The ONLY Correct Way to Start an Internet Business!

The MOST Common Online Business Startup Question

On a daily basis, I read, here, or discuss with someone, "why it is so difficult for a new online business to be successful."

Some state, "I'm interested in starting my own Internet business but unsure what direction to go in." And, the most puzzled of all, are experienced business persons attempting to take their existing successful business online, only to have it go nowhere. They ask, "So what resources would be able to help me make this decision?"

This is an easy question with a complex multifaceted answer. Most people want to remove the "Sinking Boat Effect" from their life. Imagine being in a small rowboat that is slowly sinking, and gradually filling up just a little faster than you can bail the water out. You see the "handwriting on the wall." You realize you may stay afloat until help arrives. You can see help off in the distance slowly rowing out to you, but you're not sure if you can stay afloat long enough to survive, and you're not too happy about swimming in the water with the circling sharks.

In other words, you need to learn how to remove the "overwhelming" and helpless effect a person faces when trying to start a new online business. You work intensely for awhile, the obstacles seem to mount up, then the question of "Why isn't it working?' comes up; then the,"What do I do next?" confusion and frustration overwhelms you. At least that's true for most people.

Obviously, in this brief article, we can't cover this point in detail. Hopefully, I can point you in the right direction. If you are new to business in general, you must learn basic business principles and procedures first. Learn them at the same time you are learning the Internet. This can be done with the right courses.

If you are an experienced business person attempting to position your business effectively online, you need to analyze what you did when you first started it offline. This may seem like an overly simplified answer, and actually it is. But we have to start somewhere. The real answer is; you must learn to do business on the Internet just as you would any other form of business, especially its unique aspects.

The confusion starts with how simple it seems to start an Internet business. It's true; it can be simpler and much less expensive to create an online business than a brick-and-mortar one. Most people think all you need is a company name, an effective website with the right bells and whistles, email, products, maybe a newsletter or Hotsheet, and you're in business.

Nothing could be further from the truth! Why? Because this isn't a business, it's just an assortment of online tools. The business part involves the marketing efforts, selling, and servicing customers after the sale is made and daily operational procedures exclusive to your business and online activity. Most people know that. So why the confusion here? The basic answer here; most people don't really understand the dynamics of online entrepreneurship.

The illusion created by having the website and related tools makes it appear you have a real business just waiting for someone to buy. If it were a brick-and-mortar retail business, you could have some walk-by or drive-by traffic, and in time referrals from satisfied customers. You would likely not have overwhelming competition in your immediate area, and could run some local advertising when needed.

What is different about the Internet? Answer this question successfully and you will be on your way to solving the online problem of confusion we referenced earlier. It is important to understand that it is a completely different animal than an offline business. It has many of the same characteristics as an offline business, but it is still dramatically different! People have different online buying patterns than offline.

Business etiquette is different online than off. Offline it is permissible to send unsolicited sales materials via postal service to the home. A mass mailing can often make it worth your while to do the campaign through generated sales. Some marketers purchase targeted mailing list that are often quite effective. It depends on variables specific to your business such as; are your customers local, regional, national, or international?

You can lose your access provider if you send unsolicited commercial sales messages through email. You must learn to develop opt-in (people subscribe to) mailing list that gives you permission to email people interested in your offering. This takes a special program and methods unique to the Internet to accomplish this project successfully. Do you know how to build an opt-in mailing list?

Everything online is virtual. Webster's dictionary says virtual means "Computer Science. Created, simulated, or carried on by means of a computer or computer network: virtual conversations in a chatroom."

You don't have people walking or driving by your website. The amount of people online is staggering, in the hundreds of millions, and growing everyday. It has become the largest market in the world; yet most online businesses get little or none of the virtual traffic. Only those knowledgeable in the Internet business dynamics will succeed. Since the Internet is a virtual business, we must learn to attract virtual traffic and learn their online buying habits. Do you understand the process of how to do this?

Branding is of paramount importance in any business, online or offline. Putting customers in their comfort zone is an art form in any business, physical or virtual, and the rules required to do so are different for online businesses. Do you know them and what to do?

