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8 Myths About Starting An Online Business

8 Myths About Starting An Online Business

You’ve come up with an awesome new product idea. Of course, it happened in the shower and you scrambled to jot it down. After rambling about the details to your friends and family, you’ve finally mustered up the courage to build a prototype.

Once again, your family and friends give you the thumbs up, but you’re still far from launching an online business. Everything about it sounds intimidating. You’ve watched far too many episodes of Shark Tank to the point that you’re scared about financing, building a website, and keeping up with marketing.

It seems strange to think about it at such an early stage, but saving money for your online business is often priority number one. Why is this the case? Because chances are you don’t have that much start-up capital and most successful businesses pinch pennies in the early stages regardless.

This gets you thinking about some of the statements you’ve heard about managing your costs, some of them coming from Shark Tank, but most of them coming from naysayer friends or people you’ve met at social events.

Here’s a tip: Forget about all of those statements, because chances are they’re myths. Your business plan is better without them, but it’s also important to realize which of them are myths in order to decide on which you should brush aside.

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You’re in luck, because we’ve compiled some of the more misleading myths about the costs of starting an online business. Go and grab your pen (or bookmark this page,) because you may find some surprising insights.

Myth 1: You Can Start an Online Business for Free (Or A Small Amount of Money)

You’ve all seen the ads that tell you about certain online website building platforms that provide free services (or close to free) online shop creators. In addition, there’s always that self-employed friend that’s telling you how inexpensive it is to get started online.

Although the ideal online store building solutions are fairly inexpensive, you can’t possibly expect to spend less than at least $500 per year on just your website. After all, this is your storefront. It’s the primary way you’re going to make money, and if you plan on expanding that business, it’s going to require investments.

The free (or close to free) online business is a marketing ploy to prompt you into buying. That doesn’t mean you have to spend $10,000 your first year developing a site, but it’s prudent to budget for more, rather than nothing.

Myth 2: You Can Only Start an Online Business With Lots of Startup Capital

On the opposite side of the spectrum, the days of spending ten or twenty thousand dollars on a web developer or marketing person are over.

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Yes, development is often the most expensive part of building a new website, but tools like Shopify, Bigcommerce, and even WIX provide you ready-made tools for launching your site and expanding it to a powerhouse. You don’t need a huge donation from your dad, so leave him alone already.

Myth 3: Many People Who Work Online Work Part-Time Hours but Make Full-Time Wages

Sure, you could go with a low cost business idea, like arts and crafts or selling your freelance services, but people who partake in these endeavors still put in the work to bring in clients and run their businesses just like anyone else.

In fact, one could argue that the traditional 40 hour job is impossible while running an online business, since you’re more likely to spend 80 hours per week nurturing your own company.

Myth 4: Social Media is a Costless Marketing and Money Making Outlet

Anyone who has made significant conversions through Facebook, Twitter, or Pinterest can explain that social media marketing is far from free. Not only do effective advertisements cost money, but your strategy also requires loads of time and effort. In addition, you may end up hiring a social media person to manage the whole ordeal.

Myth 5: You Can Automate Everything When Selling Online to Cut Down on Labor Costs

Young business owners are prone to look for solutions that can completely automate their selling process. This ties into the fact that so many people crave the 4-hour workweek, but it also coincides with the numerous different apps and tools that have come out to automate processes.

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Let’s break it down.

You can’t completely automate your customer support. You can’t completely automate your social media. You can’t completely automate your receipts and promotions and returns. Labor costs are required, because people run businesses. It’s essential to keep this in mind for your budget.

Myth 6: A Large Promotional and Advertising Budget is the Key to Success

Mark Cuban repeatedly talks about how pouring money into a promotional budget is the last thing you want to focus on with a young company. This comes as a surprise, but you probably can’t even get an investment or SBA grant unless you can already prove that your business functions without the need for a huge marketing budget.

Myth 7: Processing Payments is Going to Break the Bank

Although it may be true that payment processing fees are going to pile up, putting in quality research to locate the most cost efficient solution can cut those processing costs and keep your company afloat for quite some time.

