LESSON #8: Things needed to start an online business

By | June 27, 2008

We’ve talked about whether you’re the right kind of person for an online business, and whether it’s the right kind of business for you. So today let’s talk about what resources you need to have if you want to start an internet business.

Is it as simple as having an internet connection and a desire to succeed?

(Watch this video…)

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Main points:

(Note: for your convenience, there are links within the list below for things I recommend, some of which are my affiliate links)

What you need…

1) A computer

-Doesn’t need to be the latest and greatest
-Can’t be a total dinosaur
-Recommend Windows XP or newer
-Consider a laptop
-spend $200-$1000 for a desktop, $400-$1500 for a laptop

A few places to shop for a computer:
HP Shopping (where I bought my computer and my laptop)
Buy.com (I’ve bought a lot of stuff there including backup hard drives)
Amazon (A good place to compare prices and look for specials)

2) Internet connection (Broadband recommended). I used Qwest DSL (Now CenturyLink) for many years, and they were been good. I then used Comcast broadband for a few years, and loved it, as the speeds were much faster. Now I live out in the foothills, with no DSL or cable available, so I use Skybeam, which is a wireless Internet service. The speeds are not blazing, but it’s good enough for my business, and fast enough to stream Netflix too. If you live in an area not serviced by a major provider, you might want to look into something like Skybeam, or satellite broadband.

3) Antivirus program. I use AVG; their website is www.avg.co.uk.

UPDATE: I believe AVG is still good, however I think there are some better ones. On my main PC, I’ve switched over to Avast, which is also free:
http://www.avast.com/free-antivirus-download

And on my laptop I’ve switched to Microsoft’s free progam:
http://www.microsoft.com/Security_Essentials/

4) Email (free options available). For example: http://mail.google.com/mail/signup

5) Zip program (free options available). This is a good freeware: www.7-zip.org

6) Productivity software (free option available). Here’s a good free option: www.openoffice.org

7) Startup capital (highly recommended). I recommend having at least $200 available.

8] Credit card (highly recommended). If you’re afraid you’ll abuse it, you might want to consider a prepaid visa card.

9) Paypal account (highly recommended). You can get a free account at PayPal. If you live in a country that PayPal doesn’t allow, read this article for inspiration.

10) Business checking account (highly recommended).

11) Business registration (requirements vary – might be optional).

12) Business Entity such as an LLC (Optional). In general, you can probably start as a sole proprietor, and decide later if you want to form an LLC.

An LLC may help save you from paying self employment taxes. It also can protect your personal assets. Consult with an attorney or tax accountant.

If you want to avoid paying an attorney to help with the paperwork, you can often do it the cheapest directly through your state department. I’ve also found LegalZoom to be a helpful shortcut. I’ve used them to form three LLC’s, one non-profit, and two wills.

13) Accountant (Optional).

14) Lawyer (Optional).

15) Telephone (Optional). If you have broadband, you might want to consider Skype for your phone service.

16) Insurance (Optional).

17) Backup drive (Highly recommended). I added this one after making the video. A decent external hard drive can be purchased for $100 – $400. It’s not so important what kind of drive you get; what’s important is that you use it to backup all the files on your computer on a regular basis. I’ve bought several hard drives (including Maxtor, Lacie, and Western Digital) from Buy.com with good results.

There are a few other things that you’ll need which will be specifically covered in upcoming lessons, so don’t worry about them for now.

Action steps:

1) Go through the list, and make sure you have everything that is required. For the highly recommended ones, do as best you can to get them. For the optional ones, do some research and decide whether it’s something you need.

As I mentioned back in lesson 3, you don’t need to be a computer expert, but there are some things you’ll need to know. I’ll go through those basic computer skills in the next lesson.

As always, you are welcome to post your questions and comments below.

Have a great day!

388 thoughts on “LESSON #8: Things needed to start an online business

  1. Eric Post author

    There are so many variables that I cannot give you a specific time. Patience is usually key when starting a new business.

