How to Start A Business On a Low Budget  

Introduction

Global access to the internet has enabled new business start-ups to move away from being exclusively the preserve of those with substantial capital and can now be enjoyed by the masses.

Simplification of web hosting and domain name registration along with sites like Ebay which give online traders instant access to global markets, mean that anyone can become their own boss with few overheads, which historically have been the silent killer of many new enterprises. This article examines how you can start a business on a low budget.

1. Trade Online

Online business is by far the best method for bringing your product or service to market, as you can get to an instant global customer base. Attempting to achieve the same goals without a website presence, whilst not impossible, is likely to be expensive in relation to printing and advertising costs, time; because in order to reach your target audience you will physically need to get out and about and also in overhead costs like premises, from which to trade.

2. Choose a domain name and web hosting company wisely

There are literally thousands of web hosting companies who want your business and if you are on a tight budget choosing the right one is critical. Firstly look for a web hosting company that includes the cost of registering a domain name, that is the website address that you business will trade under.This is because paying separately for your domain name and web hosting is more expensive. Whilst it's tempting to go for the cheapest option compare different company packages closely as you may end up paying more in the long term. Sites that will help you compare web hosting packages include;

http://www-thehostingchart.com

http://www.reviewcentre.com/products100.html

http://www.ratemyhost.com/

Things to watch out for with web hosting companies.

- Ensure that your hosting company charges you a flat fee rather than charging you for bandwidth. Bandwidth is affected by the number of visitors your site receives and some companies will charge you incrementally depending what volume of traffic is generated by your site. This may be okay in the first few months when your site receives a limited number of visitors but as you head towards a few thousand it gets expensive so find that flat fee fast!

- Beware of poor web hosting performance. Some companies are worse than others so ensure you read reviews on web hosting companies before you sign up for their service. You should be particularly concerned about issues related to downtime. Downtime relates to periods when your website is unavailable due to server problems linked to web hosting , during this time you could be losing critical customers. The best way to overcome this problem is to try before you buy. Some companies now offer free 3 month trials, not only does this offer you opportunity to find a good provider but you save money for 3 months on your web hosting bill!

3. Tips for saving money on advertising

Why pay Google or other advertisers for simply providing visitors to your site when they don't even purchase anything or access your service? Whilst $5 for 1,000 page impressions may sound amazing when you are developing a fledgling business on a budget, consider your options carefully.

An alternative option to get more targeted customers is to set up an affiliate program with an online agency. These work in the following way;

1. You register as an advertiser and agree a budget with the agency hosting your program, which specifies how much you are willing to spend.

2. Decide upon what commission rates you will offer to sites that successfully refer paying customers to you. (these are known as publisher sites, as they apply to participate in your program.) For example a Publisher might receive 1% of a successful sale that you receive as a result of a customer being referred to your site from a link on the publisher website.

- The agency takes a share of the commission in return for promoting your affiliate program to thousands of publishers who they have signed up and who are willing to host a link on their website to your site.

- The agency provides tracking software and detailed analytical data to monitor traffic to your site and provide you with information on where your sales are from.

Affiliate programs are more advantageous than general advertising as you only pay out commission per sale rather than per visitor or per page impression. You can also rapidly increase your market presence because hundreds or thousands of sites will be hosting a link to your site. Finally you retain control over your budget and decide upon incentives or commission structures to encourage sales. Four of the main online sites that can host your affiliate program are;

http://www.cj.com

http://www.tradedoubler.com

http://www.affiliatefuture.co.uk

http://www.linkshare.com

Summary

In conclusion starting a business on a low budget is increasingly more possible thanks to the internet as a means of promoting your product or service. You should be clear about your business objectives and invest wisely in web hosting companies that will help you minimise your fixed costs, which are a prime killer of new business start ups. Finally make good use of targeted advertising through affiliate programs to ensure that you only pay out for advertising that generates you sales.

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About the Author

I also run my own website http://www.friendsandmoney.co.uk which provides a collection of informative resources to help visitors make friends and earn money online. I also maintain two personal blogs http://financialplanningtips4u.blogspot.com/ and http://successfuljobsearch.blogspot.com/, feel free to contact me via any of these links.