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Key Principles For Starting An Online Business!

Discussion in 'Business & Tax Advice' started by rabbitking, Apr 2, 2015.

  1. rabbitking

    rabbitking Elite Member

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    Key Principles For Starting An Online Business!

    Creating the business you always wanted comes down to knowing what you want out of life and where you want to be in the future. When you first get into this industry it can all seem confusing since it?s made up of pieces and all of those pieces come together to create a desired result. I for one am pretty sick of the title often placed on us in this industry which is usually ?Internet Marketers?.

    Actually, I have never been an internet marketer at heart and would encourage anyone reading this to stop calling themselves Internet marketers. As a matter of fact I?m a businessman who sees the lucrative opportunity of owning online based businesses. I would rather be a creator than a distributor any day. If you want to manage and make money with an online business startup then continue reading.

    Stop chasing methods and start building a real business model:

    If you found BHW then I?m assuming you?ve probably tried other ways to make money online and even if you are successful it probably didn?t last. I have seen people in this industry that can make money but as soon as the loopholes are tied up its over for them and their back to square one. That is because they were chasing methods instead of building a business model that will stand the test of time.

    I wish someone would?ve told me this years ago instead of pointing me to nickel dime methods and then having the audacity to tell me to scale it up afterwards. Sure, you can make money with methods and some methods are actually business models and their labeled methods by people who didn?t take the time to label it correctly. Starting a micro niche site, ranking it in Google, and making money from AdSense is not a method at all. That my friends is a small business model and if done correctly it can last a long time.

    I used to personally carry out different types of methods online and a lot of those were black hat methods and they did make me decent money. Problem was it never was 100% consistent and I was always trying to play catch-up before my old methods were either saturated or they died out completely. As web-based platforms get smarter and the need for scalability increases I for one quit chasing methods and decided to build a real online business, just like I would?ve done off-line.

    Examine what you have to bring to the industry:
    Often times you will see new guys/gals waltzing their way into this industry hoping to make a quick buck to fix a problem in their life or thinking that they?re going to make money without putting in any skills or investment cash on the table. The first step in creating a real business is to examine what you have to offer to the industry and how you can add unique value to it.

    Since all walks of life tend to want to start an online based business I?m going to initially break this down into two categories for each individual and explain what they have to do to get off of the ground floor initially. Below you?ll find two sections that will most likely relate to you as a person or a small company.

    You don?t have any real liquidity or investment money:
    This is usually the case among people who start out in this industry. It really isn?t a surprise since if you are down on your luck or you?re young and just starting out it seems to be the easiest way to get something going for yourself or your family. The problem with this, is if you don?t have money then you do have to have some type of skills, or you have to put your ideas on a shelf while you learn and make the right amount of money to start.


    Ask yourself these questions. What can I do to make a name for myself, put money in my pocket, and provide a service or product that is going to help other people in this industry? That should be your first set of questions if you do not have the right amount of investment money to start a real online business. A lot of people start with content writing or if you are a coding expert you can offer your skills in that arena.

    Most people have some form of skill or talent that they have developed over a couple of years and it doesn?t have to be a Harvard education either. Once you find the one thing that you can offer to businesses in this industry you have won half the battle and it?s time to think about implementation. This is good because it?s going to give you a certain amount of business experience before you launch your next company.

    You already have money or you think you do to start:
    This is a completely different class altogether. Maybe you have an angel investor or you already have the money that you think is necessary to start an online based business. The key word here is ?think you do? since you might not know what it takes to get started. When I first started my online business I thought that I knew how much it was going to cost me, but my predictions were about 30% off.

    As you do business over time you can hone in your capabilities to predict how much a business will cost to launch which will help you in the future. The best advice I can give to someone who might have the necessary funds to start your business is to first examine your perceived competition and evaluate what you are going to bring to the table that is unique and how much it is going to cost you.

    Unless you are an ATM machine it would be a wise idea to start a micro business to familiarize yourself with the types of services or products you?re going to be offering to potential clients and what your rate of income is going to be on those products or services. That way you can test the market without losing your ass and investing a lot of your money.

    Building a real reputation and contact list:
    whether you have money to invest or not this step is absolutely critical for anyone wanting to start an online based business just like you do for an off-line business. Without a reputation and the right connections in the industry you can go ahead and plan on spending twice if not three times as much money on branding and marketing costs.

    Simply seek out communities of like-minded individuals or possible clients to share your insights with or to develop long lasting friendships with them. Since all this is done online it?s not like you can actually shake someone?s hand or break bread with them unless you go to a conference, therefore it is important to always work on brand awareness and reputation with those in your contact list.

    Tip: Use SMM Software like BuzzBundle sooner in the game than you would think in order to cut down on social interaction time and not loose vital connections with the people in your industry.

