Your Questions About Business Online Services Group

Jere answers:

I own a business I run from my home and it is doing pretty well. I am 17 an started them when I was 16. Made $1,000 on first day live. Of course its e-Commerce since its run from my home. I got a job and used my first two paychecks to get everything going. I probably used about $200 to start the site and open all my accounts and services initially. Once I got sales, it didn’t matter any more! 😀

You should first obtain a permit or license. You will need a Resellers Permit or a Business License that can be obtained at your State Board of Equalization or on websites that assist with legal matters. A plus to this is if you have a Reseller’s Permit, you get whole prices and you will not be charged tax by the manufacture. A business it self does not have any legal involvement other then when registering for your Merchant Account, which is to receive payments, and your Reseller’s Permit. A business itself does not need insurance because all Liability depends on the type of ownership. I am guessing your company will be a Sole Proprietorship or Partnership thus putting all responsibility on you and/or your partners. For taxes, you may ONLY charge tax to buyers in the same state. All customers from other states do not have to pay tax.

I really recommend having an online site and here is a few tips about online sites:

First you need to submit your website to major search engine such as Dog Pile, Ask, MSN, Google, and Yahoo. Submission should be pretty easy, just go to the search engine page and look around for the option to submit a site.

The next step is to find affiliates. You will be amazed at the power of word-by-mouth. Find complementary websites and try to talk to the owners/management group and put a link of their site on yours and they will put one of yours on theirs. Scratch my back and I will scratch your back. When I said complementary, here is an example of what I mean, someone has a site selling shoes, a complementary site would sell socks, shoe polish, shoe repair service, custom shoe laces, and all other products or services related to shoes.

Your next step would be paid/free advertisement. Pay money to a marketing source of your choice and get your ads everywhere. Advertisement can be done freely as well and works just as well. Join as many forums related to your products in anyway possible. Just go join the forums, answer questions and build a reputation. In your profile signature, put a banner of your site or a link. As time goes by you can stop answering questions on the forum, and just say, “Hey, go to my site, I sell this.”

So there it is, for a home business:
1. Think of a Product and Target Consumer
2. Get a Merchant Account
3. Get a Permit or License
4. Find a Web Host
5. Search Engine Submission
6. Complementary Affiliates/Sponsors
7. Advertisement, Paid/Free

That should generate more visitors to your site as time goes by. Remember, all business services/stores take time to start up initially. So many competitors on the virtual worlds, usually takes 6 months to get weekly clients let alone daily. You have to have money to make money!

Hope I Helped,
Jason H.

I can help you and walk you through your new adventure. I received help from many mentors when starting my multiple businesses, I would be glad to pay it forward.

Jere answers:

You need to register your business with the state of Georgia. You can do that online here: https://services.georgia.gov/dor/olbr/TaxRegistrationGateway

It looks like you will need to get a business license through DeKalb County. More info here:
http://www.co.dekalb.ga.us/finance/business_alcohol.htm

You should also be bonded and insured. Being bonded lets your customers know that you’re legitimate. Having insurance protects you in case customers accuse you of damaging or stealing their property.

All of this can be overwhelming. The Small Business Development Centers offer free help getting your business off the ground. Find a local office here: http://www.sbdc.uga.edu/newsite/index.aspx?page_name=index

Also check to see whether there are any entrepreneurs’ groups or organizations in your area. Sometimes you can get help with those startup costs and also with publicizing your business.

Jere answers:

The best way to promote an online service/product on forums or discussion groups is to become a VALUABLE member of that group. Showcase your expertise, be ready to help others out, be visible – and other members will either be curious enough to check your qualifications (and your website) or actually want to do business with you.

The “Internet newbie” way of using discussion forums is to find as many forums as possible and putting their advertisements/promotional spiel in the forums. They are not interested in participating, merely in SPAMMING the forum with their senseless posts.

The first thing to do is to check the member’s Terms of Service (TOS) of a forum. Some forums prohibit advertising the member’s products — no signature files at the end of the post, no posting of URL, etc. Example is Webmaster World http://www.webmasterworld.com which is a very active forum of webmasters; moderators are quick to remove any postings of URLs and block members spamming.

Some forums allow signature files; and if they do, then that is where you can advertise your business.

But really, you don’t need a book to tell you how to market using discussion forums. The key is simply to participate and become a useful addition to the community

Jere answers:

How to Manage and Start a Home – Based Business

1) Think large for the long term, but think small in the beginning. Start your business by contacting people that you know ( friends, family, neighbors etc. ). Let these people know that you are in business, and explain to them what a convenient service you provide.

(2) Network your business as a fund-raiser. Contact local schools, churches, civic groups etc. Who want to raise money for their organization and keep a percentage of sales as your profit.

