Chapter 3

Get Ready to Start

Have you always wanted to open a store? Regardless if you open a brick-and-mortar or online store, you have to do your homework before hanging up your sign or, more appropriately, opening your Web site. The more time and thought you give beforehand, the smoother the transition will be. Also, take note that you may not be paying for the overhead of a brick-and-mortar store, but you will have inventory and some form of monthly charges for your Web site maintenance. Unfortunately, thousands of people launch their new e-commerce businesses and soon realize that something is not complete. For example, a couple months down the pike when traffic needs to pick up, they have no money left for marketing purposes.

When opening an online store, you will not get into your car and go to your retail store. You will, however, want to set up an area that is your designated place of business. To avoid distractions, you might consider making this area secluded from the family and household pets. As with any business, you are officially working when you are in your office. Unless an emergency arises, you should not be interrupted by some household need. It is important to establish this practice from the beginning, as working from your house can become difficult if there is not a separation between home life and work life.

Physical Equipment and Hardware to Get You Started

Although your actual business will be conducted online, you need up-to-date equipment and technology to accomplish the work. You have to consider hardware and software requirements.

Your computer will be your most essential piece of hardware. You do not need a computer with all the bells and whistles, especially if you will be relying on Amazon’s own Web capacity, abilities, and services. With the price of computers going down every year, you can get an excellent deal for your money. The most important issue is reliability, as you need to be up and running 24/7. If, and when, your system crashes, your doors close — and your customers are locked out.

You may already have a computer. It may be completely outdated if it is older than a few years. If your computer has truly been a trusty workhorse, have a systems specialist evaluate its performance capabilities to ensure it is capable of handling the tasks necessary for your business. If you are just in this for some personal enjoyment and to make a few extra dollars of “play money” each month, you can use an older and slower computer that has been around for years, or even one at the local library. Take note, though: This means, once again, that you have to establish a specific schedule and rely on someone else’s capability. Even libraries have a problem with computer networks going offline.

Of course, numerous companies sell computers, and each have their reasons why theirs is the best. Read computer magazine articles that rate the various brand names for reliability. Also, there are hundreds of online forums and chat groups you can join where other online merchants will offer their suggestions on the system that works best. Remember that, although everyone is selling online, you may have different needs.

Some e-commerce enterprises may be considerably dependent on Web site layout and graphics if they do their own Web site design. Other Web sites may have a high volume of products and require an extensive database. Some other vendors may rely mostly on Amazon’s Web Services capabilities and only need a basic model to upload product descriptions and follow sales on Amazon’s site. Once you determine how and what you plan on selling, you need to make a checklist of the computer capabilities that are most important to your line of work. The computer will be your essential connection to the Internet and your customers. Processor speed, the size of the hard drive, and the operating system will be of interest to you.

System Recommendations

The following are minimum recommendations for your computer-related requirements:

Processor	Intel® Pentium Dual Core® processor, 2 GHz
RAM	Minimum 2, 3, or 4 GB recommended
Hard Drive	500 GB
Operating System	Windows Vista® Home Premium or Windows XP® Professional
Software	Microsoft® Office 2007
Screen	17-22” LCD flat screen monitor, Super VGA (800x600 minimum)
Graphics Card	GPU from ATI™ or Nvidia® with at least 128 MB of on-board memory
Drive	CD-ROM and/or DVD-ROM
Storage	120 GB
Photo Software	Corel® PaintShop Photo™ or similar program
Printer	All-in-one laser printer, scanner, copier, fax
Internet Connection	DSL/Cable, broadband, or high-speed modem
Digital Camera	Minimum 8 megapixels

Here are some of the basics that you should consider when setting up your online business office:

Processor (CPU)

The CPU, or the Central Processing Unit, is often called the computer’s brain. The CPU completes the calculations and answers the commands when a program is run. The CPU speed, which is measured in MHz (megahertz) or GHz, is very important. You do not necessarily need the fastest machine on the market. It depends on how you will be using your computer in terms of graphics, music, and video.

