I enjoy learning about people’s interests, and what makes them tick. A couple years ago I became a “expert” in the ecommerce category of allexperts. At first I was going to do the category in import/export, but even still I am not an expert in international trade - my passion still is the MIX of internet, marketing, and business - which I would consider ecommerce.

It is great to hear about someone wanting to start their own online biz, and while I get a lot, this specific question posted asked me to outline the basic steps of starting an online business, which I then answered:

Answer
Hi Howard,
thanks for your question - well your question is rather open ended, and books are written about this, but i think you want a simple step by step process, here is my best shot:

1) pick a product line
normally, you want to do keyword research (http://freekeywords.wordtracker.com) and competitive analysis on this industry. But also keep in mind if its a product you want to deal with EVERY DAY, so you should have an interest in it. And even if its highly competitive, doesnt mean you can’t find a niche. Maybe you can take sneakers and target working class women who want to have a commuter style shoe.

2) wholesale / drop ship / affiliate -

will you buy your products up front (wholesale)? That may require a lot of upfront cash.  Plus you’ll have to warehouse the goods, and you or someone you gotta convince / pay to do it for you!

Drop ship is where a wholesalers allows you to resell their inventory on your own website / sales channel. Only when you get a online order, then you buy it directly from the wholesaler and they ship direct to your customer, as if it were your own shipment.

affiliate - this isn’t really ecommerce as the customers are sent to other peoples websites to buy, and you are paid a sales commission.

all of these are balanced by risk/reward in their margins. if you are wholesaling, normally you see the max profit margin but the highest risk of upfront capital outlay.

3) choose your sales channels & choose website / brand
i assume you will sell it online, via your own webshop website. But also consider multi sales channels, such as amazon and ebay. For your own webshop, choose a website domain that is catchy, but also contains keywords in the industry you’re targetting.

4) install / setup your webshop
This can be easy, or difficult. Its like anything, you can by a stock car and not customize it, or you can build your own hot rod. Depending on your budget, or your technical interest/ ability these are some choices:

prostores.com - connected to ebay, this is a scalable model as it allows you to start at $10usd/mo and work up as you grow. But I have some friends who take this website to really high levels and then have issues with customizing it

yahoo stores - another big one, i know a lot of people using it, but haven’t yet.

oscommerce / zen-cart - this is a bit on the “do it yourself” or “pay high price for technical people to do it” level. I would recommend this only if you are very advanced in ecommerce or have a big budget to pay someone to do it for you.

5) how will you collect customers money? (merchant account)
probably to start, you will just want to use paypal.com - as there aren’t any setup or monthly fees. But if you want to process a credit card, you will need a merchant account. Paypal does have one, but I would recommend a traditional one. I personally use merchantsolutionsllc.com and they have good staff and help you with questions.

6) promoting your website
this is obviously KEY - and should be in mind from the beginning. How will you tell people about your site? Internet, offline? How will you get people to buy? Online , there is advertising

(paying for it) - google.com/adwords - pay per click (doesnt mean they will buy) can be tricky, and can cost a lot of money quickly. watch closely.

organic - hit the pavement, get links to your site. get bloggers and other websites telling people to go to your site. Normally its done by daily work and passion - that is why you should be interested in your product, as this requires you promoting it daily.

social media (friends) - not as established, but getting more popular, as people recommend products/services to others.

7) warehousing / shipping - if you are stocking your products (wholesale), will you put it in your garage? rent your own warehouse? There are also businesses called “ecommerce order fulfillment” or 3rd party shipping centers that will warehouse and ship your products on your behalf, so you can focus on sales / marketing.

I hope these help, like i said at the beginning of this post, books are written about each of these points!

good luck!
Mike

Well, there was that answer. Hope my friends / blog readers get something out of this. I do have a passion for this ….but unfortunately I don’t have time to do it for everyone I know. I can give some direction / advice. And if you want to pay me enough, I can even do it for ya! Always looking to do some cross promotions or cooperations too. Love making business happen.