Please understand, I am not attempting to be insulting to you here or assert you are unintelligent. I am using this questioning approach to dramatize the important differences of doing business online. To paint a virtual image in your mind to help clarify this point.

So what is the basic answer to creating a successful online business? ACCURATE KNOWLEDGE specific to the Internets business dynamics! Where do you get this knowledge? Research and read. How do you find the best and accurate knowledge? If you are reading this article, you are already on the right path. The newsletter or article directory you found this article on will have other specific information relative to your needs.

You will need to learn what other successful Internet businesses are doing to be successful. These case histories will reveal insider information that can put you on the right road. How do you overcome the vast amount of hype online, to find the few pearls of business wisdom? For one, use you common sense. If it sounds too good to be true it it's not true! Also, visit business forums and learn who are helping others solve their business problems. Search out expert authors' renown for their expertise, and research their works. The same as required of you to setup any type of business.

Is there just one super course you can take that will have everything you need? Unfortunately, NO! There is one outstanding course available for everyone wanting to setup a business online the right way. There are a couple of courses on eBay marketing, written by those making millions annually.

There is only one course that stands out above all others if your plan is to develop a new product, manufacture it, and market it nationally or internationally. There is software and online services that can totally automate your website business for little cost. There is one website you can utilize free, if you need experienced consultants for website building, writing reports, sales letters, and marketing materials. And they charge about 10 cents on the dollar compared to many consultants.

If you are starting a new business, do you just take one class in college or read just one book on a single subject, accounting for example? Certainly not! You take different classes and read multiple books, each written by a specialist in that specific subject. Learning the Internet is the same as learning any other business. Don't believe the so called "Guru's" when they state their course is all you will need. You need to be directed to the right and best business information and resources.

Internet marketers are NOT necessarily scholars. Some write very simple without much style or pizzazz. But, if they are making a bundle online, others are emulating their systems and programs, follow their lead. They are doing it. That's the best testimonial.

These are some of the things you need to know to setup and operate an online business. You must learn it as any other business venture. Is it difficult to learn or must you be a techie to succeed? Absolutely not!

How do you learn to go to the next level now? Visit my website listed in the signature box below and immediately download the free special report; "The ONLY Correct Way to Start an Internet Business!"

P.S. Don't "Kill the Turtle" in your business. If you don't know the meaning of this statement, the free special report will explain this important principle to you.

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The mavericktips.com website is a source of free information, and affordable resources specifically for the home business entrepreneur.

Maverick Tips is a weekly support newsletter for the TV Show "The Maverick Entrepreneur," Hosted by "Maverick" (aka Bob Dean Stanford), targeting home businesses and aspiring entrepreneurs.

It presents cutting edge, state of the art small business marketing tips, insider information, quality low cost solutions and resources. The newsletter is entertaining, educational, and uniquely informative presenting many "Tricks of the Trade."

Serious About Writing A Business Plan... Start A Business Plan Library

Tap these treasures of ideas. The best money you can spend

is money invested in your business plan education. Don't

shortchange yourself when it comes to investing in your

dream. Start gathering samples of business plans and collect

business plan books and get a business plan library started,

it can change your future. Here's what your library needs to

show: that you're a serious student of business strategy and

planning, finance and economics, selling, and writing.

Sample Business Plans

Start by gathering sample business plans. Look at the annual

reports and S-1s, S-4s, 10ks, or 10Qs filed with the

Securities and Exchange Commission (SEC) of companies in

your industry. See how they present their case, explain

their business, and discuss their industry and competition.

What exactly are these forms and how do you get them? Good

question.

These are forms that public companies must file with the SEC

in order to register their securities or to maintain the registration

of previously registered securities with the SEC. You can find

these forms by going to http://www.sec.gov, clicking on the Edgar

database, and searching for a public company in your industry.

The key is to find the most helpful filings. These are the ones

labeled S-1, S-4, 10K, and 10Q. They usually contain

descriptions of the business, its products, industry, competitors

and strategies. Sections that should sound familiar to you if you

are planning to write a business plan.

