{"id":37057,"date":"2024-07-31T12:54:22","date_gmt":"2024-07-31T12:54:22","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=start-a-business&p=37057"},"modified":"2025-09-26T14:22:40","modified_gmt":"2025-09-26T14:22:40","slug":"start-an-online-business","status":"publish","type":"start-a-business","link":"https:\/\/swoopfunding.com\/us\/start-a-business\/start-an-online-business\/","title":{"rendered":"Start an online business"},"content":{"rendered":"\t\t
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25 years ago, ecommerce was in its infancy, with few Americans buying products or services via the web. Now, US online sales are projected to be worth more than $1.5 trillion<\/a> in 2024 and over 15%<\/a> of all consumer sales will be conducted online this year.<\/p>

If you\u2019re thinking of starting a new business, an online venture may be a great way to go. But how do you get an online business up and running, what does it cost, and what kind of digital organization should you start? Read on to discover all you need to know about launching an ecommerce business.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What is the best type of online business to start?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In ecommerce, the less you have to do or deliver, the more profitable your business will be. Confused? Consider this: Imagine you decide to start an online store selling candles. You\u2019ll need your site to take orders, a supplier for the candles, a storage unit to hold your inventory, packaging to ship orders, a shipping agent to make deliveries, and a way for customers to make returns. This is a complex system to operate, and it won\u2019t come cheap.\u00a0<\/span><\/p>

Now imagine your site sells business software. You\u2019ll need your site and a source for the software. That\u2019s it. You take your customer\u2019s cash and deliver with the click of a mouse. There\u2019s no physical inventory, storage, packaging, shipping or returns. After you\u2019ve bought the rights to the software \u2013 or created the program if that\u2019s what you do \u2013 your costs are very low. Apart from updating the software as new versions are released and maintaining your site, it\u2019s all profit moving forwards.<\/span><\/p>

So: If you want a profitable online business, keep it digital. Sell downloads or offer advice, tutorials or other digital products that you can sell over and over again and without the need for complex physical infrastructure.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What can I sell online?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The great thing about an online store is you can sell almost anything, and you don\u2019t need an expensive retail outlet or fancy office to do so. It doesn\u2019t matter if you\u2019re selling products or services, with easy shipping or fast downloads available you can get what you sell to your customer regardless of where they are. The only businesses that cannot be operated online are those where a physical service is supplied \u2013 such as a barber shop, manicurist, dentist or pool service. However, even then, you could still take bookings online and if you sell accessories, such as nail polishes, pool supplies or dental products, there\u2019s nothing stopping you from running that side of your business as an ecommerce site.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How to open an online business in 8 steps<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What does it take to get an online business up and running? Here\u2019s what you need to do:<\/span><\/p>

Step 1. Assess the viability of your new business idea<\/b><\/h3>

Before plowing effort and money into developing your new online venture, take the time to assess the viability of your idea. What are you selling and is there a market for it? Many businesses fail because they offered an answer to a problem that does not exist. Make sure your venture meets a need, fills a hole in the market, or can offer a product or service that may not be original in concept but is better than the competition.<\/span><\/p>

You can vet the feasibility of your idea by checking other websites, conducting polls on social media, studying the business news or trying a basic beta version of your concept with a limited audience. If you get positive feedback or you can see a problem you can answer or a niche you can fill, your online business may have a fighting chance. If none of these attributes apply, move on to your next idea.<\/span><\/p>

Step 2. Develop a business plan<\/b><\/h3>

If you\u2019re seeking external investment or a commercial <\/span>business loan<\/span><\/a> to launch your online business, you\u2019ll need a detailed business plan to support your pitch or application. Investors and lenders will want to know why you need their funds and what the money will do for your new venture. Business plans should do more than paint a rosy picture \u2013 explain the risks involved, what the downsides could be – and how you intend to overcome them.\u00a0<\/span><\/p>

Even if you don\u2019t need investment or a loan, a business plan can still be a very useful vital tool. Use it as your business manual, referring to the contents to guide your strategy and manage your financials.<\/span><\/p>