Sorry to those around me…but I am on a rampage the past couple weeks….I am just fighting like never before…..That is how I deal with things….I come at them head on.  I need to be aggressive….I didn’t come this far, all the way out here to China, to get lazy, drink beer, and try to get other people to pay for my life.

I came here to build a business.  I was considering the MBA investment, but I instead decided to invest in building a international business between China and USA.  To build a future for myself and for my family.  To build strong cashflows and a scalable business model.

And I see more clearly now, more then ever, what I need to do to make things work:

1) Focus on projects and clients that make money. Sounds easy, right?  Yea…sure, especially being in China, every damn day I get an email from someone who has “the next big idea” that I am so fortunate to be considered to help them source in China for them.  Sure, I love new opportunities, considering new business ventures.  And I am honored that friends and associates come to me with their “baby” that they lose sleep over.  But its also not fair for me to engage myself into a business that I cannot fully offer my time and support.  No matter what I say, I think I can have someone else manage the project - it seems to always come back to me and haunt me.  So I say FOCUS on projects that will bring steady cashflow or recurring revenues in a foreseeable future on a clear timeline.  No more “hail mary” passes for a while, I don’t have the time or the money to afford to use that time.

2) Surround myself with a qualified network - I don’t want to say those I may consider “un-qualified” for business are losers. I’m not some stuck up prick.  I mean building a network who can build off each other, in a similar field or product line.

I do ecommerce between USA and China.  And I focus in the home, bar, gift, and entertainment product lines.

So, while before I was expanding my network anywhere and anyway I could. I am realizing “quality over quantity” - similar to my FOCUS point above.  If you are in those fields above, then hopefully we can mutually help each other grow and succeed.  If not, maybe we can grab a beer at the bar on Friday and be friends.

3) Don’t be so concerned about others thinking of you - I think this has always been a weakness of mine.

part a) I am too nice, (yea…sometimes a pushover) - and then all of a sudden I will explode once I reach my limit in a particular relationship / confrontation.  Its extreme nice or extreme anger with me.  I know I should change this.

part b) I want to be everyone’s friend - I have been able to do well in “political” environments, where I am able to understand both sides of a given situation, be able to get both parties sides.  I am normally trusted to be given secret information.  And then I usually “win votes” to get elected president in my high school, university, fraternity pledge class.

I don’t want to give up those 2 images of myself.  But I am learning (especially in China) that (translated quote)

“If you make you’re self out to be an ass (donkey), people won’t feel guilty to ride you”.  I think thats the Chinese business environment.  Dog eat dog, survival of the fittest.  AND IT HAS CHANGED ME.

Changed for better or for worse?  Well, stronger for sure.  Hopefully not too “thick sknned” and insensitive enough.  But sure, we all change in life.  Its part of life, and growing as an individual.

So I apologize to those around me, staff, clients, suppliers, I have been on a RAMPAGE lately….really fighting to shape up the business around me.  I want things to get more clear, more scalable, and then hopefully I CAN TAKE A DAMN VACATION.

(note: this is my personal blog, I can say what I like, and you’re reading it this far because you must be interested).

Always since ive been in china i have had to coordinate with usa time schedule…..but the past week its become extreme….earlier this week and last i was working until 5 or 6 am….sleeping until 2 or 3pm
Wake up

11pm in china -  usa (ny) 10am  - europe (4pm)

Sleep

3pm china-  usa Nyc 2am   -  europe - 8am

But the other day….i decided to go the extreme….work completely usa schedule…..i was up over 24 hours straight (havent done that since college finals)….ending up almost crashing around 3pm….
Next day woke up (well, technically same day) at 11pm china time (10am in new york) ….and now working until 2pm china time (1am in nyc usa)….
I actually like this schedule…and will even keep it on weekends……i can go to the party and grrab breakfast on the way….

i’m back to doing USA business almost 90% of the time….think i really gotta get back to the usa and straighten some deals and alliances out.

