Ten Tips for Choosing the Right Internet Business

Use these guidelines to help you hone in on the perfect internet business to meet your skills and income needs

Ten Tips for Choosing the Right Internet Business

1. Don’t quit your day job – Since there are no guarantees in life, it doesn’t make sense to quit your day job until your internet business has proved it can replace the income your day job provides. Even then, you may want to keep your day job.

2. Understand that internet businesses fail – As proven by the dot com collapse, there is nothing ‘magical’ about having a business on the internet that guarantees success. In fact, most attempts at creating profitable businesses on the internet have failed. Even the big companies that have poured billions into their internet businesses have seen the majority of their efforts fail.

Don’t let this discourage you – just understand that failure is more frequent than success.

3. Establish your working parameters – Before you start evaluating different internet businesses, clearly establish your working parameters. Define how many hours a day, week, or month you are willing to work on the business. Define how much money you can afford to invest in start up costs. Define how many employees (if any), you are willing to take on and manage – (it was 2 years before I took on a part time member of staff), and define your exit strategy.

It is a good idea to discuss these parameters with your spouse or family partners before you set them in stone. Their input is important to your success.

4. Define your goals – Define what you want to accomplish with your internet business. How much income must the business generate before it is a success? How much a day, a week, a month, a year?

The amount of income you desire directly impacts which business models you choose.

5. Review the business models that have proven successful on the internet – The recent shakeout on the internet has left only a relatively few businesses standing. By looking at the survivors, we can see that a few business models seem to work well on the internet, while others have little chance of success.

Those business models that work well include:

* Subscription sites – charging a membership or subscription fee in return for providing access to a web site

* Applications on tap – charging a fee to use a product or service on the net

* Specialised software – developing and marketing specialized software to fit the special needs of higher end customers

* Support services – offering products, tools, templates, training on how to improve internet businesses

* eBay sales – selling items on eBay, either your own products, or working as an eBay Trading Assistant helping others sell their items.

The common denominator in all the above business models is the product is information or service based, and is delivered over the web. Choose a business model built on this and you have a much better chance of success.

6. Avoid business models that are failure prone – The massive failure of so many well-funded internet business ventures has shown the following business models should be avoided:

* Any business model that involves the physical delivery of products with minimal profit margins. Don’t try to sell dog food, groceries, furniture, or other widely available products via the net.

* Any business model that puts you in direct competition with Tesco, Amazon, Dell, or eBay. These larger companies can do it better, they can buy products cheaper, they have deeper pockets, and can sell at a loss longer than you can. The only way to win – don’t compete with them.

* Any business model where you buy wholesale, and try to sell retail. The margins are too slim, too much volume is required to make a profit. (If in doubt, ask Amazon.)

For the best chance of success choose a business model where you create or own the product you sell, the product is delivered digitally, you have little direct competition, customers can order online, and a single copy of the same product can be sold many times.

7. Evaluate your goals and parameters against each of the successful business models – Since it will be you who actually has to spend the hours working on your internet business, it should be you who decides which of the business models mentioned above best fit your time, talent, and desires. Some business models will produce lower incomes, but will require less work. While others will require much more work, but can produce much higher income.

Be sure to take into account how you might become a ‘prisoner of your own success’ if you choose a business model that requires your full time attention as your business grows.

8. Don’t overlook the obvious – You may already have the skills, expertise, inside knowledge, or niche hobby interest that could be the basis for a great internet business. For example, if you have several years experience running a bed & breakfast, then you might want to consider offering an internet based information product for those wanting to open their own bed & breakfast (a newsletter, a subscription web site, a buy/sell service, etc.)

9. Be careful who you take advice from – There are a lot of people offering advice on the subject of creating a successful online business. The only problem – the vast majority of these people haven’t had any success in creating or running their own online business. Most just jump into the advice or ‘guru’ business because it seems like an easy thing to do.

If you want to rely on gurus to lead you down the path, be sure they’ve been down the path themselves.

10. Listen to your heart and your head – Get involved with those businesses that make you happy and give you a reason to get up each morning. Avoid the ‘sounds too good to be true’ pitches, and the ‘I wouldn’t do this, but I really need the money’ excuses. Keep your priorities straight – family, health, spirit, community, and then, business.

One final tip – often it is a lot easier to get into a business than it is to get out of it.

Choose your business with as much diligence as you would choose a wife or husband. Because in the long run you may end up spending as much time with your business as you do with your spouse!

Online Home Business Opportunity Is Waiting For You

Most business requires a lot of capital to start with. It involves serious preparations before you can be in business. It includes choosing the business location, the office, the products or service and other elements concerning business as a while. If you are thinking about starting a business but do not want to be in serious debt for the business capital, online home business opportunity might be what you wish for.

