Running an online business is often quoted as being the easiest way to make money. If you can set it all up with just a laptop and an internet connection, what could possibly get in your way? But even when you’re only working through the online world, you’ll still have to put up money to make ends meet. A website doesn’t get found on its own, and an online company can’t operate without giving something back to visitors! As such, here are the ‘secret’ costs of being an online entrepreneur.
You’ll Still Have to Follow Business Laws
No matter where you’re running your website from, you’re going to need to follow state/national rules regarding area business. Being an online only entity doesn’t save you from having to register for a license, or needing a permit or two to offer certain products or services. A food company, for example, will need to follow all cleanliness and hygiene regulations according to whatever premises they work out of. Even when you’re a home run business, while the laws are more lax, you’ll need to prove you meet safety ratings.
You’ll Have to Ship and Deliver
If you’re going to be selling things through your website that aren’t either subscription based or digital downloads, you’ll need to ship and deliver. And your customers might be all over the world! So you need to consider who your target market really is; are you locally based only, or could you open your business up to the world? And if you don’t know the first thing about logistics in the working world, you can learn more about FTL freight shipping here, which will be a good start. You’ll need to get in as soon as possible with quotes, so you can form a plan around things like your marketing and what options you’ll have at checkout.
Insurance Premiums Can Get Hefty
Having an online only business will also require you to invest in insurance, and the premiums for such can get high and stay there. You’ll need some kind of liability cover if you’re selling physical products or operating with any staff, even if you only have one employee who’s an old friend. You’ll also want coverage for what you sell – stock shrinkage can affect you in multiple areas, including damage and theft, and that gets expensive after a while.
Hiring Will Become a Need at Some Point
At some point you may need to start hiring to keep up with demands; there’s only so much of you to go around! And when you’ve got a thriving company that is able to restock once a month, you won’t have enough manpower to keep going. But to attract and retain talent, you may need a hardy benefits package, and that will cost as a small time employer.
Running an online business will cost you in the end; make sure you’ve budgeted for surprises like these, otherwise you’ll never turn a profit in time.