Part 1: Starting an online business
About this part
The first part of this book will help you prepare your mindset in order to start and run an online business. Having a positive and dynamic thinking is a vital part of any successful entrepreneur, allowing him or her to achieve more than thought possible. Now, let's start.
Chapter 1: Develop a winner's mentality
Thinkers and Doers
There are two types of people in this world, the Thinkers and the Doers. How do you spot the difference? While the Thinkers always say "I hope to be able to do this and that", the Doers usually say something like "I'm going to do this and then that". You see, achieving your goal isn't so difficult. Putting your mind to it is. So, the first thing you need to do, when trying to reach your goal is - stop just thinking about how you'll maybe do it someday and just go for it. It's as simple as that.
We all reach a point in our lives, when we just have enough of the current situation. Every single being on the planet has been in some sort of a slump. Whether it is relationship, career, health, or anything in between. Also, everyone wants to change their lives at that point. But guess what? If they are Thinkers, they'll fail. Like in the mother nature, every action brings a reaction, and doing something about achieving your desired goal is no different.
Simply put, if you want to create a change and achieve your goal, you need to be proactive. No change can ever happen, if you just think about it, but never do anything to get a reaction.
For example; if you want to meet girls, you need to go out. No girl will ever come to your doorstep, right? So, you have to create an action of going to the nearby bar, find a couple of girls you like, start chatting with them and choose the one that chooses you. After that, the nature will take care of the rest. Just like in every other life's situation, the mother nature always takes care of you, if you put an effort. All good things can and will happen, but you have to put them in motion first.
There is no such thing as impossible goal. It's just the right action, which creates a reaction. Simple as that.
The breaking point
The breaking point is that special moment in life, when you think that you've hit the rock bottom. You see no escape from the situation, no future to look for and no way to get help. Well, that's just wrong. When you reach that point, you can go nowhere else but up. You have nothing to lose, but everything to gain. Don't look back, instead embrace the Doer mentality, put your chin way up and go for the solution. At this point, you know what's missing, what's wrong and more importantly, what you want to change. Don't think of the breaking point as your obstacle, consider it as a starting point to your new life, to your final goal.
You see, each and every road on the planet has two factors; the start and the finish. Everything else are just variables on that road to your goal. But the main thing is, that no matter how much time you'll need to reach your goal, you'll reach it, that's for sure. All you need to do is make the first step and stick on the road ahead. Remember, roads can be short or long, but each and every one of them starts with a single step.
I'm not going to lie to you, just to make you feel better. Sorry, but I won't. I'd love to say that a path to your goal is an easy one, but usually it's not. However, I do claim that you are fully capable of reaching any kind of goal you can imagine, if you put your mind to it. The only thing that matters at the breaking point is the first step. Without that, you'll stay at the start indefinetly. So, what are you going to do now? Think about it, or just do it? Only you know the answer to that.
Stop making the excuses
During my years of consultancy, I've seen everything. Honest people went broke, faithful viwes cheated, drug addicts back in the rehab and so on. Although these are said stories and I empathize with each and every one of them, I have to point out one thing. While all these people came to me for advice and guidance, almost all of them made excuses, when they should take a first step. Let me explain this one.
When something creates negative feelings in you, it's in your nature to run away from it. Regardless of the reason, your mind goes blank and your body numb. You would do anything, except the one thing that would really help; confrontation. Don't worry, like I've said, it's in your nature. That's why the first step is the most important of them all. You have to fight your nature, your very core and listen to the drums in your head, pounding like the tidal waves, when you want to do that magical step towards your goal. I'm not kidding here, it's really tough. But it's possible. There is no doubt in my mind that you can do it. Of course you can.
For example, if you decide to succeed online, don't make excuses like "Oh, I've tried and failed many times before". Instead, say to yourself "Yes, I've failed, but I'm still here. I've learned a lot from my past mistakes and I'll never make them again".
See, where I'm going with this?All you need to do is stop making excuses. Why is that? Because excuses are nothing but an illusion. They're not real, they're just a fabric of your imagination. They're a product of your mind, trying to defend you against those tidal waves. Let's stop here for a moment. Don't get me wrong, I'm not saying that the reasons for your situation aren't real, or that your problems are small. No way.
But I do claim that making any kind of excuse is just an obstacle to your road to success. So, instead of wasting so much energy on producing the excuses, focus on one truly important thing; that first step. That's it.
