It may seem like a daunting prospect to the uninitiated – running a new business when you have little or no experience starting an internet based business.

The idea is immensely attractive; Imagine working from home, at the hours that suit you best, without punching in the card or without a boss breathing down your neck? It sounds tempting?

Starting a new business can be very lucrative: Virgin, Apple, and even the Ford Motor Company started as home business ventures. But why do so many businesses fail, even with the advantages of the modern age of the Internet and all it has to offer? Mainly because they don’t follow these essential criteria when starting an internet based business.

1. DISCIPLINE
Many people turn away from the alternative attractions of the Internet; You can avoid this pitfall by reserving time and space to dedicate to your business. Delete that social network account, block your favorite chat rooms and save those emails for later – they won’t make you rich! Focus on your new business and before you know it, you’ll be reaping the rewards that will keep you glued to your computer for all the right reasons!

2. BUSINESS PLAN
Starting your own internet business may seem like an easy path to riches, but in reality, as with any type of business, planning ahead is the key to longevity. Preparation and research are absolutely vital. Know where you’re starting from, where you’re going, and where you want your journey to take you. Without direction you will never find your final destination!

3. TARGET MARKET
Know your target market well; find a niche and fill it. Once again, research is key here. Is the market flooded with businesses similar to yours? Can you find a new angle or unique way of doing things? If not, think again. Time spent on research at this stage will reap rewards in the long run. Do not find or create a product and then search for a market, this is possibly one of the biggest mistakes for beginners on the Internet. But instead, go with the proven formula, find a market first with wealthy, cash-hungry buyers, and find a product to put in front of them!

4. COMPETITION
This is a recurring theme: research. Know your enemy! The Internet is awash with competition. Research your competitors; What do they do well and not so well? Learn from your mistakes. Some Internet companies allow customers to leave comments on their sites. Learn what they do that brings them sales. And how can you improve what they offer? A better price may not necessarily be possible, but can you offer an ‘extra’ that others can’t? Learn all you can about how to make your business better than everyone else!

5. VALUE YOUR CUSTOMER
This is vital in any line of business, but when you start an internet based business, you will have to be the best. The competition is just a click away. Take care of your client; Offer easy and simple payment transactions, respond quickly to your emails and be interested and accessible after a sale: the returning customer is the most lucrative of all. But most importantly, build relationships. A customer who thinks of you as a ‘friend’ will be much happier if he part with his hard-earned money!

6. FINANCES
Many people are so eager to start an internet based business that they don’t have a business plan, let alone think about how to finance it. Don’t stop in your tracks before you’ve started! Granted, many internet businesses can be started with minimal capital and run very cheaply, but what if you suddenly need cash to keep the momentum going? It is not a waste of time to arrange to have reserve funds available, just in case!

Lastly and probably most importantly…

7. BE PATIENT
Many people think that starting an internet business will bring instant riches and are quickly discouraged when this is not the case. Follow these tips, be persistent and determined and you’ll be halfway there. If you put in the time and effort, starting your internet based business could be the start of a whole new life. The life you really deserve!