We know at Jelt Publishing that starting a work at home internet business is an exciting opportunity. There are a few basic rules that apply regardless of what you are marketing.
In the informational business I advocate, the most important steps are:
I will show you how to take these 5 major steps in due course, but first I would like to point out some very important points you need to be aware of when you first start out.
It may seem obvious, but make sure you don't fall in to the trap that a lot of people find themselves in and that is 'running before you can walk'.
Like any business, it takes time to "learn the ropes" of how it all works. I see too many people thinking they know best, launching in to their "business" and end up spending far more time, energy and money than they need to.
A bit of background research is vital and this will save you a lot of time and effort in the future.
This may seem an obvious point, but a lot of people buy or create a product to sell without first thinking about who they are going to sell to.
Before even considering products for your work at home internet business, you need to think where your customers are coming from. Let me give you an example....
You have £100 to give away, but who is most likely to want it?
1) A millionaire?
2) A banker?
3) An american?
4) A person who has fallen on hard times?
Well, I know all of these individuals would take your money, but the one person with the REAL HUNGER for your hand out is surely going to be the person who has fallen on hard times...they would be your hungry market!
Of course, you're not going to be giving away money in your business, you will be looking to make money instead.
Identifying that hungry market of buyers is vital to any work at home internet business.
This may seem a daft point, but how are you going to produce your product? If you are going to market a physical product, this will need storage space won't it?
If your working from home, unless you have a lot of space, there is usually very little storage area if you wish to market a physical product. You are then having to think about renting out a storage facility or office workspace this can be costly to hold stock.
However, with informational products this is totally unnecessary as you don't need any storage space. All you do need is a way of fulfilling orders that doesn't require you to store them at home.
This can be in the form of:
All businesses require finance to work. When working from home, you can keep these to a minimum because you're not having to look at any extra costs over what you would normally pay in living expenses.
However, it is important to realise even working at home requires some financing and this needs to be taken in to account when you first start out.
You will need to find money for:
Fortunately, with informational products this can be done on a shoestring budget.
In the UK, there are 2 main main options for your work at home internet business:
a) SOLE PROPRIETORSHIP
b) LIMITED COMPANY.
This is the most simple form of work at home internet business model and is for people starting up on their own. You don’t need to register your company, but you do need to have a name for it that doesn’t conflict with others. Companies house has a database of company names and you can run a check of your chosen name to make sure it’s not already registered.
With sole proprietorship you need to be aware that you’re responsible for the company and any debts incurred. This means your personal finance (including your home) is at risk if, in the worse possible scenario, your business fails. It doesn’t mean you only have to work on your own though, just the financial responsibility is on you. Like anyone self-employed, you will need to fill out a yearly tax form online through HMRC.
A limited company is an organisation you set up to run your business - it’s responsible in its own right for everything it does and finances are separate to your own personal finances.
This has the advantage of protecting your personal life, but you do have legal responsibilities as the director of that company.
1) You have to file your accounts with Companies House and your Company Tax Return with HM Revenue and Customs (HMRC).
2) You have to pay corporation tax on your profits.
A limited company needs to be registered at companies house and can be done online by yourself, or by a third party formations company. There are many available on the net. They offer a variety of services, not just the setting up of your company. When you register your company, you’ll need an address for this. Most people don’t want to use their home address, but there are ways around this. For example, you can register your company with some formation companies or you can ask your fulfilment house (if you use one) if you can use their address.
The choice is yours and I would strongly advise seeking advice from an accountant.