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ColdFusion Authors: Yakov Fain, Maureen O'Gara, Nancy Y. Nee, Tad Anderson, Daniel Kaar

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ColdFusion: Blog Post

Creating A New Business On The Internet: From Ground Zero to Cash Flow

Part One - The Beginnings or Leveling the Site Field

To focus our efforts in this article series we define the beginning and end points.

The Beginning Point

You want to establish a new business on the Internet because of all the advantages you know exist with doing business exclusively on the Internet.  Just to list a few:

  • No need to carry physical inventory
  • No need to deal with paying customers face to face
  • You can conduct your business from anywhere (even Starbucks or McDonalds)
  • You can pick any niche you want (preferably one in high demand you can make money with)
  • The barriers for entry of a new Internet business are the lowest of any startup (lowest capital requirements)

You have the desire and determination to work at your new business to make it successful (success does not just fall into your lap.)

One End Point

You have established one line of cash flow and know everything about it and how you arrived at this point.
You know enough about the process involved with creating it that you can do it again for another line.

Now that we have beginning and end points defined we begin leveling the site field.

Black Holes

If you must spend money monthly for the product or the service you are selling, then do not go in that direction. It is too easy for that type of business to be abused and to take advantage of the consumer (think Ponzi scheme). After all, you are new to Intenet business so how will you be able to tell the difference? Turn away and go somewhere else.
REASON: You will have to market and advertise it, so why should you also pay to use it. That means lower profit for you immediately (waste of capital, lower ROI) any way you slice it.

If you must get customers to sign up for a monthly charge, then do not go in that direction for another company.
REASON: That is exactly what you want to do with your own customers, so why should you be doing it for someone else (waste of your time and efforts and your customer's money.)

If you are directing prospects to a website to enter their email address, then do not go in that direction for another company.
REASON: That is what you need prospects to give you to establish a customer base, so why should you let anyone else get that email address instead of you.

Conservative New Internet Business Creation and Construction

So what to do. Your name is a valuable asset on the Internet. Your name is your best branding because it instantly instills legitimacy to your activities and instills confidence with customers. This is because you are not afraid to be associated with selling to them and you are dealing with them on a personal level (it seems to them to be one-on-one) so they are not afraid to deal with you and fewer questions arise in their minds.

Purchase your domain name for branding. It should contain your name and be a .com. If you commonly use a nickname, use that. Hopefully it will be shorter than mine (easier for customer to remember.)

ex. - RichardEByrd.com

You should also include the .net and .org, because others out there will spot you and your success and squat on these TLDs (Top Level Domains) if you don't get them now.

If you don't have a favorite source to obtain your domain names, here is one (the pricing for domain names is yearly).  You also need to make a decision on a hosting plan (the pricing for hosting plans is monthly). If the prices are attractive to you, then just get it while you are there.

http://mywebsitehoster.com/

WARNING: Since you are going to be using your domains and hosting for business which will include email campaigns to your customer base, there is at least one company to avoid:

"Also, i do not want to get into it here, but do not use Godaddy.com to host your domain name. They are the only service I know that will take ownership of your domain if you get a spam complaint.  This is worse than your host shutting you down.  If this happens they own the domain, lock out your account and will not allow you to move it. You are dead in the water and if you are lucky to get it back, it could take 3-4 weeks." 1

This super affiliate marketer had no recovery plan in place. This caused him problems because he lost access to his email lists and could not contact his customer and affiliate bases.

Email Campaigns

To avoid problems with consumers and your email campaigns, always use a double opt- in (also known as Confirmed opt-in or COI) method with your prospects.

Some companies like Comcast and Hotmail can block incoming email based on automated rules, so the destination address never knows there was an email sent to it. This process is known as blacklisting a domain or IP subnet.

That is why many marketers ask you to manually whitelist their email address in your email client software so you can get email from them. Some even explain how to do this process.

References:

1 Mike Filsaime's Butterfly Marketing Manuscript New Version 2.0  © 2006-2009  http://ButterflyMarketing.com - MikeFilsaime.com, Inc.

Part Two will continue with conservative new Internet business creation and construction, architecture and backup plans.

More Stories By Richard E. Byrd

It is well known that big business is extremely inefficient. *

With forty years of electronics, computer and software in the trenches industry background, you get an experienced point of view for information to solve your current business needs. This includes twenty years in the manufacture of military, aerospace, medical, commercial and industrial products covering all aspects of Quality, Engineering (Design and Manufacturing), the Supply Chain and Operations. Broad and in depth coverage all from one source.

* After all, why the big push for SixSigma, Lean and the other methodologies in use by Motorola, GE, Toyota and the likes trying to get the employees to contribute their know how in teams to make better profits?  With small and medium enterprises comprising the vast majority of business statistics and huge portion (around half) of GDP, it makes sense. Proven globally by the current state of affairs in 2008.                    


http://RichardEByrd.com/
http://EverythingForTheNetFree.com/

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