Business Alone

All over the globe there is a wave of entrepreneurism that is sweeping the small business world both here in America and in far away places. What is fanning the flames of this hot topic is easy access to the Internet.

The pioneers that are striking out on their own to carve business niches and discover new ways to profit from online marketing are simple working men and women with a common desire.

They all want to throw off the shackles of employment slavery.

They want to earn a living owning and operating their own small business.

They want to run their storefronts from the confines of the kitchen table!

If you've read anything about home business conducted on the Internet, you know how important, even critical, it is to choose a specialized niche, one that you can compete in successfully.

Generally, you want to be involved in a niche that is vertically deep as opposed to horizontally broad. If you don't know what that means, here's a simple explanation:

Every niche market has a different dynamic, a unique structure based on the various parts or segments of that niche. In addition, each will have a different set of enthusiasts.

Optimally, you would want to concentrate on depth rather than breadth of the market you're in.

In the previous post we talked about turning a hobby into an online business and why it was a good idea to choose a very deep and specialized market niche.

We also said that the subject of the niche was important and that it should usually be a topic that the owner had experience in, knowledge of, training for, and passion about.

Most often, the business owner will be most successful if he can narrow his potential customer pool down to just those folks that have a great and frenzied interest in exactly what the owner is selling.

I think you would be surprised with the number of potential prospects globally, even though the niche chosen seems way too narrow.

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.

Chances are pretty good that you've known several people, maybe family members, or friends, or past co-workers that have made the leap to private business ownership.

Can you think of any of these people that have a thriving business today? Hopefully, you can . . . but the odds are not good.

I'm guessing you probably have knowledge of more startup failures among your friends than successes.

Here's an alarming statistic:

96% of all small business start-ups are doomed to failure.

I hope that sentence doesn't scare you away from moving forward in starting your own business.

But as I stated earlier, I want you to know the truth about what you're facing and how to side-step the traps others are setting for you.

Now don't get me wrong . . .

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:

There is a real attraction to purchasing a "business in a box" system.

To someone who has never undertaken the journey of business creation before, it seems logical that the steps could be laid out for you and the ground plowed ahead of you to guide you every step of the way, for just a one-time fee of $999.00

Think of all the time you'll save and the headaches you'll avoid if you don't have to research and actually learn what starting a business is all about!

What you may be overlooking, however, are gigantic business creation problems and voids that must be solved for every company.

Many entrepreneurs struggle to come up with good ideas. It only takes one, however, to lay the foundation of a profitable business. But don't worry - your idea doesn't necessarily need to be perfect to allow you to start a business.

Here's a tip: instead of trying to think of the exact, final idea that will be the basis of your business, it might help to start out surveying the field. In other words, begin by looking at general areas or industries rather than focused, tight subjects.

Start at the wide end of the funnel and narrow your choices and focus as you move down the funnel toward the small end. There will be a lot of areas or industries that you'll be able to eliminate right off the bat to narrow the field.

Let me tell you about some general categories of Internet business that have historically been of great interest to lots of customers. These are not niches - they're just wide areas or subjects that have proven to hold many potential prospects.

Coming up with a workable home business idea is only a beginning. If whatever that idea is never develops beyond a thought, your dream of a real business will never happen.

In fact, let me be so blunt as to say that your chances for success in any business creation attempt will be directly proportional to your ability to translate ideas, and feelings, and thoughts into executed action steps.

Every new product and service that you see in the world today is the result of someone's acting upon an idea and following through by executing a series of steps that eventually resulted in the product's launch.

There may have been many, many people that had a similar, or even the exact same idea.

In a previous post I talked a little about the importance of being honest with yourself as you undertake any business creation.

For the solo entrepreneur, especially (because you are the business), it is critical that you begin on solid ground - not taking anything for granted, not overestimating your abilities, time you'll have available for the business, or your customer market potential.

You can't afford to keep a closed eye to any one of the many business realities that can be evaluated up front before so you don't lose a lot of time or money traveling down a dead end.

By asking questions at the outset, you are forced into analyzing, researching, and evaluating the information at hand in order to come up with honest answers that will lead to your business being planted on solid ground.

Otherwise, you may cripple your business output at a later time because you ignored, or chose to "skim over" some critical details that might have influenced your decision to even move forward at the outset.

This can be one of the most perplexing and difficult decisions you have to make as you decide to create a business.

Here are some questions to ask yourself that may help you to come up with the right decision for YOU.

Obviously, there is no "one best way" to enter self-employment. The choice you make on how to do it will most likely depend upon your current state of affairs: your employment situation, your tolerance for risk, your family size and makeup, and your ability to take care of your financial obligations possibly without a regular paycheck.

There is some wisdom in not rushing things at the outset. Quitting your full time job and putting your loved ones at risk can be a very scary proposition.

If you lose your medical and life insurance coverage, will you be able to afford these new out-of-pocket costs?

How long will you be able to last if your daily and monthly living expenses have to come from your savings account?

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.

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.

Since the beginning of time, solo business persons have opened and maintained retail stores that sold products to walk-in customers.

Sometimes the stores featured only specialty items, like a bike shop or bakery. Others carried a range of goods (like a mercantile) but remained small enough that one person could man the shop by himself and perform all the daily functions necessary.

There would be goods to order from manufacturers or wholesalers, shelves to stock, customers to wait on, books to be balanced, and cleaning at the end of the day.

If you are serious about starting a small solo business, there is no greater lesson to learn than how to apply the principle of maximum leverage to everything you do in your business operation.

Your survival, and ultimately your success, will hinge on how well you grasp the concept and make it your slave.

It's a difficult lesson for many, partly because most of us rarely practice applying leverage in our own personal lives. We tend to get complacent and accept low output and/or maintaining the status quo as our daily M.O.

When you get right down to brass tacks, most successful businesses are pretty boring. Really!