The Only Step That Matters
By now, you've decided to stop making all the excuses, right? Now, you're determined to go for that goal, just waiting for you at the end. You've reached the breaking point and realised that the only way is up. Good for you, as this is the only way, the only option you have. Now all you have to do is take the hardest step of all, the first step.
The first step can be intimidating. Believe me, I know. It's like a leap to the unknown, which can be a pretty scary experience. People are creatures of habits, they don't like anything outside their comfort zone. When they have to step out, all inner alarms start ringing and the whole body starts to hurt. But guess what?
The alternative is much worse. You really don't want to continue living this kind of life you so desperately want to change, right? Right. That's why you have to convince yourself that the only option is to go ahead and take the first step. Although it sounds simple, it's not. But it is possible, if you just put your mind into it.
So, how to make that first step? There are many ways to do it, but I can tell you how I did it. When I reached my breaking point and decided to go for the new life, I did a soul search. I sat on the floor for a couple of hours with my eyes closed and started to remember all those nasty things that happened to me, responsible for my situation. I waited until all those negative memories came out and then I've opened my eyes.
Then I've said to myself: "Do or die. That's the only way". In that moment, I've realised that I don't want to continue living like that and the only choice I have left is to take the first step, or die trying. So, I got up, filled with newly found energy and took that first step towards my new life.
Why am I sharing this with you? Because taking the first step isn't that hard, if you know why you're taking it. If you have a good reason, you'll take it. If you have enough bad memories, you'll take it even easier. But, if you have so many bad memories that it breaks your heart, you'll take it no matter what, as that's the only choice you have.
Forget The Old Ways
As I've mentioned before, people are the creatures of habits. If you were doing something for so long, it's hard to change the routine. But people are also very adaptable beings. That's why we dominate the planet. Don't be scared of trying new things, as that's in your very nature. Especially, if it's a good change, which can transform your life to the better. So, take a leap of faith and step into the unknown.
Before you can jump into the world of possibilities and start exploring the unknown, you have to forget the old ways. That's rather easy, because you already know that the old ways didn't work for you, right? So, my suggestion here would be to start doing only the things you've never done before, without any connections to the old ways of doing things. It's a simple formula; if something doesn't work, cast it away and forget about it. There is no reason to do something that hurts you, or doesn't bring the results you want. You need to focus on things that produce the best possible outcome.
Remember, your goal is the only thing that matters. No matter what you want to achieve, you will achieve it, if you forget the past and focus on the future. Don't waste your time on things that are not important for your goal. Whether it's former friends, smoking weed, or anything in between; cast everything away and do only what's important to reach your goals. At first, it may sounds harsh to stop doing everything you did for so long. But trust me, when you want to start a new chapter in your life, you have to close the last chapter first. Only then you can reach the final chapter. Just do it, break the bonds and you'll spot the difference immediately.
A quick example; When I was younger, I was smoking weed. A lot of it. I'm not proud of it, but it is what it is. I've also tried every possible approach to end that kind of a lifestyle, if you can call it that way. But guess, what was the only approach that worked for me? When I casted away all my smoking buddies. That was the end of my experience with the poison.
Why am I sharing this with you? Because I'm trying to make a point here. There is no advancement in life, if you're being held back by your existing habits. Cast them away, all of them, and let the change begin.
Discover the limitless possibilities
I'll presume that you've read my previous post and followed the advice. So, now you've ended doing things the old way and you're capable of making the first step towards future, right? Right. What's holding you back? Absolutely nothing! The world is yours to conquer and no goal is unreachable. Whatever you want to do, you can do it. Easily. And when you think that you've reached your maximum potential, go further.
What's the main reason that so many people don't reach their true potential? Because they've set their bars too low. Let me explain this very important claim. Regardless what background do you have, what trouble have you been into, or even what grades you had in your school
None of that matters from now on. Absolutely nothing. Don't let your past holding you back, never think less of yourself, don't you dare to think that you can't do this or that! You can reach far beyond the stars and become something that even you couldn't dream about. Set your bars way high, and then move them even higher. Then, move them even higher than that. Again, let me stress out this; your goals are never too big to reach. Prove me wrong. But we both know that you can't prove me wrong, right? And that's the only thing you cannot do. You've already come so far by reading all of this, forgot the old ways, preparing yourself for the great voyage that lies ahead. Don't stop now, you've just started embracing life, making it your own.