    Reply
  2. mike

    HEY ERIC. THANKS FOR TEACHING IN SUCH A CLEAR WAY.I’M UNEMPLOYED RIGHT NOW,I DO HAVE WORK WITH MY EMPLOYER ABOUT 1 DAY A WEEK.I JUST BOUGHT ANTHONY MORRISON’S PROGRAM FAST CASH COMMISSIONS,WHICH HAS ALOT OF GOOD INFO, BUILT IN. I CAN STILL CANCEL IT AND GET MY MONEY BACK. MY QUESTION IS, WILL I BE ABLE TO USE IT IN MY AFFILIATE MARKETING,I HAVEN’T BOUGHT A HOSTING YET, IDO HAVE A DOMAIN NAME,THATS ALL.CAN I STILL USE THIS PROGRAM,WITH WHAT YOUR TEACHING? I’M ON LESSON 8 NOW AND I WANT TO MAKE A BUSINESS OF ONLINE MARKETING, AND YOU SEEM TO HAVE A CLEAR MESSAGE, THANKS FOR THAT,I FEEL I’M ON THE RIGHT TRACK NOW WITH YOUR LESSONS, AND I DO HAVE THE 200 TO GET STARTED BUT THAT ABOUT ALL FOR NOW.I HOPE TO GET STARTED SOON AND SEE MY 1ST DOLLAR,AND GO FROM THERE.LOOK FORWARD TO HEARING BACK FROM YOU.. TAKE CARE AND THE LORD BLESS YOU. MIKE

    Reply
  3. Eric Post author

    Hi Mike, I’ve not personally reviewed his program, but I would assume that you could learn from it and from me at the same time. That’s fine about the domain. The only other thing you’ll “need” to get is the hosting, which I cover in lesson #24. I also recommend signing up for email list hosting (with AWeber), but that’s not until lesson #59.

    Reply
  4. Eric Post author

    I’m not a tax or legal expert, but my main LLC is taxed as an S-corp. This seems to work well for businesses like mine. I have another LLC which is basically a holding company, and it is taxed as a pass-through entity.

    Reply
  5. Leslie

    Don’t know if this will help you but have you look into AlertPay. I think that is the equivalent to paypal for foreigh countries? You might check it out and see if it helps you some.

    Reply
  6. Caroline Rexti

    Great Eric,a Newbie like me needed these tools ready for work. Thanks.Still learning.

    Reply
  7. Dena

    Eric,
    Thanks for all the information, it’s very helpful. I do have one question. We have started an eCommerce site selling used vinyl records. Do we need to file sales tax forms?
    Thanks

    Reply
  8. Micah

    Hello Dena,

    If you live in California, it appears that you do need to collect sales tax, but in most states you do not.

    Also, many online payment gateways (e.g., PayPal) can automate this for you.

    Reply
  9. violet

    I use BitDefender, it is a awesome security and easy to use. It screens out a lot of garbage and really does a good job of protecting your pc

    Reply
  10. PT Leshoure

    I’m enjoying the lesson’s. I hope to get to the specifics of setting up websites, the links and banners… Also, how to add flex 3 and flex skins properly. I’m so new to this industry, and need to learn this business for financial reasons- very quickly!

    Reply
  11. Diana

    Thanks for your great teaching!! Please help me on one subject of–where do you draw the line between just selling other’s info products (being an affiliate and making quite a bit of money) and becoming a business person?? I have been told by several that you can be an affiliate seller and not have your own business (therefore you would not need items 9-business act, 10-business regist. and more etc.) or did these people lie to us??? Can you clearifie this for me? Thanks a lot!!

    Reply
  12. Ken

    Ngozi, if product support cannot help you with your questions, please e-mail me and I will try to help (no charge).

    Reply
  13. Ken

    Great tips, Eric. It is always helpful to provide the basic info to get started in this dizzying world of internet marketing (and to remind more seasoned marketers from where they began).
    It’s not often to see someone truly dedicated to helping others.

    Reply
  14. Ken

    That is a great tip! If I can add to that: there are so many online tools today that you can resonably back up critical data and grab it anywhere. One service I use is http://cx.com – 10 Gb free for critical files. I also use Google docs to save stuff I have prepared but not “published” yet.