Find out more about creating your business plan <\/span>here.<\/span><\/a><\/p>

Step 3. Choose a business name<\/b><\/h3>

You\u2019ll need to choose a business name that\u2019s memorable and gives customers an idea of the products and services you sell. (If you\u2019re buying an existing online business, you may wish to keep the old name to preserve brand name recognition). Online organizations often seek short, catchy names that are easy for customers to recall. Many ecommerce vendors use familiar words and slightly change the spelling to form a name they can trademark. When choosing your business name, make sure it\u2019s available in your state. You must also ensure it\u2019s available as a domain name for your website \u2013 you can do this at any of the major hosting platforms such as <\/span>GoDaddy.com<\/b>.<\/span><\/p>

Step 4. Decide your business structure<\/b><\/h3>

You have options when it comes to business structure. You could register your venture as a sole trader, which means you own the business in your name and have personal liability for its performance, or you could register as a limited or general partnership or a limited liability company (LLC). These options will give you more personal protection, but they require more paperwork and will cost more to establish.\u00a0<\/span><\/p>

Once you\u2019ve settled on a name and type of business structure, you must register your venture with your state\u2019s business filing office. You\u2019ll also want to get an Employer Identification Number (EIN) from the IRS. You can do this online in just a few minutes. Note that your EIN acts as a business tax ID and it is usually needed when dealing with the government or applying for commercial finance.\u00a0<\/span><\/p>

Step 5. Take care of all the legal tasks<\/b><\/h3>

Establishing an online business requires filing the necessary business-formation documents and tax paperwork to ensure a solid legal foundation.\u00a0<\/span><\/p>

These requirements will vary depending on your state and the nature of your business, so thorough research is crucial to ensure compliance. Consulting with an attorney experienced in business startups in your industry can be particularly helpful to make sure you’re on the right track.\u00a0 You should also investigate the various <\/span>business insurances<\/span><\/a> to make sure you\u2019re covered from all liabilities.<\/span><\/p>

Step 6. Build your website<\/b><\/h3>

Your website \u2013 and your app if you create one \u2013 are everything in ecommerce. Your site is your only window on the world. It must act as a showcase, promoter, point of sale, community and brand builder and much, much more. You\u2019ll want a site that is attractive, clear to read and easy to navigate with good photos of your products or clear explanations of your services and the benefits that you offer. To take credit card payments online you\u2019ll need to team up a payment service such as <\/span>Stripe<\/span><\/a>, <\/span>Square<\/span><\/a> or <\/span>Paypal<\/span><\/a>.\u00a0<\/span><\/p>

If you\u2019re planning to build the site yourself you could use one of the many web builder platforms \u2013 such as <\/span>Wix.com<\/span><\/a>. However, if you\u2019re not confident with your technical skills you may be better off hiring a web designer to build your site for you.\u00a0<\/span><\/p>

Step 7. Develop and implement your marketing strategies<\/b><\/h3>

It\u2019s never too soon to start building an audience for your business. Make use of social media to engage potential customers as early as possible. This will generate excitement and momentum for your business launch. Start spreading the word as you work through the steps outlined above.\u00a0<\/span><\/p>

Step 8. Launch your new business<\/b><\/h3>

If you\u2019ve prepared your audience properly, you\u2019ll be able to make a big splash when you finally open for business. No, you\u2019re not cutting a ribbon in the same way that you might for a bricks and mortar store, but you can still create a buzz with opening promotions, celebrity endorsements, loyalty program offers and more. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How much does it cost to start an online business?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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There is no bottom or upper limit on the cost of launching an online business. What you do or sell, where you operate, the scale of your operation and a host of other factors can impact your start-up costs. It may be possible to get a simple ecommerce site up and running for as little as $1,000, or you could spend hundreds of thousands or even millions of dollars to launch an all-singing, all dancing marketplace that offers a range of products as big as you would find at your local mega-mall.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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How to get funding to start an online business<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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If you don\u2019t have enough cash on hand to launch your new online business on your own, you\u2019ll need funds from investors or lenders. Many new businesses get started using financial support from friends and family, but if that\u2019s not an option, there are networks of venture capitalists and angel investors readily available online. Bringing in external investment can give you the cash you need to get your venture off the ground but be aware that investors will usually want a piece of the action in exchange for their money. This means you will need to give up a share of your ownership and you may lose overall control of the business. <\/span><\/p>\n

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With a <\/span>business loan<\/span><\/a> you don\u2019t have to surrender a share of your organization to get the funds. Although it\u2019s never easy for new businesses to borrow money, some lenders have special products and programs for startups and entrepreneurs. These types of financing include:<\/span><\/p>\n

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