I am asked daily by people who see the work I do, “How to Start a Small Business Online”. They are curious because I seldom leave home given my bi-polar and my social anxiety disorder and yet I am beaming from ear to ear when I say I work entirely from home in a business I love. Like any business they fear losing money and really fear getting scammed online, so the thought of an online small business is terrifying for many. In this brief guide I hope to alleviate some of that fear.
How to Start a Small Business Online and Not Lose Your Shirt?
At this time I will start by asking you to follow up this post by checking with your local government officials to see what you need for licensing and what taxes you would have to report. You need to know this before starting any business and yes licensing and taxes are a must for online small business owners as well.
Here in Yuma Arizona USA I need a Home Business permit for $45 a year and a EIN ( Employer Identification Number) from the Internal Revenue Service. If I sell physical products I will also need a transaction privilege tax license from the state and if I sell door to door or by party plan like Avon there is a separate vendors permit required. I have to report all earnings over $500 for a calendar year and pay income tax, social security, and medicare taxes on myself and anyone in home working the business with me. This is the one area that can cause catastrophic loss as the IRS never shows up at the right time.
How to Start a Small Business Online. What kind of business would you like?
Just like offline business there is a cost of entry based on what and how you like to conduct business. For some they want to manufacture small items at home and sell on e-Bay and Amazon. Others will do the same with a small inventory of goods someone else made. Anything with materials, labor, and inventory is going to cost you more than say a Drop Shipping business where you generate the sales but another company handles all the inventory and manufacturing for you. Less initial cost but lower Return On Investment as a drop ship seller.
There are companies that sell business opportunities and training at all price ranges in just about any industry you like, but finding one with complete training under $1,000 that offers ongoing support and covers many basic expenses will seem like a nightmare.
But there is hope for those with even a small budget around $50 a month or just under $360 a year. That hope is training in blog based affiliate marketing through a well-known company called Wealthy Affiliate. Kyle and Carson have been making full time business owners out of people like you since 2005.
Now let’s talk about your dream business
What kind of business would you start if money were no option? Our guide on how to start a small business online needs to get direction from you. It only works for you if you know the direction you wish to go and what to realistically expect along the journey.
While your business is very much a business and will require a ton of effort and some investment to make into a full-time income you can already start living your dreams with a business model called affiliate marketing. With Affiliate Marketing you can choose any singular interest and turn it into a lucrative affiliate blog. Affiliates design content around the things they love like playing poker, jogging, collecting coins, or just about anything you might love doing and want to start doing as a business.
Affiliate programs are free to join and are available for nearly every product made in the world. Over 600 Million products have some sort of referral program listed by either the companies that manufacture them or retailers looking to sell more of the product than their competition while cutting expenses.
How to Start A Small Online Business Case Study
Jim has been working in the construction field for 26 years and loves his job. He remembers days when he was a kid building his first buildings with Lincoln Logs and Lego. He loves the early mornings and the hard work involved and seeing what it becomes at the end of the day. Jim however, had a serious on the job injury a couple of years back and is now unable to physically work in his desired trade.
Jim made an average $35 an hour as a foreman on a cement crew and his settlement was invested but the returns are only allowing him to get about half of his former wages each month in order for them to last the next 30 years. Social Security Disability doesn’t pay a lot but helps raise it to about 70% of his former income.
If Jim and his wife outlive their savings retirement will be impossible for Jim’s wife Helen. So Jim starts looking for work he can do from home that will help them put more money in their retirement while also letting them live better now. Jim discovers Affiliate Marketing.
With Affiliate Marketing Jim can turn 26 years of experience in construction into a How-to series blog for Do It Yourself people, another on earning your contractors license, another on Lincoln Logs, Lego, and other Building toys, all in the hours of the day his wife is at work and build each into not just a part-time income but full time business. Soon Helen and Jim are retired nearly 15 years earlier than they had ever really imagined.
Your dream business doesn’t have to have brick and mortar walls, or even inventory.
As an affiliate marketer, you can love poetry and write and or collect assorted poems and short stories from anywhere in the world and make money selling books, stationery, in home furnishings and more a good poet needs or your readers would love. When you consider how to start a small online business you need to look for something or some things that you can honestly say I could do this the rest of my life. Because this will spark your passion and drive you to be the best in your niche and earn a great deal of money online.
I myself have this blog, a blog I am starting on Early Retirement, and one I am converting from a Marketing and Business topics to a Political Opinion Blog because I didn’t need 2 blogs in marketing. I love politics and have been a fanatic for the American political landscape since I was 10 or eleven. I love all things marketing and am I looking to retire early and share the things I plan to used to Retire before, the life, is out of my lifestyle.
So, How to start a small online business exactly?
You will need training and tools to get you started and preferably a budget of at least $400 a year, or $49 a month, whichever is easier because the company I am going to send you to is that affordable, and offers a complete solution of the tools you need, the training to help you find success, and the support to keep you on task. I won’ dig too deep into them because you may have already read my Wealthy Affiliate Review here and if so you can get a free account and kick the hell out of the tires below, but after 5 years with them of my 16 years in blogging I will tell you there is no training on even par with what they offer even at 5 times the price. That said I hope you understand how to start a small business online today without losing your shirt.