1. Why is the Internet a great place to have a business?

2. Why do you want to go into the Internet Business?

3. What is it that you want for an Internet Business?

Before getting knee deep into an Internet business of any kind, you should have written down the answers to these three questions. Sure we have all heard that business plan's are for "real" businesses. You don't really need a business plan for an Internet business, do you?

Yes. I have seen more business' come and go over the years that I can not even keep count. So what is so important about a business plan? No matter what type of business you plan to get into, if you want to be successful you need to have a solid business plan. They are not just some sugar coated piece of paper to wave around and attract flies with. A well thought out business plan can let you look at where you are starting and where you want to go. Even more importantly what steps you need to take in order to get there.

Getting started is really the hardest part of writing your own business plan. The three questions above are the basis for a business plan.

Let's reverse the order and start with number 3. What sort of business do you want to have? If you don't know, then your ideas are just a pie in the sky dream. If you are just beginning your search, think about the things that you are passionate about. Are you a skier? How about an online store that sells specialized gear for skiers? Or perhaps you are a writer, how about an independent bookstore online?

Find a niche that you have some passion for and use it to your advantage. No company is more successful than one who's Owner is passionate about what they sell or offer. Once you have your product or service decided upon, who is your audience? Who is going to buy your product or services? Why are they going to buy from you verse some other company? Spend some time surfing the internet to find out who the competition would be, what are you selling that they are not, is there a need for something else that you found in your search? Write the answers to all these questions down and you will be well on your way to creating your business plan.

Point 2, why do you want to go into Internet business in the first place? What is it that attracts you to the idea? How can you bring something to the business that perhaps your competition has not thought of? Is there some unique sales vehicle that you can think of? Write down what your particular assets are in business. Where do you lack and where are you proficient?

Point 1, why the Internet verses a small store front? Consider the positives and negatives on not seeing your customers face to face. Can you market yourself over the Internet as well as you can in person? Can you generate enthusiasm for your product or service through words and pictures? Here is the real kicker that causes more Internet businesses to fail. How are your potential clients going to find you? What marketing strategies are you going to employ to ensure your product/service is not just out there in cyberspace floating around?

So now you know the basics of the first part of writing a business plan. The Financial Section is next time.