how to start an internet business - 4 Things You Should Know Before Starting an E-Biz - Advice from a Pro
by Chris Malta
Tip 1 - Start Small
Many of Johnston's students are eager to dive in head first, ready to invest all their savings into overseas imports or shopping network returns. But Johnston discourages such risky moves for two reasons:
- • They haven't considered all the costs - the enormous minimum quantities they'll have to buy to get the discounted prices, or the many incidental costs of shipping imports.
• They have little experience and, therefore, no way of knowing all that these transactions entail. Cautions Johnston, "You're going to make mistakes. The way to minimize any kind of horrible error is to begin very small." Don't invest a lot to start with - learn with inexpensive items. Start with a minimum investment; and as you begin to make a profit, put that money back into your business rather buying a new gaming station or new golf clubs.
As you go, you'll learn which products sell well and see where you're actually making a profit. Johnston has a "funnel theory" on finding your product niche. She explains, "You start really broad - you have huge categories. As you learn how to do your market research, you funnel down and get smaller and smaller until - out the other end of the funnel comes a handful of products that you can really do well with."
Tip 3 - Start on EBay
EBay is a great tool for beginners just learning about online retail. There are several reasons why it's a smart place to start:
- • It's quick, easy, and inexpensive.
• The traffic is built in, and the people that are seeing your listings are seeing them because they're searching for what you're selling.
• It's a good way to get exposed to the ins and outs of the business.
Tip 4 - There's No Such Thing as "Get Rich Quick!"
Starting an e-business is just like starting any other business - it takes patience and persistence. Don't expect to be magically rolling in money overnight.
And don't just jump at every "opportunity" that comes along for fear of missing out. Research it first - if it sounds too good to be true... well, you know. There's plenty of room in the eCommerce industry for you to create a profitable E-Biz - if you take your time and understand what you're doing.