How many boring hamburgers does your local McDonalds crank out in a year? How many boring oil changes does Jiffy Lube perform for their customers every day? How often do Amazon employees wrap up a boring package of books to be shipped worldwide?

Many of today's most successful companies are at the top of their niche because they have mastered the execution of very boring business subjects and activities. They understand how to execute their boring routine over and over and over again; usually better and cheaper than anyone else.

Profitable companies develop systems of execution based on testing, modifying, and refining. Once they determine what works best, they simply repeat that formula or system over and over again.

Every business begins with an idea. The idea may or may not be your own, but it will determine, to a large extent, the success of your business.

So it follows that finding a good idea, the right idea for you at this time and place, is paramount in your attempt to begin a solo business.

But how do you know whether you have a good business idea or not? How do you know that the product or service you will offer will be something that others will buy?

Maybe you trust your brother-in-law Harvey's opinion that "this business is going to revolutionize the future of every man, woman, and child living in the free world."

I don't always recommend that you seek out an attorney and a financial advisor for your business safety and peace of mind.

And most of you know that I don't recommend the solo business owner buy an already established business.

But if that's your intent, and you have thoroughly checked out the business as I have suggested elsewhere, you still need to make absolutely sure this transaction is exactly what you intend. Surprises are not a good thing in this business.

Since you will most likely be investing a good deal of change in your purchase, and you will be spending the better part of your waking hours on managing your new "used" company, you would be well advised to consult with legal and financial counsel prior to closing the deal.

Before you take this step, I would encourage you to do a little research and study into the practice so you'll at least be aware of the laws, regulations, and tax consequences of this practice.

Should you pay your children (or the neighbor's kids) with cash to help you in your business and not call them employees so you can avoid the laws governing child labor standards? I won't answer that - it's your decision.

Generally, no youth under the age of 16 is permitted to work more than four hours in one school day. They can't be employed before 5:00 am or after 9:30 pm (unless the following day is a non-school day.) You can't hire a youth for more than 8 hours in a 24-hour period.

Youth that are 14 and 15 can be employed in certain situations and businesses that are non-hazardous like restaurants, janitorial services, fast food chains, landscaping firms, etc.

I know, I know, we all use the term freely and without much thought.

But it really is wrong. A virtual business can't have assets, employees, products and customers.

The term "virtual" means a realistic simulation; of such effect that something appears to be real even though it's not.

Well let me tell you, Internet business is the real thing. It is a different kind of business because of the way it's operated and delivered; but it is as real, legal, and legitimate as any other physical business.

Digital information is not unlike written information, except that it exists in the form of little data bits that consist of "1s" and "0s."

Every character and many symbols that we use in our language can be represented "digitally" and transferred electronically over wires and cables and even through the air waves.

Those characters are developed or "written" in software programs like MS Word and others but are "saved" as digital files which can then be transferred to other media and output types.

First, think for a moment about a traditional physical business.

Choose any store down the street you like or think about your favorite shop at the neighborhood mall.

Undoubtedly, it will have walls, a roof, carpet, employees, opening and closing times, products on the shelf (or some type of service that can be purchased), a cash register, counters, aisles, lights, bathrooms, advertising in the window, dedicated or shared parking outside, and many other things that all businesses have . . . or do they?

Try to imagine an alternative type of store with a single owner but no employees, no walls, no roof, no carpet, no bathrooms, no cash register, no counters, no aisles, no lights or other physical attributes.

Information businesses that are created, developed, promoted, operated, and delivered over the Internet are "the perfect business" because the product or service requires no employees, no stored inventory, no physical packaging, and no physical delivery.

These businesses can be operated from anywhere around the globe with just an Internet connection and the proper business set-up!

But for these businesses to exist, the following conditions must be met:

There should be a number of considerations that you look at before you set a pricing structure to your products.

But many entrepreneurs don't think much about an overall strategy. They believe they are limited in their ability to set prices beyond a certain range.

Let's say you decide to sell a DVD, for instance, that you produced yourself called "The Ups and Downs of Exploring the Grand Canyon on a Pogo Stick!"

If you play the "we guarantee the lowest prices" game, you will usually regret the decision. Of course, only you can be the judge as to your approach to pricing your products and competing in your niche markets.

But I will tell you that unless you are into razor thin margins and moving lots and lots of products, undercutting competitors is a chancy game - at best.

Here's why:

It's fun to skim through a number of new business plans in a short period of time. I always take special note of the sales projections and compare set against set.

Of course, there is probably no merit in comparing apples to oranges as I'm suggesting I like to do. But it sometimes becomes apparent which prospective owners are attempting to be objective, and which are merely dreaming.

Even if you don't understand specific market demand, you will get a distinct "feel" for the amount of hype and exaggeration that floats around in the numbers and the logic.

There is a tendency among new business owners to price their products and services too low in the hope that they will attract more customers and not be given a reputation of being overpriced.

There are several problems with this strategy.

First, the kind of information business we propose for solo Internet entrepreneurs won't have any direct competition. The products, information and business execution are likely to be very unique and tailored to the owner's personality and experience.

Let's face it, many folks that start their own solo business are first time entrepreneurs. They have no history, background, or training in small business development or operation.

That presents a great challenge - one that can certainly be overcome - but one that must be recognized and met head-on.

You see, operating a business is like most other professions. You don't just declare that you want to be in business for yourself and all of a sudden possess all the skills and knowledge that you need to be successful.

Over the next few posts we will be looking at things you can do in your business to:

- gain the education and experience you need to learn important and useful business skills directly related to your success,

- present your business in the best light as one that is real and credible,

- grow your business beyond being just a startup that doesn't go anywhere,

- expand your mind and your opportunities for new business ideas, new products, and creative solutions to business problems,

We're discussing the steps you can take as a business owner to make yourself and your company a professional, trusted, "real" business; not some sloppy and suspect half-hearted attempt to grab a few customer dollars.

Here's the next step: Search out one or more experienced mentors to guide you in your business.

