Starting and Running an Online Business For Dummies®
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Dan Matthews is Group Online Editor of Caspian Publishing, which produces magazines, Web sites, and events for an audience of UK entrepreneurs. Primarily working on realbusiness.co.uk, Dan writes about stellar business success stories as well as up-and-coming start-ups.
He was previously Group Online Editor of Crimson Business Publishing, with responsibility for sites such as startups.co.uk and growingbusiness.co.uk. He has contributed to a range of business magazines, including being contributing editor of Real Business magazine and Growing Business magazine, and is the co-author of Starting a Business on eBay.co.uk For Dummies.
Greg Holden started a small business called Stylus Media, which is a group of editorial, design, and computer professionals who produce both print and electronic publications. The company gets its name from a recording stylus that reads the traces left on a disk by voices or instruments and translates those signals into electronic data that can be amplified and enjoyed by many. He has been self-employed for the past ten years. He is an avid user of eBay, both as a buyer and seller, and he recently started his own blog.
One of the ways Greg enjoys communicating is through explaining technical subjects in nontechnical language. The first edition of Starting an Online Business For Dummies was the ninth of his more than 30 computer books. He also authored eBay PowerUser’s Bible for Wiley Publishing. Over the years, Greg has been a contributing editor of Computer Currents magazine, where he writes a monthly column. He also contributes to PC World and the University of Illinois at Chicago alumni magazine. Other projects have included preparing documentation for an electronics catalogue company in Chicago and creating online courses on Windows 2000 and Microsoft Word 2000.
Greg balances his technical expertise and his entrepreneurial experience with his love of literature. He received an M.A. in English from the University of Illinois at Chicago and also writes general interest books, short stories, and poetry. Among his editing assignments is the monthly newsletter for his daughters’ grade school.
After graduating from college, Greg became a reporter for his hometown newspaper. Working at the publications office at the University of Chicago was his next job, and it was there that he started to use computers. He discovered, as the technology became available, that he loved desktop publishing (with the Macintosh and LaserWriter) and, later on, the World Wide Web.
Greg loves to travel, but since his two daughters were born, he hasn’t been able to get around much. He was able to translate his experiences into a book called Karma Kids: Answering Everyday Parenting Questions with Buddhist Wisdom. However, through the Web, he enjoys traveling vicariously and meeting people online. He lives with his family in an old house in Chicago that he has been rehabbing for – well, for many years now. He is a collector of objects such as pens, cameras, radios, and hats. He is always looking for things to take apart so that he can see how they work and fix them up. Many of the same skills prove useful in creating and maintaining Web pages. He is an active member of Jewel Heart, a Tibetan Buddhist meditation and study group based in Ann Arbor, Michigan.
Greg: To my best friend Ann Lindner, who makes everything possible.
Dan: Dan would like to thank Simon, Sam, Kelly, and Wejdan at John Wiley for their guidance, support, and ultimately patience in producing this book. He’d also like to thank Gemma for her patience and serenity, and Charles, Rebecca, and Kate at Real Business for being all-round good eggs!
Greg: One of the things I like best about this book is that it’s a teaching tool that gives me a chance to share my knowledge – small business owner to small business owner – about computers, the Internet, and communicating your message to others in an interactive way. As any businessperson knows, most large-scale projects are a team effort.
The most successful entrepreneurs also tend to be the ones who were the most generous with their time and experience. They taught me that the more helpful you are, the more successful you’ll be in return.
I want to thank all those who were profiled as case studies, particularly John Moen of Graphic Maps, who pops up all through the book.
I would also like to acknowledge some of my own colleagues who helped prepare and review the text and graphics of this book and who have supported and encouraged me in other lessons of life. Thanks to Ann Lindner, whose teaching experience proved invaluable in suggesting ways to make the text more clear, and to my assistant Ben Huizenga.
For editing and technical assignments, I was lucky to be in the capable hands of the folks at Wiley Publishing.
Thanks also to Neil Salkind and David and Sherry Rogelberg of Studio B, and to Terri Varveris of Wiley Publishing for helping me to add this book to the list of those I’ve authored and, in the process, to broaden my expertise as a writer.
Last but certainly not least, the future is in the hands of the generation of my two daughters, Zosia and Lucy, who allow me to learn from the curiosity and joy with which they approach life.
We’re proud of this book; please send us your comments through our Dummies online registration form located at www.dummies.com/register/.
