Starting an online business certainly does not have to be complicated, but when encountering certain terms, first-time entrepreneurs may believe otherwise. Everything from writing the business plan to effectively networking can be a herculean task without the right information.
Set aside some time to review these 5 important business terms, then consider what impact they might have on your future business.
- Niche – A niche is a particular and clearly defined part of a larger market. Instead of just selling bicycles, a niche market would focus on road bikes for commuters.
- Profit and Loss Statement – This document sums up money in and money out for either the fiscal year or the quarter. Speaking of the fiscal year…
- Fiscal year – Unlike the calendar year, the fiscal year does not have to start on Jan. 1. In business, the fiscal year is the period of time for which the annual budget is calculated.
- Bylaw – These are the guidelines to which a company will adhere during all business operations and should be contained within a single document.
- Business structure – The vast majority of online entrepreneurs choose to structure their businesses as limited liability companies (LLCs) or as sole proprietorships. An LLC is an entity separate from its owner, whereas a sole proprietorship views the business and owner as only one entity.
These are by no means the only new terms you will be encountering on your journey through entrepreneurial success, but for those approaching their very first startup, they are an excellent place to begin.
Are you trustworthy? Just because your neighbors asked you to feed their cat for the weekend does not mean that visitors to your website or blog have the same level of trust. Before bringing in the affiliate links, focus on creating a bond with your visitors. Consistent and valuable content is one of the top ways to create a sense of trust that consumers will come to rely on.
Are you honest? Not every product is a perfect 10, and, yes, your visitors know this. There is no need to write reviews that are inconsistent with your personal experience, but be sure to still focus on the positive aspects even while sharing some of the cons. Most people who click on affiliate links do so because of the reviewer’s perceived benefits and honest opinion.
Are you utilizing email? Email lists are a fantastic way to remind your site’s visitors of what you have to offer. You can use email lists to remind readers of useful past articles or to create excitement by using strategic calls to action. Better yet, creating an email list allows you to keep the conversation going with visitors long after they have moved off of your site.