Establishing an online business can be a life-changing opportunity with the potential to bring in a steady income stream. However, setting up an online venture can be challenging, especially for newcomers. This article will provide a step-by-step guide to help you navigate the process and launch your online business successfully.
Choose Your Business Topic and Niche
The first step in establishing an online business is to choose a niche or business topic. Determining what to blog about is your first challenging task. You need to narrow down your choice to something that aligns with your interests and skills that also has some market demand. Ideally, narrow your choice down to three or four things you are really interested in, then research to determine which niche will be best.
It can be hard to pin your choice down to one niche as most people have diverse interests, but I highly recommend you resist the temptation to try multiple blogs on multiple topics initially. Spend at least six months getting established in one niche, and then you can start working on the next one while continuing to update the first one. If you find you have time for another website, that is.
I tried creating three blogs at the same time on three different topics I had experience in and had a high level of interest in the topics. I found I spread myself too thin trying to keep up with all three. If you really want to do more than one topic at a time, it can help to make the topics feed each other a bit. For example, if you are interested in both cars and RVs, you might create a blog on each topic. Your audience will be different for each topic, but there are some things that will be similar for both and you can write similar articles for each, focusing on what is specific for each topic. For example, washing and waxing both will be similar, but RVs will have some differences in cars due to the different height of each, the different storage methods and times, and different tools used specifically for RVs.
Here are some things to help you choose your website’s topic:
What Are Your Passions and Interests?
You can get into quite a bit of drudgery when you get deep into creating content. If you are not interested in the topic, not only will it show through in your content, but it will be harder for you to stay focused and get the work done. You want something that you will be excited to work on every day.
Research Existing Businesses and Competition
How much competition is there for your topic? Are their websites or YouTube channels informative and cover the questions for your niche well, or could you get better advice from a magic 8-ball?
Assess the Demand for Your Chosen Topic
You can use tools like Google Trends to help assess the demand for your topic. You can’t see exact numbers, but you can see relative numbers. If you like sports cars and your favorite is the Camaro, compare it against other types of sports cars, such as the Ford Mustang, Mazda MX-5, Audi R8, or Dodge Challenger.
Google Trends does not give you exact volume, but it will give you the relative volume of one niche idea against another. In this example, I am comparing types of cars and have chosen statistics for the past 12 months in the United States.
Note that I changed the search type to “Sports Car” instead of “Search Term” to eliminate some searches that would not apply and skew the results. Most searches have the result type of “Topic,” which can be used in most cases. Some have more specific topics like “Sports car” in this example. Another example is McDonalds. It has “Topic,” but also has the more specific category of “Fast Food Chain.” Choosing “Fast Food Chain” will eliminate results that have McDonalds but are about a business or person with McDonald or McDonalds in their name, such as “James McDonald” or “McDonalds Boat Repair.”
Determine the Profitability of Your Niche
Check niche profitability through market research and determine if there are many profitable products, services, books, magazines, and search engine ads that exist aimed at your topic’s audience. Your online business needs to have the potential to make a profit, or else you are wasting your time. If you plan on running ads to make a profit, you can lean toward a product-focused niche to improve the chance your ads will pay well. Some topics will be more profitable by creating courses, and some will be more profitable with how-to guides that link to products used in your instructions and demonstrations. You may consider a YouTube channel as an additional source of income for a how-to channel. Some may work better by creating a book to sell, such as a cookbook or a guide to success. Ads are usually the least profitable, but they are a great way to start earning some income while you create your own product to see.
Another consideration is if your topic falls into a “YMYL” category. This stands for “Your Money or Your Life.” If your niche falls into a “YMYL” classification, it will be much harder for your pages to rank in Google. You will need to spend the time to establish yourself as an authority on the topic, and that will take a lot of extra effort with no guarantee of it paying off in the end.
Find a Matching Domain Name
Your business domain name represents your brand. Once you’ve chosen your business topic, it’s time to find a matching domain name.
