As with any business before you start your online venture you should have a business plan. If you were to start a conventional business, the chances are you will need some financing to get it off the ground. With an Internet business, there are generally very small start up costs, so people tend to start a business without having any plan in place.

You need to consider yourself the lender and ask some hard questions before you start your company. By using a standard business plan, you can give yourself purpose and direction, this way you will minimize your chances of failure.

Before you sign up for any online venture answer the following questions. Some will not apply to you, so skip them, but by doing this simple exercise you will can have a better chance of being focused when you do decide on your business.

You are playing the role of both business owner and money lender, so be as honest as you can.

1. What business are you going to be in? Is it product driven or are you providing a service.

2. What is your reason for being? Explain your companies goals and objectives. As a home business you do not want to explain your personal goals, separate yourself from your company. You can put in a goal of being a leader in customer service or providing the most reliable gadget for a reasonable price.

3. What is your business philosophy? What does the business consider important.

4. Who is your market? What type of person or company will be interested in your product or service and how will you meet their needs.

5. What is your industry? Is there growth? Are there any changes that may be occurring that will affect your company? Is there a method to take advantage of this change?

6. What strengths does your company possess? What is it that will allow your company to succeed? What are your competitions strengths and how will it affect you?

7. What weaknesses do you perceive in your company? How can you correct these weaknesses? Is there a weakness in your competition that you can utilize to help promote your company?


Although this is not a complete business plan, it is the minimum requirement to get into a lender. You need to be able to answer these questions before you start an online business. Far too many people jump at the first online opportunity and have no idea what their business is.

Treat the Internet the same way you would be expected to treat a conventional business. Act like a lender and ask yourself some key questions to bring you one step closer to success.

Labels: start a business