If you can find experienced business people that are willing to provide you some direction, advice, and counseling, you will be miles ahead of the pack of those who simply "go it alone" with no additional help.

I cant' overemphasize the notion that the most successful business owners are the ones that become "students" of small business and especially, their own business model and niche.

What does it mean to be a student of your business?

Some who go into business become so focused on the daily routines and operations, they never take the time to study and learn about doing business in a more efficient and effective manner.

I've seen a vicious cycle, a treadmill that catches business owners in a kind of "time warp" or trap. The owner starts running on the treadmill and can never seem to jump off.

He finds himself running faster and faster to keep his business afloat as he becomes more successful, but he's never able to slow down, catch up, and he can't jump off.

Every business needs to establish and maintain professional working relationships with suppliers, distributors, vendors, service providers, and outsourcing companies.

You may think that just because you're running a solo operation and you are developing all your information products in-house you don't need to worry about on-going relationships.

Every business will need to establish partnerships (or relationships) with an Internet service provider, a bank or other financial partner, tax consultants (even if you prepare your own returns), insurance providers, possibly an attorney, and most likely some online service providers (like a merchant account company to provide for credit card transactions).

You've probably noticed over your lifetime that companies dealing in quality products and services tend to remain in business over a long period of time.

Others that prefer to push inferior products - and sometimes just good or average quality offerings - usually have a much shorter life cycle.

Why is it? Wouldn't you logically think that cheaper and more affordable items would outsell more expensive ones if they both performed the same basic functions?

I'm not suggesting anything like copying or plagiarizing someone's profitable business model and products to push them out of their own chosen niche.

Although this very practice happens all the time on the Internet with cloned or stolen and copied products and services, you should never consider such a blatant attempt to shortcut your way to success.

What I am suggesting is that you put on your thinking cap, get creative, and look at the solutions that successful businesses in other niches come up with to solve the problems they find in that niche.

Nowhere has the Internet made a more dramatic change in the existing power structure than in the business world.

It used to be that companies wielding the most power and influence were those that operated from a position of strong cash reserves and seemingly unlimited access to professional service muscle like Wall Street financial advisers, Big Five accounting expertise, and legions of powerful corporate attorneys.

The "Big Boys" could buy their way into business advertising that dwarfed their competitors.

On my reading list for all online solo business owners is Michael LeBoeuf's little paperback called The Perfect Business.

The corporate salaried employee stereotype with stock options, a hefty 401K, and holiday pay may soon become a relic of the past.

Job security is no longer prevalent. Corporate downsizing, mergers, and take-overs can spell unemployment for even the most proficient and tenured of workers.

LeBoeuf's book is perfect for the employee that decides to leave structured business life and test the waters of self-employment.

His writing is motivational, inspirational, and filled with solid reasons why solo business may be just the solution for those ousted from the 8-to-5 routine.

In a lot of online business situations, email is the lifeline between you and your customers and suppliers.

You don't have face-to-face contact and you may never converse over the phone.

Since your emails are so important, so critical to your communication with both customers and vendors in the business world, it is very smart to pay particular attention to both the substance and presentation of your emails.

All of us get in the habit of becoming lax in the business "chores" that are commonplace and routine. Email is no different.

In 2005 I purchased and read Seth Godin's latest contribution to new age business thinking and culture and immediately was struck by it's logic, practicality and seemingly correct vision of how we must sell our products and services now and in the future.

Seth Godin's book, called All Marketers Are Liars - The Power of Telling Authentic Stories in a Low-Trust World, is a fun read and certainly challenges traditional thinking about marketing products and services.

According to Godin, successful companies will be those that invent good products worth talking about and then come up with good, believable stories about what they've invented.

Godin writes, "Make your story bigger and bigger until it's important enough to believe."

Another book that I like to recommend to entrepreneurs and existing small business owners is The Wisdom of Crowds by James Surowiecki, a columnist for The New Yorker magazine.

It was published in May 2004 and has 320 pages. The subtitle is: "Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations."

That's quite a mouthful and suggests that there really is wisdom, influence, and, in particular, power in the thinking and opinions of the masses, either to the benefit or detriment of every society, organization, and economy in the world.

I believe it's a wise move to investigate all the options you have in executing your online business.

You may quickly dismiss many of these options for any number of reasons, but you might also find just that one perfect little advantage that sets your business apart from your competitors and propels you to success.

Drop-shipping could become your business "ace in the hole" so to speak, but there are many dangers in this industry so you need to be cautious and thorough in your research about the drop-shippers that you employ, their reputation for quality products and service, their fee structure, their policies, and your rights as the selling agent.

Some business owners have chosen to ship purchased products to their customers at no additional cost with the idea that such generosity could mean the difference between landing a sale or not, all other considerations being equal.

I would caution that you be very careful in implementing this strategy. If you choose to offer free shipping, that's certainly your prerogative as the business owner; but if your business can't really afford this luxury, it could become an awful drain on your capital.

Now, don't get me wrong - I'm not saying you should never employ this strategy. In fact, some businesses have used the "free shipping" tactic to differentiate and set their company apart from all the other competitors in their niche.

In the previous installment we discussed some of the costs associated with delivering physical products to your customers.

Be careful to study the numbers and understand exactly what it is costing your business on a weekly, monthly, and annual basis to send out your goods.

In most instances, it is best to charge your customers about what it costs you to handle and ship their purchase. The amount can vary a little from your exact cost so that you can standardize and simplify the shipping cost structure you present to your buyers.

Have you ever noticed a shopping cart full of groceries sitting next to the checkout stand at the supermarket?

I've seen it happen a few times and usually figured that someone simply left their wallet or purse at home and would be back soon to claim their abandoned goods.

It's not a big problem since most stores are accommodating about the oversight.

But online, shopping cart abandonment is a huge problem! No one really knows the extent of this loss to e-tailers, but I have seen some estimates that suggest fifty percent or more of all online sales processes are never completed.