Since Shadstone took over newyorkbarstore…. i have been seeking vigorously how to improve the cash flow, here are some ideas

I NEED HELP WITH #1…………….how to structure a deal like that…

1) PARTNER with a NY retail shop - we get so many people looking for our retail store…..this is my idea
a) CLOSE/ end my 3rd party warehouse contract in upstate NY - and ship all the goods to the retail location in manhattan (or a borough)
b) license the shop the newyorkbarstore brand (trademark) - would they have to put up a sign, or even change the name of their shop
c) at first give them consignment terms on the goods i have in the upstate warehouse but..
…. later turn them into a customer…? or ….this is where i’m not sure.
d) add this shop’s products to the newyorkbarstore.com online retail website.
e) how to approach these shops…. i made this list - http://www.newyorkbarstore.com/nyc_bar_restaurant_directory/

2) move my warehouse to california - for my B2B - and then diversify from just barproducts to all kinds of bar products - sending JIT to the NY store location (#1 above)
a) I already hve some stock in california, in the city of santa ana.
b) cali is closer to china / india so my shipping time is reduced as well as my shipping costs
c) sell B2B from california, and using the NY location as a retail and geographical location.

3) build more online retail shops selling directly from my office in shenzhen.

I should be in NY sooner then later……but first want to get some warm leads and deal structure before going there….with the purpose of going there to sign and executre #1

going through my list of NYC friends and contacts…..gonna be busy making calls and talking shop - seems i’ll be on USA time frame for some weeks to come…

This longggggg China New Year holiday drives me insane - as I’m sure a lot of other business owners (chinese and foreign) - it still amazes me how a country of such size and current global influence can completely shut down - so many of my favorite restaurants are still closed. Things should start opening up again friday and the weekend, and then China will be back to business as usual.

I hope my pictures aren’t getting too boring - more empty office pics below. but this is about all i see each day as I come to work during the holiday…

But in a way, a holiday this long makes everyone reflect on what they are doing with their lives, and what they want to do in the future. So many discussions with people on chats and in dinners these days about how they like or dislike their job, the way their career is going, the business they are in. Its like a fresh start for some, as they don’t return to their old companies after the holiday.

This is scary for business owners, as some factories and offices have some of their top workers not return to the office after the holiday….without even a notice. The worker just decides they need a change in their life, want to stay in their hometown with family, it doesnt even have to be about money! (well, usually it is, heh)

But this holiday has allowed me to focus on USA business. I’m on 3rd shift (almost) waking up around 1 or 2pm in China, and working until about 3 or 4 am. Afternoons are emails, accounting / financing, and planning. Then normally a dinner or drink with s ome friends in shenzhen - then back to the office to crank out some phone calls or USA hour type work.

Wondering if I should stick on this schedule after the holiday or not……..

Seems more and more I do USA business - its just what I am strong at, and I should focus on my strength. Let the staff manage their projects in the morning, I come in after lunch, check on progress, do my emails and planning with them. Grab dinner, then do USA calls.

I guess its like the saying goes “be careful what you wish for”. My previous office, was 1 massive room with a glass dividing wall between the office and the main room - NO privacy. So looking to move, I wanted to have multiple rooms, and areas that I could have private meetings with staff and visitors. Here is a pic of my new office, on the top floor (i’m in a multi-level villa now)

Sure, its a sweet place. I love the “dirty” industrial feel, paint chips on the wall - think it was a CNC machine shop before I moved in, as there are tons of vents and hookups connecting different rooms (and a old sign with a CNC machine to give it away, heh)

But this is what I like - a down and dirty, no frills - flexible work space. But the staff is downstairs from me……I think they’re happier as now I have to yell from upstairs and its more difficult for me to do “gut reaction” responses. I have to plan my trips to talk to them more. I create more scheduled meetings. I’m more of a boss now. Scary guy upstairs in his private office……getting called here is a big deal.

But I dont like being the scary boss. The guy in the office calling people in. I want to be the friendly, approachable person. That you can feel comfortable around, share your ideas. Be creative.