In fact, it’s imperative to locate the right payment gateway company for your brand, because 1% or 2% extra on each transaction can add up quickly.

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Myth 8: All Tasks Must be Completed by You or You Must Hire Someone Full-Time to Do Them

Online business owners frequently feel like every task must be completed in-house, whether it’s with their own sweat and blood or by hiring a full-time partner who can assist them with tasks such as web development, graphic design, social media, and email marketing.

Nothing is further from the truth, because nowadays freelancers are your friends. Hundreds of sites provide gathering spots for graphic designers, writers, social media workers, and even data entry freelancers – all of whom are poised to work for you for reasonable rates. There’s no reason to hire a graphic designer and put them on your payroll when you can turn to a trusty freelancer on an as-needed basis.

Over to You…

The various myths about small businesses frequently change, so continue doing your research to ensure that you don’t fall behind the times. Think about it. Some of the myths outlined above may very well have been true a while back; however, times change. Flexibility and awareness are key components in your entrepreneurship arsenal.

Can you think of any other cost myths that hold back online businesses?

Featured photo credit: Computer/Wild Zontar via flickr.com

More by this author

Melissa Burns

Melissa is an entrepreneur and independent journalist. She writes about communication, entrepreneurship and success on Lifehack.

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Last Updated on March 29, 2020

How To Work Remotely And Stay Productive

How To Work Remotely And Stay Productive

With long commutes, increased traffic, limited job opportunities, and, not to mention, unpredictable pandemics, many people are finding it difficult to get out and go to work, build an income, and provide for a family.

All of this presents an opportunity for you to consider working remotely. After all, this is something that’s been on your mind, or you wouldn’t be reading this.

However, when it comes to working remotely, there is a lot more to it than you might think. First, you need to know how to work remotely, as it’s involves many changes if you’re coming from a standard job.

There is also staying productive and gaining a profit, too. With more people indoors and not working, people are going to be more conservative with their money. With these things in mind, here is a guide to help you get on track and address these issues.

How Can I Get Remote Jobs?

The first big question to address is how to work remotely in the first place. As mentioned, getting your first gig is unlike traditional job hunting. In today’s gig economy, there are a lot of platforms that you can consider, which are filled to the brim with other applicants.

No longer are you competing with people within your business or your city, but across the globe.

This makes it necessary to have a new kind of skill set. You need to look beyond a resume and filling out application after application. Instead, you want to be looking at how you can better market yourself, how you can be more creative, as well as how to deliver something people are willing to pay for.

1. Market In The Right Place

When you think about job hunting, you begin to think of the traditional job posting sites: places like Monster, Indeed, and maybe LinkedIn. There are other sites like this that even have a section devoted solely to remote work.

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But places like these are the worst place to be looking. Why? Because a lot of the freelance or remote work on those sites are usually location-specific. That, or they require some in-person contact or are questionable businesses in the first place.

Either way, it’s better if you’re focusing more on continuous gigs from multiple clients rather than applying for full-time jobs while working at home. There are a lot of sites that can help with that. Ryan Robinson created a lengthy list of sites that post remote gig work that’s worth checking out.[1]

From there, it’s a matter of building up your portfolio. This can be difficult at first, but plenty of remote job posting sites can provide you with tips and tricks. Your profile on these sites also works similar to a resume.

2. Get People To Buy

The second part to how to work remotely is getting people to buy what you’re selling. If you’re in the right place, the next thing is to attract people. And naturally, people aren’t going to be coming to you in droves.

That being said, there are plenty of ways for you to build up your profile. A lot of it comes down to the skills that you have and how you showcase them.

Now, you have a lot of skills in your arsenal, but you want to be focusing on ones that close sales. For example, if you are someone who can finish work fast and maintain quality, that’ll be more appealing as clients can give you a larger workload or be confident that when they ask for some work, you can get it done fast.