Memory

A common misunderstanding is that the terms “memory” and “hard drive space” are interchangeable rather than two different entities. Hard drive space refers to the existing amount of storage capacity on the computer’s hard disk(s). Memory, instead, means the amount of random access memory (RAM) installed in the computer. RAM significantly impacts the computer’s operating speed. When starting a home-based business, you want to know that your computer can handle the hard tasks. Getting as much RAM as possible will allow the computer to easily do the necessary work.

Hard Drive

A hard drive is a mass storage device located in all personal computers for storing permanent information, including the operating system, programs, and user files. This data can be erased and/or overwritten. If you are using a large number of complex graphics on your Web site, then consider that you need more storage. If need be, you can always add on an external hard drive. An external hard drive can provide a safety net for important documents, allowing you to back up all items on your internal hard drive. The external hard drive can become a lifesaver in the case of an internal system crash. External hard drives are available in multiple different storage amounts. It is recommended that you purchase one with 500 GB of storage space.

Upgrade

When you purchase a computer, make sure that you can upgrade components like the RAM, hard drive, and backup storage devices. Because technology changes so quickly, you need reliable upgrade options. Most computers have DVD- and CD-writing capabilities, which are helpful when backing up programs and files.

Notebook or Desktop?

In the past, desktop computers have been emphasized over laptop computers because you have been able to get more bang for your buck with a desktop PC. Many laptops are just as powerful as desktops, but they were a bit pricey. However, the costs of laptops are now coming down, and it is making more sense to have a docking station that your laptop can fit into to expand its functionalities when you do not have it on the road. This is an especially helpful option when you do need your computer for off-site presentations. On the other hand, if you do all of your work from your home office, there is no need to look further than a good, low-cost, workhorse desktop PC.

Peripherals

The cost of monitors is tumbling. You can find a 17- to 22-inch liquid crystal display (LCD) monitor for a reasonable price. The older cathode ray tube (CRT) boxes are no longer being sold on most models, although they are still quite functional. The main advantage of the CRT over the LCD was the color rendering. However, unless you plan on doing a great deal of intricate graphic design work, a LCD screen will be a much better option due to its weight and size. LCD screens also tend to produce less eye strain.

You also need a printer. This does not have to be the best and the highest grade, but one that works well with the newer operating systems. Printer prices have come down, but ink cartridges have steadily gone higher. You can save money by refilling empty ink cartridges yourself, using kits, or taking the empties to a business that specializes in refilling cartridges. Scanners are available as stand-alone units, and they are often included as part of an all-in-one unit (a printer, copier, scanner, and fax machine). You need a fax machine for sending and receiving a wide variety of documents and images. In order to keep up with technological advances, you might consider a printer that has wireless capabilities. This will allow you to print from your wireless laptop or desktop computer and can also be helpful for connecting several computers on a network.

A digital camera is a piece of photographic equipment that you can use to take pictures of your products. These pictures can be uploaded to your Web site. Photos of your products are not only a good selling strategy, but often required on auction sites. Look for the megapixel count and also the memory type and size. Do not get a higher megapixel count than you need — not typically more than 8mp — for Web site work; the photos will just take up more room in storage space.

Phone and Internet Service

For IRS tax purposes, building business credit, and privacy needs, you need to have a business-dedicated phone line. You do not want to use the home phone. You can get an Internet-based phone or a traditional phone line for a low monthly price. With bundled services, you can choose from cable Internet and phone service packages. Most packages offer phone, TV, and Internet service, but you may be able to pick and choose your desired services. A bundled package from a telephone company will consist of satellite TV, landline phone, digital subscriber loop (DSL) Internet, and possibly cellular service. A cable television company will likely offer cable Internet and digital phone service. Speed of downloading and choosing a reliable service is essential.

Wireless Capabilities

Flexibility is one of the plusses of an online business. If you plan on accessing your computer from different locations within or outside of your home, you may want to consider a docking system that allows both laptops and PC to connect to the Internet wirelessly. Most new computers automatically come with wireless cards built into the system. You will have to buy an Internet router to wirelessly access the Internet. This will allow you to access the Internet from anywhere within your home, including in bed or out by the pool. This is a perfect option for people who have other responsibilities around the home during work hours, allowing you to not be confined to a desk. Having a wireless card installed in your laptop will also allow you to access the Internet on-the-go in designated Wi-Fi locations (such as your local coffee shop or bookstore).

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