Starting An Internet Business Part 1: On Selling A Product And Overhead

So, you're looking to start an internet business; however, you're having trouble deciding where to start. Obviously, the first step in starting an internet, or any other business is to decide what to sell: a product, a service, or information. Of course choosing what to sell and market is your own decision, but there are a few things to consider when making that choice. This article, however, will focus solely on choosing to sell a product on the internet.

If you decide to sell a product, you must find a supplier for that product unless you have something of your own to sell. To find a product to sell using the internet, simply do a web search for wholesalers. You will find more than enough wholesalers available to work with. Unfortunately, the difficult aspect of finding/using a supplier is there are minimum order requirements each wholesaler demands. If you don't have the money to meet the minimum order requirement, have a tax number, or are an established business, many wholesalers may not be willing to work with you. However, you rarely speak with the owner of a wholesale business. Generally, a sales manager is in charge of handling distributors. You could simply tell the sales manager that you have only enough money for x amount of product a. To get the sales manager interested, offer a commission ( a percentage of the final sale) to the sales manager for each product sold. This way, you have a product to sell and a happy supplier. When you have your company running and making a profit, you can eliminate the sales manager commission by meeting the minimum order requirement. Beware though! Having too much product can destroy your business before it gets started.

If you do sell a product on the internet, keep your overhead low. Many businesses, not just internet businesses, have failed because the owner never determined how many sales they needed to break even. Sales should be broken down on a per hour, per day, per week, and per month basis. Some people go into business with complete backwards thinking. They think that things handle themselves, but they don't. You have to think in terms of sales. Even with an internet business, when you don't need to deal with people face to face or sell anything over the phone, you still have to make the sale. That is the foundation of every business. If your business doesn't make money, then your business will not exist for long.


When you keep you overhead low, you have to make less sales in order to be successful. Make many sales, and you will increase the amount of profit that you are making. Basically, keeping overhead low is sound business sense. Too many people with good ideas get caught diving into business head first. As a result, they inflate their overhead before they've made a sale. All too often, businesses are destined for doom before they begin due to overhead.

I hope this article helps and good luck!
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