How to Start an Internet Business: The Golden Rules

Jason Nazar is CEO & Co-founder of Docstoc (docstoc.com). In this video he shares the golden rules to start and internet business.

  1. Have a fully developed product in 3-6 months
  2. Anticipate expense costs of $10K-$50K
  3. Start attracting users & dollars

There are 3 golden rules when you’re starting your internet business.

The first is make sure you get your product built within 3 to 6 months. Your idea is going to go through so many different iterations and you’ve got to get it quickly out there in the hands of the users so they can tell you how they want to use it and what features they don’t like.

Secondly, plan to spend between 10 to $50,000. The reason why this is important is that’s probably enough to get the first version of your internet website and business up, but it’s also an amount that you could probably put on your own personal credit cards or between your friends and family raise those funds such that you don’t have to actually find professional investors.

And third is, when you get the product launched, make sure you can immediately start getting people paying for your product or a lots of users.

So you either want to build a web product that right away you can start charging for, so you can think how in 3 to 6 months after you launched your product could you make back your initial investment or you want to build a product that could scale to thousands or even millions of users within a short period of time.

And if you can check off each of those 3 golden rules, you’re going to be much more likely to build a very successful internet business.

Transcription: They’re three golden rules when you are starting your internet business. The first is: make sure you get your product built within three to six months. Your idea is going to go through so many different iterations and you’ve got to get it quickly out there in the hands of users so they can tell you how they want to use it and what features they don’t like. Secondly, plan to spend between ten to fifty thousand dollars. The reason why this is important is that’s probably enough to get the first version of your internet website and business up, but it’s also an amount that you can probably put on your own personal credit card, or between your friends and family, raise those funds such that you don’t actually have to find professional investors. And third is: when you get the product launched, make sure you can immediately start getting people paying for your product, or lots of users. So you either want to build a web product, that right away you can start charging for, so you can think how in three to six months after you launch that product you can make back your initial investment or you want to build a product that you can scale thousands or even millions of users within a short period of time. And if you can check off those three golden rules, you’re going to be much more likely to build a very successful internet business.