From now on, the future is yours for the taking. So take it already! First, you should ask yourself: "What's my goal?" That's it. No matter what you want, it's yours. Just answer this question and then we'll move on the next step. What do you want to do, or become? Do you want to quit smoking, meet a nice girl, become a successful businessman, or anything in between?
Dig deep into your inner self, explore and discover your passions, find out what's that special tick, what makes you get up each morning. Close your eyes, think about all that and observe the first thing that pops up in front of your eyes, the very one which makes your body tremble. That's the goal you're after. And now, you're ready to take that first step.
Take The First Step
When you want to change your life to the better and reach your goals, the hardest step is the first one. But on the other hand, there's nothing like it. When you take the first step into the unknown, it's like being born again. Everything looks fresh, cool and exciting. Sometimes maybe even a little scary, but don't worry, it's just a part of the healing process. Changing life isn't always easy, but over time it gets easier, trust me on that.
For example; when I quit smoking weed, the first few weeks were horrible. I felt like being on a hot stow, wondering if my pants are on fire. It may sounds funny, but it wasn't at the time. However, I've taken the first step and going back to that personal hell would be even harder than suffering for a few weeks.
But guess what? After those few weeks, it became easier. Each and every day, I felt better and more relaxed. So, my point here is; although the start is difficult, it gets easier. Maybe it takes days, weeks, or even months, but it gets easier. Even more, it's worth all the trouble that come along. Believe me.
What's the first step? How do you know, what you need to do, when trying to start a new life? Well, you know what situation you've been and what's the goal you want to reach. Look at these two as the starting point and the finish. There is a road in the middle, which you have to step on and stick on it to the finish line. What's the first logical step you have to take? It doesn't need to be a giant one. No matter how many steps are there, it all starts usually with a small one. For example; if you want to learn something, you don't need to buy a hundred books, you just need one. Or, if you want to lose weight, there's no need to start starving yourself to death, just start eating a little less and that's it. Simple, right?
Don't try to run, before you learn how to walk. Start slowly, step by step. The most important thing is - to start.
Never Trust The People You Know
When trying to improve personal life, the first thing most people do is listen to the people they know. They would ask them for advice, guidance, or just a slap on the back. Don't get me wrong, it's good to have friendly folks around, but in most cases that's the wrong way to go. While your family is usually on your side, friends and collegues are not. At least in most cases. Why is that?
First of all, your friends and collegues are not the reason for your situation. So, they cannot be the solution. Sounds logical, right? While the good ones can give you advice, it still won't benefit you in the long term. Why? Because the inner power doesn't come from friendly advice, it comes from the deepest corners of your soul. Only when you dig deep to find the reason, you'll be able to get motivated enough to pursue the solution.
Although friendly slap on the back is good, but in most cases, it just makes you lazy. It makes you feel cozy. But what you need is a kick in the butt, and that can happen only if you do it to yourself.
Secondly, people like to feel superior. They love to be in a better position than others around them. Sadly, but true. Now I'm not saying that your friends don't like to see you feeling good, not at all. But I do claim that they would rather see themselves in a better position than looking at you, flourishing in front of their eyes. Remember, you're the best friend you'll ever have. Don't rely on friends or collegues, don't even ask them for advice, because you have to figure it out how you want to pursue your dreams by yourself.
Unleash The Beast Within
When you dig deep into your soul and find the core reason for your situation, you're ready to start changing your life to the better. Although you might experience a meltdown while digging inside your soul, it's the only way to get a real motivation, if you want any future change to take its place. But there is also one great thing that comes along with the meltdown. The so-called Beast within.
Let me explain a little. See, people can do things that are impossible, according to the modern science. Whether they can lift things 10 times of their own weight, or run a hundred miles. There is absolutely no limits to human potential and abilities. Even if you decide to build a billion dollar worth online empire, that's possible to do.
The only thing that needs to be in place for those capabilities to come alive is the reason. That's why I've written so much about digging into the deepest corners of your soul and facing your worst fears. There's where you'll find the real reason for your situation, but you'll also find the inner strength you thought you've never had. And that's the Beast within.
For example; I've seen a mother, lifting a car with her bare hands to rescue her child under it. Or, I've seen a man, covered with flames, carrying his little kid away from a burning building. How is that possible? Well, that's the Beast within. If your reason is strong enough, you are capable of doing the unspeakable things.
Don't you dare to limit yourself, as there is NO such thing as impossible. If you find the reason, you'll find the solution, as well as the power within you to make it happen.
