The Process of Opening a New Webstore

The information stated here is based upon my learned knowledge. It does not cover every possible detail, nor will every statement be true for every situation.

Have you ever heard someone say, just open a website? I am here to tell you that it will be very exciting and possibly the most frustrating endeavor you will ever pursue during your life. I have always been able to do something at the computer, but have never known any more that necessary to accomplish the task at hand.

So, when I decided to pursue my own website rather than selling through a large entity I dived right into getting it going. If you are considering this for yourself this is the blog for you to read. My comments will not all be posted at one time. Since the process has literally taken over the last four months it will take a while to disseminate all of the information.

My hope is that what I write here will make it easier for someone else to do the same. The first thing to always remember is that it takes hard work and time. There are those who have been instant successes at internet selling, but it is not the norm. I am speaking not only from my experience, but also from the extensive reading that I have done.

The second important factor is money. Before ever starting, remember that the old phrase it takes money to make money is a truth. There are many costs that I had never thought about, and there are some that even an experienced webster may not have thought of either.

I cannot tell what one person knows or doesn't know, so this will be very basic--please don't think it insulting.

The first step of all the steps is to decide what type of entity to be. For the small business person, there are three that I am aware of to consider.

1. Sole Proprietership
2. Limited Liability Corporation
3. S Corporation

The Sole Proprietership means that you just hang out your "shingle" and go for it. Also known as a "mom and pop" type of operation, most people who sell some place like eBay are sole proprieters. For this a good thing to have is your state's tax exempt form. This will give you the ability to not have to pay sales tax on products that you will resell. Remember, only products for resale count on this. If it something that you need to operate your business, tax must be paid.

There are ways to go about submitting your operation for the LLC or S Corporation. Companies are available to handle this service for a fee, or you can go through a lawyer. I chose to go to a law firm. Whichever way, before agreeing to have anyone act on your behalf ask what the fee is. Anyone who knows how to go about this should have a flat rate that is charged for the whole thing--from beginning to end. Then, add to that the application fees for state and federal filing. It is a somewhat complicated process and I recommend not doing it yourself--unless you are a lawyer (who can also tell you which form of corporation is best for you.) Once a corporation, you will also have a federal id number.

Merchandise
If your business will be selling a tangible product (i.e., one that is not downloaded or a service) you will have to find ways to obtain merchandise. Used products--Well, they will mostly come from your home, thrift stores, garage sales, and other such places. These are also place to make contacts that will lead to better merchandise. New Products--One thing that does not work is to go to google and type in the word "wholesale." You will spend hours and hours looking for a site that has what you want at a price that will allow you to make a profit. There is one service that works very well that has a fee structure for whatever level will serve you best. It is called Worldwide Brands. This company seeks out wholesalers and distributors that will sell in smaller quantities and also screens their policies.

What you will need to set up wholesale accounts
Although each company has a different set of rules there are a few basic requirements that you can expect.

1. Your state tax id form (usually it is the form, not just the number).
2. Your federal id number or your social security number
3. Many companies will want a voided check from your business account, and sometimes with a business name printed on the check.
4. You may be asked for a business card. I suggest printing some up on your computer.
5. A fax machine--every company I have dealt with wanted the above faxed (sometimes mailed) to them. If you don't have a fax, it is acceptable to go to an office supply store where there is a fax service for a small fee. Faxes are generally sent with a fax cover sheet. The form can be obtained by searching google, or through your office word processing program.
6. Credit card number--you may have to establish a credit history before it will be extended to you. For the most part my wholesale purchases go through my business account right up front.

Domain Name
Before opening your business on the internet you will need a registered domain name. What is it? It is your chosen business name that will belong to you and no one else. By searching the internet you will see companies that do this, and the range in price is huge. Once you choose a company, know that there will be a yearly fee to keep the name. You will be offered the opportunity to pay for 1, 2 or 3 years usually. You will also be offered for another fee the opportunity to keep your private information private. Once a company has been chosen, you enter your company name and there will be an instant search to see if the title is already taken. Choose a name that will say something about what you are selling, and definitely something that is easy to remember.

Choosing a Host or a Program
Because I have limited knowlege (no formal schooling) about programming, I looked for a host company that had most of what I needed within which I could set up my business. The company I chose has a super program, training videos and a training manual (that can be viewed and tried out before signing on), live web help, and 24-hour technical support. The support has been invaluable. You may also want to look for a tiered structure which will allow you to pay only for the number of products you will carry.

Search Engine Optimization or SEO
This is very, very important. How will you get your products known on the internet so that buyers can find you and buy? It is very complicated, always changing, and a specialized internet field. My own son who has three computer degrees doesn't even know much about it. You cannot start soon enough to learn all that you need to know about this subject. One possibility is to hire someone to do it for you, but at the least it will cost about $300-$400. A very good place to start is at seochat.com. They publish articles regularly and have lots of links to other information. Another good place is through google. If you don't want to sign on as a poster, most sites will allow you to read their information and conversations. seochat.com and others also have tools to check how you are doing once your site is up and running, as does google's webmaster tools.

There is a lot of information here to check out. Next time I write I will talk about credit hosting and how to sign up for shipping that will allow you to create shipping labels online, and more about SEO. Other subject that I will cover is pictures--the importance of good product photographs and how to go about it, keywords, metatags, and much more.

If you would like to look at my webstore, it is qualitymusicandbooks.net