I hate to be the harbinger of bad news but there is not a pot of gold waiting for you because you sell on the Internet. I have been asked several times about conducting business on line. I have been running my company for 10 successful years (knock on wood) so I can share some knowledge I have garnered over time.
It sounds easy. You buy or make something and you put it up on EBay, Amazon, Google Shopping, Etsy, and or your own e-commerce store and you make money on the profit. I wish it were that easy!
All the shopping sites need a cut. Your own e-commerce store is not inexpensive to set up. Your payment venues want a cut of processing credit card charges along with the credit card companies. You need to advertise be it social media or paid advertising. You need insurance and licenses. Shipping your product to your customer costs too. Take all these costs into consideration and your profit is usually less than gold.
Business on line is still doable. I am just talking about products not services. Speaking of services, you can spend nothing or a small fortune attending various how-to, motivational seminars and coaches. Some are great, don’t get me wrong, but before you drop a few thousand dollars on a weekend conference or retreat, or coaching package ask yourself if you will be able to implement what you learn and will it make a positive return on your investment for your business?
Here are my 5 tips for a new start up:
- Not every idea or business is going to be successful. Set up focus groups before you take out a second mortgage on your home.
- Don’t take out a second mortgage on your home for a start up.
- Talk to everyone you know about your idea. Do not worry that someone else will steal your idea.
- Set a budget and buy nothing that does not help your return on investment, but don’t try to do everything yourself. Hire experts.
- Be patient. Be objective. Grow a thick skin. Listen carefully to suggestions and comments.
Do you have any suggestions to add?