Go to these sections and read how the company presents their

business and its products. Look at how they describe the industry

and their competitors. I encourage you to read as many filings in

your industry as possible. See what the "big guys" are saying, the

issues, challenges, and trends they see in the industry and how

they're attacking them.

Be careful though about mimicking what they write. Many of these

documents are written in legalese despite the SEC's protestations

and push for plain English. Just remember, you're doing this

exercise to see how other companies have built their case to

business investors.

Another approach is to gather and read professionally

written business plans of companies in your industry and use

them as guides to prepare your plan. Try to avoid generic

business plan templates. They're too general and often not

worth the investment. Either way. Start filling your

business plan library with business plans and registration

statements. Keep them close by and refer to them often as

you write your business plan.

Strategy

Now, here's a good book to start your business plan library

with. It's called: Competitive Strategy by Michael Porter.

In this landmark book, Competitive Strategy, Porter shows

you how to identify the forces that drive competition in

your industry. Learn what moves your competitors are likely

to make within it. Competitive Strategy provides a framework

for evaluating the competitive alternatives you must

consider and for thinking about how to change the rules of

the marketplace in your favor. Competitive Strategy is the

bible venture capitalist, investment bankers, and business

development executives use when analyzing an industry or

business venture. I use this book as the centerpiece of my

business plan library. So I'm just asking you to take a look

at Competitive Strategy by Michael Porter. If it suits you

fine, if it doesn't suit you, keep looking till you find

something that helps you understand strategy.

Opening your mind to strategic alternatives is a creative

process. You can never have too many books on strategy in

your business plan library. Read as much as you can to learn

why some companies can sell their products more cheaply than

others. Why others provide the best products...products that

are just far superior to their competition. And, why some

companies just always seem to provide unmatched service.

Fill your business plan library with business books that

inspire, challenge and answer these questions. Read. Read.

Read. And, study too. Find out how some companies are

reinventing competition in their markets and obtaining

funding while others are seemingly oblivious to the changing

world around them.

Michael Treacy and Fred Wiersema set out to find answers to

these types of questions in their book The Discipline of

Market Leaders. Although the authors won't appreciate this

comment, I found the underlying fundamentals in The

Discipline of Market Leaders to closely parallel those laid

out by Porter in Competitive Strategy. Perhaps that's why I

like it so much. The difference, however, is that they

present their material in a less academic, more engaging

way. And, they provide excellent case studies that are sure

to generate many aha's! The Discipline of Market Leaders

will make you think about what it is your company or new

venture does better than anyone else; what unique value do

you provide to your customers? How will you continually

increase that value? If you can't easily answer these

questions about your business, The Discipline of Market

Leaders is required reading and a must for your business

plan library. The business owners and entrepreneurs that can

answer these questions are not only raising the value bar in

their industries, they're raising capital for their

businesses!

Finance and Economics

Be sure to keep your business plan library well balanced...

Let me give you a sense of that balance. First is finance

and economics. We all have got to have a sense of how to

make money...the universal laws of business success, no

matter whether you are selling fruit from a stand or running

a Fortune 500 company. Finance and economics are the basic

building blocks of business. Your business plan library

needs a few books on the numbers. When you understand the

basics of finance and economics its possible to bringing the

most complex business down to the fundamentals. You become

empowered to focus on the basics and make money from your

venture.

Here's a good book to help you in this area: What the CEO

Wants You to Know by Ram Charan. What the CEO Wants You to

Know captures the basics of finance and economics and

explains in clear, simple language how to do what great

business owners and entrepreneurs do instinctively and

persistently. Charan explains the basic building blocks of

business and how to use them to figure out how your company

can, does, or will make money and operate as a total

business. Learn how to use these building blocks to cut

through the clutter of day-to-day business and the

complexity of the real world. What the CEO Wants You to Know

by Ram Charan. This little book is only a 137 pages: but I'm

telling you, it's so well written you'll be as intrigued as

I was. What the CEO Wants You to Know by Ram Charan. Get it

for your business plan library.

Writing

Next is writing. You have to be able to get your thoughts

down on paper. Businessese, academese, legalese - all appear

too often in business plans. Often preventing a

knowledgeable writer with good intensions to fail at getting

the message across to an intelligent, interested reader. For

some reason, when people write business plans they are

compelled to write "commence" and "prior to" instead of

"begin" and "before." If you want to write an effective

business plan, your business plan library must have books on

how to be an effective writer.