Some of the people who helped bring this book to market include the following:
Acquisitions, Editorial, and Media Development
Project Editor: Kelly Ewing and Simon Bell
Content Editor: Steve Edwards
Commissioning Editor: Samantha Clapp
Technical Editors: Dr Stephen Small, marketing copywriter and communications consultant (www.top-copywriting.com), and James Connolly.
Executive Editor: Jason Dunne
Executive Project Editor: Martin Tribe
Cover Photos: GettyImages/Jamie Grill
Cartoons: Ed McLachlan
Composition Services
Project Coordinator: Jennifer Theriot
Layout and Graphics: Joyce Haughey, Stephanie D. Jumper, Laura Pence, Heather Ryan, Julie Trippetti
Anniversary Logo Design: Richard Pacifico
Proofreaders: Cynthia Fields, Susan Moritz, Charles Spencer
Indexer: Aptara
Publishing and Editorial for Consumer Dummies
Diane Graves Steele, Vice President and Publisher, Consumer Dummies
Joyce Pepple, Acquisitions Director, Consumer Dummies
Kristin A. Cocks, Product Development Director, Consumer Dummies
Michael Spring, Vice President and Publisher, Travel
Kelly Regan, Editorial Director, Travel
Publishing for Technology Dummies
Andy Cummings, Vice President and Publisher, Dummies Technology/General User
Composition Services
Gerry Fahey, Vice President of Production Services
Debbie Stailey, Director of Composition Services
You’ve been thinking about starting your own business, but until now, it was just a dream. After all, you’re a busy person. You have a full-time job, whether it’s running your home or as part of the rat race. Perhaps you’ve been through a life-changing event and are ready to move in a new direction.
Well, we have news for you: Now is the perfect time to turn your dream into reality by starting your own Web-based business. People just like you are making money and enriching their lives by starting up online. Opening hours don’t exist, but you can work when you need to, and the location of your business makes no difference. Anyone can run a small business from the comfort of a home office – even if it’s just your spare bedroom. And there’s an ever increasing number of ways you can make money online, such as running your own blog, starting a business on eBay, or dreaming up something entirely unique.
If you like the idea of being in business for yourself, but you don’t have a particular product or service in mind at the moment, keep a look out for openings and ideas: What could you put online that isn’t there already? The Internet is home to many diverse businesses that have ‘made it’ in their own way. Among the entrepreneurs we interviewed for this book are a woman who sells her own insect repellent, a housewife who sells sweetener and coffee on eBay, a sculptor and painter, and a young man who started selling electronics online at age 16. With help from this book, you can transform a simple idea into your very own online empire.
You say you wouldn’t know a merchant account, domain name, or click-through if you sat next to one on a train? Don’t worry: The Internet (and this book) levels the playing field, so a novice has almost as good a chance at succeeding as the MBA-clutching whiz kids you hear about.
The Internet is a vital part of what makes a business these days. Whether you’ve been in business for 20 years or 20 minutes, the keys to success are the same:
Having a good idea: If you have something to sell that people have an appetite for, and if your competition is thin on the ground, your chances of success are good.
Working hard: When you’re your own boss, you can make yourself work harder than any of your former bosses ever could. If you put in the effort and persevere through the inevitable ups and downs, you’ll come up smiling.
Preparing for success: One of the most surprising and useful things we can discover from online businesspeople is that if you believe that you will succeed, you stand a much better chance of doing so. Believe in yourself and go about your plans like they’re dead certs. Together with your good ideas and hard work, your confidence will pay off.
If you’re the cautious type who wants to test the waters before you launch your new business on the Internet, let this book lead you gently over the learning curve. Once you’re online, you can master techniques to improve your presence. Even if you aren’t among the lucky small business owners who make a fortune by connecting to the Net, the odds are very good that you will make new friends, build your confidence, and have fun, too.
In this book, we format important bits of information in special ways to make sure that you notice them right away:
In This Chapter lists: Chapters start with a list of the topics that we cover in that chapter. This list represents a kind of table of contents in miniature.
Numbered lists: When you see a numbered list, follow the steps in a specific order to accomplish the task.
Bulleted lists: Bulleted lists (like this one) indicate things that you can do in any order or list related bits of information.
Web addresses: When we describe activities or sites of interest on the World Wide Web, we include the address, or Uniform Resource Locator (URL), in a special typeface like this: . Because popular Web browsers such as Microsoft Internet Explorer and Mozilla Firefox don’t require you to enter the entire URL, this book uses the shortened addresses. For example, if you want to connect to the Wiley Publishing site, you can get there by simply entering the following in your browser’s Go To or Address bar: .
