Why Set Up an Internet Business?

There is no short cut to success. You can live in hope of winning the lottery but you have more chance of being stuck by lightening. Or, you can do something about it and set up an internet business and join the digital gold rush.

The internet today is like the old gold rush days. When people set up an internet business they want to hit the big time quickly. But just like the old-time prospector who had to sort though a lot of dust and rubble to discover a gold nugget, when you set up an internet business you have to sift through the hype to discover a real opportunity.

When first starting an online business, some people look for an online miracle solution to make their money problems go away. When they set up an internet business they want to earn money fast, then sit back and relax. No discomfort, no problems, just the money rolling in. Well, if this is what you’re looking for, there are two old sayings that apply. If it looks to be too good to be true, it probably is. The second is no pain, no gain.

There is no short-cut to success when you set up an internet business. It is like any other business. It requires effort, commitment, and motivation.

The internet is a like a business tool, not a magic wand. A serious business entrepreneur who wants to build a serious business, and make serious money, can do so on the internet. But a desperate person looking for a fast fix for their current economic problems will simply make more economic problems for themselves. And probably lose money in the process.

The principles of an effective business easy to understand. Create or offer a great product or service. Discover a market for that product or service. Get the message about your business to the public. Get people attracted to your product or service and then make sales. Running any kind of legitimate business requires operational expertise, financial investment and a lot of hard work. When you set up an internet business it is no different, for the most part at least.

There are however some essential variations. Since you don’t need a store or an office, when you set up an internet business, the financial commitment is less than for a bricks-and-mortar business. Travelling costs and other office costs are completely removed. There are no occupancy costs for premises and no staff salary costs. Also, when you set up an internet business you will promote it on the internet, so there are tremendous efficiencies in advertising costs.

The other difference is that because of the vast reach of the internet marketplace, when you set up an internet business, your customers can come from all over the world, not just the customers who live near, or pass by your geographical location.

Also, it is not uncommon for successful online entrepreneurs to share their wisdom. Sifting through the clutter of internet scams and rip-offs, it is still possible to find proven and tested systems that literally provide a turnkey online business models.

For some people, the concept to set up an internet business is just not for them, especially if they have a lottery based mindset and are looking to “get rich quick.”

But if you are seriously want to set up an internet business and venture into the world of legitimate online business make sure you understand that you are setting up a real business, not a part time hobby. Get yourself a proven and tested system of success and align yourself with experienced professionals who can lead you towards success.

Learning from others will help you to set up your own online business quickly and efficiently, and to receive the rewards that await everyone who is willing to work for them.

7 Important Reasons to Form a Corporation or LLC for Your Business

Are you operating your business as a real business or as a hobby? It’s time to make your business OFFICIAL before the summer push for business!

Let me ask you two important questions:

  1. Are you operating your business under your own name, a DBA or fictitious firm name, basically as a sole proprietorship or maybe as a general partnership? AND/OR
  2. Are you or your family at risk because of business or personal assets that are unprotected from unexpected losses or legal issues?

If you answered YES to either question please read on for important news about why NOW is the time to form an corporation or LLC for your business.

