Business Alone

You are the new owner of an online business. You have made the decision to go out on your own and leave the crowded corporate business world behind.

You have chosen to "do your own thing" - to be your own boss - to take sole responsibility for everything that happens in your business and you answer to no one (except, of course, your spouse!)

In the previous post, I gave the example of developing an online bookstore in such a way that you're not trying to compete with the Big Box retailers head-to-head.

Here's how to do it:

Most "How to Start a New Home Business" books will include a list of personal characteristics or personality traits the author feels are necessary for the entrepreneur to have in order to be a successful small business owner.

The personal traits that I've included on my list aren't those that might "come in handy" down the road sometime. These are essential must-have elements that are the basis of the owner's persona and they will become the foundation of his/her management ability and capacity.

Now don't despair if you don't have all these traits right now. To some degree, at least, every one of them can be acquired or learned with some practice, persistence, and dedication.

I'll admit it . . . I'm a victim.

So are thousands of other would-be entrepreneurs that never start a business because they just can't seem to find the traction to get going.

Sure this is a big step . . . sure there are lots of reasons to begin slowly and not jump into the water that's too deep or too swift until you know how to swim.

Yes, careful planning and thoughtful mentoring will certainly increase your chances of success.

Regardless, the first step is always the hardest!

So many, many people have great difficulty in setting themselves in motion. The reasons are many, of course, but the sad truth is that many dreams fade as the morning breaks because the dreamer can't get out of bed.

Indecisiveness, over-analysis, and the fear of making the wrong move stop many people in their tracks and paralyze them from ever planting and growing their own small business idea.

I sincerely believe that a successful business can be created around almost any marketable idea.

I also believe that every person has hidden away in his/her mind, a potentially profitable business idea that can be made marketable in the right hands.

Your task, as I see it, is to identify the idea(s) that has this great potential and test it to the extent that you're comfortable with it becoming the basis of your new business going forward.

So how do you pull this good business idea from your mind? Where do you go to find it?

Here's an exercise that anyone can do that should help you come up with some great and personalized ideas for the subject of your new online business.

Spend some time and find a niche that takes advantage of the areas of specialty for which you are uniquely skilled or qualified, but which also keep your interest and stoke your passion.

The steps are fairly elementary. I would recommend doing this exercise with your spouse or a close friend that knows you well - that way you'll be able to get a second opinion about your suitability to enter this niche.

In the previous two posts, we discussed a technique for drawing up a very specific list of business subjects that could become the basis of your online enterprise. They are designed to take advantage of your past life experiences, education, skills and passion.

There is a good chance there will be duplicate items on the list. If you find them, cross all the duplicates off so there is only one listing left, but for each duplicate you crossed off, place a star by the one remaining. (For example, if there were three entries the same, you are now left with one entry and two stars by it.)

Now re-list the items from top to bottom in a new list: the items with the most stars at the top, then the next most, then the next, etc.

For all the remaining items with no stars, list them in descending order according to how much you now enjoy doing them, or working with them, or in some way participating in that subject. The entries you enjoy most are ranked above the ones you don't enjoy so much.

May each of you have a wonderful Christmas Day and a very prosperous new year in 2007!

Now turn off your computer and go spend some time with your family.

What I am about to tell you may shock you, enrage you, or maybe just disgust you -- but I will not mislead you!

You deserve to hear the naked truth about starting a business on the Internet from someone who has spent his entire career in the small business development field and the past 10 years online.

I want you to understand what is going on all around you in this frenzied and "enlightened" time of global communication, instant access, and light-speed digital transmissions.

Most of us have contemplated starting our own business at one time or another - in fact, some have called this almost universal desire - the new "American Dream."

The Internet landscape is saturated with claims of easy, automatic, guaranteed, wealth-building packages and lucrative startup systems that anyone can do with minimal effort and wild success.

These offers often seem so "right" for the novice just starting out in business because of their supposed ease of setup, lack of real work, and mega-profits that are "guaranteed."

But I will tell you: don't waste your money or your time on these products, and above all, don't get discouraged that you're getting left behind if you don't hit the "buy now" button before 12 o'clock midnight when the offer goes away!

The self-proclaimed wealth "gurus" that produce these products can't guarantee you anything.

It's so easy to get hooked on their outrageous claims of mega bucks for little or no effort.

My friend Jeff had tried three different business creation "systems" or turn-key packages over the past few months that had initially sounded like they were exactly the solution he needed to profit from his own online business idea.