How to know, if you have found the beast within? Oh, you'll know, trust me. It will happen naturally. All you have to do is dig deeper and deeper, until you confront your worst fears. And when you do, you'll see a sudden shift in your mind, a clearer view on things, a gut feeling, telling you that you can do this and that without any problems. You'll find yourself filled with an unknown energy, a strong belief that you can do absolutely anything you can imagine.
And guess what? That feeling will be real. It's the Beast within, awakened and ready to conquer the world. Don't fear it - release it, let it consume you and use the newly found power to move the mountains, to change your life, to become something you've always dreamed about.
Listen to your only friend
People often determine their limits, not realising that they can do so much more. They get influenced by their past experience, their surroundings and even their closest friends, telling them how hard it is to achieve this and that. Some people follow their primary goals and then stop, while others become too scared of failure that they don't even try to succeed. However, there is one simple truth the only one who can put a limit to your capabilities is - you.
When trying to determine your ability to achieve the goals you've set for yourself, never rely on your surroundings. Don't listen to others, never look back into your past failures and most importantly - always listen to the Beast within, whispering about the limitless potential you have.
That's the best friend you'll ever have, enabling you to perform better than you think, helping you to overcome your fears and making you feel like you can do anything. Listen to the Beast within, follow its voice and let it roar.
Who can tell you that you can't do this or that? Who can say, if you're good enough, experienced enough, smart or powerful enough to achieve what you want to achieve? There is no one in the whole wide world who can limit you.
And when you realise that, you'll be able to activate the most powerful weapon you have, the Beast within. It's the only one who will tell you the sacred truth that your potential is limitless. I claim that there isn't a goal high enough which you can't achieve. I also claim that by listening to the Beast within, you will be able to break the bonds with your current life and start living the way you so rightfully deserve.
Good luck!
Chapter 2.
Learn a little, then execute
Many people make the mistake, when they think that they need to acquire tons of knowledge just to start an online business. While it's necessary to have the basics covered, one shouldn't waste too much time to learn.
Sure, you have to know at least a couple of things about the internet before you dive into the business world. However, don't spend years to learn without even try it in the real world. Instead, learn what you really need and test each and every bit of it in the virtual sphere.
You see, there is a difference between learning and exploiting the knowledge. Many people learn too much without test their knowledge and newly acquired skills on live examples. Why?
Well, because they're just too afraid of the failure. They think that if they don't know enough, they'll fail. Let me break it to you. Most people fail because they don't even try. So, instead of fearing the failure, test your skills and learn from your mistakes. Sure, you might fail here and there, but that's not the end of the world. Many netpreneurs (including the big guns) have failed several times, before they got it right.
Let me just point out one more thing. Don't spend thousands of dollars on courses and books, waiting to learn enough to start online. Learn a little, then execute. Try and try, until you get it right. Remember, the best way to become a success some day is to learn from your mistakes.
How to start? Well, learn what you really need to know, without trying to acquire all knowledge there is. That way you'll only get confused and driven away from your final goal. Again, learn a little, then test your knowledge in the real world, as soon as possible. Good luck!
Chapter 3.
Treat it like a real business
Most people treat an internet-based business like a hobby. Like something that can be done easily, without spending too much effort on it to succeed. Something that's not as real as a business in the physical world.
Wrong!Online business is just as real as any other business out there. It follows the same economic principles, the same business logic, and the same daily routines as any other business out there. If you dedicate your time and energy, you'll reap the rewards, big time.
But, if you treat your online business like a hobby, you'll fail. Trust me on this one. Online business is the same as the physical one, with one big difference. By going virtual, you're able to make much more money in much less time, without a large upfront investment. Sounds good? I think so.
So, what do you think? Would you prefer to start an offline business, where you'll have to start on a local level and then slowly expand to other cities, with big investments included in every step of the way? Or, would you rather start a website with a couple of hundred bucks on a global scale and expand fast, without having to spend a fortune in the process?
The answer is obvious, don't you think? Now, let me emphasise the importance of seriousness, when approaching the virtual way of doing things. If you want to succeed on the long run, you need to treat your online business the same as you would the physical one. That means a lot of niche research, keyword planning, domain searching, writing down a business plan and of course, even more hard work afterwards.
But, if you do it right and if you stick with it for at least a couple of months, if you treat it the same as you would any other business, if you devote all of your time and energy to it, you'll most probably succeed on the long run. Online business is the same as physical one. Even more, it's much better. So, go for it!
Chapter 4.
