Many of my friends started their small businesses as hobbies later in life, something they had always desired but couldn’t pursue earlier due to life events like marriage, children, and family responsibilities. Starting a business is hard work. It requires perseverance and effort. It might take time to get going. However, with a good plan, it can become a successful and enjoyable business.
Calculate your Price
Cost of your Product/Service
Start by identifying what you’ll offer online, whether services or products (produced or bought). Then, calculate your costs and add your profit margin to determine your initial price. Finally, research competitor pricing for similar items to set your final price.
Cost of Goods Sold
Include all preparation costs in your service or product price; this is the Cost of Goods Sold (COGS), such as:
- Estimate what you should get paid for your time (direct labor) and/or wages if you have employees.
- Materials, if you are making your product or cost of buying a product you are reselling.
- Marketing and advertising.
- Insurance if needed for your type of business.
For better customer experience, consider incorporating the shipping fee into the final price. While in-house shipping is cost-effective for small volumes, outsourcing may become necessary with increased orders.
Consider adding a personal touch to your product, such as unique (and inexpensive) packaging, a thank-you note, or care instructions (like for jewelry or flowers).
Getting Paid
To handle online payments easily and securely, select an online payment service provider (PSP). Consider starting with a free PayPal Business account, which charges small transaction fees per sale. This allows customers to pay with debit/credit cards or direct bank transfers (guest checkout available). For direct credit card acceptance, explore services such as Square or Stripe.
Start Selling Online
Launch your business online by choosing a platform like Etsy or Shopify to sell your product(s). I highly recommend investing in a professionally created website (see my Website Development Business, Damar) to showcase your service or product offerings and build a strong online presence. Start by engaging your friends and family on social media platforms like Facebook and Instagram. Consistency is key: post at least three times a week and interact with your audience. High-quality product descriptions and photographs are crucial for online sales success. A smartphone with a good camera can suffice for taking clear, multi-angle product photos.
Maria Noack
Re-written April 9, 2025