    Building a contact list is only part of the game. Once your contact list has matured it is time to focus on retention. You don?t ignore people on your contact list and neither do you go weeks without just simply saying ?hi? and ?how are you?. The goal is to be more than a name on their screen.

    You sell yourself and not your online business initially:
    Part of running a successful business is to understand that you are selling yourself as a person and not necessarily the products or services that you are offering. For example I would rather do business with a friend or someone who I know I can trust and pay more money to them than I would pay less money for the exact same product from someone who I don?t like or think that I can?t fully trust them. In order to capture that person?s trust and sell yourself as an individual, you have to learn certain business etiquette?s that will help you in your journey of client business relationships. Below I?ve listed common issues I?ve seen among other small businesses and how those failures have hurt them in the long run.

    Never undermine your affiliates or employees:
    If you have any issue with an employee, reseller, or an affiliate, you need to keep it private and have a discussion with that person without outing them in public. The reason for this is because if you out them in public then you lose trust among other affiliates whether they did something wrong or not.

    Furthermore, you disenfranchise your business model and can potentially hurt the entire industry. That doesn?t mean you have to continue doing business with this said person, but it does mean that you have to show principal business composure when handling a difficult situation among subordinates.

    Never underestimate your perceived competition with an online business:
    Your business is either growing or dying and there isn?t a middle ground. Initial success can sometimes kill a business because the owner feels comfortable and doesn?t keep up with the times. Confidence is a good thing but complete arrogance is a bad thing and that pride will cause you to fall.

    So make sure that you keep a reserve of cash flow for research and development and always work on testing out new products or services because I can assure you that your competition is doing that at this very moment. Never feel too relaxed unless you want to suffer while your business whittles away.

    Another thing to realize is not everything is about you. Sometimes we can get caught up as business owners and think that every single bit of information or a new competitor is directly targeted at you. The truth is an industry is better off when competitors respect each other and create a harmonious environment for buyers as opposed to going at each other?s throats and diminishing an industry.

    So as a young entrepreneur the best course of action is to refine your processes as a business and not focus entirely on what someone else is doing. Researching too much into other people?s lives will do nothing more than cloud you?re thinking as to what you should do for your company and your employees. The brain can only process but so much information, so keep it simple.

    Emotions have nothing to do with success:
    As a business minded individual it?s critical to understand that emotions have nothing to do with your business strategy and you have to learn how to repress them in order to clear your thinking and hone in on the key steps necessary to reach your targeted end result. Emotions in general can be your worst enemy as a business man or woman and below I?ve listed some common downfalls that can be associated with emotional issues in business.

    You haven?t made it yet cowboy:
    The truth is at least in America is if your business hasn?t been around for more than five years, technically you could still be a part of the average failure rate. It is not until you exceed five years that your business is even considered stable.

    The feeling of euphoria you acquire from a short burst of success and the delusions of grandeur that can accompany such successes are a dangerous group of emotions that can lead you towards feeling arrogant and strong in your own accomplishments whilst ignoring some of your most profound weaknesses. The goal is to never say you made it but always look forward at what you can make. So in other words keep digging, boss.

    The exact opposite is also a disaster for a starting business:
    Do you have your tail between your legs? Are you easily defeated? Maybe a few setbacks have come your way in starting your business or maybe you found out that the whole process is a complete failure and now you?re ready to hang it up and retreat.

    Once again we can see an example where emotions have clouded judgment. Many entrepreneurs struggle and often face many failures before they actually succeed. If you really want to make it you can?t let failure kick you in the ass. You have to learn to adapt and overcome in order to create something that?s worth owning. Resilience, confidence, and patients are three traits that you must develop and learn to employ. Developing these skills will lift you up out of the pitfalls and keep you on course to your final destination.

    So in conclusion:
    Take it from me since I started from nothing and created a business online that has sustained a nice and healthy income for myself and my entire family, business is not for the faint of heart and success will not be there for the weak. Plenty of people trying to get in this industry because they want to escape the 9 to 5 grind, but what they don?t realize is that if you really want to create a business you are going to live, breathe, and eat that business seven days a week until it matures.

    Simply put, part-time labor leads to part-time success. What you sow today you will reap a month from now in this industry and that applies to any online based business models. Know what you want, surround yourself with the right people, create a sales funnel as if digging a river of wealth from the ocean of society, and focus on self-discipline while developing your business strategy so that you can accomplish your goals.
     
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  2. SimpleSiteSolutions

    SimpleSiteSolutions Jr. VIP Jr. VIP

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    Nice post buddy. Good to see guys like you and t0mmy sharing ideas that are actually useful in the long term

    I like your old avatar better, btw :top:
     
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    Last edited: Apr 2, 2015
  3. rabbitking

    rabbitking Elite Member

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    You know I agree that Avatar was way better and it's back now! Thanks for taking the time to read it. :)
     
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  4. sam.hunt0710

    sam.hunt0710 Jr. VIP Jr. VIP

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  5. JadMac

    JadMac Junior Member

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    Thanks for the share, I always appreciate your posts, full of practical thinking and advice.
     