Having to ship merchandise out to customers reminds me of the hassle of shaving every morning. It's a part of the daily routine, it's something to be tolerated but it's never enjoyed, and the longer you let it go, the more difficult the chore grows for the next day.

In my mind, having to ship merchandise, keep inventory on hand, box and package products, etc, is one of the reasons I feel strongly about solo operators focusing on information based business only. There is no shipping.

If you ship merchandise, you have to keep merchandise. All of a sudden you are in the warehousing and inventory business that presents all kinds of extra manpower costs, worries and hassles.

Often, new business owners figure the only way to increase sales is to put your product or service in front of more people.

Such a strategy usually means that you spend increasing amounts of money on advertising so you can extend your reach in to more and more markets.

Increasing sales by ramping up advertising is one way to pump up the bottom line. But there may be other more effective uses of your business operating budget.

There are more ways to increase your sales than to just try to entice more and more customers to purchase your product by increasing your advertising budget.

Have you ever considered establishing an affiliate sales program?

Such an effort may seem overwhelming or too complex for a small solo business. But the truth is, with the tools currently available online, there is no reason why the solo owner can't leverage his/her own effort quite inexpensively.

Creating an affiliate sales program is much like recruiting a large group of independent contract salesmen. These folks go out on their own and sell your products or service for a sales commission or portion of the profit on each and every sale they make.

Most small business owners look for additional sales in increased advertising and marketing.

But there are other strategies to explore and some unique methods of driving more sales in your business without turning up any additional customers.

One of those strategies involves up selling - offering additional products to the sales of your current buying pool. You're not having to locate new first time buyers . . . you're simply selling more to those who buy a product.

Entrepreneur is kind of a funny word. It's obviously of French origin. I've been hunting for years to find its English counterpart, but have not yet come up with a suitable substitute.

Maybe we don't need an English word for entrepreneur - it's used so commonly these days in the English language that most business-minded people, at least, have a pretty good understanding of the term.

My dictionary states the word "entrepreneur" comes from the Old French "entreprendre" which means, "to undertake." An entrepreneur is one who undertakes the creation, organization, operation, and risk of a business venture.

I want to welcome my new friend Chris Elliott to the blog and the amazing world of Internet business. Chris is a high school senior about to make a choice between colleges and is interested in entering the business world after school is completed.

Chris reminds me that there is a legion of potential solo Internet business candidates among us - the future business leaders that will blossom in the coming generation.

Most of the attention I pay to solo business owners goes to those who have a wealth of knowledge and experience under the belt. They are folks that already have some life and business experiences in the work place.

Over the short history of the Internet, there have been many creative and unusual strategies attempted by entrepreneurs to generate income, both as a means to make a living and also to simply add additional streams of income to the owner's business.

The popularity of the blogging craze has given some blog authors an additional stage or venue for their money-making tactics. It was only a matter of time before smart folks realized that anywhere there's traffic on the Internet, there's the opportunity for monetization of those visits.

If you own and operate a blog, you have a number of avenues open to you to pull some income from your effort. As is usually the case, the greater your exposure and traffic, the larger the opportunity will be to make substantial money from the blog.

I recently viewed a video clip produced by John Reese that showed his amazing VRE strategy that added over $500,000 to his business the first year it was implemented (beginning in February 2005.) You can view the video for yourself: http:files1.reesereport.com/vrevideo.html

John says he spent about 120 hours initially setting up this project which includes a network of small web sites that carry Google Adsense ads along with specifically targeted content related to high-paying keyword niches.

John is the same fellow that made some huge waves in the Internet marketing circles when he sold over $1 million of his Traffic Secrets course in a 24-hour period.

The premier search engine Google has come up with several programs that may be of interest to the solo small business owner. But there seems to be some matter of conflicting opinion about whether a web site owner should do anything to send his traffic away to someone else.

Here's the deal: Google allows web site owners to advertise products and services on their web site in exchange for a small referral fee each time a viewer clicks on one of the Google ads.

This is not an affiliate program since Google pays for each click rather than for a product that is actually purchased. In a sense, the web site owner is sharing in a PPC (pay per click) program. Google serves the ads and keeps track of the clicks. The web site owner puts Google's html code on his pages and provides relevant content for Google to match to its advertisers.

If you are a solo business operator and choose to increase the revenue generated at your web site, you have the option of employing Google Adsense advertising. I believe Yahoo and MSN also (or will soon) offer similar programs that allow the web owner to monetize his content.

There are several factors that determine how much revenue a web owner can generate for each of the particular content pages on his site that serve Adsense advertising.

First, the traffic to a site is important as most Internet advertising is, in part at lease, a numbers game. Your viewers will only click on an Adsense ad a certain proportion of the time.

Let's use the example of 1 click every 200 visitors. Given that type of click-through rate, a site with 200 visitors/page/day will generate 1/10 the income that a site with 2,000 visitors/page/day will get, all other things being equal.

Anyone that has searched online for information type products, and even physical products in some cases, has been offered one or more "bonuses" along with the purchase of the main product.

The question you may be asking is this, "Does a bonus offer increase the sale of a particular product?"

You may think that bonuses should naturally increase sales; but that is not always the case.

In this day of increasingly complex e-commerce systems, it seems that there are many strategies that product sellers have at their disposal to increase product sales. The strategy of offering a bonus product is so common now that it may seem like a necessity to follow suit if you want to make sales.

Some solo business owners have experienced great success by marketing their company and products off-line.

That may sound weird, counter-productive, or just plain wrong. You've got to figure that online marketing is the cheapest and most widely reaching form of advertising there is.

Well, I'm certainly not advocating that you abandon your online marketing strategy - that needs to remain intact.

What I would suggest, however, is that you think about all the ways to spread the word about your web site, brand, products, and your business in general - off-line in the physical environment as well.

It may be something you do as a matter of routine, but I've seen enough sales letters and web site catalogs that don't do this that I'm convinced some sellers just don't know what they are missing.

