First, I wanted to thank all of you. You guys have watched me come up from a nobody, weird loner type kid, to an insightful awesome Founder. There were critics (as there always is), but when the critics came to knock me down…you guys stood up for me. There was one time I will always remember, I had posted something about the confusion in all the voices that tell you what to do with your idea. A VC actually came in there, saying it was “immature” (then of course he had to mention: “here is my better article instead”). I never even had to react, because you guys all beat me to it. Your comments were filled with “leave Amanda alone”, “we love her”, “you see someone immature, but we see someone that understands us”.

That is so awesome guys.

As you can tell, we don’t usually blog in this section (that takes place in the education network to your right), but I decided to make a company update feed here. Some beautiful things have been happening at Plan to Start.

Thanks to you this has happened:

We were contacted by Harvard to use some of our content in one of their courses! They actually sent me a copyright request to quote me on my insight about venture capital (as strange as that sounds).  ODesk and Partnerup.com also picked us up over the weekend, and tweeted about us quoting me on “if plan A doesn’t work, there’s 26 more letters in the alphabet…so stay cool”.

Some great testimonials were also left on our Facebook Page:

If you’re a small business or startup, these guys are priceless to your success. Get your plans made, turn them into action, make each action measurable, double your earnings. Grow. It’s all good.- Blake Hammerton

A NEW Simple way to look at making your own future work for you… by a wise young woman, indeed.- Amnon Cohen

“More pearls of wisdom, direction and advice from the bright and shining gem herself. Your blogs could help start and improve a nation full of struggling businesses and ideas.” -Nat Strafaci

“Your team has a true talent for turning things so complicated, into something so simple. I can’t thank you enough for this”. -James Holland

And so, we were inspired to keep building.  We launched our fundraising campaign the other day with a goal of raising $35,000, got our first $20 contributor (go you!  whoever you were).  Check it out when you get a chance, help us keep going, and grab a t-shirt! Heck, even just liking the campaign will really help us.

Thanks again everyone.

What to consider when starting a business is a very curious exercise.  It can fill up the ambitious void in your heart and give you an amazing boost on one day and make you fall flat on your face the very next moment without a warning, and it is this unpredictability that draws people towards it.  And likewise…can kill you if you’re not careful.

However glamorous or appealing starting up might be and regardless of the rumors that you’ve heard from industry pundits on how demanding and time consuming the process is, it’s wise to have a substantial idea of what you are getting into before taking the crucial step.

Here are a few things that you have to keep in mind while making the decision to become an entrepreneur.

Get Ready for Risks and Responsibilities when Starting a Business

Entrepreneurship comes with a huge set of risks and responsibilities, but if you sail through the initial storms, it could provide huge returns as well.  You cannot expect to break even and make profits from the business instantaneously; as patience is a vital virtue here (which I’ll admit…a lot of us Entrepreneurs lack!) – just remember that there is a right time for everything.

Some of the most successful entrepreneurs in the world have undergone losses and failures before finally finding success.  Starting up is not meant for people who are impatient or give up easily (hense why every successful entrepreneur will tell you…”never, never give up!”.  If you have to survive as an entrepreneur, you will have to fend off a thousand storms before reaching the sunny shores.  It is this survival skill that sets real entrepreneurs apart.

Do You Have A Startup Business Plan?

Once you clear the initial horrors of impending risks and responsibilities and decide that you still want to start your own company, ask yourself the following questions.

• What kind of product or service do you want to provide as an entrepreneur?
• Why have you chosen to provide this particular product/service?
• Is there a real need in the market for this kind of product/service?
• Are there enough people who’ll want to buy your product/service?
• What is your target audience? Do you have an adequate understanding of their lifestyles, needs and attitudes (your target market is more than just demographics)?
• Is there any other player in the market who is providing a similar product/service (there always is)?
• What is going to differentiate you from your competitors?

Asking yourself these questions will clear your head and give you a good idea on where you stand. It will be even more helpful if you put the answers down on paper in the form of a startup business plan.

What Can A Strong Business Plan Help You Accomplish?

You’ll understand whether the service that you are about to provide has enough potential to survive in a competitive marketplace. Going to market without a strong enough product/service and without adequate knowledge about your target audience is akin to trying to cook a dish without any knowledge of the ingredients involved.

Be as detailed as you can in each area of business, but know this business plan will alter many times during the course of your start up.  It may seem frustrating but to have this point of reference from the start and will be extremely important to reminder of where you started and the changes that took place during your development.

If your product/service is not up to the mark, you’ll need to work hard to strengthen it and make it customer-friendly and ready-to-launch, as only then will it be worth the risk that entrepreneurship entails.

Chart Out Your Finances and Business Model

What would be the initial investment for the business you are about to start?  You will need to work this out, taking into consideration things like licensing, equipment, raw material costs, labor costs and overheads.

Once you’ve done this, you will need to look at how much of your own money you can pump into the business and how much you will need to borrow.  Great financial projections are a must if you plan to get funding from venture capitalists or investors (the money is where it’s at).

What is the form of the business entity you want to start – is it going to be a sole proprietorship, limited liability company, a partnership or a corporation? Each of these has its own advantages, disadvantages and set of regulations, all of which you will need to consider before you start up.  If you are interested in starting a partnership firm, it is important to find partners who share your vision and work ethic.

You will need to obtain all information regarding government regulations, licenses and clearances related to your line of business.  This would prevent legal wrangles from stalling your work and getting you into trouble at a later point in time.