Start with Edward Baily; he wrote a surprisingly

straightforward book called The Plain English Approach to

Business Writing. This book, The Plain English Approach to

Business Writing, is about writing as you would talk, which

not only makes your writing easier to read, it's also makes

it easier to write. In a brief, entertaining 124 pages Baily

clearly lays out the dos and don'ts of plan English,

illustrating them with examples drawn from business

documents, technical manuals, trade publications, and the

works of writers like Russell Baker and John D. MacDonald.

The Plain English Approach to Business Writing offers

practical advice on clarity, precision, organization,

layout, and many other topics. Best of all, you can read it

an hour...and use it for the rest of your life.

But writing well is only a part of writing. A good business

plan must be persuasive. Listen carefully to what I just

said: persuasive. Not misleading or untruthful, but

persuasive.

Here's a book you need to look at Persuading on Paper. How's

that for a title? Persuading on Paper by Marcia Yudkin.

Yudkin is a writing consultant who coaches small-business

owners and professionals on improving their marketing

materials. In a witty and vivid style, Persuading on Paper

shows you how to use the written word to convert strangers

to prospects to paying customers (or in our case,

investors). What I like about this book is that Yudkin takes

you step-by-step through the process of creating marketing

materials that sell. Don't underestimate the power of

marketing copy in your business plan. You'll be surprised

how her methods and strategies can help create a more

powerful business plan. Persuading on Paper is a must-have

for anyone who wants to attract more clients, customers, or

investors.

Raising Capital

Next is an understanding of the process of obtaining

capital. No business plan library would be complete without

a book on the process of raising capital. Without capital

your venture is destined for failure. You need to learn how

to select the right venture capital firm, make

presentations, and negotiate your deal.

Try this book: The Venture Capital Handbook by David

Gladstone. As an executive officer at Allied Capital

Corporation, a large publicly-owned, venture capital firm in

the United States, David has reviewed many proposals for

venture capital financing. The Venture Capital Handbook

takes you through the entire process from presentation

through negotiations, commitment letters, legal closings,

due diligence, the exit by the venture capital company, to

when the entrepreneur is left to own it all. As a result,

The Venture Capital Handbook provides anyone who wants to

spend the time and money with an insight into what venture

capitalists really want. Prepare for the process of raising

venture capital with The Venture Capital Handbook.

Selling

Finally, study the art of selling. Like it or not, when you

are trying to start a business venture or raise money for

your business you have to sell investors on why they should

invest with you. It's like a rite of passage. But fast

talking salesmanship won't raise the money you need for your

business. You need an approach that respects the power of

the investor...one that builds a relationship with investors.

So, fill your business plan library with books on selling

and presenting.

Here's a book to try: Socratic Selling by Kevin Daley with

Emmett Wolfe. Socratic Selling as the title implies, uses

the Socratic Method: "A method of teaching or discussion, as

used by Socrates, in which one asks a series of easily

answered questions which inevitably lead the answerer to a

logical conclusion" (Webster's Unabridged). Dalely's

concise, easy-to-follow chapters explain how to open a sales

dialogue and go right to the heart of the matter. Socratic

Selling is a fun and informative 162 pages for those of us

who believe selling means talking with, not at, investors.

Study these techniques; they can make you more effective

with potential investors.

If you are serious about writing your business plan...show it.

Start a business plan library that shows you are a serious

student of business plans. Fill it with business plans,

public filings and annual reports of businesses in your

industry. Stay away from those generic business plan

templates. They are too general. And, Read, read, read and

study too about strategy, finance, economics, writing, selling,

and how to raise capital. Spend the money. Buy the books. The

reward can be great...a funded business plan.

Mike Elia is a chief financial officer and an advisor to venture capitalists and leverage buyout specialists. To learn more about writing business plans and raising capital or to tap into the world's largest business plan library with over 900 industry specific business plans, visit http://www.business-plan-secrets-revealed.com - Business Plan Secrets Revealed.