Chapter 1

Starting from Scratch

IN THIS CHAPTER

Recognizing when the time is right

Understanding the different types of online businesses

Gathering your thoughts and getting started

It's sometimes difficult to remember a time when we didn't have instant online access to almost anything desired, from finding a phone number for a new business (no phone book necessary!) to ordering groceries from Amazon and having them delivered to your doorstep within hours (without ever leaving the comfort of your sofa!). The Internet has replaced or supplemented trips to the mall, library, bank, gym, auto dealership . the list is almost endless. You name it; there's little you cannot find, access, or buy online. Behind each of these unique and convenient online retailers are entrepreneurs that started out just like you - with a good idea for an online business and the motivation to turn it into a reality.

Of course, it doesn't hurt that everyone from consumers to investors now recognizes the legitimacy of online businesses. It was once considered risky to shop online. But an Internet-based business model has proven to be a worthwhile investment time and time again, with the same potential risks and rewards as any other type of business. Add to the mix that technology has also come a long way, and shopping online using everything from a desktop computer or laptop to a tablet or a web-enabled mobile phone (smartphone) is as easy as ever. Online-shopping options don't stop there. It's now common to shop by voice using Alexa or similar devices. And "smart" appliances, such as refrigerators, can sync with a mobile app or have a built-in screen to restock or order groceries online.

For anyone who remained skeptical, their attitudes likely changed during the global COVID-19 pandemic, which forced consumer buying habits to shift online out of necessity. A world of home-bound shoppers resulted in a 43 percent increase in e-commerce sales in the first year of the pandemic. (E-commerce, or electronic commerce, is a type of business activity conducted over the Internet, such as sales or advertising.) According to a report from the U.S. Census Bureau, online sales skyrocketed to $815 billion in 2020! And the confidence in online buying as a legitimate (and necessary!) business model has not only remained steady, but has continued to see double-digit increases in sales, year-over-year - for all types of products and services in almost every industry.

Individuals are not the only ones spending more on online transactions. Increasingly, businesses of all sizes are also buying products and services online. Those same companies are also spending money to advertise on the Internet and reach their customers through traditional websites and social media sites. All these interactions represent a business opportunity by which people earn a living on the Internet. Why shouldn't one of those people be you?

Even during challenging economic conditions and the most extreme world health crisis, when traditional retail stores have struggled with growth, online retail sales continue to surge. Traditional retailers continue to see more revenue come from their websites, accounting for more than 15 percent of total retail sales in 2023, according to the U.S. Department of Commerce. Even more staggering is that the same report noted that total e-commerce sales in 2023 generated more than $1.8 trillion. By comparison, when U.S. government agencies first started tracking e-commerce sales in 1998, annual sales were only $5 million. That's considerable growth across only two decades, and further speaks to the stability and opportunity offered from an online business. With all this growth, you may wonder if it's too late to profit. The answer is - no! Research and economic forecasts from multiple sources predict strong, continued growth of e-commerce sales globally. Even social media sites are providing an avenue for making and increasing online sales, thanks to 107 million buyers who collectively drove more than $67 billion in social commerce sales in 2023, according to the Insider Intelligence report from eMarketer, an independent market research company.

Though all of these facts and figures are impressive, these numbers are from the United States, and North America represents only a small portion of potential online consumers. The international market is expected to exceed $5 trillion in sales by 2027, for the B2C (business-to-consumer) segment and $36 trillion by 2026 for the B2B (business-to-business) segment, as forecast by the International Trade Administration (ITA). Much like the United States, countries across Europe and the Asia-Pacific region are seeing steady increases in sales, but the most substantial opportunity for e-commerce sales is in Latin America and the Middle East. No matter where you are geographically located, there is potential to increase your online revenue through international sales. We discuss that in more detail in Book 8, Chapter 6. Isn't it time you join this generation of online entrepreneurs and take advantage of these rapidly growing markets and start an online business? In this chapter, we describe the kinds of businesses that exist online and motivate you to get started.

What Are You Waiting For? Start Your Business Now!

You might have dreamed for years about starting an online business. Or perhaps you woke up just yesterday with a brilliant idea. What are you waiting for? The truth is that the most difficult part of beginning a new endeavor is making the decision to do it. You can easily get bogged down with excuses for why your business won't happen. To keep you motivated and on track, here's a list of the top reasons to start an online business now:

• You can gain financial freedom. One major incentive for owning any business is the potential for a better income. The Internet offers the opportunity to create your own wealth.
• You have unlimited customer reach. No geographical boundaries exist when you run a business over the Internet. You can choose to sell your products or services in your community, in your own country, or to the entire world.
• It's affordable. You can now create a website inexpensively and sometimes for free. The cost to maintain your site, secure products, and cover related expenses is often relatively low. This low start-up cost is especially evident when you compare the start-up costs of an online business and a traditional bricks-and-mortar business (a physical building from which to sell retail merchandise).
• Your schedule is flexible. Part-time, full-time, year-round, or seasonal: Your schedule is up to you when you operate your virtual business. You can work in the wee hours of the night or in the middle of the day. An online business affords you the luxury of creating a schedule that works for you. (Of course, the more time you invest, typically the greater your earnings potential!)
• Novices are welcome. As the Internet has grown, e-commerce applications have become increasingly simple to use. Although you benefit by having experience with your products or services, the process of offering those items for sale online is easy to understand. You can set up shop with little or no experience under your belt!
• You can start quickly. From online auction sites such as eBay to storefronts powered by Shopify.com, the tools that can help get you started are readily available, essentially overnight. Many of these sites (such as Shopify) handle all the details for you - they set up the website infrastructure, manage the payment and shopping-cart system, and may even provide easy access to merchandise or provide information on how to get your products.
• You can expand an existing business. If you already own a business, the Internet provides you with the most economical and most efficient way to expose your business to a huge new group of customers and increase sales.
• No age barriers exist. You might be retired and itching for extra income, or perhaps you're a teenager who's only beginning to consider career opportunities. Online businesses provide economic opportunities for entrepreneurs of all ages.
• A variety of ideas qualify. As proven time and again, the Internet supports a broad range of business concepts. Although some ideas are better suited to long-term success, almost all your ideas have potential.
• Niche markets hold unlimited potential. Thanks to the reach of the Internet, unique or custom products and services have a potentially lucrative home in e-commerce. These products and services may not generate a large enough demand in a local market to sustain an offline business, but can find a significant niche customer base through the broad reach of an online audience.
• Everyone else is doing it. Okay, maybe your parents wouldn't approve of using this logic. It's certainly true, though: People around the world are finding success and more financial freedom by starting businesses online. It's one leap you should be proud to take!

If you're still hesitant, consider this bonus reason: The information you need to take your business online is right at your fingertips - literally. This book gives you most of what you need to get started. Whatever else you require, such as information about conducting business in your specific state or country, or regulations for...