I've often spoken of the need to do everything within your power to garner the trust and confidence of your prospects in online selling.

Lots of people are still a little skeptical about doing business online.

And even though many have moved beyond the fear that credit card numbers will be stolen and used illegally, they still have a certain natural tendency to not give their full faith and trust to a new Internet company they have never dealt with in the past.

I think some people are born to complain.

We've all been acquainted, or at least come in contact, with this type of personality at some point in our lives.

It seems that if the person is not registering a complaint, he's out of character.

It's sad because we all tire of this constant criticism and negative attitude, even though we may be good friends with the person.

But this type of personality can be damaging to a small business in a number of ways.

My wife is affectionately known around our house as "the Coupon Queen."

She dissects the local daily newspaper and all the mail flyers for coupons that she can use locally to get discounts on products that she buys.

I have found that using this same technique in your digital business can be especially effective in drawing traffic to your web site and boosting the sales that you get on your products.

The advantages to using coupons are many. If you include an expiration date, the coupon encourages buyers to check out what you have sooner rather than later.

They give your prospects a reason to click on your active links right now for fear that if they wait, their chance at a good deal may have vanished.

I have not tried this strategy but I read about it and I think it would work extremely well in a solo home business application.

It's relatively inexpensive and easy to do, yet it brands your business in ways that you determine and it will make your direct mail stand out from the crowd.

I read about a lady that uses an inexpensive digital camera to snap photos of everything from her own portrait, to images of her products, to places she likes to visit that relate to her business.

The idea is to get pictures she can use legally in her advertising that relate to her products.

If you have visited some of the large stock photo stores on the Internet, you know that buying the rights to just one small image for use in a mail campaign can cost up to several hundred dollars.

I read a news opinion column recently that claimed the great benefit of the Internet to small businesses was that it allowed every business to be built on the same footing - low startup cost and potentially unlimited exposure.

The article went on to say that if a business expected to compete in its niche online it had to give a lot of things away for free as that was the expected standard online these days.

Is the Internet business model really that different from the way business is done in the off-line physical world?

Do solo entrepreneurs really have to give away a lot of their valuable information products in order to attract customers and expect product purchases?

One of the greatest secrets to successful solo small business seems to escape many entrepreneurs.

If you are one that can't see the handwriting on the wall, I hope you'll take a lesson from this post.

Here is the secret: women drive most of the purchasing decisions these days, both online and off-line.

Now if you're a small business owner and are paying attention to the profiles of your buying customers, you will have recognized this trend a few years ago.

But it's still surprising to me that so many web site owners never seem to cater to ladies in their business or at their web site.

I've noticed over the years that I've been online (since the mid-90s) a change that's taking place in the way Internet users are visiting web sites.

In the very early days of the Internet, when it was a brand new and very exciting place to visit, most people that surfed liked to move about randomly and quite excessively.

It seems they wanted to go exploring to not only see what kinds of things were available online, but to survey niches and see all the players in them just in case they had a need to return sometime in the future.

It was kind of the same experience as you might have when exploring a new shopping mall or an amusement park for the first time.

You dash from store to store or ride to ride making sure you experience everything you can so you'll know what you like and what is not worth coming back to a second time.

Every new technology faces the same uphill battle when it comes to public acceptance and dispelling people's fears that something bad will happen to them as a result of some unknown or unanticipated problem.

Many people say they are hesitant to make a purchase online because the either fear the process or they fear that their money will be lost forever because the seller will "take the money and run."

I'm too young to remember the early days of inventions like the car, the radio, and the telephone, but there were great fears among the public about what these new devices would do to society.

Many people were slow to adopt and embrace change. It wasn't until they actually saw and understood the advantages and noticed other folks were using the inventions without harm that they decided to give them a try.

Here are a few additional suggestions of practical things you can do in your business to gain the trust of your prospects by calming their fear of purchasing on the Internet and dealing with an unknown company:

6. Be very clear and precise about what the customer is getting with his purchase. Don't leave anything unclear or in doubt. If anything, be overly specific and descriptive so the customer doesn't wonder what his dollars are actually purchasing.

7. Make the actual buying process as easy, straightforward, and intuitive as possible. Don't ask for more personal information than is necessary. Now is not the time for a customer survey. Explain each step you ask the customer to take. If the buyer is going to be taken away from your web site (for instance, to have a credit card transaction approved), explain to him why he is leaving the site and how he will be returned automatically.

The solo business owner has many tools and resources at his disposal that can leverage his time and automate his business so that he can accomplish much more by himself than would ever have been possible prior to the Internet.

Most business owners that utilize email will tell you that its low cost and "free" fast delivery are the main advantages of using it. But in my mind, at least, there are some other very important reasons why email is the communication medium of choice for the solo business owner.

If you are not using of these email advantages, why not give them a try? They may even be more important resources for your business than the low cost of contacting your customers and prospects.

You would think most people are rational when spending money on products and services that they find online. After all, the complete information about the product is readily available right on the Internet.

You can also quickly compare prices, shipping, and other factors between two or more sellers to assure you're getting the best deal possible.

I'll admit that I've spent hours online comparison shopping, researching benefits and features, and reviewing the sales pages for just one item I wanted to purchase.

The time I spent online was probably worth way more than the product I was after.

Many will say that the wealth of resources we have in the United States has allowed this country to step to the forefront of new product development.

They speak of the financial, educational, and natural resources found in the U.S. in abundance as the reason for our world leadership.

When you think about the young age of this country (230 years) compared to other geographically large countries throughout the world, it's quite amazing that the U.S. has taken such a leadership role.

According to a recently released study, over 50 percent of U.S. annual GDP growth (gross domestic product) can be attributed to increases in our innovation.

The U.S. economy is changing dramatically.

It's quite apparent that geography and physical boundaries are becoming less and less critical in company strategic decisions and plans.