But for various reasons, none of the systems had given him even one dollar of revenue to date.

Jeff just couldn't understand why he had failed, and why his purchases hadn't produced the income he was counting on.

With slight variations, these are the common themes of the systems Jeff had purchased:

I have watched as many heart-broken and disgruntled entrepreneurs have bounced from one business building package to the next, to the next, determined to find a system that produced quick results but that also required little or no effort.

Each new system that fails depletes the owner's bank account, shatters his enthusiasm for business, the drive to succeed online, and his precious time spent trying to find anything that produces substantial income!

Now take a step back for a moment and analyze the situation. What's wrong with this guaranteed and automatic wealth building business model?

Do you know?

We've been discussing the futility of buying into many of the so-called "business in a box" solutions that are available to the online entrepreneur.

It seems they are everywhere today and many are being promoted (and even developed) by folks that have never been involved with a successful business.

In the previous post, I gave you four good reasons why you should avoid these one-size-fits-all business packages and why they just don't work.

Here are some additional reasons (continued from yesterday's post) why you should avoid them:

Most new business owners tend to be great advocates for their product or service as they prepare for their business launch.

They become cheerleaders and proselyters for their product's features, benefits, and usefulness. They want to shout to the whole world that their "baby" is being born and it's the greatest improvement to ___________ of the century!

Do you know what I'm talking about? Have you ever felt this way?

I think new business owners are better served at the outset by playing the role of buyer or consumer of that product. Here's why . . .

Entrepreneurs are a diversified bunch. They appear in all sorts of sizes, temperaments, ages, and with various backgrounds.

Some produce tons of workable business ideas in a year. Others seem to struggle to come up with one good idea in a decade.

Regardless of where you fit on the continuum, there is a very underutilized place you can go to get all the good ideas you'll ever need to keep you in business for a long time to come.

Go online!

It's a nasty name, "swipe files," but it's an idea you should implement immediately if you haven't already gotten yours started!

If you're like me, you run across great little ideas and tidbits on the Internet every day.

But if you don't record that idea, or web site, or reference, or "how to" hint for later recall, you will have forgotten that even existed within a day or two.

If you've been involved in copywriting, direct ad creation, web site development, graphics creation, email headlining, and any number of other online business tasks, you've probably heard the term "swipe files."

That's kind of a nasty or unpleasant term, but the concept is smart and the results of you building such files will be significant as you venture into your new information business.

If you don't know what a "swipe file" is, or you're not convinced you need one (or several), read on.

Working for yourself often seems like the perfect solution for finding a way to earn a living and also enjoy some freedom of expression and the flexibility to set your own work schedule.

In addition, the idea of getting paid what you're worth and not having to share the profit of your own labors really appeals to many.

But before you dive into a solo business, you would do well to discuss the implications of being your own boss and "going it alone" with others that have already chosen this path and are actually making a living this way.

Their insights and advice will most likely do one of two things: strengthen your resolve to strike out down this path, or bring doubts into your mind about whether this type of business is really something that you will be happy and productive doing.

Often magazines and news articles about self-employment include tests or checklists that you can review to see if you possess the traits or qualities that are necessary to become a profitable business owner.

You might wonder how accurate such "predictors" are of future success.

My experience in studying a number of these tests is that results vary somewhat depending upon the audience polled and the skill of the survey designer and the results analyst. Nothing is black and white.

So are these predictors useless? Do they have any value to aspiring solo business owners? Here's my take:

Indicators or predictors are just that - they give us some clues about what might be - based upon probabilities captured in repeated tests. There are always exceptions and cases that fall outside the expected range of results.

In the previous post I suggested that there were some personality traits that were commonly measured (through self analysis testing) that seem to be indicators of the entrepreneurial mind set and qualities necessary for future business success.

I also cautioned that if you don't possess all these qualities, and still desire to begin a business venture, you should not be swayed from your decision on the basis of apparent lack of "the right stuff."

Some traits can be "learned" or acquired over time and some may not be quite so relevant to success in certain types of business that a solo operator may have chosen.

There are special challenges and unique rewards for married couples that create and operate a home business in tandem.

This kind of joint project can create new feelings of unity, togetherness, and working for a common goal that many couples don't experience in their hectic "do your own thing" lives.

On the other hand, business partnerships involving mates, if not handled properly, can also intensify negative feelings toward one another, add stress and pressure to a marriage, and drive a wedge in the heart of the relationship.

