Tips on starting an online business by small business accountants
Depending on the merchandise or service you plan on selling, it is often a good idea to start your business online. Online businesses have a much cheaper start-up and maintenance cost compared to bricks and mortars and are extremely flexible with trading hours. In addition, the transition from online advertising and online conversion is more seamless- compared to other methods. We at M.A.S Partners, the leading small business accounting firm in Sydney Zetland, work with hundreds of online businesses, and have compiled some tips to help you get started on your online business.
Should you go online?
Before embarking on your journey, you must ask if your business is really suited to be online. Not all businesses are able to grow in an online market. Small businesses that sell directly to the consumer work great, as it skips the third-party sales, taking full advantage of the online aspect. On the other hand, a business such as a dental clinic, would not work online. This may be obvious at first, but before you invest in an online business, you must consider what advantages your business is taking advantage of- and whether or not it is worth it.
Come up with an idea that works well in an online market
If you are certain that you want to take your business online, you must sell something that will be able to sell well online- taking advantage of the convenience and reachability of having your business online. There are four different types of online business: retail such as products; services such as teaching; apps such as subscriptions; and content. In addition to the idea working online, your idea must differentiate yourself from the competition- whether through marketing, or the actual product/service itself.
Create an ecommerce business plan that includes your budget
Regardless of the project, it is always a good idea to write up a detailed plan. In the beginning digital marketing is everything- and can be extremely experimental. As such, it can often be different to predict revenue in the beginning. With so much variability it is often wise to have shorter business plans and learn on the fly, compared to bricks and mortar stores. However, it is still a good idea to have a budget, to ensure that you do not overspend.
Hire a small business accountant
When running any small online business, appropriately managing your finances takes priority. Hiring a small business accountant will help you tremendously with budgeting and planning- and with such a unpredictable market, you will need it. We small business accountants, at M.A.S Partners, offer a wide range of services, which include handling your taxes, budgeting, and business advice. For more information on our small business accounting services, click here.