(3) Take advantage of any gift giving occasion ( holidays, birthdays, engagements, graduations, etc.) Keep a log of all special occasions for your customers.

(4) Contact local business who having waiting areas (family doctor, pediatrician, dentist, beautician, mechanics etc.) This is an excellent opportunity for you to offer your service at little or no additional cost to the customer.

(5) Ask existing customers for referrals. Most businesses get their start this way. For example: Your beautician built his or her client base from referrals of existing customers. Word of mouth is the most powerful form of advertisement.

(6) Contact your local Chamber of Commerce to get a listing of businesses ( and their address / Phone Number) in your area. Write a letter of introduction, or use our suggested letter of introduction, to contact them. There may be a small fee to get this list.

(7) Contact large businesses in your area.

(8) Keep updates on new residents in your area. Write a letter to welcome them to the community and tell them about your service. Form a business relationship with a local company that deals with major purchases ( real estate brokers, car salesman ).

(9) Build relationships with your customers. Follow up with existing customers on a regular basis ( every 3 mos. ) . And there are NO problems. Hint: Customers follow up is crucial to your business. If you do not follow up, your credibility can be destroyed. If you only call your customers once a year (when it is time to renew ), they will be less likely to renew through you if there have been problems and you were not available to handle them throughout the year.

10 Key Steps to Starting a Business

There are several key steps to starting a business in the city in which you live. The steps may vary according to the type of business you intend to start, but the following 10 steps will give you a general idea.

1.Get Basic Information

The Public Library provides significant resource materials, including
information on market research, trademark and service marks, how–to books on a variety of businesses and industries, etc. The Library also offers workshops on patent, trademark and copyright issues.

2. Create a Business Plan
A business plan is like a roadmap; it shows you where you are in relation to where you want to be. Whether you believe in a business plan or not, starting a business involves many ideas that need to be documented and actions that need to be taken. Many businesses fail without a business plan, and furthermore, banks require one prior to being considered for a loan.

Contact :
U.S Small Business Administration, Service Corps of Retired Executives

3. Determine a Business Name

The name you choose for your business is very important. If the name you choose is your own legal surname and a one-word description (such as John Smith Roofing) then you are not required to register a fictitious business name. If you choose a business name that does not meet these parameters (such as JS Expert Roofing) and your business is not registered with the state then state law requires you to file a fictitious business name statement. Please note that this statement does not protect the business name.

Please contact your local : County Clerk’s Office for more information.

4. Determine the Legal Structure of the Business

Your choice of legal structure will affect your income taxes and personal liability. Most businesses start as a Sole Proprietorship or a General Partnership and are generally the least complicated. Limited Partnerships, Limited Liability Partnerships, with the Corporations and Limited Liability Companies must register Secretary of State. You are strongly advised to contact your own accountant or attorney for advice and assistance in determining the best legal structure for you and your business.

Please contact: IRS’S Technical Services Division
(800) 829-1040 website: www.irs.treas.gov
5. Determine the Business Activity Type

There is a classification system for business activity types in which identifies a business activity and determines many of the start-up requirements and where the business can be located. For more information on business activity type contact:

City Treasurer’s Office
6. Select a Site and Determine Zoning and Site Permit Requirements
Determining zoning requirements prior to signing a lease or contract is imperative. You must check with t

Jere answers:

The Internal Revenue Service (IRS) web site at http://www.irs.ustreas.gov/businesses/small/article/0,,id=98350,00.html contains all the information you need about EIN or tax identification number and how to apply for an EIN electronically.

As for grants, don’t waste your time looking for one. It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business. And yes, grants mean PAPERWORK – lots and lots of it, that is why a cottage industry of grant writers was born.

Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov – these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.

Even if you buy books on “how to get grants” or list that supposedly has information on grants — all of them are mere rehash of what CFDA has, albeit packaged differently. But still the info is the same – hardly any grants for starting a for profit business.

Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/expanding/grants.html…

“The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments.”

Here is a listing of federal grants for small businesses. See if there is any available for individuals for starting a business — THERE’S NONE.
Http://12.46.245.173/pls/portal30/CATALOG.BROWSE_BENEF_RPT.show

Most of the federal grants are given to specific target groups with specific requirements (e.g. Minority business owners involved in transportation related contracts emanating from DOT – Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program

Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women’s Business Ownership Assistance that are given to those who will create women’s business center that will train women entrepreneurs

For private grants, you may want to check the Foundation Center’s Foundation Grants for Individuals Online. It’s a subscription based website ($9.95 per month) but their opening blurb only says that the database is ideal for “students, artists, academic researchers, libraries and financial aid offices.” Entrepreneurs are apparently not one of them, so I take it they also don’t have listings of private foundations who give grants to would-be entrepreneurs.