Everybody seems to have an internet business these days, from your grandmother selling off the family jewels on eBay to the neighbor kid who is earning a fortune with his video gaming site. It is getting easier every day to create a website and make money! However, before you throw all your hopes & dreams onto the Information Superhighway, here are a few things you should know first:

Any business first starts with an idea, followed by research and planning. Many are dropped at this point, for many different reasons. High start-up costs, over-saturation in the marketplace, legal barriers, and so on. Or, perhaps it's just not the right business or the right time. Or, it's too much work. Better to find out now than after you've sunk your hard-earned money into something that just won't work for you.

The same thing applies on the internet. You must know your business goals, capabilities, customer base, supply costs, --in short, almost everything before you build a website and expect the big bucks to roll in.
If you have done your homework and are certain that you need to be on the internet, then research online businesses like yours.

Do a "competitive analysis" of similar businesses. Don't just look at one or two. Use a spreadsheet to keep track of the different sites and the specifics you are looking for.

Spend some time on this--check out 20 to 30 websites in depth. Some general things you should look for include:

Downloading time (fast, too slow)
Overall look & feel (colors, graphics, fonts, use of space)
Navigation (is it easy to move around the site, easy to find information?
What information are they providing?
Is it a sales only site?
Do they have audio or video clips?
Do they have forums? Newsletters? ezine? ebooks? etc.
Can you find contact information for a real physical location (address, phone,)?
Do they have maps, driving directions to a real “store”?
Can you order easily online?
How is shipping (quick, expensive, free with purchase)?
Payment methods?
Do they provide tips, instructions, education?
Do they promote affiliate programs?
Do they have free link exchange? How does it work?
Do they have free classifieds?
Do they have paid advertising opportunities?
Are you bombarded with pop-ups and banner ads?
How is their pricing?
How much product are they offering?
Do they have online coupons or specials?
Other things specific to your product or service --i.e., if you are selling nail polish online, you would want to check out what brands other sites are selling, what colors, what packages or special deals they are offering.

This research should give you an overall feel for what you need to build a site that is competitive in your market. For example if all or most of your competitors offer free shipping, can you afford to do so, too? Can you compete with their pricing? How can you stand out and drive traffic to your site? Websites are not a field of dreams--if you build it, that does NOT mean they will come. It's very competitive for many businesses and as in most things, the more prepared you are, the better you will succeed.