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Small Business Banking For Your Website

May 19, 2008
The internet has provided a whole new world of opportunities for tech savvy entrepreneurs. It provides people that have the technical and creative skills to produce a website the opportunity to set up a small business and sell products. This is irrelevant of the types of products that they sell. There are an increasing number of drop ship companies that deal with the distribution of the stock. All the web developer has to do is create a portal from which the products can be sold and then get traffic to visit the store and buy the products.

The website creator deals with the payment from the customer and instructs the drop ship company to dispatch the products. Often the hardest thing for someone setting up an online business for the first time is appeasing the legal side of things and the financial side of things. Small business banking can help you with all aspects of a new business.

Having the Idea

The hardest thing is having that million dollar idea. So get thinking! The best types of online businesses are those that sell products. Services such as booking a taxi or advertising a hair salon are significantly less lucrative. The easiest things to sell are products that could be bought online. An example that has been used before is an online sweet shop. This is a relatively new thing to sell online as the favoured method of buying sweets is to enter a sweet shop. But one entrepreneur saw a gap in the market for high end sweets and sold them online and made a massive success out of the business. The products were durable enough to post and demand grew as the site became better known.

Choosing a name

Finding a catchy name is the most important part of the process of setting up an online business. The name needs to be catchy enough to be remembered easily so that people that search for things online can think of your name. For a name to be picked up in search engine it is useful that it contains a search phrase. For example, 'traditional sweets'.

Writing a business plan

The core thing that is required to make a business successful is to write a business plan. A business plan is very important to ensure that your winning idea can be turned into a lucrative business. Profit and loss accounts and cash flow forecasts can help you keep track on the in goings and outgoings of your business to ensure that you make money. Many banks will help you with a business plan so that you can make sure that you are structured in your approach to business and as a result make the most of the investment that you make.

Registering for VAT

Currently companies that register sales of 67,000 pounds or above must be registered for VAT. Companies that earn less can register voluntarily. This is a vital aspect of the financial side of the business.

Collecting the Payment

Once you have built your site, found customers and sold your products you need to find an efficient way of collecting the money from them. Many banks will help a small business by providing a service that makes this easy for customers to use and this may be a good alternative to Pay Pal or Worldpay services. Once this system is set up you will be able to maximise the performance of your website.
About the Author
Shaun Parker is an expert on Small Business Banking. He shares his extensive knowledge on banking to help advise start up businesses.
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