Large industrial companies are moving overseas where cheap labor and sometimes relaxed standards or lower taxes allow them to produce more using less.

New companies are springing up in the U.S. to take their places - but these firms are different. They're knowledge-based and their growth is driven by intellectual capital.

Often these knowledge firms gather around one another in clusters in order to feed off each other and create a community were they rub shoulders on a daily basis.

One of the true challenges facing every Internet business is the process of turning prospects into paying customers.

Lots of people can be directed to a web site by various means and incentives - but getting those prospects to spend money with your business is a whole different proposition.

How do you optimize your conversion rate - turning lookers into buyers - that certain percentage of surfers that will actually give you a credit card number and deposit their money into your bank account?

We'll save the details and numbered lists of tactics and strategies for another day.

What I wanted to get across as your sole "take away" (bit of wisdom you can use in your business) from this discussion is:

Regardless of the size of your marketing budget, there are some business principles that should guide what you do, when you do it, and how you bring together the various elements of your business marketing.

The tendency for many new small businesses is simply to strike out and begin spreading the word about your product or service in a random hodge-podge manner, jumping from this to that depending upon where you think you'll get the most bang for your effort.

Your marketing "plan" has no real thinking behind it . . . you just figure the best you can do is to spread the word as quickly as you can to as many sources as you can and hope for the best.

Now that game plan certainly beats doing no marketing at all, but it lacks the leveraging power of a unified and comprehensive approach that ties all your different marketing efforts together and cements your brand in the minds of your customers.

I like to quiz solo business owners about how they spend their time in a typical week.

That's about the right length of time (seven days) to measure both simple and complex tasks that the owner completes.

I find that most do very little active marketing. I believe that's a big mistake for a small business. But here's an even bigger one:

The tendency for most solo business owners is to focus on extending "reach," the breadth of the company's range of customers. They try to market to prospects that are new to the company.

Owning a small business is the new American Dream. A recent national survey found that nearly 60% of Americans listed owning a business as high on their wish list of things to accomplish, even higher than owning a home.

But how many of those same folks are going to see their dream happen this year, or next, or the next . . .?

If you have this same dream of creating and owning a small business, there's a very high probability that no one in your lifetime is going to step up and hand you your own business.

If you're waiting for the right opportunity to come knocking, I doubt that you'll recognize it.

You see, that opportunity is standing in front of you right now, staring you right in the face.

In another installment we reviewed the various definitions and synonyms for the word "focus."

In the business sense, focus is critical, even indispensable. If you run a solo business and you haven't mastered the skill of bringing focus to a task, you will be wasting time, effort, and resources which will cause your business to be less productive and efficient than it could be.

By applying focus to everything you do in your business operation, you are selectively directing all your attention and vision toward a narrow and distinct purpose. Once a task or problem is handled, your focus switches to the next issue.

Solo business owners are master jugglers, able to keep many balls in the air at the same time.

If you were to hear this complaint (which by the way, I hear very often) what would you guess the business owner was really saying?

Was he saying that he had a great product, but his targeted customers were just too dumb to recognize it and hence they weren't buying?

Or was he lamenting the fact that he was not selling to the right customer niche market?

Or maybe he was charging too much for his awesome product and nobody wanted to buy at that price?

Or could it be that no one was hearing his sales message and seeing his ads and therefore he was not making sales?

The other day I spent some time at Borders, the giant bookseller franchise that I often frequent when I'm searching for some Internet selling tips and advice that I can't find in the books on my own bookshelf.

Borders is a cool place, much like a mini library where the atmosphere is pretty laid back and browsers are free to pull a book from the shelf and sit down to read a chapter or two.

I must admit that Borders' intentions are obviously to sell books rather than play the role of a library for the cheapskates (like myself) who usually purchase books online at Amazon. But still, they don't seem to mind too much if I'm there and generally walk out empty-handed.

Anyway, I was in Borders checking out the latest books on marketing and advertising on the Internet. I was a little surprised at what I found.

The answer won't be a surprise to most; nevertheless, the concept or principle behind the answer needs frequent repeating until it's permanently embedded in the business operator's memory.

Suppose you're hungry and anxious to find something to eat. So you stroll down the block past all the shops peeking in display windows and looking for something to satisfy your appetite. You're particularly sensitive to the sights and smells of each open door as you pass by, but you're not willing to venture inside unless you're fairly satisfied that you'll stay and dine.

Are you likely to stop and sample food that appears to be many days old? You can see the mold and dust growing everywhere. Or would you be more apt to pass on that shop and find something that appeared fresh?

Are you going to stop at the store that displays its food in used, dirty, or leaking containers? Or will you search for items that are presented in an appealing and appetizing manner? Wouldn't you like to see some nice garnishments and maybe a succulent cherry on top?

No one knows the exact number, of course, but professional marketers generally agree that a strong and powerful headline accounts for 70-80% of the effectiveness of every advertisement.

That's a pretty remarkable statistic when you think about it. A few words at the top of the ad can either make or break the selling power of the entire remaining ad copy.

Why is that true? Well, if you consider that most readers sprint from one headline to the next when they "read" a newspaper you'll understand that the viewer is randomly (or maybe methodically) sorting each entry to find clues that tell him "this might be the type of content I want read more thoroughly."

Headlines are usually bold, easy to locate, and often they are summaries of the content of the ad or article. At a quick glance, it's pretty easy to decide if you want to stay and dig deeper or jump to the next headline.

Before we get to today's post, let's take a minute to remember the victims of the September 11th tradgedy of 2001. It's hard to believe that it's been six years since we endured that nightmare.

Let's remember what has made our country strong and each do our individual part to continue that heritage of courage, hard work, and a never say die attitude - each an important trait for small business owners.

Okay, we'll move on.

I've been thinking a lot about Internet real estate and branding, and whether they are important undertakings of solo business. I've been asking myself questions like:

- Is it worth the effort and expense for a small business owner to try to establish a brand of some kind for his business?

