The main advantage of putting up an online business is it requires just a little start-up capital.
Its main disadvantage is it requires just a little start-up capital.
Yep, you read it right. But if you still don’t get it, you may read it again or you can read further down the succeeding paragraphs to get a detailed explanation.
There are two ways of funding a new online business venture.
- Using a shoestring capital. Somewhere from $ 200 to $1,000; where $ means US Dollar.
- Shelling out a large fortune. Yes, it’s indeed very possible if you are angry with your money. Got $ 100,000? Sure thing, gather your team of experts and have them develop a killing Online Business concept.
Obviously, I love going the first route. And if you are new to Online Business, that should be your choice too for three good reasons:
- You minimize your risk
- You can treat it as a game
- You can have fun along the way
Entrepreneur Beware: Let me warn you ahead. Never under estimate the potential of an online business started on a minimal capital. If done right, your initial capital can actually grow from 10 to 100 times in a matter of a few weeks without you sweating too much on your business.
Tools Of The Trade Revealed
An online business is, in many respects, similar to an offline, traditional business. There are tools of the trade that needs to be on your arsenal and that you need to use effectively.
In any business, some sort of capital is necessary. Capital could be in a form of money, time, or energy. You need all three in setting up an online business.
Here are some of the most essential ones to prepare for.
1. Seed Capital – As mentioned you need to prepare somewhere from USD 200 to USD 1,000 in start-up cash. Can you think of any other business that requires as little money as that? In multi-level marketing maybe, but that requires a freaking lots of hard work to even get it off the ground and become really profitable.
Consider your seed capital as a play money. And don’t forget to have fun as you watch it grow.
2. Credit Card – Sometimes you need to buy stuff online. Some examples include: a domain name, web hosting, learning materials, books, etc. Credit Cards are the most popular method of accepting payments online. And not having one is like being stuck in Stone Age.
Credit Card Note: If you are in the Philippines and you need a recommendation as to which Credit Card Company to use, please drop me a message using the contact form provided on this website.
3. PayPal Account – PayPal allows you to send and receive money online. While Credit Cards can be used to pay online, wrapping it up on Paypal adds another layer of protection against credit card fraud. When you pay an online merchant using Paypal, you will not be asked for your credit card details anymore. Rather, you only provide your PayPal Account Credentials. That way, your credit card information is hidden from the online merchant.
Notes On Paypal: When signing up for a PayPal Account, it is best to remember two things:
- Use a Credit Card to send money.
- Use a Debit Card (could be your ATM Account) to receive money.
1. Computer – You computer doesn’t have to be the fastest running cheetah. But it should be fast enough to do you most important transactions.
Personally, I prefer using a laptop since it is very handy I can take it with me should I get bored in the house and feel like having a nice cup of coffee in a nice coffee shop would attract some nice people to keep me company for a couple of hours.
2. Office Software – Sometimes they are called Office Productivity Software. They are mainly used to manipulate office and business documents. I highly recommend MS Office if you can afford one. The FREE alternative is Open Office.
3. Broad Band Internet Connection – Can you imagine running an online business and not have an Internet Connection at home or at the office? With the price of Internet Connection going down and the speed improving each year, Broadband Internet could be the best investment you can have after investing in a good toothbrush.
4. Email Account – Gmail comes highly recommended. When running an online business, you’ll be surprised to discover that a lot of business communications are done using email. Gmail is massive, very secure and has the best features I’m looking for. Get one now if you still don’t have it.
5. Website – A website is your virtual, professional image. At the very least, it serves as your online brochure for all of your customers and partners to see. Strive to have a clean and simple web design with lots of useful information your visitors will consume.