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6 Things to be Cautious of When Starting an Online Business

Business

6 Things to be Cautious of When Starting an Online Business....Tips from a Lawyer

Last Updated January 2022 by Crystallace

The idea of starting an online business that actually becomes profitable is wonderful. You can work from home, earn money while you sleep, determine your own hours, and have no boss. It’s the perfect lifestyle for those who want to be in control of their time and space.

I know that’s what I envisioned when I relaunched my blog. I wanted a blog that could earn passive income, enough to cover my student loans.

The good news is that it is getting easier for this dream to become reality. However, going in blindly can lead to a loss of money, time, and energy.

The most important factor to consider is what your goal is for starting a web-based business. If you want to be the next Bill Gates, this article isn’t for you! But if you feel that starting an online business could help provide a consistent income, or even replace your current income, then read on!

This is something that I have been able to do with my blog. While I’m not a six figure blogger yet, I have been able to provide consistent income for myself.

When starting an online business most people don’t have anything specific in mind. They may just be trying to cash in on the latest fad or trend without doing any research first. Many of these individuals end up giving up before they see success because they lack the knowledge and/or energy needed to make it work.

To help keep you from falling into that trap….

Here are 6 things to be cautious of when starting your online business…tips from a lawyer

Be sure to Pin 📌 this post so that you will have it for later.

1. Avoid shiny object syndrome

There is always going to be the next big thing. Any member of any internet marketing forum will tell you that they have the secret to making millions online. The truth is, not all business ideas are created equal and not all solutions are suited for everyone’s needs.

The most important step in starting an online business…or, really, anything…is research. If you only use your common sense and think logically about what could go right or wrong with an idea, then it can save you tons of time and money down the road.

Take some time to understand both sides before deciding on which path to take. You don’t want to spend months building something only to have it flop, neither do you want to spend your time chasing every TikTok fad out there.

2. Don’t buy into hype

One of the worst things you can do when starting an online business is to buy into the hype.  Shiny object syndrome can lead to this mistake too, but it’s important to understand that this isn’t only directed at internet marketers currently trying to sell you ideas.

Sure, there are times where businesses have legitimate claims about how much potential their approach has, but other times they will just over-hype an opportunity in order to get people interested. What often happens is that individuals get caught up in the frenzy and lose sight on what really matters: whether or not it’s a good idea for them.   The key is research!

Don’t fall for every new claim out there and be sure NOT to invest anything until you thoroughly research the plan and company already.

6 Things to be Cautious of When Starting an Online Business

3. Avoid choosing a business that doesn’t fit your personality

One of the best ways to ensure success is by choosing something that fits “you” as an individual. A lot of times, people think about what they are good at or like doing, while not stopping to consider their personality type.  This can create problems down the road because you will be working with something that isn’t fully within your comfort zone.

It’s only natural for people to want things to work out, but if you don’t even like it in the first place then why would you make yourself suffer through? If your personality type is one where you enjoy writing, then starting a Youtube Channel or chasing fame on TikTok might not be the best option for you.

This is something I had to learn. I don’t enjoy creating video content enough to invest in doing it. I prefer writing and photo and while admittedly it does become frustrating to watch video content get prioritized I have to stay true to what works for me.

BTW, are you following me on socials? Let’s keep in touch! I’m on Pinterest, IG, Facebook, YouTube, and TikTok

If you’re like me, consider starting an online business like blogging.

4. Don’t forget about taxes and licensing

There are many costs associated with starting an online business and most people tend to overlook the “unsexy” parts. This includes things such as staying on top of taxes and any licensing fees needed by your locale.

If you fail to take these items into consideration, then it could result in fines, penalties, or even more costly issues down the road. After all is said and done, being able to continue running your business may depend on paying the correct fees when they are due!

This is actually why I decided to create my Website Legal Bundle, I saw tons of bloggers and entrepreneurs with websites but no legal pages. So I created my Website Legal Bundle as an affordable, easy to use, solution for them so that they could be in compliance with the law.

Every website and blog must have a Privacy Policy, Disclaimer, and Terms of Use legal pages. If you decide on starting an online business then you must have these legal pages. I talk about that more in this blog post.

Who knows what kind of mess you could run into when your business can’t continue online?

6 Things to be Cautious of When Starting an Online Business....Tips from a Lawyer

5. Properly research any MLM before buying in

Multi-level marketing (MLM) has a very poor reputation and this is not without good reason. Many people have tried to start their own MLM businesses only to learn that it isn’t all they make it out to be. 

The truth is, anyone can start an MLM company anytime they want and there’s nothing wrong with doing so. It’s just something that takes a lot of dedication in order to succeed.

If you’re also going to be selling physical products, then there are even more things such as security concerns for both parties involved! Unfortunately, many people never take this into consideration and end up with a business that won’t cover their expenses.

6. Never go into something expecting quick results

If you are looking for a mega-quick way to become wealthy, then online businesses are probably not the answer for you. Sure, there can be some fast cash opportunities out there, but as a whole, it’s often a slow and steady kind of progress.

If you really want to make money online, then understand that it will come down to making one wise decision after another until things begin developing in your favor. It may take weeks, months or even years before everything comes together just right!  Don’t get discouraged if nothing happens quickly because this is only normal when starting out in any niche/industry.

Starting a business online can be very lucrative and it has helped a lot of people get ahead in life. If you are willing to put the time into learning how these systems work, then anything is possible!

6 Things to be Cautious of When Starting an Online Business....Tips from a Lawyer

What kind of online business are you interested in starting? Let me know in the comments!

from the lawyer next door,
Crystallace Fenn

FTC: I participate in an affiliate marketing program. If you choose to make a purchase as a result of clicking a link, I may receive a small commission of the sale. This helps me run my blog and I don’t talk about things I don’t actually use.

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Legal Disclaimer: Although I am a lawyer by profession, I am not YOUR lawyer. All content and information on this website is for informational and educational purposes only, does not constitute legal advice and does not establish any kind of attorney-client relationship by your use of this website.

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