So what does it really take to start an online business? Well let's break it down.

Setup a Business - The first step is to merely setup a business. This can be an LLC or Corporation (I recommend an S-Corp for the tax benefits) which can honestly be done pretty easily on your own. Once you find your local government site, you can download the paperwork, fill in the blanks and mail it yourself. This process can be done in an hour but getting your paperwork back from the state can take a couple weeks. This cost will range from 125-250 dollars depending on the state you register with and 150-500 more if you hire an online service or attorney to prepare the paperwork for you.

Get a Federal Tax EID - Once you have your paperwork back from the state with your LLC or Corporation, you can pick up the phone and call the IRS and get your Tax EID right over the phone. They will also send the paperwork in the mail. This step costs you nothing…at least for now ;-p

Get a Business Checking Account - Once you have your business paperwork and Tax ID, you can head on down to the bank to get your business checking account. This part is kinda fun because it makes you feel like a real business (and they treat you better) and you get to pick out your checks and stamps and all that kinda foo foo stuff. Guess what? You are a legit business. This part costs you nothing unless you go for upgraded checks and stamps and stuff.

Get a Merchant Account - Since you are going to be using a Yahoo Store (smart move by the way) you will need someone to process your credit cards and then stick the money into your bank account. There are tons of choices out there but you must choose a merchant that is FDMS Nashville compatible. This is what Yahoo uses to securely transmit transaction data from your store to the merchant. Now its no secret that I recommend eMerchant Discount. Not only do they have the best rates going but anytime you need something you can actually get someone. Thats really important in a merchant provider. Also, for all that is holy, do not go with the merchants that Yahoo "recommends". Remember, its your business, not Yahoo's business and of course Yahoo has special deals and arranagements with who they push on you which ulitmately means, you pay more. I also don't recommend your bank. They are great with brick and mortar stores but they still don't have a damn clue about Internet businesses. This process will require you to fill out some paperwork and pay a setup fee and takes a couple days to go live. Once its ready you will get an email with your Merchant Account Number and your MID and TID's to plug into your Yahoo Store and you are ready to take credit cards.

Find a Product - This is by far, im my opinion, the hardest part of the process. Finding the right products to sell online could save you enormous amounts of time, money and headaches in the long run. To start you on the right path, you should look into World Wide Brands. The price is $299 or 3 payments of $85 and its for a LIFETIME membership. And, as of the time of this post, you also get your Yahoo Store monthly fee waived for 6 months! Its a great tool not only for finding drop shippers and wholesalers (real ones) but also for doing keyword and market research. Its an awesome membership and worth every single penny.

Find a Domain Name - Once you decide what you are selling its time to find a domain name. This is another fun but tedious step because its…well its 2009 and most of good domain names are taken. I goto netsol.com and do my searches there. Don't ask me why…I just always have. Once you find a domain name that is available, write it down and go to the next step. No cost here, just your time.

Get a Yahoo ID - Before you get your Yahoo Store, I highly recommend you signup for a Yahoo ID. You can go here to do that (https://edit.yahoo.com/registration?.src=fp&.intl=us&.done=http://m.www.yahoo.com). Why, you ask? Well, if you ever decide to sell or remove your store, its easier this way because Yahoo will attach your Yahoo ID to your Yahoo Store. So for every new store I create, I create a new Yahoo ID first. Trust me, its easier in the long run. I recommend that you use your domain name as your new Yahoo ID. For example, if your domain name is, www.bluewidgets.com then you should register bluewidgets as your Yahoo ID.

Get a Yahoo Merchant Solutions Account - I usually just call this a Yahoo Store but their official reference to such is Yahoo Merchant Solutions… anyway, remember I told you to write down your domain name? Now its time to use it. I personally buy my domain name from Yahoo at the same time I am signing up for my Yahoo Store. Since they pay for the first year for you, its a great bargain. Just follow the steps and you will soon have your Yahoo Store ready for action.

Design Time - Ok, yes Yahoo offers templates. Yes, you could use their templates. Yes, you could open your store for business with their templates. Yes, you can alter their templates to make it look better and yes, it would not not require you to spend any money but it will cost you thousands later. This is a war folks. There are already 1 million other people selling what you are going to be selling. You are not the only one and the rumor of "If you build it, they will come", just aint true in online ecommerce. You should want and demand that your site be professionally designed so it looks better than ALL your competition. Seriously, if it comes down to the same product, with the same pictures, at the same prices, what do you think will put you over the edge? Your Yahoo Store design! I cannot stress this enough. You have 8 seconds to make a good impression on your potential customer. If you don't do it, someone else will. Typically you can plan on spending 1500-3000 on design.

Programming - Now finally, its time to program your Yahoo store. Now don't be confused with having a programmer/designer. Its not the same. Programmers program and designers design. You cannot and should not mix them together. Programming your Yahoo Store is critically important. There are certain things you just need to make your online business easier on you and most importantly, easier for your customers. Don't get over zealous on programming features. I always start with the basics first. Usually its within the first 6 months that I will know what else is needed. Your customers will tell you, you will see it and you won't waste money. Be careful of the "package" trap where you end up paying for a bunch of crap you don't need. Every business is different so it usually takes a good 3-6 months to determine what other programming you really need. The core programming will run you 1500-3000.

Thats a good starting point on where you need to go and what you need to do and how much you can expect to pay to build your Yahoo Store business. I have also included expected monthly expenditures and we expand on those backstage at Yahoo Store Tutorials.

ONGOING MONTHLY FEES

$40 Yahoo Store Monthly Fee
$50 LivePerson Chat
$80 Control Scan
$12 Merchant Fee
$10 Aten Software
$30 Monitus Tools
1.5% Total Sales (10k gross sales = $150 to Yahoo)

$222 + 1.5% Total Sales

Remember, if you need help with any of this, just call. We are here to help.