    Reply
  15. RON

    When Eric gives us paying customers some free software, this Newbie wants to know do I OPEN OR SAVE the file? when I am downloading the file.

    Reply
  16. RON

    I want to save the basics of the lessons, just the outline and the action points…and put all the lessons into a loose-leaf book. So I hit the button CONTROL P (to copy)…and sonofagun…my Canon copier copied all 268 pages of Comments! How do I just copy the simple lesson & Action points, not the many comments?

    Reply
  17. JITENDER

    Hi Eric ,
    I am from India . Your lessons are good. Your links leads mostly to US firms and laws too apply to US citizens and though many things in general apply to almost everyone. In India $ 200/300 is lot of money. Should continue ?

    Reply
  18. Marija

    Hi Eric,
    I have check all your items and most of them I have. It is good to know this.Thank you!
    Eric, I had registered your Traffic firesale webinar on Feb.27, 2012. Unfortunately, I live in EU time zone (Central Europe Time)and I am afraid to be able to follow it at 2.00 AM.Could you send me a record about it.Thank you. Best regards Marija

    Reply
  19. Marvin Conaway

    Hi Eric, just bought your products and training along with Naveed’s IPE course about a week ago so am suffering from information overload about 3.2GB worth. Have used google adwords, have domains with godaddy which I use for redirecting, a little (very little)experience with webhosts and absolutely no experience building websites. Spent the first several days opening up nearly everything just to see what it was and where to start. Currently I am focusing on your daily TIPs, IM Tech Course and the Easy Sales Blueprint. Have also gone through the “Traffic Firesale Package” but I do not feel I have enough skill or knowledge to put into action. How long should it take to gain this knowledge? Am I on the right track? I do have patience and persistence. Also I downloaded everything to my desktop, can I also download to my laptop? Any input would be appreciated.
    Thanks, Marv

    Reply
  20. Marvin Conaway

    What about backing up with a program like Carbonite instead of an external hard drive

    Reply
  21. LaShawn

    Sir,
    All of the training that I have received has been excellent.I can not wait until I receive the next lessons.I have most of the items that you recommended.I am looking forward to having an Online Business.
    Thank you for your help.

    Reply
  22. Ken Helmke

    Eric,

    Thanks for the checklist. I have been trying on and off for the past three years to get an internet marketing business off the ground, so I have or are aware of nearly all these items. Your approach of providing info in small “bites” may very well make the difference for me.

    Reply
  23. Micah

    Hello Ron,

    Thank you for your question.

    Purchased materials are often packaged in ZIP files, so you will need an unzipper to open them. Your computer probably already has one, but if you need a Zip program, you can download a free one at http://www.7-zip.org

    Eric explains how to use ZIP progams 7 minutes and 40 seconds into the following video lesson. You may simply click the progress bar below the video display to locate the spot 7 minutes and 40 seconds from the start of the video:

    LESSON #9: Basic Computer Skills You Need to Have

    Reply
  24. Micah

    Hello Ron,

    Unfortunately, Eric’s Tips is copyrighted material, so copying all the content wouldn’t be allowed. You are welcome to link your customers to Eric’s Tips with your recommendation, or summary of a lesson in your own words.

    Please contact our helpdesk, if you would like to participate in our affiliate program, where referrals to Eric’s Tips could earn you commissions:
    http://www.ericsupport.com/

    Reply
  25. Micah

    Hello Jitender,

    If owning your own online business is something that interests you, then we certainly recommend that you continue.

    Eric’s partner for Instant Product Engine lives in India!

    Reply
  26. Micah

    Hello Marija,

    Typically those webinars are recorded, with a replay video link sent later on when it is uploaded.

    If you are still on the email list, you should be notified when/if the recording is available.

    Reply
  27. Micah

    Hello Diana,

    Yes, affiliate marketers really don’t have much hassle at all! You just need to be sure to follow all affiliate program guidelines, and report your earnings when tax season arrives.

    Reply
  28. Camille Accardi

    Hi Eric,

    Very helpful video lessons! You didn’t mention anything about backing up computer files. I’ve been hearing some scary stories recently about computers crashing. I’ve been considering “My PC Backup.” Any recommendations?

