3 Mistakes to Avoid when Starting an Online Business

Posted on Mar 28 2018 - 8:40pm by Business Day TV

online shopping using credit card for paymentYou’ve probably transacted with an online business. Convenient, isn’t it? However, know that running an online business isn’t easy. There are plans to make and strategies to create. If you’re planning to put up your own business online, know the mistakes to avoid to make your venture successful. Here are three of the most common.

Ignoring the legal stuff

That’s right. Online businesses have legal requirements too. Below are some basic online business laws to start with:

  • Taxes – Every state and country has different tax laws. Know the ones covered by your area by talking to a tax professional or local authority.
  • Payments – There are multiple payment gateways available today. Determine the ones that suit your business and learn about their limitations and fees.
  • Pricing policies – You can’t randomly price items. Read about the minimum advertised pricing policy to avoid pricing violations, advises PriceManager.
  • Shipping restrictions – There are laws on shipping products such as perfumes, cigarettes, and vegetables, among many others. Read about these first.

Having no business plan

Every business needs a business plan—even the ones online. Don’t underestimate the importance of a business plan. It will serve as your guide to meeting your goals. Take the time to write one and include the following:

  • Basic business concept
  • Products and services
  • Target market
  • Marketing strategy
  • Financial needs

Hiring too many people quickly

It’s tempting to hire a staff, especially if you want to make it big. However, hiring people you still don’t need is just a waste of money and productivity. Build your business from the ground up and gradually hire people. Remember that you need to pay your staff, and you can’t do that without a profitable venture.

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Don’t rush your business even if it’s just online. Create a business plan, know your financial needs, and read about policies. Run your business like a pro and conquer the digital space.