Only 2% Succeed
If you do a quick search on your favorite search engine, you’ll find dozens of ways to make money online, and thousands of people who are doing it. You’ll also find plenty of people who have failed, and those who will tell you its all a scam.
So whats the difference between those who succeed and those who fail? They say 98% of those who begin an online business fail and only 2% succeed. It might surprise you to learn that its not luck, skill, connections, or even perseverance. Its a very simple secret that, once you figure it out, will virtually ensure your success.
The secret lies in treating your business like a business, rather than a hobby, and thats where a lot of would-be business owners fail.
If You Make Money (or Want to), You’re in Business
It doesn’t matter if you earn money through pay-per-click ads on your blog, if you promote products and services as an affiliate, or you create and sell your own products. The point is you are still running a business, and treating it like a business will help ensure you reach your financial and lifestyle goals. Don’t make the mistake of thinking I am just a blogger and letting that self-limiting belief get in the way of building your business. It’s like starting a new job (if you can remember those days); you would’nt go in the first day or week and begin slacking off or telling the boss you don’t want to do what your job requires. You would get fired and the same goes when you make the decision to start your own home-based business. Your business will fail if you do not treat it seriously and treat it as the important job it is. Even if you are working from home, you are still working your own job and thus, you need to give it the serious attention and focus it demands.
Setting up a business isn’t complicated. In fact, it’s often more about mindset than legal declarations (although you’ll want some of those as well). The first step is simply to acknowledge the fact that you are in business and to start treating it that way.
Keeping somewhat regular business hours, for example, is a good way to get your new business off the ground. If you make a habit of going out for long lunches or spending the afternoon shopping, your business will quickly begin to suffer. Instead, make a commitment to yourself, your family, and your business to work a certain number of hours each day, just as if you had a job working for someone else. The hours you choose to work might be more flexible than if you had a job, but you do still need to put in the time.
Legal Responsibilities of a Business Owner
Establishing a legal business entity is just as important as acting like a true business owner. This might mean simply applying for an EIN (employer identification number) and a DBA (doing business as) as a sole proprietor or it might involve setting up a corporation with share holders and stock options. The legal structure itself is not as important as the actual act of establishing a business not only for legal reasons, but to help you create a business mindset as well.
Taxes are something no one likes to think about, but understanding the tax ramifications of being in business is critical to your financial health. You should always consult with an attorney and/or an accountant to determine the best business structure for you. This will determine how and when you pay taxes. For example, as a sole proprietor or LLC, you may be required to pay quarterly estimated taxes. If you operate as a corporation, you will have to establish a payroll (even if you are the only employee) and pay taxes accordingly.
If you intend to work from home, you should also check with your local municipality to make sure you are legally allowed to have a place of business in your home. Some counties restrict business activities in residential neighborhoods, but in most cases, unless you have clients visiting your office frequently, you shouldnt have a problem. Still, its worth asking about before establishing your business.
Finally, you may wish to consider insurance to protect your personal and business assets. This is especially important if you operate a freelance business, but bloggers, affiliate marketers, and information product creators should also consider it and not just for protection from law suits. Consider also what might happen to your income if you cannot work. A lawyer will be able to help you figure out which type of insurance you need, and in what amount.
A lot of people get started in an online business because they think its going to be easy and less structured than a typical brick and mortar business. And while thats true in many ways, you do still need to operate your online venture as a real business if you hope to create a sustainable income for yourself and your family.
Working Online
Fun, Profitable, Empowering, Exhilarating, Receiving
Carmen
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