Business Information for Entrepreneurs by an Entrepreneur

Startup Money for Your Online Business

While you may be raring to jumpstart your new online business venture, there is one thing you can't get around...start up money.

From where are you going to get the money to begin this great business of yours?

Save Your Cash

The first way to have the money you need to start up your own online business is to save up for it.

Many people know they are business-minded and start putting every extra penny they have away until it's time to start their company.

This offers them complete independence, as they only have to answer to themselves when it comes down to how the money is spent.

Borrow

If you must, you may want to consider borrowing from your friends or family.

If they believe in you, they may also believe in your venture and be willing to help you out as you get your feet on the ground.

Start Small

Don't try to make your company too big, at least at first. Most online businesses start small and are run out of a home office or part of a garage.

This is a smart way to start a business, as it keeps overhead costs low. As your profits grow, so can your small business.

Be Realistic and Be All Business

It's easy to be 'on the job' all day and not get anything done.

Many people work on their business day in and day out, but are not necessarily doing things that will make money for the business.

Make sure the things you are doing are for a purpose, to increase your profit making potential.

Make Your Business Look Professional

While in the online world having a website can make you look like a legitimate business, there are a few more things you need to do to make sure you have the complete look of a fully operational company.

If you ever plan to promote your business, either in person or through mailings or other means, you need to have a professional appearance.

Business Cards and Stationary

These are essential pieces of paper. Any correspondence you send relating to your company should be sent on company letterhead. This gives your small business a more professional appearance than just a regular piece of paper stuffed into an envelope would.

At meetings you want to hand out professional-looking business cards.

When you are having your stationery designed, make sure to put your website address and phone number on everything, as this is how customers are going to find you.

Business Phone Line

Whether it's a landline or on your cell phone, make sure your phone is answered in an appropriate and professional manner at all times.

You should have a dedicated line for your business, if possible. If you are using a phone that is used for personal reasons as well, err on the side of professionalism - always answer as if it were a business call until you know otherwise.

Can You Talk Business?

You should know how to talk about your company and present it to anyone you encounter in a business environment. Practice an 'elevator speech' (1-2 minutes) about your company that you can use to tell someone about your business.

For people to take your company seriously, you have to make sure it has a professional look. Use the tips above to do just that.

Legal Considerations - Business Structure

Once you are ready to start your business, do you know what kind of business entity it needs to be?

Many business owners don't consider this right away - but not knowing the difference between your choices could land you in a world of legal trouble down the road.

Here's a quick look at your options:

• Sole Proprietorships and Partnerships - For most entrepreneurs, this is how their small business will start.
  
  While all the profits will be yours, so are all the responsibilities and liabilities - because the business is tied to your personal finances.

• Limited Partnerships - In Limited Partnerships, there is one main partner who makes the decisions, and others who are investors in the company.
  
  The main partner will be the one who is personally liable if things go wrong, while the other partners put in money to take a share of the profits.

• Limited Liability Corporation (LLC) - An LLC takes the liability away from the owners of the business. Instead, the business becomes its own legal entity in the eyes of the law.
  
  While the owner(s) will still take care of business taxes on their personal returns, they will not be forced to take on personal liability if the business is sued.

• Corporation - Incorporating is when a business becomes completely its own entity, both legally and financially.
  
  This type of business will pay corporate taxes; and instead of being labeled an owner, the owner will be come an employee of the company.

Depending on the type of business you plan to run, and the risks associated with it, you need to carefully choose which type of business structure you need.