The Internet is a great place to start a small online business. You can set up your business with minimal cost and not have any overhead costs. You can also advertise cheaply. With the help of sites like GoDaddy and the Yahoo! Affiliate Program, setting up an online business is easy enough that anyone can do it. Below are some important steps to setting up your small online business.

Find a Niche

You need to find the niche for your business. What are you going to sell or what service will you offer? You should make sure that the niche you choose is something you have experience in. If you are great at website design, then that should be your service. If you are selling a product, be sure you have some expertise in the area. If you are selling plumbing supplies, you should have a background in plumbing to be able to answer your customer's questions.

Have Your Product Ready

Before you start your business, be sure that you are ready. If you are offering a service, then you need to be prepared to offer the service right away. If you are selling products, you need to be sure you have the products either stocked or that your drop ship company is in place.

Name Your Business

Think of a name that is catchy and can easily be remembered. If your company name clearly identifies what you are offering, it will be easier for people to remember you and also create a better flow of traffic through the search engines. You can use the Internet to search domains to ensure the name you chose is available.

Create Your Website

Your website design is important; it should be functional and easy to navigate for visitors. You can create the site on your own by using web creation software or hire someone to do it for you. If you want a complex site and know little about web design, you might be better off to hire a professional.

Launch Your Website

When your website is ready to go, find a hosting site to launch it. There are a ton of website hosting sites on the Internet; do a side by side comparison to ensure you are getting the features you need.

Keywords for Search Engines

Be sure that you have the best keywords or keyword phrases for your site. Your meta tags should be in place on your site and the keywords you choose should be located throughout your website content for the best possible placement with the search engines.

Affiliate Programs

You can join affiliate programs and place banners on your site. These affiliate programs will pay you a percentage of an order that is placed from a customer who clicked to them from your site. It is a great way to earn some extra income.


Advertise with Google and other major search engines. You can advertise with article directories by creating articles and have a call to action tag at the bottom that directs readers to your website.