How to Start an Internet Based Company
by Kay Miranda, Demand Media
Many customers will find you based on your company name.
www and internet image by mbs from Fotolia.com
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Many people seek to open an Internet-based company because it invites prospects from around the world to buy their products and services. Starting an Internet-based company involves all the same business structure components required of any brick-and-mortar company. Establishing a business entity and developing a set of goals are paramount to any business venture. One of the challenges to the Internet-based company is dealing with worldwide competition offering the same or similar items for a lower price.
Develop an idea of what you can offer through an Internet-based company. You can sell products, crafts or services or even be an information hub making money off of selling advertising. Focus the idea to attract a specific target market.
Step 2
Write a business plan that explains the company mission, marketing strategies and revenue streams. Research costs for web development, domain purchases, hosting and advertising to incorporate into the financial schemes of the business plan, detailing exactly how much it will cost and what revenue return you expect.
Step 3
Obtain financing. A simple website company using templates in a state with low business filing fees may require only a few hundred dollars. Expenses go up with proprietary programming, web design and intellectual property, possibly costing tens of thousands of dollars. If you don't personally have the funds, ask family and friends or show your business plan to small business lenders or venture capitalists you locate through your local Small Business Administration office.
Step 4
Establish the business entity. Corporations limit liability and exist in perpetuity as long as the company is solvent. Limited liability companies don't exist in perpetuity but do limit personal liability while transferring the tax burden to the owners. You can establish a business entity by visiting your Secretary of State or using one of the many entity establishing companies found online. Keep in mind that the name of your company does not need to be the same as your website name.
Step 5
Open a bank account for the business and register for merchant services to accept payments online. Most banks offer discounted merchant services for business account holders.
Step 6
Buy your website domain under the business entity through a domain registrar. Obtain a hosting plan as well that meets the bandwidth space required for your website to properly operate. Sites with streaming video or member profiles require more bandwidth and are more expensive to host annually.
Step 7
Develop the website. Simple website designs are offered as part of most hosting plans. For more complex website programming, you may need to hire a web programmer and designer to create a unique site for your company.
Step 8
Market the website based on your business plan's marketing strategies. Utilize social networks, online banner advertising and print advertising to get the name out both regionally and nationally. Remember, with an Internet-based company, the more visits to your site, the stronger your revenues are.
If you are concerned about losing the domain name, buy it when formulating the idea, but sign a domain transfer, moving ownership into the business entity as soon as possible.
Requirements to Start a Company on the Internet
by Louise Balle, Demand Media
One quick way to make your business idea a reality is to start it online, as it is often less expensive to operate an online business versus a traditional business. For example, instead of renting an office to start a consulting business, you could solicit and service clients remotely via the Internet. Most of the requirements to start an online business mirror the process of setting up a brick-and-mortar company.
Choose Business Location—Domain Name
One of the first requirements to start a company on the Internet is to secure an appropriate domain name so that customers can find your company online. A domain name is a virtual business location, similar to the address of a commercial building. Choose a web-hosting provider that will provide storage space for your business website files.
Accept Payments—Online Merchant Account Service
In order to accept payments from customers, sign up for an online payment service. Popular online payment services include PayPal and Google Checkout. With these types of services you can sign up for free and then pay a per-transaction fee. Another option is to apply for your own Internet merchant account, which commonly requires a setup fee and monthly charges plus a per-transaction fee.
Hire Help—Web Programmer or Designer
In order to publish your company to the Internet you need to hire a web designer and programmer; sometimes you can find someone who does both. This person designs your online business destination the same way you might design the interior of a brick-and-mortar store or a sign to hang above the entrance. A number of hosting providers also offer web-building tools and templates if you wish to create your own business website.
Inform Customers—Web Content
Your web pages must have relevant and informative content, similar to the marketing materials such as company brochures that are distributed by businesses that do not exclusively operate online. This content also takes the place of salespeople to sell your products and services.
Market Your Business—Online Advertising and SEO
As is the case with a physical store or office, potential customers will not know about your Internet company unless you advertise. You can do so with online text ads, banner ads, social media marketing and by creating search engine optimizing (SEO) for your website to bring traffic to your page. Some online advertising services allow you to target your ads to specific customers.
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