Don’t be surprised if your browser can’t find an Internet address you type or if a Web page that’s depicted in this book no longer looks the same. Although the sites were current when the book was written, Web addresses (and sites themselves) can be pretty fickle. Try looking for a missing site by using an Internet search engine. Or try shortening the address by deleting everything after the .co.uk (or .com or .org.uk).
This book assumes that you’ve never been in business but that you’re interested in setting up your own commercial site on the Internet. We also assume that you’re familiar with the Internet and have been surfing for a while.
We also assume that you have or are ready to get the following:
A computer and a modem: Chapter 2 explains exactly what kind of stuff you need.
Instructions on how to think like a businessperson: We spend big chunks of this book encouraging you to set goals and do the sort of planning that successful businesspeople need to do.
Just enough technical know-how: You don’t have to do it all yourself. Plenty of entrepreneurs decide to partner with someone or hire an expert to perform design and technical work. This book gives you your options, as well as a basic vocabulary, so that you can work productively with the consultants you hire.
This book is divided into five parts. Each part contains chapters that discuss stages in the process of starting an online business: designing the Web site, getting it hosted, choosing what shape your business will take, and figuring out what you plan to sell.
In Part I, we describe what you need to do and how you need to think in order to start your new business. Throughout the part, you find case studies profiling entrepreneurs and describing how they started their online businesses. Within these pages, we tell you what software you need to create Web pages and perform essential business tasks, along with any computer upgrades that will help your business run more smoothly. You also discover how to choose a Web host and find exciting new ways to make money online.
This part explains how to create a compelling and irresistible Web site, one that attracts paying customers around the world and keeps them coming back to make more purchases. This part also includes options for attracting and keeping customers, making your site secure, and updating and improving your online business.
Your work doesn’t end after you put your Web site online or start to make a few sales. In fact, what you do after you open your virtual doors for business can make the difference between a site that says, ‘Buy from me!’ and one that says, ‘Get out quick!’ In this part, we describe cost-effective marketing and advertising techniques that you can do yourself to increase visibility and improve customer satisfaction. You discover how to create a smooth shopping experience for your customers, how to accept payments, and how to provide good customer service. You also find out about ways to increase visibility with search services.
This part delves into some less-than-sexy but essential tasks for any online business. You find out about general security software designed to make commerce more secure on the Internet. We also discuss copyrights, trademarks, and other legal concerns for anyone wanting to start a company in an increasingly competitive atmosphere online. Finally, you get an overview of basic accounting practices for online businesses and suggestions of accounting tools that you can use to keep track of your e-commerce activities.
Filled with tips, cautions, suggestions, and examples, the Part of Tens presents many titbits of information that you can use to plan and create your own business presence on the Internet, including ten hot new ways to make money on the Web.
Starting and Running an Online Business For Dummies also uses special graphical elements called icons to get your attention. Here’s what they look like and what they mean:
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We’ve made this book into an easy-to-use reference tool that you should be comfortable with, no matter what your level of experience. You can use this book in a couple of ways: as a cover-to-cover read or as a reference for when you run into problems or need inspiration. Feel free to skip straight to the chapters that interest you. You don’t have to scour each chapter methodically from beginning to end to find what you want. The Web doesn’t work that way, and neither does this book!
Want a snapshot of what it takes to get online and be inspired by one man’s online business success story? Jump ahead to Chapter 1. Want to find out how to accept credit-card payments? Check out Chapter 11.
If you’re just starting out and need to do some essential business planning, see Chapter 2. If you want to prepare a shopping list of business equipment, see Chapter 3. Part II is all about the essential aspects of creating and operating a successful online business, from organising and marketing your Web site to providing effective online customer service and security. Later chapters cover advertising, legal issues, and accounting. So start where it suits you and come back later for more.
In this part . . .
What all does starting an online business involve? In this part, we answer that question with a brief overview of the whole process. The following chapters help you set your online business goals, draw up a blueprint for meeting those goals, and explore new ways to market your goods and services.
And just as dentists prepare their drills and carpenters assemble their tools, you need to gather the necessary hardware and software to keep your online business running smoothly. So, in this part, we discuss the business equipment that the online store owner needs and suggest ways that you can meet those needs even on a limited budget.
Let the step-by-step instructions and real-life case studies in this part guide you through the process of starting a successful business online.