: Nov 2007 Posts: 672	Business plan. Really. Start there. It's not clear from your post what your business would actually be, but the technical details, "steps to completeion" if you will, are trivial. The hard part is building the business model (how you do what you do, and how it makes money). That's your business plan. Over the years, I've owned a couple short-lived businesses, provided reviews and feedback on business plans, and I'm fairly well versed on internet business (starting one now, in fact :-) Let's take an example. Say you are a brilliant writer and you have knowledge in a topical area that is valuable, so you decide to write and sell "e-books" online. Your business plan will lay that out, cover any research you've done about why your material is valuable. It will contain predictions (backed up with argument and/or evidence) that you will sell [x] copies per month for price [y], resulting in [z] total dollars of revenue. Next, you'll lay out the fixed cost of startup (writing your e-book, buying materials, etc.), the recurring cost of your business (what it will cost to operate it month to month), and show that when you subtract the recurring costs from [z], the result is positive. Of course, you'll also cover your advertizing plans, some evidence why you think it will work, and then the obvious: 1) What if I don't meet my expectations plan (how to scale back) 2) What if I exceed my expectations plan (how to scale up) It's not rocket science, but it requires a non-partial, critical mind to reivew your plans. Internet hosting is super cheap: $4.99 per month for a sizeable site. Shopping-cart software is about the same price. Web-design is another matter, but not too bad if you shop around. Does any of this help answer--or inspire--any questions?
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12-04-2008, 03:14 AM	#6
LiamWolf Member [04%] MBTI: ENTP Join Date: Nov 2008 Posts: 171	How much money you got? I have a plan for something that could be bigger then Wikipedia.
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12-04-2008, 11:18 PM	#7
pure potential Member [37%] MBTI: INFJ Join Date: Jul 2008 Posts: 1,494	More than you can imagine (more than I can too). PM me if you are serious- and have a plan. A solid one is all that is needed to inspire an investment in quality. To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
pure potential is online post a comment

12-05-2008, 12:53 AM	#8
LiamWolf Member [04%] MBTI: ENTP Join Date: Nov 2008 Posts: 171	Hmm, really? Because I do have a plan, and you know us ENTs are really good at spotting gold mines.
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12-05-2008, 12:56 AM	#9
pure potential Member [37%] MBTI: INFJ Join Date: Jul 2008 Posts: 1,494	Gold is not my bag baby, I'm more interested in blue carbon. To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
pure potential is online post a comment

12-05-2008, 04:50 AM	#10
Motor Jax Veteran Member [52%] MBTI: INFJ Join Date: Mar 2008 Posts: 2,105	tks PRBori and Scott... those replies definitely helped define my research a bit by covering more than i was initially pondering... @PRBori - i am pretty good at record keeping... i keep some pretty good files on all my stuff.... but 10 yrs of files? i'm gonna need a bigger file cabinets... @Scott - tks for opening some doors... i'm sure i will inspire some questions in the future...
Motor Jax is offline post a comment

12-07-2008, 12:19 PM	#11
OrrDavey Member [05%] MBTI: INTj Join Date: Nov 2008 Posts: 212	Just start a porn website. Those are pretty big nowadays.
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12-07-2008, 12:43 PM	#12
Motor Jax Veteran Member [52%] MBTI: INFJ Join Date: Mar 2008 Posts: 2,105	hahah... actually, i was thinking about starting a business in something i like, like being a general electronics/electrician and fixing peoples' stuff... that way, i can make my own hours and my own price... i just have to get out there and start putting myself out there...
Motor Jax is offline post a comment

12-07-2008, 05:56 PM	#13
reb Core Member [257%] MBTI: XNTJ Join Date: Aug 2008 Posts: 10,280	Motor Jax, that's basically 'it'. if you do something like computer/radio/electronics repair, you are likely going to have more of a local slant with older folks, and perhaps some bidness from younger ones off the net. you won't have much inventory cost to worry about, unless things take off big. the initial investment, presuming you don't already have the tools, will be the tools and a place to work. if you have a spare room, you got half that covered. if you got the tools, and the desire, it's time to print some business cards, put them up on restaurant 'stick boards', and pass a few out when you talk electronics with people. just my opinion, but 'word of mouth' is the best advertising...someone does me right, i pass it on. they do me wrong, i pass it on 10x. put your customers first, and i think you'll shortly be quite busy...i have a half decent computer tech here local, and i drive 25 miles to see him if i have something cranky i can't fix myself. business is simple...treat the customer like they are king or queen (whichever they prefer, and don't make faces if the queens wanna be kings or vice versa); keep your expenses down; don't be jerky to anyone if you can help it; do good work; pay your taxes. this is the basics...i think you got a great idea. most of us know 'online support' is not there when you need it, and i'm danged if i want to send my hard drive to someone i dont know across the country, or my cpu, either. the older i get, the more i want to see some person's face when they are working on my rig....
reb is offline post a comment

12-08-2008, 09:05 AM	#14
Motor Jax Veteran Member [52%] MBTI: INFJ Join Date: Mar 2008 Posts: 2,105	tks, reb... i am presently staying in the basement at my aunt's house, and its a pretty good size (of course, before i moved in, it was the kids playroom so there are toys in one corner of it)... but if i wanted to move those things, i could.. she already gave me permission to do that if i need the extra room... i don't think it would be too much trouble to get my name out there... i'm a social butterfly, so meeting new people are easy... but i don't know what kind of price range to go for... heh, i will look around at local repair shops and see what they charge...
Motor Jax is offline post a comment

12-08-2008, 06:14 PM	#15
reb Core Member [257%] MBTI: XNTJ Join Date: Aug 2008 Posts: 10,280	Motor Jax, don't overlook the 'net...i.e., search term 'elecronics repair' on blackle: To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts. To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts. To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts. this was off the first page. i KNOW for a fact there are manuals detailing repair cost for auto/trucks...there must be one for electronics somewhere. persistence is the best advantage a person can have in my outlook...without it, i'd been sleeping under a bridge somewhere.
reb is offline post a comment