Are you looking after your online business in the right way? If not, there are plenty of pitfalls lying ahead of you. In this guide, we’re going to take you through some of the things you need to think about as a startup. Follow them, and you will ensure your business has the best possible chance of success. We’ll take you through some of you legal obligations, and some of the absolute ‘must-dos’ of running a business.
Work out your costs
OK, so it’s cheap and easy to set up an online business these days. All you need is an idea and the ability to set up a blog to get started. But, the reason so many new online businesses fail so soon is because they don’t understand the extra costs that go along with it. For example, if you are planning an ecommerce store, you have to consider the cost of buying in stock – as most people will understand. However, where are you going to keep it? If you have any success, you won’t have the room in your home to store your stock. So, you will need to think about renting warehouse space or getting in touch with a distribution company. Make sure you understand all your costs before you get started, and think about the next two or three years ahead, not just the first few months.
Monetizing your website
While the online world has given some excellent opportunities for many startups, it can be tough to monetize. Even the likes of Facebook struggled with this for many years, as there is only a certain amount of money you can make from advertising. It’s important, then, to understand where your income will be coming from. If you are selling a product, then it’s a little easier, of course. But, if you are setting up a blog and planning on putting in a lot of effort, you will want a return. So, you might look at hosting stand-alone ads, or selling ebooks, or becoming an affiliate. There are plenty of options out there, and each will be more useful for some business models than others. Choosing the right weapons will give you the best start possible.
There are plenty of legal issues that you have to think about when you are starting a business. For example, you’ll have to decide whether to set up as a sole trader, or look into company formation. You’ll need to contact HMRC and let them know you have started your business, and you should probably have an accountant on hand as well. They can help you organise your money in a better way, and save you some cash at tax return time, too. You should also think about legal advice, to cover you regarding your legal duties. Finally, make sure that you have the right insurance cover. If something were to happen and you don’t have the right cover, it could see your business go under before you even get started.
As you can see, there is plenty to think about when setting up your business. But, do things the right way and you will have a good foundation for success.