- In the Internet world of big corporations, net real estate has increasing value. But does that same concept apply to small businesses as well?

- Is there a way for a solo business owner to add value to his property beyond the value of the information he publishes at his web site?

I know of no other activity required of business operators that can be so frustrating, expensive, and fickle as the advertising game.

Sure, it would be nice to have the viral engine stoked up enough that you never had to do another ad spend. But for most small businesses, advertising, in one form or another, is the "necessary evil."

I don't know too many business operators that get the kind of traffic to their web site they want without playing the ad game.

It is a game, you know. You prepare and publish your ad and wait to see the outcome. Sometimes you win; often you lose.

One thing is for sure: advertising can be a huge black hole for a small business if you're not disciplined and selective. You can dump all the cash down the hole that you like - yet there is no guarantee that one product will be sold as a result.

Every business needs to identify something that sets it apart from all other businesses in the same niche.

This principle is called the USP or "unique selling proposition" by some, and others call it a variety of similar things. The principle is simple: you should attempt to capitalize on some characteristic or trait in your business that you can be known for -- some differentiating aspect that only you can claim.

It seems in almost every industry niche there is at least one business that desires to claim it has the lowest prices. It often brands itself with the slogan, "we will not be undersold."

To me, that is exactly the wrong message that a solo business ought to extend. My feeling is that solo businesses will almost always have difficulty trying to compete on the basis of product pricing.

Just a few years ago, solo business owners took advantage of the fact that they could market their goods and services online all across the continent.

They lauded the fact that a small time business owner could now effectively compete with other businesses around the country because the Internet removed their geographic boundaries.

But in today's economy, such thinking limits the opportunities you have coming at you from all around the world. Because Internet business is still in its infancy, it's not too late to at least start thinking about gearing up for global business, even if you're just a Lone Wolf working from home.

We're discussing the shift of online buyers toward countries and languages outside the United States and the implications this global business trend has on your solo operator small online business.

Here are a few more things you'll want to think about as you contemplate the coming years and the non-U.S. marketplace.

3. Most of the research that has been done regarding online buyers only takes into account those who have already proven themselves as buyers, in other words, they've previously made at least one purchase online.

But what about the millions and millions of potential buyers there are in those that are: (1) new Internet users all over the globe that are just now getting, or will in the near future have, access to the Internet, and (2) not yet online buyers but will become such in the future?

One of the great advantages to operating a solo business is that you, and you alone, control what transpires in the business. You make all the decisions, you set the rules, and you alone reap the business spoils.

Solo business appeals to many people, not because they're anti-social or paranoid about taking on business partners, but because they see distinct advantages in the lifestyle and daily routine of the owner/operator. Many prefer to work at home, work from a laptop, or enjoy the autonomy that a solo business provides compared to the "impersonal" nature of corporate society.

But for all the advantages of the solo business model, there is one distinct disadvantage that surfaces for some operators. It is the fact that some become so engrossed in their business that they never step out of it to check the reality of what they're doing and to look around and see what else is going on within the market.

I believe in small business! I believe in entrepreneurs!

I believe that anyone can create and operate their own successful small business if they will choose a viable niche and apply sound business strategies and principles (which you can learn here).

My favorite solo Internet business strategy suggests you create an information-based business around your education, training, interests, knowledge and passion.

So what is this "passion" I'm talking about? Does it mean you have to like the subject of your business?

Well, not exactly. You see, passion is much more comprehensive and deep than simply "liking" what you do.

I have seen a smattering of Internet marketers voicing loud and sometimes passionate opinions that blogs are destroying the Internet. Why?

These blog naysayers suggest that blogs are too ubiquitous, they give every Tom, Dick, and Sally a public platform on which they push a certain agenda, try to sell in a saturated market, and criticize and condemn products they don't like even when their reasons are suspect.

One fellow complained that blogs get into the search results too easily and because of the sheer numbers of blogs (he said "tens of millions") the results are not returning what viewers are looking for.

Of course you would want to do that. Here's why!

Everyone likes to be stroked. We all enjoy the praises of others and the acknowledgement or validation of our own talents and worth.

Even celebrities gush over fans that sing their praises and idolize their image.

You can use this knowledge to your advantage in the online business world.

Here's how you do it and why it's a good idea.

A lot has been written over the past ten years about business owners as risk-takers, and the characteristics or qualities that they possess which allow them to be successful in what they do.

But very seldom does this skill show up on the lists that writers prepare extolling the virtues of the top entrepreneurs.

Yes, persistence, attention to detail, willingness to take a risk, and determination are all candidates for the usual list of "must have" qualities for the successful business man/woman.

But there is another ingredient that I have found to be most important - even crucial - to the success of the creator of small business.

Why am I so passionate about solo Internet business?

There are many reasons that I can think of - but there is one that stands out in my mind as being particularly important.

It is the notion that the individual in our society has great personal power.

Some believe that all the business power resides in large corporations. After all, they have the money, talent, and clout to be taken seriously by the public.

They have the wherewithal to perform important research, market to endless crowds, and develop unlimited technological products.

I've often asked myself this question. It seems that when I was younger no one talked about individuals owing and operating a business without employees to help share in the work.

Here's what I've come to conclude: solo business is possible today because of the tools and resources we all have at our disposal to leverage the workings of the business.

Said another way: The business owner of today can leverage his personal time and effort in running the business (through automation of tasks) such that, by himself, he can accomplish the cumulative tasks of all the other business employees of yesterday.

Think back to the time you had your first thoughts about working for yourself by creating a business.

You probably followed your dream and started a lemonade stand out on the front curb, began delivering newspapers so you'd have some spending money, or borrowed Dad's lawnmower to take your lawn care service to the neighbors.

In it's early and very basic form, entrepreneurship means you have an idea of a way to earn some money and you act on that idea or follow through to the point that you do the work and reap the reward.