You can find endless business opportunities online to get involve with. The opportunities are endless. You can decide what type of business you want to be involve in. It is really up to you. It will greatly depend on your interests, likes and loves. Business that you choose should be one that you like and loves doing. You will not be successful running a business that hardly appeals to you.

Business opportunities abound the Internet. However, the best opportunity has to come from within yourself. Identify the needs of people around you; do not just copy the business of another person. The more unique the business opportunity is the better. However, keep in mind that it should be something of great interest to most people. If you are the only one who is interested in your product or service, it is not advisable to continue.

When you think of starting an online business opportunity you should start from within yourself. Think of the possible home businesses that you can put up. Start with making a list of things based on your hobbies, interests, loves, and likes. Do some research online. It can help you determine which opportunity can be pursue as an online home business. Choose the right one so that you can now start an online home business right away.

After you have chosen the business opportunity, you can start organizing your business. By this time, you should already know the product or service that you will be offering to the World Wide Web. You can reach customers from different parts of the world. You will be amazed by the number of people you can reach everyday by having an online business. Local business has limited ability to serve only local residents. You will be able to be in online business for as long as you want to. The key is to come up with effective business and marketing plan.

In order to be in online home business you must have your own website. You need to generate traffic in order to make money online. Do not make your business opportunity fail. Do all your work to make the business a success. You must not get discouraged easily. Having your own business means that you will have to work hard and you must have the right business attitude.

The opportunity is knocking. What is your answer?

Owning Your Own Home Business -10 Reasons to Look Forward to April 15th

OK, no one really likes tax time, but, owning your own home business can make April 15th a bit more enjoyable if you know how to save money on your taxes. There are many legitimate business deductions allowed by the IRS for the home business entrepreneur, the key is knowing what they are and what you need to do to claim them.

Sandy Botkin, CPA and former IRS attorney says, “If you do not have a home based business you are losing money.” The tax advantages to a properly formed home business and not a hobby are worth your time and efforts.

Tax Advantages

Business Deductions

It should go without saying that all business deductions should be reasonable and necessary. And to prove those claims you must keep accurate books and records. If the IRS where to audit you they would be looking for such items as sources of income, detailed expenses, bank statements, credit card statements and all receipts for purchased items and services rendered.

The more deductions your business can legitimately take, the lower its taxable profit will be. Here is a simple example: if you earn $100,000 per year from your job and home-based business, combined, but have $15,000 in allowable business deductions from your business, you would only pay taxes of your net income of $85,000. At 30% tax rate, that could save you $4,500 in federal taxes!

Auto Expenses

Proper logging all business related travel will help you reduce your yearly auto expense. You will need to track the date, purpose of the trip, and round trip mileage. These few extra steps will save you money on gas, yearly upkeep and insurance costs.

Education/Training Expenses

All home business owners need to keep on top of their industry or may need to update their computer skills. Cost for seminars, online training programs, books, e-books, professional memberships and subscriptions are all deductible. You can even deduct those fees from your lawyer and tax professional.

Business Entertaining

Does your home business require you entertain clients? If so, you can deduct a percentage of those costs directly related to the business. Keeping good notes on this activity, jotting down who was their, what was discussed and making certain that business activity was foremost, will ensure the legitimacy of this claim by the IRS.

Travel

How would you like to have your vacations paid? Owning a home business can help you achieve just that. The IRS allows you to combine business travel with pleasure provided your primary purpose for the trip was for business. You can deduct such expenses as your plane fare, operating cost of your car, rental cars, taxis, lodging, meals, tips, dry cleaning, telephone calls, faxes, well you get the idea. However, this will not include all expenses for family members if they accompany you, unless by chance they work for you!

Advertising

All expenses involved with advertising or promoting your business are deductible. For example, business cards, classified ads, brochures, fliers, posters, t-shirts are just a few.

Interest

Interest on credit cards and business loans are fully deductible.

Computers and Software

Is your business done on the computer? Do you need software to operate your business? Do you need to connect to the Internet? These rules can change based on the business model so be sure to check with your account for your industry.

Charitable Contributions

Part of being a model citizen and business owner is to give back to your community. Charitable contributions are allowable. Again you should consult with a professional on what you can take based on your business structure.

Household Expenses

This is one of the most valuable deductions. If you use a percentage of your home, say a den or the basement “exclusively” this will qualify you for this deduction. This will allow you to save on your utility bills, phone bills, maintenance; even a portion of the interest you pay on your home is deductible.

These 10 tips only scratch the surface of the tax benefits owning a home business provides. As always it’s important to consult with a CPA or Tax Attorney to ensure you are taking the proper deductions and getting all you deserve. Keeping those hard earned dollars in your pocket and out of Uncles Sam’s is to your benefit.