  1. Make it Official. Operating as a sole proprietorship or general partnership sends a message that you are still “testing” your business, or that you’re not sure you’ll really make it. Perhaps your accountant told you that incorporating is an unnecessary expense or that it won’t help you save on taxes due to an expectation of low profits. This is the WORST marketing message you can send when you want to attract new clients and partners to your business, who want assurance that you’re about your business and here to stay.
  2. The Law of Attraction. You get what you focus on. Testing, hoping and “seeing if things work out or not” BEFORE you decide to step-up and make your business official by incorporating broadcasts a clear message to the universe that you’re not really serious about your business or committed to a positive outcome. The Law of Attraction states that the universe returns not what you wish for, but what you program into your deepest belief system through your dominant thoughts, actions and feelings. Making your business official and really stepping up says, “I am ready to receive!”.
  3. Limited Personal Liability. You may be thinking “I already lost everything in the market collapse from 2008″ and still recovering. If you’re one of the few that managed to survive and grow your assets since then, but are still holding them in your own name, you’re playing a VERY RISKY game (similar to those with assets in unstable European banks). Even if you don’t have any assets right now, a lawsuit or judgment will destroy any credit you are looking to build in the future PLUS you may be looking over your shoulder for years waiting for someone to come after you when you finally do start to turn things around. That’s no way to live your life. One lawsuit from an unprotected business can ruin your chances of getting a personal auto loan or refinancing your home. Good people who “play by the rules” can still be sued for the most unexpected reasons. You may be thinking “my business insurance will help me out” but are you really covered? Even if your business is never sued, what if you’re unable to pay a vendor and they come after you? Do you want to be personally liable? Put a halt to greedy people looking to take what you have worked for! This is the best time to form an LLC or corporation to limit your personal liability.
  4. Reduce Your Taxes. The bottom line is that operating as a sole proprietorship will cost you the most in employment taxes (up to 15.3% on earned income up to $113,700 in 2013). That means that your income will be taxed as the HIGHEST possible TAX RATE as a sole proprietorship. By the way, filing a Schedule C (the form filed for earned income from a sole proprietorship) also means that your business is among those MOST LIKELY TO BE AUDITED. Why? The IRS has a $300 BILLION tax gap and they believe the biggest tax cheats are the little business owner like you. Why? Their stats show them that sole proprietorship are MOST likely to UNDER report their income and OVER report their expenses (two big no-no’s with the IRS). Operating as an S corporation or LLC taxed as an S corporation in many situations is a much better approach for two reasons. You will have part of your profits as distributions which are NOT subject to the 15.3% employment taxes AND move that profit to schedule E, not schedule C which is more likely to be audited!
  5. Access More Funding Options. Operating as a sole proprietorship or general partnership limits you when it comes to funding options. You are also DAMAGING YOUR PERSONAL CREDIT SCORE by operating this way. How do you finance your business as a sole proprietorship? You use your PERSONAL CREDIT cards which will drive up your revolving debt which will in turn DRIVE DOWN your personal credit score! When you form a corporation or an LLC you will SEPARATE your PERSONAL and BUSINESS CREDIT. Yes, any type of cash funding with a personal guarantee will come into play, but that DEBT does NOT show up in the personal credit bureau which is HUGE for future funding! As you form a new LLC or corporation NCP will help (if you choose) to build your business credit scores quickly and get your business in a position to secure funding to grow. But the first step is to form a separate legal entity.
  6. Simply Your Life. Yes, in fact operating as a sole proprietorship will complicate your life, not the opposite. Separating your business and personal life will make it much easier for you to navigate both from a financial and legal point of view. Now you will have each in its own compartment where it belongs to protect your overall success.
  7. Asset Protection. Forming an LLC for your safe assets like investments (those outside a retirement plan) will help you sleep better at night knowing you don’t have all your “eggs” in one basket. If you are using a LIVING TRUST to protect your assets that will NOT work and everything in your trust may be vulnerable. Do you own other businesses that really should be operating through a separate bank account in a separate entity? Do you own real estate in your own name that may be sending a message that you are rich and have assets worth taking? Have you been in business for years or are you operating more than one business in one entity? Are you doing some business with a new partner and making the big mistake of running that revenue through your current business? Avoid these costly mistakes and form a separate company for that separate business.

Why Search Engine Optimisation Is Important for Small Businesses

Many small businesses are struggling to make ends meet at the moment. For some, just getting a website is a big step. There are plenty of web design companies which will create a website on a budget and will do the keyword research to ensure that the website has some onsite optimisation. But for many local small businesses, that is as far as it will go. Few will have the time or know-how to put in place an off-site optimisation strategy to push them further up the search engine rankings. But does it matter?

The answer is yes it does. It is not enough to just create a website and wait for customers to visit it. Unless they know your brand and what you offer, it won’t happen. Having a search engine optimisation strategy is important for the following reasons:

1) It will increase your website’s ranking which will lead to more web traffic. The first page in Google and Bing is what you are aiming for. More web traffic means an increase in sales.

2) It will help increase brand awareness. Getting your brand known is all important. Social media will help to do this. Be social on Facebook, Google+ and Twitter. Eventually, people will search on brand if it is big enough.

3) It will increase awareness of who your competitors are and what they are doing. Keeping up-to-speed with your competitors is very important.

So what do small business owners need to do?

• Get social media accounts set up and be active on them.

• Ensure you are registered with Google Places

• Constantly review your website and review the keywords that your customers are searching on.

• Update your website regularly with new and interesting information ensuring that the search engine spiders are crawling and indexing the site.

• Lookout for new linking opportunities with others in a similar business area. Twitter is a good way of finding people.

• Write interesting articles and submit them to quality sites.

• Guest blog on other reputable sites

This sounds like a lot of work, but it is a good investment and it will pay off with more traffic and perhaps opportunities as well.

It is very important to have a search engine optimisation strategy in place as a small business, and if there isn’t the time to put one in place, there are many companies which are willing to take on this responsibility for you.