(Part one of three parts)
By spending time in IM related forums, I can see some of the information that new marketers are looking to find. Sometimes you have to read between the lines, but you can tell by the tone of the question and the sentence structure, that the poster is probably new to internet marketing.
For clarification, if I may, a reminder, whenever you sell anything, even as an affiliate, or offer a service, on the net, you are an internet marketer.
That being said let me say this…..
One of the areas that seem to give many people a problem is the “basics of business”.
You can’t run a business if you don’t know something about running a business….
The internet covers the entire world. Every place has different laws, rules or regulations concerning the operation of a business from your home. Of course, I would imagine that some places have none at all.
You really need to do some research about the laws in your area. Also laws concerning any taxes. Tax laws vary from country to country and even different states in the U.S. may have different rules.
You do not want to get a successful business going and then be faced with fines or worse yet, have your operation closed down by some government agency.
Most local governments can provide booklets or brochures listing the rules for licensing or zoning. Don’t overlook using the internet as source for your research. Let your fingers do the walking on your keyboard.
Basic Records…
You will want to establish a records system to keep track of all your activities related to your business. Any expenses incurred including any licensing fees. These records will be necessary in computing any taxes and to establish whether or not your business is making a profit.
This can also be useful to keep track of your suppliers. You order some component. Then six months later you need more and can’t remember where you bought the original. Simply look through your receipts and bingo….you have the information and save yourself a lot of time and aggravation.
It is way safer to keep everything that you might need, than to need something you didn’t keep. You can always ditch whatever you don’t need at a later date. Once you have firmly put together your records system.
Meat on the Bones……
Now it is time to put some “meat on the bones”. Get ready to write…write…write…
It is time to write your business plan. Probably the most important part of starting your business.
How will your business start?
How will you get the products?
All the operational questions. All the “how to things” and that means all the answers too.
Think about everything in a “one step at a time” progression.
And write down each step, every expense, and every outgoing dollar.
Many new business owners overlook some pretty common items. So, think carefully. It is easy to forget that a copy machine needs paper.
With your home business, many of the items you will need are already under your roof. That helps. But, consider the extras. Things like an additional phone line and any special equipment you may need.
This is all heading toward the final conclusion……..will your home business make a profit for you.
Second Part of the plan….
Once you have finished this part of your business plan, “the what will it cost part”, you can move on to the income part. But income is not profit. Profit is what you take in minus what you put out.
Simply stated, you sell a $10 item and it costs you $8 to do that….you have a profit of $2.
OK…Product production or cost of product. How much does it cost to produce or to buy your product?
Include shipping, both incoming and outgoing. Any cost of storage. Any packaging you need to ship out your product.
These costs combined with your operating expenses will give you your total to get your product out the door. With that you can calculate your net profit.
(Part two is coming up next)
Till next time,
Jim Gillum
