As an online marketing specialist, I’ve seen too many online businesses go bust due to poor planning. Trust me, you don’t want to blindly dive into the world of online business.

If you don’t know what you’re doing from the get-go, it doesn’t take long to lose your investments. These three steps will help you on your way.

1. Research your market carefully.

Whether you plan to sell a product or service, you must be sure there’s opportunity to turn a profit in your specific online market. For example, my boss initially wanted to start an insurance brokerage “” until he realized that thousands of individual insurance companies were already vying for the same customers online. Instead, he focused on the industry’s surety niche, which allowed him to target an audience more effectively.

2. Invest in a professional website.

When it comes to web-based businesses, your website is the key to your company’s success. You’ve got to draw clients in and convince them to work with you. Your online branding promotes your image. If your website looks cheap, homemade and unprofessional, clients simply won’t take you seriously.

3. Develop an engaging marketing strategy.

Selling a product or service online is not like traditional business models. A majority of your company’s success will depend on users’ ability to find your company online quickly and easily. Small business owners usually don’t know much about search engine optimization and link building strategies.

You’ll either have to take a crash course or hire an SEO agency; otherwise your business will struggle from the beginning. And, of course, use social media to your advantage “” it’s the online equivalent of word-of-mouth advertising.

Starting a small web-based business takes more than a good idea mixed with an entrepreneurial spirit. You also have to know how to use the Internet to your professional advantage.

Danielle Rodabaugh is the chief editor for Surety Bonds, a company that helps entrepreneurs file business registration documents. As a part of the company’s educational outreach program, Danielle writes informational articles to help entrepreneurs establish successful start-ups.

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