Company formation for online business
When you want to get serious about your online business, you really need to consider setting up a company. You see, no one would take you serious, if your site doesn't have an Inc., LLC, or something in between inside. Having a company means you're serious, not just one of those "wannabes".
It's not enough that you treat your online business as a real one, it's important for others to treat it as such, when they visit your website. Even more, if you want to protect your brand or product with a trademark, you need a company. Also, if you wish to sell products, in most cases you need a company as well.
What options do you have, when incorporating a new company? Well, you can form a company wherever you want, but I'd suggest that you take a look at biz friendly states, or even offshore countries. Why? Ehm...tax avoidance is one good, really good thing. Privacy is another.
Let's first explore the standard formation, shall we? The choice of entity has itself grown more complex. Principal choices now include: sole proprietorship; general partnership; limited liability partnership; limited partnership; limited liability limited partnership; limited liability company; business trust; stock corporation; membership corporation; Subchapter S corporation; close corporation; and professional corporation. Each has its advantages and disadvantages. Each is designed to address certain business problems.
Whether starting a new business, expanding an existing business, or pursuing a strategic alliance or joint venture, selection of the proper form in which to conduct business can contribute significantly to achieving the goals of the enterprise. It can also minimize conflict among participants and reduce or eliminate risk of personal liability.
There are two most common types of formation, Corporation and LLC:
Corporation
Probably the most commonly used and best understood form of business entity, a corporation is an entity formed under state or federal law. It is separate and distinct from its owners, and may acquire, hold, and dispose of property, conduct its business, and sue or be sued in its own name. The relative rights and duties of the corporation, its owners, and its management are largely defined by statute and by the corporation’s certificate of incorporation and bylaws.
LLC
A limited liability company is one of the more recent and most flexible business structures available. Formed by filing a certificate of formation with the Secretary of State, a limited liability company is a separate legal entity having the power to conduct business, acquire, hold and dispose of property, and sue or be sued in its own name. A limited liability company may have as few as one member. Management may be by the members or by selected managers who may or may not be members themselves.
Offshore company
Offshore Company Formation is commonly used for structuring of international business and tax planning. Companies incorporated in ‘tax haven’ countries offer individuals and businesses little or no tax liability which include company formation centers such as Seychelles, Marshall Islands, Panama, Dubai, etc.
Companies registered in jurisdictions can provide both offshore and onshore companies which may gain from beneficial tax regulations and/or uncommon company systems. Although many people form an offshore company because of low or even non-existent taxation, there are other benefits as well.
Companies registered in many onshore countries with laws which enable systems that are tax favorable for specific international purposes. Although the world of offshore was presented by the media as black-and-white world, it is far more complex. The offshore business includes both tax havens and onshore high tax jurisdictions striving against others to attain international companies and individuals with all methods of regulations and opportunities.
Offshore jurisdictions to consider are Panama, Costa Rica, Gibraltar and similar. All of them are good for general purposes, but if you want to do some specific business, read the fine print about their pros and cons. Beware only of scammers, who try to steal your money, but don't deliver the company.
So, even before you go online, check out your options and form a real company. I'd suggest that you incorporate in biz-friendly states, such as Delaware and similar. Let me just recommend this company that I used for formation of my offshore company. But the final desicion is yours, of course. Good luck!
Chapter 4.
Write down your blueprint
Online business, like any other business out there, needs planning and research. Before you even think of starting your online business, you need to do some research on topics that interest you, decided for the best to go with and write a business plan.
The primary value of your business plan will be to create a written outline that evaluates all aspects of the economic viability of your online (or offline) business venture including the analysis of your business prospects. Preparing and maintaining a business plan is important for any business regardless of its size or nature. But it will not ensure your success. If you maintain a correct assessment of the changing economics of your business, your plan will provide a useful roadmap.
Trust me, if you don't want to get lost in your business, you need a good business plan. Write it down, follow it and adjust when needed. But you need to have one in place. Now I'm not saying that you should invest hundreds of hours or dollars to create a plan. But you should at least cover the basics.
So, how to create a blueprint for your very own virtual business? One option is to use an online service like Bplans from Paloalto, which gives you all the necessary tools for creation of your plan, or do it manually. Thanks to my Masters degree in Management, I'm able to do it manually. In fact, I wrote dozens of business plans for all kinds of purposes, virtual and physical alike. And guess what? There's almost no difference in them, regardless of their virtual or physical presence.
OK, let's get started with a simple business plan, shall we?
First, cover the basics: –