Do you want to start a business that provides the freedom to work from anywhere in the world? Or maybe your main goal is to produce additional income that doesn't require a full time effort? You may want to think about starting an Internet business.

Internet businesses can be developed fairly quickly, given that you won't have to spend time searching for office space, warehouses, storage or other physical space. You will also need far fewer resources with an Internet business than a business with a physical location. And depending on the product or service for sale, the business can begin generating revenue just as soon as the website is published.

There are also fewer challenges for an Internet Business than with a physical business but one challenge, often overlooked, is that of increasing competition and building premium ranking on the Internet. Another challenge you'll face is appealing to people that prefer to touch, try on, and see the merchandise in person rather then buy from a picture or description. Both these challenges should not prevent you from pursuing your dream but address these and any other obstacle early in business development and you will be able to minimize their affect on your business.

Choosing Your Business Idea

After deciding to start a business, the most important consideration will be selecting your product and/or service to promote and sell. The more interested, or passionate, you are about your product, the less likely you will become bored of it in the future. But you also need to choose a product based on how well it will do in the market and not just because you are interested in it. At Truefocus, a Career and Business Development Center, clients learn how to complete 'marketing studies', determining the product demand and supply of similar products. They learn how to create product differentiators and marketing programs that can create a demand where there is none previously. And if they are struggling with what product or service to sell, incubator teams help.

If you are starting this business solo, we encourage you to follow the steps below before choosing your final product, even if you know exactly what you want to sell. It might save you from changing your plans in the future, after spending time and money on something you don't pursue. * The following process assumes equal cost in producing the product and is not a material concern in creating your business!

1. We recommend spending one week documenting your favorite activities, hobbies, existing products and services, anything in life you LOVE. Anything and everything!! Do you love ice cream? What's your favorite book and why? What are your favorite hobbies and pastimes? Are you an outdoor or indoor person? Its also important to document what you don't like including chores, job tasks, etc so you recognize what to stay away from in developing your product. Engage friends and family especially if they knew you as a child. They may remember something you used to love to do or work on but you have since forgotten.

2. After identifying as many ideas as possible, narrow the list to your favorite three. Do not eliminate favorites based on income potential or limited applicability! Identify the target market for each idea being very specific - male/female, age range, location, income, hobby/interests, risk aversion, types of other products or services bought, computer literacy, and finally the key words your target market may use to search for your product. The more detail, the better.

3. Identify the top 3 Internet competitors for each product idea and document their features, side by side. For example, if you love golf, review golf websites, analyzing their product line, features and functions of their website, extra's they offer like freebies or specials, shipping, return and exchange Policy, payment options, references, Alexa Rating, and Brand identification. This should give you a high level view of what you are up against and in what you can excel in or differentiate yourself with.

4. Test the keywords for each product idea in Google Analytics, determining its supply and demand based on the results. Be sure to test similar keywords or phrases it may be used in. For example: golf, golfing, play golf, golf equipment, golf clubs, golf course, golf courses, miniature golf.

If Google tells you there were 100,000 searches performed using the keyword 'golf clubs' and 50,000 returned sites, there is a good chance of an unfulfilled need in this market. However, if 100,000 searches were performed with 150,000 returned sites, this might indicate a saturated market.

Please note: use multiple tests to determine market need including, but not limited to, focus groups and surveys.

5. Making the final product decision is sometimes a difficult and emotional decision but worth spending as much time as you need, to avoid a potentially disastrous outcome. After reviewing the research for each product idea, eliminate the ideas based on these parameters:

a. Competitive Market and inability to create a unique differentiators
b. Google Analytics indicated little demand
c. Least amount of personal Interest in the Product

When you are left with your final idea, ask yourself how does this feel to me? Close your eyes and visualize creating a business with it. Are you excited to sell the product or service to customers? How do you feel physically,emotionally and mentally? Can't wait to get started? Or is something wrong and you feel a pit in your stomach. Listen to your body, especially your instincts, intuition and gut. If there is something amiss, your body will surely let you know.