For these reasons, some couples would never consider working together in a small business, not wanting to risk possible clashes and avoidable irritations.

The unique and important aspect of any web based solo information business operator is the fact that he/she can deliver personal knowledge, skills, or experience to targeted customers over the Internet and get paid to do so!

Since everyone's knowledge and experience is unique, one-of-a-kind, and personal, your business cannot be duplicated (at least legally) by anyone!

Now it may not have occurred to you that if you adopt this business model, you have chosen to set yourself up as an expert in your field.

Even though you may deny you want that role, or won't ever admit to assuming such, you will be perceived as an expert by your audience. They are coming to you, money in hand, seeking the information you distribute.

If you choose to become such an entrepreneur, regardless of the subject of your business, you are putting on a robe of authority, so to speak, and acknowledging that you are a legitimate source of valuable information - the type of information that your client wants and is willing to pay for.

Think about that for a moment . . .

If you sell information, you are, in essence, a paid consultant.

Now you may never have viewed yourself in that light.

Maybe the information you sell takes the form of recommendations on the best cruise lines to book if you want to see Alaska in July. Can you see why you are a consultant in that subject?

Maybe your information business subject is dog grooming. Aunt Mimi has signed on as your customer because she wants you to teach her about grooming Fifi, her toy poodle. You are the consultant - Aunt Mimi is your client.

As soon as your customer signs up for your service (delivered in the form of some type of information), a consultant/client relationship is established.

It doesn't matter if you sell e-books, produce audio clips, run a subscription web site, or design graphics for logos. Digital information is your service and you are giving advice for a fee.

Here is my checklist of crucial questions to ask yourself about your solor business, whether it's still in the making or already cranking out a profit.

Yes, there are some important things to consider beyond what you'll see on this list. But this is a place to begin, a reality check of sorts, to make sure that you understand what your business is about and where you're headed.

[ Just in case you missed the definition of a solo business, it is a small information based business operated by one person on the Internet. The subject of the business will be related to the owner's knowledge, skill, passion, training, or life experiences. - Author's note ]

Anyone can choose a name. Anything will get you by. But the way I see it . . . why not find the very best name you can that will give value and meaning to your business?

Sure it will take a little bit of effort and some time to come up with the perfect name, but I can tell you that finding it will pay you great dividends over time.

Especially on the Internet, your business name sets you apart, defines your niche, and is the address that customers will be hunting for if your marketing reaches them.

So what's in a name? What considerations are important as you mull over the choices that you have? How do you find the best alternative available?

One of the first considerations in choosing a name for your new online solo enterprise should be to find out if someone else has already reserved and registered the same (or a similar) name.

You can hire this chore out to a professional firm if you have lots of money for such things or if you don't trust your own research capability.

Handing this chore off would probably be a good idea if you were treading on thin ice with your preferred name. For example, if you planned to register a name that is very close to a protected name, something like Amazon Jungle for your new book service, you may want to put the burden of proof on a company that will guarantee their results and have the legal muscle to steer the process through to conclusion.

Creating a new business is like preparing for a wedding: there are a thousand details that must be planned and executed.

It's easy to overlook some of the steps that are important to a business - especially when they are often perceived as being distasteful, expensive, and sometimes purely nonsense.

So it is with securing the necessary permits and licenses to make your business legal, keep you out of hot water, and legitimize your company.

Please give me a little slack if your State is different than mine. I guess there's a good chance that the sequence of obtaining the necessary business licenses could vary from State to State.

My business was registered in Utah, first as a sole proprietorship and later on as a Subchapter S Corporation.

I'll be the first to admit that I'm not a lawyer and my experience in this realm is limited to just one State. I will tell you what I did. You may find things are done a little differently where you register your business.

I began my license quest at the county administrative office. That ended up being a mistake since they needed to have my DBA and State business registration information before they could process my application.

Every county will have its own procedure and you may find that this is the place to begin tracking down all the licenses and permits that you need. This is the place I started, but was told to register my business name with the State first . . . so that's what I did.

The County Clerk's office will usually be helpful in getting you pointed in the right direction. They'll be able to send you to the proper window to pay your fees.

The type of business you're creating will have a lot to do with the licenses and permits you'll need from the County government.

When most business owners talk about "framing their business license" they are referring to the municipal or city business license that authorizes them to do business at their chosen location.

