It never ceases to amaze me when people just throw up a site and wait for the money to roll in. Granted, the whole idea of a web store is to generate revenue with little investment, I mean that’s why everyone jumped in to the dot-com fad in the first place. Nothing, though, should be done with out much thought, and no business, be it web or regular, should be operating without the basic business tools. Frankly, most of these key tools can be done inexpensively or on your own, keeping your investment, other than time, to a minimum. Please be sure that you have the following things when starting up!
- LLC, you can form your own LLC without and attorney. There are kits that are available at any national bookstore or office supply store. I know that mine was affordable and I obtained it from Amazon.com. The LLC protects your personal assets from those of your business. If you go under, you want to make sure you don’t lose anything that is not connected with the business.
- Federal Tax ID number, you need this for your accounting and to allow you to buy your product tax-exempt. In order to obtain one all you have to do is contact your local Chamber of Commerce for the correct phone number and web address to do this. This actually only takes a matter of minutes.
- A business plan, think carefully of how much you can invest financially and as far as time. You need to make a schedule for yourself to dedicate to the project and stick to it. Figure out how to market cheaply and almost cost free. Have a set plan on how you want your business to grow and make a two-year plan. Don’t invest all you have in an online business as you could sink quickly. Remember, this is a part time job to start, as you’ll not be getting rich over night. Most of all, don’t get discouraged from a slow start, getting your business known takes time and there is a lot of competition, but perseverance will pay off in the long run.
- An accountant, I don’t care if it’s H&R Block, you need to do your taxes quarterly. Save every single receipt, even those that you may not be sure apply or not. You will want every write off you can get. As a home based business you will also get a break based on your electric, phone service, Internet service and rent/mortgage, as your home is where your business is based. Don’t forget that all office supplies, packing supplies and equipment used to run your business also applies.
- Community Standards and laws. Should you choose adult oriented merchandise or anything you think questionable, make sure you research the net on states that may or may not cause you trouble for shipping questionable merchandise in to them. Know your own community standards and obscenity laws, as you will likely be holding merchandise in your home. An obscenity charge can be quite expensive as I so regretfully found out.
- Communication. Please be sure to talk to veterans in the business. There are many chat and newbie boards where you can seek advice and get questions answered, take advantage of these resources.
- Distributors. Make sure you speak to several and do price comparisons among them. Look for a sales-person with whom you can rely on and who is helpful. Also look into how well they keep their warehouses stocked, the last thing you need is a popular item out of stock!
- Be a consumer. You need to know what you’re selling; it is difficult to give great customer service when you yourself have no idea what you’re selling. If you’re not a consumer of adult merchandise, then you have no business becoming a retailer of such product.
- Customer Service. This is the most difficult part of any retail, even with a computer between you and the customer. Make sure your service is fast, efficient and that you back up what you’re selling. Make sure that shipping time, stock availability, and return policies and clearly visible on your site. With all the competition out there you want to be sure that each customer is a return customer!
Until next time I wish all of you a great start to your new business venture!
