Online Business Fundamentals

An online business is like a machine. How? A machine is made up of different parts without one of those parts the machine will not work; it is the same thing with an online business. An online business is made up for three primary parts. All of these parts must work harmoniously in order to create a successful online business.

If you are a budding entrepreneur then you must know these three basic things that make up an internet business. These are:

1.The product or service that you offer. This aspect of your online business is a two-way street. Some people say that having a great product/service is enough because it will sell by itself. You do not have to put much effort into it because things will work out just fine. Others said that no matter how awful the product/service is if you have a great sales person then it will sell. Always keep in mind that these two things are important, for maximum results you would have to consider both things: product and how you sell it.

Look at it like this: great product and lousy seller results are not good. Great seller and ordinary product (something offered by 1,000 other sites) results are not so good as well. What I am pointing at is that there should be balance between the two. I would have to say that a combination of average product and sales person is better than an imbalance of one or the other.

2. Marketing and sales. Let me just clarify this: sales and marketing are two separate things. Marketing is wherein you advertise your product. Indeed this is part of the sales process whereby you try to draw in potential customers. A good marketing strategy will eventually lead to sales.

Keep in mind that no matter how great your site is, it is nothing if nobody knows about it. Obviously you want to promote heavily when first starting out your online business. The more marketing you do, the more recognizable your name and your business name will be. And since you have effectively marketed your online business, rest assured that sales will follow suit.

3. Bookkeeping. Okay, maybe for some this is such a dreaded word. But in truth it does not have to be. All you have to remember when doing your business’s accounting or bookkeeping is to make sure everything is kept simple. Please do not be one of those people who spent a lot on computer software to start their online business this is not really advisable.

I would highly recommend that you hire an accountant. I do not think it will cost that much to hire one. Just make sure the accountant you will hire is versed when it comes to startup businesses. Your accountant can also help you establish bookkeeping and other record keeping procedures that can keep you on track for years. You can also seek their advice when it comes to state laws, since every state has its own little intricacies, such as sales tax issues.