When you start business online, hundreds of different questions arise.
How much money is needed to start business online? How to apply for a business? How to create a website? How to choose the target audience? What tactics of advancement to use?
To choose an idea for business is one of the simplest tasks. But its implementation is something that you really have to work on.
How to start business online
Everyone wants to attract more visitors, leads and clients. But do not hope that as soon as you launch your project, “they will come.” In order to start business online successful, you need to develop business plan, find money, go through the state registration procedure, select partners, find the best tools and systems … and solve many other problems.
Do not worry, we’ll help you figure it out. In this article, you will guide you how to start business online with useful tips and recommendations. Let’s start!
1. Company registration
Any beginner entrepreneur will first have to plunge into the world of bureaucracy in order to officially register his business. At this stage, it is necessary to determine the form of ownership of the future business, give the company a name and go through the registration procedure.
The most popular organizational and legal forms of small business are IP and LLC.
The individual entrepreneur
This is the simplest and most accessible form of property.
- The registration will take no more than a week.
- All money earned by a PI is his own money, he can freely dispose of them.
- Individual entrepreneurs do not need to maintain a full accounting.
- The closure of the IP will take no more than a week.
- IP is not required to issue cash documents.
- The IP can conduct activities in any region, regardless of the place of registration.
- Insurance premiums that need to be paid even in the absence of activity.
- The IP is responsible for debts with its personal property.
- IP can not engage in certain activities.
- PI can not divide or sell its business.
Limited Liability Company
If you decide to open an LLC, prepare for a greater responsibility and a lengthy process of preparing documents.
- Responsibility is limited only by the amount of the contribution, the founder does not risk personal property.
- LLC can be sold or bought.
- The amount of insurance contributions depends on profit.
- The complicated registration procedure.
- Compulsory registration of the current account and the press.
- Maintaining full accounting and reporting.
- Profit can not be used immediately.
- Higher fines and state fees.
- To work in other regions, Ltd. it is necessary to create branches.
Selection and registration of the company’s name
The name of the organization is given at the time of registration of the form of ownership. For registration of the name as a trademark, it is necessary to file an application with FIPS, pass a verification and obtain a certificate.
It is worth paying special attention to that IP can not give a name to their business. It will be built according to the template “IP + entrepreneur name”. For example, “IP Ivanov Ivan Ivanovich.” In this case, you can use a commercial definition, which will replace the name of the company for the company.
To register a PI you need:
- To collect a package of documents: an application, a copy of the passport, a receipt for payment of state duty.
- Submit documents for consideration to the tax inspection at the place of registration.
- Obtain documents on state registration.
For the registration of LLC it is necessary:
- Prepare a package of documents: application, charter, contract of establishment, protocol of establishment, receipt for payment of state duty, document for legal address.
- Submit documents for consideration to the tax inspection at the place of registration of the director or manager.
- Obtain documents on state registration: the entry list of the Unified State Register of Legal Entities and a copy of the charter with the mark of the registering authority.
You can choose from the following taxation systems:
1. The general system of taxation
The organization that has chosen this system will have to maintain a full accounting, as well as pay all general taxes and pass on them reporting:
- Income tax – for LLC 20% of the difference between income and expenses, for personal income tax 13%
- Tax on immovable property, if it exists in the organization
- VAT – 18% of sold goods and services and reduced by VAT, which is paid to suppliers
2. Simplified taxation system
Ideal for PIs and small companies. Instead of three taxes, one will have to pay only once a quarter, but only once a year. In this case, you can choose the object of taxation:
- Incomes – the rate from 1% to 6%
- Income minus expenditure – rate from 5% to 15%
Plus, such a system – you can conduct tax accounting without an accountant.
2. Marketing and sales
So, you registered your business and issued all the documents. What’s next? In order to start your business online, now we need to attract customers.
Before you can get significant funding, you need to create an online presence and start promoting your business to sell products and services. But only to attract customers is not enough, we need to keep them.
Marketing for small business
Start creating interest of the audience to the brand proposal before the project is launched. What platforms and techniques to choose? Here’s what to pay special attention to:
- The people of buyers. It all depends on your potential customers. Without sufficient knowledge of the target audience, it is impossible to sell the product effectively. Ask yourself the question: Who cares what I propose? Study these people, determine which messages they will attract. Take into account their interests, lifestyle, surroundings, goals and problems, their age, preferences in choosing social platforms, etc. The creation of buyers can help you increase the efficiency of your business.
- Identity of the brand. Before start business online, you should also consider a strong brand identity. It will express the values, concepts, approach to communication and emotions that will arise when interacting with your company. Identity will make your business more professional and help attract new customers.
- Online presence. Now you can start creating the basic marketing elements of your business – a website, a blog, an email tool, a conversion tool and accounts in social networks.
- Lid generation and development. After creating an online presence and increasing brand awareness, you can start generating leads and turning them into customers. Lidas are users who shared their personal information with you. A successful mechanism for generating leads will allow you to fill the sales funnel regularly, without making any special efforts.
Sale of products and services
After you started creating interest in your proposal, you need to answer two questions: What will your sales process look like? And Who will sell your proposal?
When you are just start a business online, there can be only one or two sales people on your team. Perhaps, first you will have to take this direction. To develop faster, follow these tips:
- Set up the sales infrastructure. Start with CRM, the central database for all customers.
- Select the sales targets. Determine what income you need to receive to make the business survive. How many products need to be sold to achieve the goal?
- Hire a sales person. Attraction to the work of a specialist will allow your business to develop faster.
- Increase the effectiveness of sales. Automate the sales process and apply advanced technologies and strategies to optimize efforts.
Strengthening Customer Loyalty
It’s important to attract new customers, but keeping them is even more important. Offer them a terrific experience and turn them into true fans of the brand.
In order to start business online successfully, the idea of creating a model for customer success should be central to your organization. Carefully follow the feedback and appeals of consumers, create a guide to the brand style and follow the same rules of communication. Follow these guidelines:
- Respond quickly. Users are counting on a quick response, so it is very important to regularly offer excellent service and convenient support. Always try to justify the credibility of the brand.
- Track the points of contact of each customer. Do not forget about the context of each client, take into account the specifics of their experience and the history of interaction with the company.
- Ask to leave feedback. After closing the very first deal, start actively collecting customer feedback. This is very valuable information that will help to build confidence in your brand from potential buyers.
- Create a page with answers to frequently asked questions. Give users the opportunity to find answers to their own questions.
3. Financing of small business
From the moment you start business online to the day when you can make a significant profit, you need to constantly fund operations and development. Some entrepreneurs have sufficient financial resources or help from family and friends. Such an approach to financing gives owners an enviable flexibility, but for all the risks will have to meet their own purse.
Many entrepreneurs have to look for additional sources of funding. Here are some options:
- Lending. One of the most common options for business financing. Apply to the bank and wait for approval.
- Investing. This option is more suitable for large projects. To implement it, you need to find investors and convince them of the prospects of your business. At the same time, part of the company’s profit will be received by the investor.
- Technoparks and business incubators. This is a platform for the introduction of scientific developments in the production. They offer reduced rent, professional advice and financial support.
- Grants. In this case, funding is provided from public funds. To apply for a grant, it is necessary to submit an application and pass a competitive selection.
- Crowdfunding. This prospective option of obtaining financing implies that the appeal is not to potential co-owners, but to potential customers. Create a description of your business on special services and offer a reward for donations. Now, any user can contribute to your business.
The case is yours
Hopefully, this guide helped you better understand how to start business online: from formalizing your business to marketing and selling your products. Now it’s up to you. Good luck!