Widespread use of the Internet made starting a virtual business a reality even before the 2020 global pandemic. Despite the early success of sites like Amazon.com, entrepreneurs are not limited to selling products. Indeed, virtual businesses offering administrative and professional services are flourishing. Whether transitioning from brick-and-mortar or starting from scratch, it’s important to consider what steps to take when tackling any startup.
Consider the Pros and Cons
Advantages of going virtual include saving on the costs of physical locations and access to a large pool of employees. Starting a virtual business also offers flexibility in schedules, locations, and the ability to react to your industry trends.
Still, virtual business is not without its disadvantages. For example, you and your employees may find it difficult to communicate and experience technical difficulties. It can also be difficult to maintain a team spirit when your team is spread across the globe. Finally, some virtual employees may have trouble staying productive when tempted or distracted while working at home.
If you are interested in starting a virtual business, consider the following steps.
Research the Possibilities
See what types of opportunities are available. In some cases, you may find franchises that make starting a virtual business a bit easier.
Also, make sure you have the infrastructure to handle the demands of an online business.
Put Together a Plan
As with any business, you need a business plan. You might include some of all of the following sections:
- An executive summary, including your mission statement.
- A description of your company, including the competitive advantages you offer.
- An analysis of your market.
- The structure of your virtual business.
- A description of the products or services you plan to offer.
- Your plans for marketing and sales.
- Financial projections and requests for funding.
- An appendix containing any additional documents you want potential investors or clients to review.
As you can see, starting a virtual business is similar to starting a brick-and-mortar company.
Forming the Business
Finally, you need to choose a business structure. Before taking this step, discuss your plans with a business lawyer with Internet law experience. Each business entity has its advantages and disadvantages. What seems simple may actually have unanticipated legal consequences.
Also, you need to consider some laws that specifically speak to virtual business, including those pertaining to:
- sales tax,
- privacy,
- intellectual property,
- shipping restrictions,
- selling to minors, and
There May Be Legal Ramifications for Starting a Virtual Business.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.