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How to create an online service business?

I’m extremely serious about an online service idea that I’ve had for quite a while now, but I’m at a loss as to how I should begin. First of all, this would be my first ever business, which means I have no experience whatsoever – this worries me because I don’t want anyone else stealing my idea until I’m at least somewhat established (although I understand given the way things work this is likely very difficult).

I am trying to figure out a few starting things - like how do I establish an online service business in the first place (e.g. what forms do I need to fill out, where do I go to register the eventual name + trademark, etc.)?

However, the main question is:

How do I protect my business from other more experienced people to start out? In particular, I have a really good feeling about the potential success about this business, and therefore would it be better to start out by creating a smaller, less successful startup so that I can become familiar with how things work and ensure to the best of my ability that my ‘big’ idea is successful?

Thank you in advance!

Answer 12108

I cant necessarily help you with part one as I dont know your country of origin. Also the legal framework of your company will depend on what you plan to do with the company in the future - i.e. sole trader usually requires little set up, you just go for it. A company limited by shares requires more paperwork.

  1. Basic protection of your business comes in the form of trademarks. trademark the company name and logos etc. If you have things that can be protected via patents then you can go for that, however from experience this is a long process that stifles your ability to move quickly as you can’t easily talk about what you are doing until the process is over. best way to protect your business is to move quickly when you decide to move.

From experience people are not likely to try and steal your idea until you have proven it to be successful first. Why would anyone waste their time proving your idea is successful when they can wait for you to do it and then copy it and try to catch up. Also, copying your idea, even if they are more experienced than you will often require them to vastly change their business and direction, not something well established businesses can easily do.

  1. For the last 4 years I have spoken to and been surrounded by over 100 start ups. The innovation that I have seen has blown my mind. Some extremely talented people building beautiful products and businesses. Not all of these start ups have survived (mine included) because innovation itself is rarely the problem. The things that appear to have the greatest impact on success are monetisation of the business, cash flow, investment strategy, ability to grow sustainably, the advice and experience of the mentors and partners attached to the business.

In each of the above cases many many decisions will have to be made, each one if incorrect can have an impact on your business and in the begining there is little room to maneuver.

My advice is not to start a less successful start up in order to fail and learn stuff. That will just serve to ailienate people who are backing you or helping you, and going into it with a mindset of failiure will result in failiure. Instead I recommend reading and talking to people. read: ‘The Mom Test’, ‘The E-myth’, look into ‘lean methodologies’, ‘failing fast’. Find out what start up accelerators are around you and see if you can chat with the people who run them. They speak to hundreds of start up businesses and can give you pointers or introduce you to a network. The above books are mainly around doing the smallest amount of activity to test and idea, to prove a specific case, to show you it is a good idea to take a next step. (rather than investing a years worth of development or effort to find out the initial concept was flawed)

You need collaborators, and people to bounce your idea off. You’ll need a support network, cos it can get pretty tough.

you’ll need a backup plan, luck and most of all you will need customers.

Good luck

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