Introduction

As we have learned, the decision to actually go ahead and start a business was probably the most difficult step for you. There are many aspects which influence the creation of your business, perhaps one of the most important one you will be working with in these initial stages is your mission statement, which we will explore shortly in Step 1 - Create your Business.

It is important at this time to go ahead and decide what type of business you will be starting.

Some suggestions may include:

• Affiliate marketing
• Product Sales through a Drop-Shipper
• Product Sales In-House
• Service Related

The reason why it is important to go ahead and make this decision, is that it will impact your process from here on out. if you will be dealing with products, it's important to determine if they will be stored and shipped by you, so that you can begin to establish a relationship with a Drop-Shipper who can do this for you.

Business Type

There are a few different options when it comes to your potential method of operation. An internet business is completely capable of being operated as an individual, it all depends on how much"distancing" is desired from ones business, especially in consideration of tax structure.

Common Business Entity Types of cosideration:

• Individual
• Partnership
• Limited Liability Company (LLC)
• Corporation (Inc)

In most cases, we recommend establishing an LLC for operations of a new business. It contains significant shelter to an individual from financial aspects of the business, and allows for both "out of the box" operation and significant enhancement through complex operating agreements.

Registration

We recommend Legal Zoom for business registration, they are fast and very reasonably priced.

Financing

There are going to be some financial obligations in starting your own internet business, and its a good idea to take this into account in the beginning. The amount needed of course will vary, how ever a general business rule is to spend 20% of your estimated or actual revenue on marketing efforts. If you are just starting out, you will need to be spending money before you start making some, which calls for a reserve. This is known as boot-strapping, and unless you have a good enough idea to attract an investor, prepare on using your own money to launch your business.

This is not the time to quit your job thinking, "I'll be able to make this money on my own now", do not have this attitude UNTIL you are already making the money, and even then still tread lightly in your attempts to become 100% self-sufficient.

If you feel you have a strong enough business concept to secure a Bank Loan, here is a template for a Sample Bank Loan Request.

Conclusion

Although starting your own internet business with be fun and a good amount of personal freedom will be experienced, by no means should you be thinking this is going to be a "cake-walk" as many other organizations would like you to believe. Running your own business and nurturing it to a level of success takes hard work, and there will be little that can be done to get around this.

Its time to to actually decide what topic or industry your business will consist be of, and begin to align yourself with certain methods.

Continue to Finding Your Niche