There are always costs when starting up a business, so is the case also with a internet based home business.What are those costs, and are there any ongoing costs? When starting up your business, money is often tight anyway in the beginning so is wise to spend it on things that are absolutely necessary in order to get your business up and running.
Ongoing business costs:
You will need a domain name for your website and hosting.You can get a .com domain name for as cheap as $10 per year and hosting for $10 per month.You need to be careful from where you get a hosting account because your business depends entirely on the fact that your website is up and running.If your website is down most of the time no one can visit your site and you will not make any money.
Some people like to buy hosting and their domain at the same place.GoDaddy.com is a company that offers both domain names and web hosting.This is a big company with a good reputation and is a good choice.
Another option is to buy your hosting and domain name from different places.Some hosting companies have an affiliate program for referring new customers, so you could get your hosting for free if you choose the right hosting company.Hostgator offers hosting for $7.95 per month and by referring others you will earn a commission.Every business needs to have several income streams, and hosting is something every business owner needs these days.
Computer with internet access:
You will need a computer.My choice is a laptop because I am always on the move and simply like the fact that I can work wherever I like.Some people choose a desktop computer with a big monitor, this would be a good choice if you have a home office.Computer prices are coming down, for about $700 you will get a computer that enables you to run a business from home.
Internet access is something you cannot be without.Depending on where in the world you live, you need to look up a local provider of home broadband internet access.
Time for the business:
The costs when looking at the money are much less with an internet based home business than it would be with a traditional business.The reasons for this is simply that you will not have any staff, there is no need for an expensive office, you will not have to pay for commuting and so on.Instead, you must pay with time.
Time is a cost as well.When starting up your business, you will spend a lot of time at your computer learning how to run an internet business and what it actually takes.You will learn about all the different ways you can market your site and sell your products.There is a lot of information available online and it is easy to get overwhelmed by it.All the information you will find is not accurate, so be prepared for it.
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It certainly takes time, focus and energy to start up an internet home based business.
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Email just this post over to my dad who believes you have to have an expensive office and staff to run a business!
We’ll see if he comes in here and dare to leave a comment. Hehe. Keep up the good work! Have a good day!
People seem to think I pay a huge overhead. So far from the truth. Just do your research and then consider the startup over commissions.
@Tommy, you’re right. There is this old school way of thinking about business. To some people it has to have an expensive office, exec. chair and a flat screen (usually turned off most of the time) in the reception area. What they fail to see though is that these cost often become the last nail to a business’ coffin. Especially these days when sales are not what they used to be.
Tom, good article.
One thing you forgot to mention, it ‘costs’ time, energy and lots of patience as well. Just because it is based at home using the internet, it doesn’t mean it is easy to achieve success.
When I first started blogging, my debt blog was on blogspot. I didn’t even own a domain name and soon it hit the first page of Google. Advertisers were emailing me to send me free stuff to blog about, pay me for ad space and to write reviews. I was earning more than I was at my full time job. Best of all, there was no overhead.
It is possible to start a business for free…
It is possible to start a business for free, but you can be much more profitable and successful by putting some money into your business. Remember you have to spend money to make money. I also think that Hostgator is the best place for webhosting and I have been using them for years and I have had no problems with them. Great post on the cost of an internet business and keep up the good work.
Having a computer with an internet connection,Choosing a business online to venture that have a joining fee and with tools that is included is the best way to start a business today online.Somewhat a turn key business is the best.You got to spend a little to accumulate the alot..
I’ve always thought that doing SEM for other small businesses is a great internet business. Adwords is complicated and more of a hassle than most smalled business want to deal with. You could do this for local plumbers, roofers, etc., make a cut of the marketing budget and deliver them a better ROI than they are getting offline.
For Internet based home business main investment is your time investment which really plays an important factor. On-going costs such as domain cost, internet connection are minor which one can recover using Adsense on thiers website.
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