Frequently Asked Questions About Internet or Online Businesses – Part 2
I thought it would be helpful if I take some of the top questions that have been asked about the internet or online business and share my take on each of those. In my answers, you will find both strategic or big picture as well as short-term and tactical information that you can put to use immediately. So here we go folks.
#1. How to start internet business with no money?
Before we get into details, let me tell you that there are plenty ways of making money online but none that involve creating NO VALUE. What do I mean by that? By delivering value, i.e. solving a problem is how you can make money online without any upfront investment.
In terms of tactics, there are plenty of ways to start an online business without much money. You can publish a book on Amazon without spending a single buck, assuming you can write your own manuscript and a book cover. You can also create informational products such as courses with video lessons and PDF handouts, without even setting up a website.
#2: How to setup an internet business?
There are variety of ways to set up a business and it depends on your business model. You can sell digital products using your own website or another platform such as Udemy or Clickbank. In either case, setting up your product listing is usually pretty straightforward however you need to do your homework beforehand. What do I mean by that? You need to think about your corporate structure, i.e. if you live in the US you have several options to choose from such as establishing an LLC or a C corporation besides de-facto sole proprietorship. In addition to that, you need to think about tax implications of what you’re planning to sell, i.e. income and sales tax. Internet businesses are super-efficient as far as customer lifecycle is concerned because they rely on web software, tools and platforms that are mostly available for free.
#3: how to buy an internet business?
To boot, there are various ways to get into buying an internet property. You can buy a domain, an up and coming business with more future potential, or a fit and finished business such as a private label brand with strong revenues and customer base. Likewise, there are various different venues where you can go and buy a business. You can buy a business online as well as through private equity firms. For example, businesses are on sale at Shopify Exchange, Flippa, Empire flippers to name a few.
Just like everything else, there are some significant advantages and risks in buying an existing business. For benefits, you’re tapping into a proven business, an existing brand name with sellable products so product/market fit is already established, and likely a strong ROI. In terms of risks, the biggest issue is an error in the due diligence itself where you can overlook some financial, legal or product related issue which can become a liability down the road. During due diligence process, you need to make sure that you understand the competition, details on marketing channels and how they were built – for example for email lists, you would want to understand how it was built and if everything was legit in the collection process.
#4: Can I run an internet business from home?
Yes! In fact, most internet business owners run them from their homes. There is no doubt that you would need exceptional discipline to do this, but it is entirely possible and people who are successfully doing it are a living proof of that.
#5: What internet businesses are most suitable for beginners?
As far as I can tell, most folks make their first foray either using Affiliate marketing or all-digital products such as Kindle eBooks. Both of these make perfect fit for starters. While you may not make a high 6 or 7 figure business with Amazon Kindle, you can certainly get started with it with pretty much no initial capital. With online businesses, the key is to get your feet wet with no low risk business models and avoid something that requires strong retail knowledge and inventory management such as Amazon FBA. You can definitely venture into private label physical product businesses, as they offer strong 7, 8 or even 9 figure revenue potential and much higher chances of exiting by selling it to someone using the platforms we discussed earlier.