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Managing the Risks of an Online Store

February 21, 2012 | Comments: 0 | Views: 179

There are risks that come with being your own boss. As it is, "entrepreneur" doesn't stop in being a sexy and exciting word to hear - it entails risks, risks, and risks. The funny thing, though, is that even the most conservative and non-risk takers end up as among the most successful entrepreneurs! So how do you manage these risks? How do you deal with sales and use tax rates, attaching the right price and value to your wares, and keeping your customers? Here are some ways to do business the OK way when putting up your online store.

Know how to mitigate risks. The point is not to gamble too much, because it's all about investing in a smart way. First, keep a nest egg - don't risk all of your money, and make sure you have a hidden stash that can help you pay your bills and serve as your safety net. Keep your full-time job as well (if you can pull it off, that is). This way you can get two incomes and get the most of the hours in a typical day.

Focus on a good niche, too, something that is very specific and where you can be perceived as an expert in. Your website, for instance, should target no more than two to three keywords or topics. Test your market afterwards - know the demand and come up with a competitive analysis of your niche. As for competitors, get a niche where there are a handful of players. It is very important to assess the demand for your product.

In your first order, it's not advisable to buy in bulk. Don't risk a large cash outlay for these products or goods that you aren't sure will be disposed of eventually. Try selling in small quantities before committing to purchase large amounts. As for running your business, it would be wise to find a partner, a person or a group of partners who can help keep you focused, motivated, and brimming with ideas and inspiration.

Sell high mental value items, or those that evoke a level of emotional or sentimental value that can command higher prices. You may also opt for selling timeless items, ones that will not go stale or require only a short shelf time. Spend low - if your back office is something your customers don't see, why waste too much money on it? Other sound pieces of advice when mitigating risks include leasing (instead of buying) equipment and having an escape plan, such as your full-time job.

It is also a must to be serious about the tools that can help you maintain your online business. One example is a hosted, programmable XML Web service that provides you with real-time, up-to-date sales and use tax rates applicable to every U.S. and Canada tax jurisdiction. Sales tax lookup are only one of the things you will need along the way, and you should not neglect this and other seemingly secondary details in your new online store.

See how sales tax lookup web service can save you time and resources by providing more accurate sales tax calculations.

Source: EzineArticles
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