Here's a quick tip that I've used on several occasions to get me over the direct marketing hurdles of creating a winning headline, effective ad copy, layout questions, developing a good offer, finding the best sizes, etc.

As a solo business owner, it will be up to you to perform the direct selling and marketing tasks that larger companies usually hire professional agencies to handle for them - at a usually high cost.

You will have the choice of accomplishing your advertising campaigns either in-house (meaning you will do it yourself) or by out sourcing the job.

For a long time I've felt that the future of entrepreneurship in the United States is very bright. And contrary to many that feel this nation is headed toward an economy based on mega-corporations and giant conglomerates, I've always believed that the key to a strong national economy is a growing and prosperous small business sector.

Of course, an important element of small business is the solo entrepreneur, the one-person company that thrives in a very narrow and focused niche with a business built on the delivery of fresh and detailed information.

I was asked this simple question in a roundtable discussion of business owners recently, and to my utter surprise, a very lively dialogue carried on into the night as the group of us debated the challenges and opportunities that affect small business today in comparison with "the way it used to be" just 10-15 years ago.

My opinion, and that of several others that specialize in online business, was that indeed, small business has changed dramatically for those that have discovered and subsequently embraced the new technologies that empower the small business owner.

Marketing a small business can be a daunting task for the owner that has no previous marketing experience.

I was in that position many years ago and I remember having a constant struggle to come up with ideas or ways to market my business on a shoestring budget.

Yet, around a holiday it was usually easy to dream up a promotion of one sort or another based on that holiday's theme.

It's pretty easy and natural to promote a New Year's Kickoff, a 4th of July Firecracker Deal, or a Halloween Spooky Special.

Times are changing and every solo business owner needs to design his little company in a way that it can be globally competitive.

Before the Internet, it was often sufficient that a small business only worried about the competition in the local community.

You owned a gift shop and your customer pool was everyone within walking distance, or at least easy driving distance, probably within the radius of your community and maybe a few other small towns within 25 miles.

Often entrepreneurs and small business owners have a difficult time trying to keep from being "stale" in their businesses.

By that, I mean they struggle to come up with fresh ideas, new and unique products, and creative solutions to the problems and wants of their market niche.

Many feel that they must continue to sell the same old things they've always sold, that they have no way of being able to offer brand new services or goods.

Some of you may have seen this on MSN recently, but I thought I would share my synopsis of it anyway for those interested in the "wants" of Internet users.

CNET's Download.com is a library of free and free-to-try software programs and applications for Windows, Macintosh, and handheld devices. It began 10 years ago with 3,000 titles and today has over 30,000 potential downloads.

Here are the TOP TEN DOWNLOADS over the past 10 years:

Did you know there are ways to see what buyers are looking for at any given time online?

The information is free. Smart marketers and product developers ought to keep an eye on the buying public and their wants. Understanding "demand" is one of the pillars of Internet marketing and product creation.

CNET's Download.com is a library of free and free-to-try software programs and applications for Windows, Macintosh, and handheld devices. It began 10 years ago with 3,000 titles and today has over 30,000 potential downloads.

Like most new and innovative things, Internet business for many people seems to be nothing more than a fad, a fancy, a fleeting hot topic that will soon cool off and die in obscurity.

Many computer savvy folks have yet to make a purchase online and some still hold to the notion that the dot com era will soon be over for good.

They reason that e-commerce online is not secure, too much of a passing fantasy, and something that they can easily do without.

Of all the tricks and strategies that direct marketing professionals have devised over the years to increase sales and push prospects to take action at crunch time, maybe the ultimate trick is employing the "scarcity" factor to a product or service.

When a product is limited (scarce) in availability, it's value skyrockets dramatically.

Most of us understand the reasoning behind using this tactic and I can guarantee you that at least 90% of the online product offers and "launches" that you'll encounter will use one or more scarcity tactics in the sales message to get you to buy.

The folks over at the Better Business Bureau commissioned a study in 2007 of the adult online shopper's most important issues.

It seems that approximately 60% of those surveyed are primarily concerned about two things: (1) that their personal information could be stolen and sold online or reused by someone else, and (2) that their credit card information could be hijacked by some unscrupulous operator (59%).

Today's post is a bit of rambling about a principle that all of us seek and can, at least to some degree realize, regardless of how our business endeavers pan out.

Of course, from the title of this post you know the principle in mind is that of SUCCESS.

Whether or not you feel that you are a success really depends upon how you define and measure results that you consider to be successful.

Whether in business, life, in your marriage, in your relationships with family and friends, or wherever your "counting" takes place, the level of success you reach is often determined by the standards you set.

Often a web site privacy policy is overlooked, thrown together in haste, or altogether omitted as the site owner is anxious to move on to more glamorous and creative aspects of developing a business home on the Internet.

Privacy policies are sometimes akin to the "fine print" of most lengthy legal documents - something to be tolerated and considered, but probably there only in the extreme case that the user really cares about such things.

I believe, strongly, that the site's privacy policy is very important and something that can greatly enhance the visitor's sense that the site owner really can be trusted - that he/she really does care about the confidentiality of the visitor's personal information.

Who hasn't received a mailer that included an offer to purchase a product or try a service with the stipulation that all you have to do in order to activate the offer is peel off a pre-printed label and stick it in the box marked "I ACCEPT" and then send it off in the mail?

Direct marketers send millions of these post cards or printed coupons everyday and have been doing so for many, many years. Why?

Simply because they get response!

The type of fraud I'm referring to is credit card or payment fraud as opposed to things like embezzling, tax evasion, or product scams.

The Internet presents a special environment for payment fraud because transactions take place all over the globe often without one or even two parties being physically present to inspect or insure that everything happens as it should.

Anonymity enables dishonest people to become bold and brazen.

Credit card numbers and individual identities are stolen everyday by the unscrupulous.

Web sites and shopping carts are hacked in every industry.

Abuse of the payment system is commonplace nowadays.