  6. virtualbyron

    virtualbyron Jr. VIP Jr. VIP

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    Hi ! how are you ?
     
  7. rabbitking

    rabbitking Elite Member

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    No thanks required Sam. Thanks for stopping by. :)

    Glad you liked it JadMac. :)

    I am doing well thanks. How about yourself?
     
  8. SEO365

    SEO365 BANNED BANNED

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    Great post Jose ! You are the Best :)
     
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  9. netmoney1

    netmoney1 Executive VIP Jr. VIP

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    Good post...and lots of good points...but the 5-year magic number is one that is throw around a lot. Every business is different. There are businesses that just slide by year after year...even if they hit the 5-year mark they are still a failure if they haven't been turning out huge profits. Anyone can coast a business at a break even point to hit the 5-year mark.

    If it takes a business 5-years to make it these days they are doomed. Crowd funding, social media and the good ole internet allows a business with a good idea or product to get cranking fast.

    "I can't get a bank loan!" - crowd funding. If what you have is that good you will raise the $$$ in no time at all.
    "I want to grow slow." - bullshit. That's like saying you want to get rich next year.
    "I can't afford SEO or PPC" - then whore out social media to bring in $$ and then roll that over into SEO and PPC.

    In todays market there isn't a 5-year period...it's more like a 5-month period. Prove the concept and show people will buy it and you can make money. And do it fast because there are a dozen other copy cats running up your ass.

    Look at Bounce Exchange. They didn't even start until 2013...by the end of 2014 they were looking for new office space because they were growing so fast. They are in the process of moving into a 31,000 sq/ft office in the New York Times building. Know what their monthly rent is for the new space? Over $200,000/month. Then add in salaries, bonuses, benefits, etc. Know when they are selling? An exit pop service. Yeah, white glove and they do the creatives too...but they are taking something SO SIMPLE....and so common...and getting a premium. All because they can market the shit out of it and hire kick ass sales talent.

    Think of how much social media has changed in the past 5 years. Think of how much the internet has changed over the past 5 years. Think of how we pay for things has changed over the past 5 years. Businesses need to prove concept ASAP and get ready to keep adapting.
     
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    Last edited: Apr 7, 2015
  10. netcelal

    netcelal Senior Member

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    Great post rabbitking and netmoney1
     
  11. seesounds

    seesounds Junior Member

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    thanks for the great advice
     
  12. LoftPower

    LoftPower Elite Member

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    Great post. Some real sound advice here. I hope to use some of it.
     
  13. Seven4

    Seven4 Power Member

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    Interesting read! Thanks for sharing!
     
  14. santhu

    santhu Power Member

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    Thanks for the post rabbitking.

    Some Good Points to keep in mind.
     
  15. rabbitking

    rabbitking Elite Member

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    Thanks for taking the time to read it buddy. :)

    I agree with everything you said netmoney1, but I am not saying it takes 5 years to make it or at least that is not what I am trying
    to convey with this thread. What I am talking about is endurance. Some companies do great initially, hell they might turn a nice profit and end up in a fancy office, but is their business model, services, and other aspects going to last?

    Okay let's take local businesses for example. I don't care how much social media you pump out, some business locations suck. You watch every stay at home mom with a couple thousand bucks thinking their sandwich shop would catch on, and that is not the case. When you factor in the quality of the service, location of the business, and the person running it, you could have initial success, but a disaster later on. So yeah if you can get a business off the ground and doing well in a few months, that's excellent, but are they still going to be there in 5-10 years? Banks work off the same scale when they factor in a business ability to last and pay back a loan.

    Sure, I know business owners who barely make the bills and can't even afford to have health insurance coverage on themselves. I look at them and say to myself that they would be better off working for someone else. To me that is like failing, but hey I don't call it a failure to them because not every business can be the next big thing. How many Starbucks Coffee shops can the world absorb? So if they enjoy being in business then so be it. Most local hair salons aren't going to hit Paul Mitchel's success.

    Anytime buddy :)

    Applying it is the most important part! :)

    Thanks for reading it ;)

    You're welcome Santhu. =)
     
  16. donenvy

    donenvy Junior Member

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    Thanks that was insiratinal
     
  17. roxblade

    roxblade Newbie

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    Wow such a nice resource.. Bookmarked it and will surely get help from this for expanding and maintaining my own business.. Thanks again.
     
  18. Banker1984

    Banker1984 Newbie

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    Thanks for the post