Thursday, March 13, 2014

What Is The Cost To Start An Online Business?

Starting an online business is all about one major commodity, It's all a function of that extremely precious commodity called Time. 

When the alternator in your car quits, you probably may be able to fix it yourself or else you have to call a mechanic. 

Working the Web is no different in this regard. Doing it yourself saves bucks, but may not be cost-effective. And it can be a serious mistake if you lack the required skills.

If you want your site to become a significant source of income, judicious use of time is mandatory. 





For sure, No one person can do it all. And what you mostly need but don't usually have time to do, will cost you some money if you still have to do it.

Going Into Business

If you are starting a new business, you must file a DBA (Doing Business As statement) or the equivalent in the county or state in which you will work. After filing, it may need to be published. 


Then you need to open a bank account, this is very important. Costs vary from state to state or place to place. In some parts of the U.S.A. for example, the minimum is about $50 for the DBA and $10/month for the bank account.

 Also consider any state or local licenses required. If you need an accountant, costs go up. 

Turn to an attorney, and they may skyrocket. But you may need to consider these options because of the products or services you will market, just as in an offline business. 

You may need to consider liability insurance. Incorporation may provide even more protection.

HTML vs Web Page Editors

You must understand the basics of HTML, the language in which web pages are written. There is a time cost here. But at some point, most will find it more effective to turn to a web page editor to save time. Costs range from about $20 to $200. 


 Building Your Site


Hiring someone to put a site together can cost hundreds of dollars. More important, you may find making changes later brings significant added cost. It is best to build your own pages, for then you have total control.

But the template used throughout the site is so critical to success, you may consider hiring an artist to get it right. Not the site, just the basic art work for the page template. Once the site is established, it can be very cost-effective to hire out the creation of new pages and updating. 


A good page template with original art work can run anywhere from $15 on up, but $100 should cover even special needs.

Free vs Paid Hosting Services

There is only one option. You must have your own domain name about ($12/yr) and a good hosting service.

Note forms or shopping carts only take the orders. You will need a merchant account to deal with credit cards. 


Set up fees run from about $300 on up. 

Monthly fees run from $25 and up. If you need online processing, add similar amounts.
 

Opening An Office

While getting started, you will likely keep your present job, and it may make sense to work from your home.


 Even so, you still need an "office," including stationery, invoices, business cards, and possibly brochures to be handed out wherever you happen to be. 

Costs here are the same as in an offline business, and will be a function of your needs.

Then there are other things, such as supplies, Laptop and computers, Printers chew up enormous gobs of paper. 


   A Phone Is A Must

An email address is not just enough. You need a phone and someone to answer it. Preferably a Toll free number. Even if you expect to receive few calls, this is a must.


 People often call just to see if you're for real. If there's no phone, you might have lost a sale. Some argue that voice mail is a reasonable alternative, but it will not help if you can not get back quickly. 

If you have a spouse who can answer, go for it. If not, find someone in your area who can take calls as your secretary. If you provide up-to-date information about your business, your "secretary" can often save you the need for a later reply.

 Further, there is simply no less expensive way to appear to be working the business full time.

The above is not the whole of it. For example, there has been no mention of search engines, yet good positioning can make a big difference.


 Again, if you know how to optimize pages and can do so easily, it is worth your time to do so. If not, hire it out. 

Writing skills are very important. If yours aren't so hot, factor in some cost for editing, or even creating both page content and the advertising message behind all. Good service is available at $15-$50/hour.

You must add up these costs relative to your particular needs. But it is unlikely you can start a serious online business for less than $200, even if you do all the work yourself.

Time Cost Analysis

Starting any business means commitments in time you can not expect to recover except over the long run. So good cost analysis is difficult initially.


 Even so, put a dollar value on your time, perhaps as low as $5/hour, to help you make good decisions about how you will use your time. 

Even at $5/hour, it will be clear that some things should be hired out.
 

Building web pages with HTML when you could be generating leads may not be the best use of time.

 Reading an ebook or two or search online about how to work the Web can be very helpful, but sometimes it's more cost effective to buy the information needed.

Working harder is often the only option available. But when possible, work smarter, which often means hiring services. In the end you'll have more fun and rake in greater profits sooner. 


Have a Wonderful Time.

1 comment:

  1. Well ! There are so many online business available today. Among all, i would suggest Reseller business. It is one of the easiest way to earn money via online. It is available at Goresellers.com . Here, you need to create a reseller account before starting it. No need to create your own website to start it . They provide webiste for you to sell products . After that , you can sell domain,hosting plans,etc.and earn good money through it.

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