Search for a domain name that is:
- Unique and memorable
- Easy to spell and pronounce
- Does not spell something unintended
- No more than two words unless there is a driving need for more
- Fifteen characters or less
- Reflective of your brand
Unintended spellings can surprise you, so check your domain name carefully. A simple example is “webad” It can be read as either “We Bad” or “Web Ad.” Something else to watch out for is if the first word of your domain ends in the letter “S,” and the first letter of the next word is a vowel or the letter “H.” Some examples of words to avoid after the letter “S” are: hit, talk, and any words that start with “ex,” such as express or exchange. Also, watch out for words that are not bad, but contain other bad words within them. Most people know the word “therapist” can be misinterpreted, but words such as “drape” and “grape” can potentially give you problems too.
It used to be that you needed to worry about keywords in your domain name, but now it is more important to establish your brand. Think about some products you use or websites you visit regularly. Make a short list of the brand names you like and easily remember. This can help guide you to your own brand name.
There are many websites, such as Namecheap and Cloudflare, that can help you find and register your domain name. Remember to choose a domain extension (.com, .net, .org, etc.) that best suits your business. For the United States, commercial websites will use “.com,” and in the UK, you can use “.co.uk.”
Conduct a Trademark Search
Before fully committing to your brand name and logo, it’s essential to conduct a trademark search to ensure your brand isn’t infringing on existing trademarks. This can be done through:
- United States Patent and Trademark Office (USPTO) database for the US market
- European Union Intellectual Property Office (EUIPO) for the EU market
- Other national trademark databases for the primary countries you plan to do business in
If you’re unsure about the process, consider consulting an intellectual property attorney.
Decide Between a Sole Proprietorship or LLC
Choosing the right legal structure for your online business is crucial, as it impacts your personal liability, taxes, and administrative requirements. The two most common legal structures are:
- Sole Proprietorship: A simple structure that requires minimal paperwork and allows you to maintain complete control over the business. However, it doesn’t provide liability protection.
- Limited Liability Company (LLC): Offers liability protection and potential tax benefits but involves more paperwork and administrative tasks.
Consult with an attorney or accountant to determine the best structure for your business.
Register Your Business With Your State, City, and County
After purchasing your domain name, you’ll need to register your business with the appropriate government authorities. This process will vary depending on your location, but it typically involves:
- Choosing a business name (if different from your domain name)
- Registering your business with your state’s Secretary of State office
- Filing for LLC, if applicable
- Registering your fictitious name or DBA
- Obtaining a Federal Tax Identification Number (EIN) from the IRS
- Registering for state and local taxes
- Obtaining necessary licenses and permits
If you are running a blog or a YouTube channel from home, you will need to check with your state, county, and city for any specific registrations and taxes where you live. In my case, my county used to require a business license to operate a stay-at-home business. They still do require you to pay taxes on any business-owned equipment that you list as an expense on your federal income tax. It is best to consult a local business attorney who can guide you through what you need based on where you live.
Table of Trade, Business, and Fictitious Name Registration Offices by State
Evaluate Your Insurance Needs
Operating an online business comes with inherent risks, such as data breaches, cyber-attacks, or liability issues. It’s essential to assess your business’s insurance needs to protect yourself financially. Some common types of business insurance include:
- General liability insurance
- Professional liability insurance
- Cyber liability insurance
- Product liability insurance
You can consult an insurance agent to figure out the best coverage for your business.
Setup Your Website
With your legal structure in place and your brand ready to go, it’s time to build your website. You’ll need to:
- Choose a hosting provider (e.g., CloudWays, SiteGround, or InMotion)
- Install a content management system (CMS) like WordPress, Wix, or Shopify. I highly recommend you use WordPress.
- Customize your website’s design with themes and templates. There are many available. I personally use the Divi theme from elegantthemes.com.
- Create essential pages (homepage, about us, contact us, privacy page, cookie policy, disclaimer)
- Build your navigation in your header and footer. Set up a copyright date that will automatically change when the year changes.