This skill highlights one big thing that people care about and are willing to pay for: someone that they can trust.

Conveying that in a portfolio is difficult at first, but when you start getting work and people are leaving reviews about the speed of your work, people will begin to see that you are someone they can trust to get work done.

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You also have skills that go behind the scenes. These don’t contribute to your output directly, but they could lead you to more clients.[2]

One trait that’s mentioned is having a place dedicated to your work and where you can focus. This can help you increase your speed and productivity as you have a specific place for you to work.

This can lead to people buying more from you because you have created a system for yourself to enter a state of mind where you can work without interruptions.

How Can I Stay Productive While Working Remotely?

As you begin working away and getting clients, the next biggest challenge is staying productive. Like I mentioned above, having a place where you can focus will help you in staying productive, but oftentimes people need more than that.

For example, having a place where you can put out a lot of work is great, but what if your pickings are slim? Or maybe you’re not a huge fan of sifting through job postings?

Having a place where you can focus is good, but it might not help you to feel motivated to do parts of the work you don’t want to do.

When it comes to working remotely, there are times where you’ll have to do work that you don’t want to do. And there will be times when work comes slowly. During those times, you need to have ways to stay productive. Here are some suggestions to help.

1. Create an Ideal Work Space

Let’s go into more detail about what a productive space looks like and why it can be effective. First, you want to make sure that this space isn’t in your bedroom. Many remote workers work from their bed, and it’s bad for several reasons.[3]

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The biggest reason comes down to how we are programmed. When you are lying in bed, the brain is programmed to go to sleep. If you try rewiring your brain to think staying in bed is “going to work,” it’s difficult for your brain and your body to get into that mode.

You want to make sure that the area you are going to feels like you are “going to work.” Even though work is only a few footsteps away, that’s enough time for you to tell your brain, “I’m going to work now.”

With this in mind, you want your space to be ideal for working. Make sure that the space is clean and not cluttered. You want to make sure the area feels like an office or a place where you can get things done.

2. Take Breaks

When working remotely, you get to set your own hours. While that is great, this is something a lot of remote workers forget about.

You’d think that working at home is luxurious, but in reality, a lot of freelancers overwork themselves. It’s not out of the ordinary for freelancers to work exceedingly more time than those working a typical 40-hour workweek.[4]

With that in mind, be sure that you are pacing yourself. Take breaks, and get away from your office space once in a while. Even with a virus flying around, you can still get outside or walk around your home or apartment.

Not only is this good for your own sanity, but it can also be a productive tool as well. Our bodies aren’t built to continuously put out work without stopping, and even if we’re in a comfy chair, we can still feel drained by the end of the day if we attempt this.

By taking some regular breaks at your own pace, you can boost your productivity, especially if you are incorporating stretching and other activities that bring you energy.

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3. Set Regular Goals

One of the biggest challenges with how to work remotely is the fact that you need to set your own goals. When you’re going to work for a company, you already have your duties outlined.

That’s not the case when you are the one setting your own hours and acting as your own boss. That difference can be mentally shocking despite it being so obvious.

Because setting goals and working towards them is challenging for many people, some people give up on goals quickly or self-sabotage. They run into one problem and lose all motivation.

With this in mind, you want to be setting goals on a regular basis. You can think of it like a schedule. For this many hours, you want to be doing a specific task. Or maybe you want to structure it as a to-do list and schedule your time according to the tasks that need to get done.

Whatever the case is, setting goals or having a plan in place allows you to set markers that you can work towards. This is a system that works because businesses do this all the time through the duties and responsibilities in each position. They’re the ones setting the markers that you are working towards.

Final Thoughts

Working remotely isn’t as glamourous as it’s made out to be. You need to create systems and habits for yourself that not only will get you clients, but keep you productive and content in your position.

Now may be as good a time as any to see if this can work for you. Even though most people are out of a physical job, the gig economy could present opportunities for people to stay afloat during these hard times.

More Tips on Staying Productive

Featured photo credit: Paige Cody via unsplash.com

Reference

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