notes-books-startingAnOnlineBusiness

notes on Starting an Online Business All-in-one, by Shannon Belew and Joel Elad

things to be done:

" finalize or validate business idea write a formal business plan select a ... name register ... name choose domain name register domain name identify business location check zoning laws (if home based) set up office (computer, telephone, and so on) decide organization status of company legalize business structure obtain business licence setup business bank account meet with accountant to review tax requirements obtain employer identification number (EIN) secure business and health (or other types of) insurance secure funding (if using outside sources) apply for sales tax certificate (if applicable) select hosting service select web developer select distributor or drop shipper create content for web site select products and finalize services develop web site add shopping cart or other ecommerce applications obtain merchant account file trademarks and copyrights submit site to major search engines initiate marketing plan test (and correct) all site functions launch site to public! "

important links: www.copyright.gov/register www.irs.gov www.ic3.gov/complaint (report online fraud and email abuse) www.uspto.gov/main/trademarks.htm https://sss-web.usps.com/cns/landing.do (print postage and ship fromm your computer) www.sba.gov/financing (small business administration: find financing information and loan applications)

site launch checklist: "

• site map (layout and structure of all pages) is complete
• site map matches the site exactly
• each page is displayed and is fully accessible
• each link works and goes to the right page
• all graphics are loaded quickly and completely and are "crisp and clean"
• no misspellings or grammer errors
• pricing information and product or service descriptions are correct
• all form submissions work
• text boxes or drop-down boxes on forms work
• top-level menu buttons work
• "special commands that are spelled out with coding language (HTML or PHP, for example) show up properly when the site loads
• credit card processor and other payment options work
• you have included appropriate membership icons (for the BBB or chamber of commerce, etc) if desired)
• tested for browser compatility and alternate screen resolutions
• contact info (possibly including an email address and phone #) is ez to find
• copyright symbol and current year at the bottom of each page

tips for building a loyal customer base online

• offer multiple ways for customers to contact (email, phone, online chat, online forums)
• "respond to customer email within 24 hrs"
• "engage customers by providing ways to interact..." e.g. "online communities, product reviews, commenting on blogs"
• "make customers feel special by sending coupons and other exclusive offers to your registered users or frequent buyers"
• offer multiple payment options for convenience
• free shipping, no strings attached
• send special offers or gifts on birthdays and other special occasions
• "find creative ways to thank customers..."

book I, chapter 2

special things you may need to do for an online biz

• "see the invisible storefront": you usually can't hear or see your customers' reactions to your website
• "understand who your customers are": "where else they shop, how much time they spend on your site, what products they're interested in, where they live and work, how much they earn annually, whether they are parents, and what magazines they read"
• keep up with fast-paced changes in trends, regulations, security, technology, marketing
• attention spans are short, so "content should always be relevant, easy to find, and to the point"
• know when (and whether) to innovate
• establish multiple streams of revenue; e.g. sell your product on other websites in exchange for a cut, or add someone else's product to your site and pay a cut

putting your business idea under the microscope

informal research

start by asking your close contacts about your idea, then move outward to people less connected to you. start with friends, family, and co-workers; then talk to experts; then to customers. for friends, family, co-workers, and experts, ask them:

"

• have you ever heard of this type of product or service?
• would you buy this...?
• do you think it's a good idea?
• what challenges do you think i will encounter?
• what are the benefits?
• can you envision me selling this product or service? why or why not? "

for customers, ask: "

• would you use this product or service?
• have you used something similar?
• how much would you be willing to pay?
• how often would you use it?
• where would you normally go to buy this product or service?
• would you order it over the internet? "

to find experts:

• www.sba.gov
• www.sba.gov/sbdc
• www.uschamber.com
• www.score.org
• www.onlinewbc.gov (woman's business center, by SBA)

SWOT

Strengths and weaknesses are interal factors, opportunities and threats are external.

questions:

strengths:

• what advantages does the product or service offer?
• do i have expertise in this industry?
• can i get a patent on it?

weaknesses:

• how much will developing the product cost?
• hard to find suppliers?
• do i not have expertise in this industry?

opportunities:

• "does my idea take advantage of a new technology?"
• is it in demand?
• have changes in regulations made my idea necessary?

threats:

• are there established competitors?
• can competitors underprice me?
• will tech changes make my product obsolete?

feasability study

todo "

book II, chapter 4: accounting

"when you interview bookkeeper candidates, use the free Bookkeeper's Hiring Test" www.aipb.org/testrequest.php

things to keep records of:

• amounts and dates of all wage payments (incld' pensions etc)
• fair market value of in-kind wages
• employee info: name, addr, ssn, job title, dates of employment
• copies of W-2* forms
• records of sick pay
• copies of W-4* forms
• dates, amounts, and confirmation #s for all tax deposits made, and copies of all filed records
• records of any fringe benefits paid to employees