Part 2 - Starting an Online Business - Preparation

Spending time in the planning and preparation stage helps you to anticipate problems, identify areas for improvement, and spot new opportunities! There are a few things to consider when beginning a business.

Knowing what you're capable of doing and what you enjoy plays a large part in deciding what business to go into. If you choose to stick to what you know, you'll probably find it easier to establish contacts, get supplies, etc.

Ask yourself:
  • What skills do you have? Include the skills you currently use at your job (yes, even if you're a full-time parent), and those you've developed through hobbies.
  • What types of businesses interest you? Do you love to meet and talk with new people, or are you the type that prefers to sit nose-to-screen in front of your computer all day long?
  • How much time are you willing to spend? Factor in the amount of time you'd like to spend with your family, friends, and other commitments (volunteer work, for example). Of course, every business is going to require a lot of time - particularly in the startup phase - but some businesses will require more than others.
  • Would your family support your choice of business? There may be certain types of businesses that may cause friction within your family – and your family's support can be a real blessing when you're trying to build your business.

Ultimately your goal is to make money doing something you love. Many people dream about quitting their jobs to run a business of their own - but there is no point in leaving a job you hate for a business that makes you miserable! It's possible to have a genuine love for your business and be excited to go to work everyday!

Decide which skill or interest to concentrate on. You might have many different business ideas - but the fact of the matter is, time is limited and most people find themselves plenty busy just starting one business! It's better to have one profitable business than a whole bunch of unprofitable ones.

Once you have decided on your skills and interests, you need to do some preliminary research. Find out where your prospective audience gathers. This could be within special online communities such as message boards or chat rooms. Some places such as Talk City, Network54 and Internet World are great places to start checking out online communities . And don't forget to find out where your audience gathers in the offline world as well!

There's also the old reliable fall-back of using the search engines to do your research. Search engines such as Yahoo.com, Google.com, MSN.com, Altavista.com, and Netscape.com are some of the more popular engines. Tip for making your search more specific is to place quote marks around the string of words you are searching for and then to place a plus sign in between words. An example for searching for golden retriever puppy breeders might look like this "golden retriever+puppy+breeder". This will deliver you a very specific result. To get a broader result take out the quote-marks, and to get an even broader list then remove the plus signs. The possibilities are endless.

Spend some time reading everything you can. Purchase a notebook and start jotting down ideas as they come to you. As you read through other people's postings, articles, and anything else you can find, they may trigger ideas of your own for a product or service. Write them all down as they come to you and you can refine your product ideas later on.

Get opinions and advice from others - both from your prospective audience, and from 'mentors' - people who have 'been there, done that'. There are many ways to do this. Message boards are a good way to start. You'll find some people who are willing to help - people who can speak with the voice of experience. Just ask. Of course, you should be reasonable in your requests. Asking someone to become your personal full-time mentor for free is not reasonable. Asking for help with a specific problem is far more likely to get responses. You could also contact the board moderator and ask for permission to post a survey on his or her board.

Find quality newsletters where your prospects gather. Subscribe to the newsletter to see the quality of the publication for yourself. Then purchase a solo ad and send out a reader survey. You will likely need to provide an incentive for people to respond - for example, a significant discount on your new product or service, or a nice gift that appeals to your prospects.

If you have a web site, use it. Assume that your site draws visitors who are also your prospects, place an interactive survey on your site and again, give visitors a reason to fill it out. Make it as intuitive and easy for them as possible; if it's confusing or too long, chances are they won't bother.

Analyze the competition for the type of business you want to begin. Some people think that they want to be the first in the business so they have no competition. Actually some competition for a business is great. Competition is evidence that there's a demand for the product. No competition at all may indicate that there's no market for the product... while too much competition can also spell trouble!

Actively search out your competitors.

  • What are they doing, how are they doing it, and how well are they doing?
  • How are they reaching their intended audience?
  • How much are they charging?
  • How do they differ from their own competition?
  • What can you offer that they can't?
  • Is there room for you in this market?

So you have now:

  • Taken a personal assessment: Listed your skills and likes and dislikes
  • Become focused: Decided on the interests and skills to concentrate on.
  • Done your preliminary research: You know where your prospective audience gathers, and you are reading everything you can about your new venture.
  • You are asking for help and advice: You are speaking with a mentor, business coach or others that have some experience with the venture that you are pursuing.

And you have

It is tempting to jump right in with both feet - especially once you have solid evidence that you have a great product idea and an audience that wants it. But preparation is vitally important; it will help you to anticipate potential problems or issues, and keep you organized - you'll be more likely to do everything you need to do, rather than facing an unexpected problem in a panic later on. It is time now to move in to the planning stage of your business. ( read article on Starting an Online Business – Planning)