Are you looking for a way to make money from home? Maybe you want to try your hand at online marketing but aren’t sure where to begin? Or maybe you’ve been doing some research on the subject and want to know more about starting an online marketing business? If so, this article is for you. We’re going to cover everything from the nuts and bolts of business planning to the various legalities surrounding online marketing. By the end of this article, you’ll know what you need to know to begin your own online marketing business. Let’s get started.
The Basics Of Doing Business
As the name suggests, business entails doing something for a living and making profit from it. In some cases, a business can be an entire organization such as a business consulting firm or a food truck company. However, for the sake of this article, let’s assume that you’re simply starting a solo operation. In that case, you’ll need to register the business with the state and federal governments. Depending on where you live, this may be an involved process, so be sure to tackle it promptly. Federal and state governments require businesses to register so they can keep track of financial transactions and compliance. This may include things like filing tax forms and keeping up with payroll. While this is a pain, it’s worth it in the end. You can find all the necessary forms at the United States Internal Revenue Service website. The main form you’ll need to register your business is the Form 1040, which you can find in its entirety here. Once registered, write down the date of registration and keep it in a safe place because you’ll need it to prove you’re an official business.
What Type Of Business Should You Open?
The first thing you need to do is figure out what type of business you want to open. This is especially important because you’ll have to decide whether to register the business as a sole proprietorship, a General Partnership, or a Limited Partnership. Sole proprietorship is the simplest type of business organization and requires no formality. You’ll need to file a single-member limited liability company (LLC), which we’ll discuss below, or a single-member corporation (S Corp) to operate as a sole proprietor. If you decide to register as a general partnership, you should do so with a formal organization such as the International General Partnership (IGP) or the United States General Partnership (USGP). This will entitle you to both a Federal Tax ID Number (EIN) and an organizational ID, which we’ll discuss below.
How Do You Plan On Filling Orders?
Once you’ve decided what type of business you’ll operate, you’ll need to figure out how you plan on handling orders. This may be a simple question depending on what you’ll be selling. If you decide to sell food, for example, you’ll need to find a restaurant partner who’ll help you out with food preparation. Alternatively, you could get a food truck and bring your own supplies for cooking food on the go.
What Type Of Insurance Do You Need?
One of the more fundamental pieces of business planning is figuring out what type of insurance you need. In the above example, you’ll need commercial liability insurance, which protects your business from harm to person and property. This type of insurance is mandatory for any business that does more than $500,000 USD in annual revenue. For a smaller business, you may only need professional liability insurance, which covers legal fees in the event that you’re sued for malpractice or negligence. This type of insurance is optional for a business with up to $500,000 in annual revenue and is highly recommended for a business that does more than $500,000 in annual revenue.
How Do You Plan On Financing Your Business?
In the above example, the only way the business will exist is if you’re able to finance it. Fortunately, you’ve likely already figured out a way to finance your education, which makes this step a little bit easier. If you’re deciding to use equity to fund your business, you should do so without any debt because credit cards can ruin your financial health. The best way to finance a business is through a business loan, which is a long-term loan offered at a reasonable rate. You can find a business loan here at BusinessLoan.com.
How Do You Plan On Hiring Key Personnel?
Another important aspect of business planning is determining who you’ll need to hire for your business. For the sake of this article, let’s assume you’ve decided to go the route of a sole proprietorship. If you’re not familiar, a sole proprietorship is a business organization where one person, usually referred to as the principal, owns and operates the business. In a sole proprietorship, you’ll need to determine who’ll be responsible for doing what in your organization. For example, if you decide that customer service is key to your business, you’ll need to hire someone to handle customer service calls. To summarize, you’ll need to decide:
- Who’ll be doing what
- Where you’ll be getting your supplies
- How you’ll be paying for everything
- Who’s in charge of what
- How you’ll be filling orders
- How you’ll be paying your employees
- What type of business insurance you need
- How you’ll be financing your business
- Who you’ll be hiring in order to run your business
How To Create A Business Plan
After you’ve decided what you need to do to start your business and put it into motion, it’s time to create a business plan. This plan will serve as a blueprint for your business and can help you figure out where you’re going wrong and how you can make improvements. It can also help you obtain loans and investment dollars from reputable lenders. A business plan should include the following:
- A short overview of the industry (Where are you positioned? What do you provide? etc.)
- A detailed description of the business (Products, Services, Market size, Product Development, Execution, etc.)
- An income statement (This includes the income you’ll generate as well as the assets you’ll need to operate the business)
- A balance sheet (This includes the assets you’ll need to operate the business as well as the liabilities you’re assuming)
- Operations (This is where you detail the day-to-day operations of your business. Included here are things like: Production, Selling, Delivery, Customer service, etc.)
- Financing (This is where you describe the steps you’ll need to take to secure financing)
- Business Insurance (This is where you list the types of insurance you’ll need and how much you’ll need of each type)
- Legal (This is where you list the state and federal government forms you’ll need to register your business)
Once you’ve created your business plan, take the time to review it from top to bottom. This will help you identify areas where you need to make improvements as well as areas where you’re doing well and can build upon. You can also use the plan to pitch investors or lenders and to figureheads such as the state and federal government. Once you’ve created a business plan, it’s time to put it into action.
Protect Your Business And Operate In Good Faith
Finally, a business owner must operate his or her business in good faith. This means they must treat customers, employees, and other stakeholders with honesty and integrity. Unfortunately, many business owners fall short of meeting this obligation. While this may be difficult for the stakeholders to prove, it’s always possible to do so. If you decide to file a lawsuit against a business operator who’s violated your rights, you’ll likely need an attorney. However, even if the operator complies with your demands and you settle out of court, you may still need an attorney to help you draft the agreement.