Many people dream of leaving the corporate world for a home office.
Do you have an idea for a new online business or service? Perhaps you have a blog and are thinking of monetizing it with ads or affiliate links. Or maybe an eBay business that you can run from your garage? As an entrepreneur that started my online business back in 2001, I have some very practical advice for anyone thinking of starting a business of their own.
But first a quick history lesson, anyone remember the online grocery delivery service WebVan? They went bankrupt in 2001, and serve as a great reminder of what NOT to do when starting an online business. You see, WebVan did things backwards. They initially spent an enormous amount of capital on stuff that added nothing to the actual quality of the service they were going to provide. A true recipe for disaster in the online world. For example, they bought over 100 Italian leather chairs at over $800 each when $25 Office Depot chairs would have served them just fine. Simply put, online companies cannot survive the early stages of development making stupid decisions like this.
A couple months ago I was invited to speak to an eCommerce class at a local high school in the town I live in. Here are some practical tips that I passed along to the students that day:
~ Have A Passion For It! Let’s say you are thinking of starting a business website or blog. My best piece of advice is to choose something you have a passion for! If you are an avid golfer, consider a website or blog where you would review golf clubs and golf equipment. First of all, you probably already have a certain level of expertise and your passion for golf is going to come through in your writing and keep people coming back to read what you have to say. Plus, you will be much less likely to burn out if you enjoy what you write about. You can then make money by sending your visitors to golf sites that actually sell the clubs and products that you are reviewing. For those of you unfamiliar with this type of business model, it is called affiliate marketing. In my example, Golf Warehouse.com, or Austads.com, would pay you a referral or commission fee on any sales generated through your links. Check out ABestWeb.com for more information, it will answer all your questions about affiliate marketing and is a great free resource.
~ Do Your Own Research. Before you move ahead with your business idea, become an expert in the field. This can be done by talking to anyone and everyone in any way related to your proposed business. Ask questions, pick brains, send emails, and make phone calls. Also, create a survey and ask friends, neighbors, and colleagues for feedback. Ask them if they would use your business or service, and why or why not. By doing this, you make sure there is a demand for your idea before you invest your time and resources. The best business idea in the world is useless if their is no current demand for it.
~ Don’t Quit Your Day Job. Back in 2001, when I was developing Rather-Be-Shopping.com, I continued to work as a pharmaceutical representative during the day and put in time on my website at night and on weekends. It wasn’t until my business was making enough money to support myself and my family that I quit my day job. One of the best days of my life! Being your own boss and having creative freedom is a feeling unlike any other.
~ Use What You Already Have. Most likely, if you are reading this, you already own your own computer. Consider yourself ahead of the game! Heck, I started my online business with an original Pentium computer, 30 GB hard drive, and a slow dial-up connection. I was determined to not get into debt, and thus did not go out and buy a fast computer and DSL connection until I was making enough money with my business that I could afford it.
~ Teach Yourself. The amount of free information and tutorials on the Internet is incredible, use it! I taught myself how to make a website with Microsoft Frontpage and basic HTML, then I figured out how to market myself to both users and the search engines. Now with the advent of blogs, you can start a website for free with services like Blogger and WordPress. All free things that just take time to learn how to do. Since I was still working a “regular” job, I could learn how to do these things without huge bills and debts hanging over my head like a sharp ax waiting to fall. A luxury that WebVan would have liked to have had!
The Internet has truly leveled the playing field and allowed people like you and me to start a website or blog and immediately start competing. Success ultimately comes to down to how bad you want it and how hard you are willing to work to get where you want to be. I am an entrepreneur to the core, and love brainstorming new business ideas, so please contact me if you have any questions about either my business or one that you are considering. I look forward to helping you and answering your questions.
In keeping with tradition, here are some online coupons and free shipping deals for office supplies, and computer stuff, that may be able to help you save money on your business endeavors.
Office Depot.com
Save 10% Off your Entire Online Purchase
Coupon Code: 78445094
Expires: 7/02/08
See All: Office Depot Coupons
Office Max.com
Get Free Shipping when you spend $50 or more
Coupon Code: None Needed
Expires: Unkown
See All: Office Max Coupons
Dell Computers.com
Get 25% Off Inspiron Laptop purchase of $999+ and Free Shipping
Coupon Code: 66Z2MXLFSZF43P
Expires: 6/12/08 (New Dell coupons will be available 6/13)
See All: Dell Coupons
Buy.com
New Customers, Get $10 Off $200 or more in Buy.com’s Computer Store thru this Link
Coupon Code: None Needed
Expires: 6/30/08
See All: Buy.com Coupons
Overstock.com
Get $8 Off your $125+ order thru this Link Only
Coupon Code: None Needed
Expiration: 6/30/08
See All: Overstock Coupons
Staples.com
Get Free Shipping when you spend $50 or more
Coupon Code: None Needed
Expires: Unknown
See All: Staples Coupons
Tiger Direct.com
Open Box Computer Deals, Save 80% off Computer Products
Coupon Code: None Needed
Expires: Never
See All: Tiger Direct Coupons
Photo by Faster Panda Kill Kill.
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Great point about being frugal and only spend money on things that add-value to your business or for the customer. Spending money on nice office is definitely a bad move especially if your customers are never going to see it.
Best advice for starting up alternative business: start small & grow it! Don’t put out more than you can afford to lose. If the experiment doesn’t work as planned, you have gained experience, not lost your shirt. Then on to the next project. Beware of grandiosity – i.e. those $800 chairs! And remember the learning curve & work it. I know those facts from my years of being a 99 seat theatre producer in L.A. – I ended up not losing $ – a great accomplishment in that realm!
Those are definitely the steps I would take for building a business. You obviously did things the right way and I am sure you are not looking back now!
Good advice on starting a business. I will certainly be using your advice on my business. Thanks.
I too dream of a day I can stay home with my kids while earning a sizable income from my online venture. But that’s still far away. I do agree that you shouldn’t spend money before you start making some. I most spent money on hosting and may be the logo design and That’s it. Until I make some money, that will be all I will put out. If I don’t, well at least I tried.
PS: I run a relationship development blog, if you have some time, feel free to come by and leave a comment or two. Looking forward to hear from you.
Thanks
WOW… great advice! This site is awesome. I will feature you in my blog soon
wow I just started to sell some jewelery on ebay and I actually sold something yesterday and instead of making any money I lost and paid for shipping too. I wish I could have read your post earlier but in future I am going to come back and ask you for advice. thanks again.
Your topic on having a passion for your business hit home for me. So many times I have an idea or concept, but it’s hard to stay focused for more than a few months. Passion is so important for success. I really enjoy reading your blog. Thanks for the wonderful advice.
try it
Great post! Could I add one more tip for starting up a biz? Barter for services instead of paying cash. Lots more places are willing to barter these days and it can reduce your startup costs. For example, you can go to a place like http://services4stock.com and give up a little equity to get services like advertising, lawyers, etc.
So – that’s my new tip: barter – helps reduce startup costs!