It is very important, especially before you make any permanent location decisions, to check with your city to see if what you plan to do is allowed in the municipal code.

The city planning and zoning office should be able to help you determine what requirements will apply in your case.

There could be some zoning issues relevant to where you live that might have an impact on your business or the type of license and fees you will be assessed.

I was thinking the other day about how my tastes, preferences, and attitudes have changed over the years since I was first married and had four little ones running under foot.

All my children have now reached adulthood and I'm called "grandpa." (By the way, for any of you staring a similar transition in the face - it's a wonderful thing! It beats the alternative, doesn't it?)

I don't read the same things that used to interest me. I don't watch the same TV I did back then (mostly "kiddie TV" to keep the wee ones happy). The Internet was not around yet.

I'm as guilty as the next small business author. I like to share the business owner personality traits that seem to go hand-in-hand with successful business.

But we rarely discuss the qualities you shouldn't possess.

Maybe we don't like to dwell on the negative. Maybe we feel that as long as the owner has the good qualities, he can also be forgiven for harboring a few of the bad.

Maybe we'd just prefer to keep silent and assume that small business owners hide their personality flaws by keeping to themselves.

These 10 qualities are not reserved for business types. Anyone can become infected. Also, like most diseases, it's a heck of a lot easier to get it than it is to get rid of it.

Every business needs a skeleton, a backbone, a framework that gives structure and organization to the operation.

Having a structure also allows you protections and rights under the law and qualifies your business for particular tax and income advantages.

The structure you choose is important. The decision you make will affect your financial, operational, and legal standing and reporting.

It will also create some responsibilities and requirements for reporting that may force you to seek outside help or assistance. Whether you undertake to learn the do-it-yourself way or you opt for some professional help, here are a few ideas to keep in mind.

Picture yourself leaving on a journey to a far away place you've never been to before. You're not quite sure how to find this place, but you think you can ask questions of the locals along the way so you'll be able to zero in on your final destination.

Let me ask you: "What's the single best resource you could take with you on the journey if you had your choice?"

Would it be lots of money to buy your way in to the directions you need? Maybe.

Would it be a detailed map that showed you the exact way to your destination? Maybe.

What would you want to take on your journey?

Regardless of your business structure (sole proprietorship, partnership, or corporation) you should apply for an EIN (employer identification number) if you want to be seen as a legitimate business.

Yes, sole proprietors can get by without one. Social security numbers are acceptable on income tax filings for persons without employees. But often those who would do business with your business, i.e. suppliers and vendors, want to see an EIN as a way to verify that you really are in business.

Your EIN will be assigned to your business by the Internal Review Service. It's your taxpayer ID, so to speak, and it will be used by federal, state, and local governments.

Most of the Internet's best marketing minds agree on this philosophy:

"Don't try to create interest and excitement in your prospect for your product. Find an overwhelming desire already in your prospect's mind and fill it."

What does this idea suggest? Simply this . . .

Just a few years ago, if you owned a solo business and contracted your time and expertise out on an hourly basis, you probably called yourself a freelancer.

Maybe you were good at writing, or typing, or graphics design, or doing research.

Whatever the skill you possessed, you found you were able to hire your time out to others on an hourly or "per job" basis. It seemed pretty nice at the time.

Hopefully, you enjoyed whatever it was that you did because you were being paid to perform that function only as you were able to produce. Typically, the more hours you spent in someone's service, the more you got paid.

Most of the professional solo businesses that I am aware of have followed a very traditional model in how the business is set up and operated.

Most attorneys, doctors, counselors, and accountants design their practices around the way their predecessors did business before them.

They may decide to locate in a single office or they might opt for a group setting where several others of their practice get together to take advantage of a single building with a common reception area, staff of office assistants, and shared billing system, parking lot, and rest rooms.

Each professional is in business for himself, but his business only thrives as he is able to apply his trade.

He bills at an hourly rate, sees whom he chooses, and sets his own schedule, although his assistants really handle the appointments and flow of work throughout the day.

One of the ways solo business was conducted for many years in this country (U.S.) was by what I call "the one man band" business model.

An entrepreneur would create or find a product and proceed to sell that product to as many buyers as he could find. Sometimes the owner would develop a full line of products offering the consumer many styles, sizes and other choices.

The one man band was many business employees rolled into one. He did the research and development on the product, the manufacturing and/or purchasing, he was the salesman, the secretary, the customer service representative and the business owner all at the same time.