It is essential to be aware of the above procedures and issues so that you’re not caught off guard when starting a business.

I get it, putting together a business plan is a lot of work but let me tell you a secret, it’s worth it!  Even if never plan on raising capital, taking a loan, or bringing in a legitimate board/advisers (all of which will require a business plan) it is still worth it, here are a few quick reasons why:

1. It makes you really think about your idea.  This is an incredibly general statement, but its true.  There are a ton of great ideas out there, but a great idea does not always equal a great business.  By going through the motions that writing a business forces you to go through you can uncover key information that may lead you to cut your losses incredibly early or perhaps it will add fuel to your fire and encourage you to take those next steps.
2. Do you have the cash?  A large part of a B-plan is putting together a detailed list of your start up costs and how much working capital you will need to stay alive.  You may think you have enough cash to get started, and maybe you do, but too many young companies fold before they even have a chance when they run out of working capital and can’t borrow or raise money to stay alive.  Cautous planning up front can help prevent this.
3. It will teach you a lot about your competition.  When you write a plan you are forced to learn your industry, and more importantly research your competitors.  I knew the strengths and weaknesses of our competition and I was able to use that to pinpoint what would differentiate us early on.
4. Finally, it can bring you closer to your market.  When I had the idea to start Scrubadoo.com, I new nothing about the online retail industry, and even less about nursing scrubs!  We surveyed and interviewed thousands of nurses and doctors to help us put together our B-plan.  Two years later we still draw on this information to make important decisions.

These are just a few highlights of any number of reasons a B-plan is a great first step.  I have had my hand in writing around 10 business plans over the last 10 years.  Of those I have taken next steps on only 3 of those.  Sure, the plans take time, but think about all the time, money, and headache I saved by doing my homework up front.

Here are the top 9 business models:

1. Selling Internet digital products

Selling products in digital form that are downloadable on the internet is on the rise. EBooks, software, music, movies, photos and computer games are just a few of your options. A small business can develop the product, or resell the product yourself.  As an added bonus, overheads are relatively low (and stay low) with this model.

2. Affiliate Marketing

Affiliate Marketing is one of the most popular internet business model. To set up this internet business model, you will need to first own a website. Educate yourself in affiliate networking, and start signing up.  Promote third party products with your internet business. There are several affiliate sites, such as Shareasale.com, that will handle the payment process from start to finish.

3. Ad sense Model

Several companies use the ad sense model has their primary source of income, such as Google.  Register for Google Adsense and they will rotate adsense ads on your  site.  You’ll get paid whenever someone clicks on these ads.  To make the most out of this model, the more traffic, the better.  You’ll need extensive SEO skills to get this one done.  If you lack the skills or $5K a month to hire someone, there are many DIY SEO softwares out there.

4. Membership Internet Business Model

This is a proven business model; however, this mostly works for high traffic sites or high quality service sites.  Paying members will expect to be “exclusive” and niche targeted.  Think of a long standing fraternity group, it’s members pay (and often donate) simply for their designation of a member.

5. Marketing with Niche Content

Always analyze the benefits of being a nobody in a major market, versus a leader in a niche market.  If you are choosing to become the leader of your market, you will have to locate an undominated market share.  Focus your content in this area and you should begin to have a loyal following.

6.  Email Marketing and Subscribers

Opt In email lists can convert up to 80%, versus the 25% you can expect to receive from general traffic.  Once you’ve established your loyal following, you can then begin to “slip in” your products or services (yes, those things that are going to pay your bills).  I’ve found AWeber to provide some of the best email forms to collect your address.  Simply plug it in to your website, they intergrate nicely with WordPress blogs.  Just one note on this, make sure your products or services are quality.  Don’t disapoint that loyal group you’ve worked so hard to build.

7. Blogging Internet Business Model

This is similar to niche content marketing, only blogs tend to have a more personal approach.  While you can still gain a loyal following as a leader in your area, your followers are more likely to follow you for the voice you bring to the blog, and the information you are providing.  To get better SEO, and more control over your wordpress blog there are a few premium services such as Headway or DIY Themes.

8. Internet Services Model

This is one of the oldest models I can remember. With this internet business model, you sell various internet related services such as web hosting, SEO services and other e-commerce solutions.  If you are great at building traffic, you can outsource those services, but you will still need to dedicate the time to manage them.

9. E Training on the Internet

E-training is perfect for the expert who has wished to remain at home.  The catch: you have be able to dedicate the quiet time to doing this (that means no screaming kids in the background).  The best benefits include no travel, working online, and a wider geographical range of clients. The key to success is to build a relationship with a good vendor that can offer a low cost platform.

Whatever your niche, make sure it is line with your passion.  Your passion is the fire that will keep readers coming back for more.  If you’re unsure, try the New York Best Times Seller “The Passion Test”.  Good Luck!

1.  A startup all begins with an idea.  What is your internet idea?

2.  Research your competition and their internet business model.  How are they generating revenue?  Are they serving the same market, or just a niche area of that market?

3.  Build & promote your internet business.  Hire a developer, or partner with one for a profit share.  Spend some time brushing up on your internet marketing skills, get educated about SEO.  Once your site is finished, you should have gained the resources necessary to market it.

4.  Give it away for free, and keep marketing.  Once your internet business begans generating traffic, you should be able to pay yourself a little chunk of salary from advertising revenue.

5.  Begin looking for a revenue stream.  Even a free internet business cannot keep it’s doors open long without it.