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by Scott Frangos

How much money do you need to start a web business? Well, most online business gurus will tell you that you need to write an extensive business plan before you can make a good estimate. What if you don’t have much funds available, and don’t want to take a loan? Great. At least that’s what Gary Reid, author of the book “The Web Driven Entrepreneur“, thinks.

“Next, think about spending some time and energy developing a program or service which you then give away for free. Huh? That’s right. Give it away for free.”

I think Reid makes some very interesting points about doing business online. Call him an anti-guru Guru. Throw out traditional marketing. Forget about a business plan. Start with the money you have in your pocket, right now. That’s where he’s coming from. Crazy? Not really. Mr. Reid gives actual examples where he’s followed his own advice, and where others have too. You can read the book for more details, but for now let’s just look at three interesting online business ideas — two from the book, and one about how the book itself was published.

There are a lot of ways to start a business online. Entrepreneur Magazine sells start-up resource kits for over 20 businesses involving ecommerce. How to decide which one? Reid advises that “when trends converge, opportunities emerge.” After first observing that a high percentage of new businesses fail, he counsels that if you can find a business idea that rides the wave of four or more current trends, you can increase your probability of success. Google up then, and start your research by typing in “Current Trends,” and see what comes up. Check and compare Google search term trends too.

Next, think about spending some time and energy developing a program or service which you then give away for free. Huh? That’s right. Give it away for free. Why? Because you can quickly gain many customers without much marketing expense at all. And, if you follow this strategy the way Mr. Reid lays it out, you pick a niche where you can duplicate services that others are providing for a fee, but give your own service away for free. How does that make business sense? Well, done correctly, this method grows a business to the point where its competitors, or another entrepreneur, would want to purchase your company and its valued customers.

What about writing a book, and selling it without first printing any copies? Produce a book only when a sale is made, and immediately ship it to your customer. Let’s see… little up front costs. No inventory costs. Nice. It’s known as “Just In Time” printing, usually abbreviated J.I.T. Yet another idea for which you don’t need much start up cash due to the wonders of modern technology. Did Mr. Reid detail that in his book? No. That’s how he produced and distributed his book (he is using a popular online service called LULU.com).

Find a convergence of trends and build a business that caters to them. Consider giving away an online service, then cash in on the back end. Write a book and produce it only after a sale is made. Talk about entrepreneur food. You can chew on these ideas here, and if you try them, be sure and let us know how it all turns out.

About the Author: Scott Frangos is Managing Editor for WebHelperMagazine.com, and writes the OpenSourceWebMaster.com Blog there. He also builds dynamic Blog and CMS websites with WordPress for WebFadds.com and is a college level instructor for Graphics and WebMaster subjects. He lives in the Pacific Northwest with his wife, Pepper, and their three dogs: Wisdom, Spirit, and Steggman, and is a great believer in the entrepreneurial spirit of online business.