    Camille Accardi

    Reply
  29. Micah

    Hello Camille,

    External Hard Drives are always a great option. They are also getting cheaper all the time.

    Just be sure to keep them in a separate location if possible, in case of theft or disaster.

    Reply
  30. Maree

    Another great video Eric. I look forward to it every day and working through the action steps.

    Regards, Maree

    Reply
  31. KarenB

    Excellent step by step tips for the beginner.
    So thankful for your integrity and sharing your knowledge, you will always be blessed.
    The things you need list is great info, and also thanks to Grandpa Bill for the PayPal tip on going for a business level. Eric will you be giving your followers tips on creating the email listing through AWeber, this is where I am having troubles, linking to build the list? Also must one buy a software package for split-testing or are there some readily available through varying sites? Faithful Follower!
    Always ready for future tips.

    Reply
  32. kamkwong

    Hey Eric
    I purchased your no money required internet marketing course. but so far there is NO product or information presented yet from Clikbank.

    Please respond to my purchase Thanks

    Reply
  33. Nicolas Zoumis

    Well all I can say is that I am a fan of all 3 of the Real Guys! It’s refreshing to see people that are honest and genuine and want to help others succeed. I too share your vision in that regard.

    You can check out my site if you like. http://www.theinfofiles.com I am lucky enough to also be able to provide outsourcing for clients so they can get things done and learn at the same time. I am an internet marketer, because that’s what I do. But you guys are experts. Experience makes the difference. My Outsourcing team in the Philippines are all more experienced than me, yet they still all learn from me too. So I’d like to also say that Paul Count’s video on why one should enter the “make money on line” niche has also been inspirational for me. You ROCK Eric and your partner’s that make up the “real guys” are awesome too! Have you set up a Facebook Fan Page? I’d join. I’ve purchased the NCIS PLR from you which is also for my clients, and by far you guys have the BEST PLR on the internet. Its nice of you to give so much in such an honest and “do unto others as you would have them do unto you” way. Respectfully Nick, a Fan from Melbourne Australia

    Reply
  34. Julian

    Open Office has forked because of development issues. Several of the original programmers formed The Document Foundation in response to Oracle (who owned OO) putting development on the back burner (oracle has since donated OO to the open source group, The Apache Foundation) The Document Foundation version of OO, which operates completely as a user driven project, is called Libre Office. Libre Office is essentially identical to OO but is considered by many to have the better chance of long term survival and development, and can be downloaded at libreoffice.org

    Reply
  35. ojedele

    Hum, great talk! i quite agree with u Mr.Eric bc as u lay ur bed so u’ll lie on it.
    pls i would like u to help me in the area of opening an account with paypal. the language to fill ur details are in deutsche and i dont understand the language. is there any way i can overcome this?

    Reply
  36. Lewis Hathorn

    This is a remarkable video. I already have most
    of what you recommend. My business is regstered
    and I have Paypal and a business checking
    account. So I’m pretty well set. I am running
    benind on the videos, as I’ve been on vacation.
    Great stuff so far.

    Reply
  37. Micah

    Hello Ojedele,

    When you go to the PayPal homepage, you should see a little flag on the bottom-right corner of the page. That should let you choose your country/language!

    Reply
  38. Tito

    Hello Mr. Eric,

    I got a question here but first of all I wanted to say thank you for the videos you created. I’ve been watching those from episode 1 up to this tutorial video which is Lesson #8. So my question is, how possible or is it advisable to follow your business blueprint if from the Philippines? I know there are some restriction when it comes to Filipino’s? Have you known someone who is successful in online business who happens to be a Filipino?

    Reply
  39. hamedi abdelhadi

    thnx for the video. how to download this video could anyone help me

    Reply
  40. Micah

    Hello Hamedi,

    Eric has chosen to only make the videos available for viewing here at his blog. But, you are welcome to visit again, and watch any lessons again whenever you wish.

    Reply
  41. Sheila Lay

    Hi Eric,
    I’m enjoying the lessons. My computer was hacked and totally destroyed. I had to get new one-HP Pavilion. Could you email me the upgraded download page of products. I did not archive that download page so I’ve lost it.

    Reply

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