But maybe I have to change, at least maybe in China I have to change. I keep getting told “if you are too nice, people will take advantage of you”. Or the saying “if you make yourself out to be an ass (donkey), others won’t have a problem riding you”. And sadly, I think that is the chinese culture. The boss has to be strong. The boss has to be firm. He has to put others in their place, tell them what to do, and not give them options.

My problem is I try to give people options. To be more diplomatic.

So, as I am going through such a huge transition - office move, business re-focus and consolidation into US ecommerce, and cultural challenges….I’m getting the feeling of being left alone in an office. Day and night.

Sure, I keep saying, I will automate my work, I will create workflows. I will be able to travel. I think its getting closer to that, and I need to travel, I need a vacation.

So maybe separating my office from the staff is good, in the long term. I want them to make decisions independently, so that they can manage themselves. This, then, will make the company work on its own - not by my “micromanaging” each step of their job. And hopefully decrease my stress level.

Just sharing my ideas, and feelings. Maybe this is the next step - and maybe this office will be empty a lot as i’m traveling to Thailand, USA, or wherever. That is what I want to do, build international business relations. Strategic alliances. Doing deals, making things happen - so I should be lonely in my office, the days I am working, and get the job done that much faster and more efficiently.

Have to share this greatttttttttt email I received today, makes me sleep well at night. Unreal people out there like this. But I want to share, some of the after effects of firing someone. The guy lost me customers, was lazy, and did his own work during company hours.

Anyway, received the below email (exact copy / paste) from a yahoo email address.

hello sir

THIS IS AN EMAIL TO ASK YOU FOR A FEW DETAILS FOR MY COMPANY AS I HAVE BEEN ASKED TO OBTAIN THEM DUE TO YOUR RECENT DISERGREMENT WITH (_____xxxxx I deleted this name) OVER PAY, I WOULD ADVISE YOU THAT WE WILL BE SEEKING TO TAKE YOU TO COURT OVER THIS MATTER AND NOT JUST THROUGHT LOSS OF MONEY BUT ALSO COMPENSATION AND ALL LEGEL FEE’S FOR THIS MATTER, CAN YOU PLEASE SEND ME YOU CONTACT DETAILS AND IF YOU HAVE A LAWYER THERE DETAILS ALSO SO WE CAN DEAL DIRECT WITH THEM IF YOU LIKE.
I MUST ADVISE THIS IS SEPERAT FROM THE ACTION THAT WILL BE TAKEN BY THE CHINA EMPLOYMENT OFFICE THAT WAS INFORMED ON THURSDAY LAST WEEK AND ALSO THE TAX OFFICE THAT WILL BE INVESTIGATING YOU FOR TAX, I WISH YOU COULD HAVE DELT WITH THIS MATTER IN A DIFFERENT WAY BUT AS YOU SEEM TO THINK THAT MARK IS A PUSH OVER THEN I WILL BE HANDLEING THIS MATTER MYSELF,
I WILL ALSO LIKE TO ADD ON A PERSONAL NOT I KNOW YOUR DETAILS AND WERE YOUR NEW OFFICE IS ALREADY AND ITS ONLY MARK THAT IS KEEPING ME AWAY FROM COMING TO SEE YOU PERSONALY IF YOU GET WHAT I MEAN AND AS FOR YOUR CHINES GIRL THE ONE THAT SORTED OUT THE PAPERS I HOPE SHE ISN’T AFRAID OF THE DARK AND HOPE YOU ARE NOT TOO AS THINGS CAN HAPPEN ON A DARK NIGHT GOING HOME, I HOPE YOU COME TO YOUR SENCES BEFOR ITS TO LATE AS I AM JUST WAITING FOR PEMISION FROM THE LOCALS TO ACT AS MOVING AGAINST YOU WILL BE OK BUT TO MOVE AGAINST ONE OF THE LOCALS IS NOT ALOUD WITHOUT PERMISION FROM THE TRIAD.
HOPE YOU HAVE A NICE DAY
AND THANKS

Imagine this guy? Anyway, should I carry a knife with me when I walk outside? He even threatens my admin - a 24 year old girl! Jeeeeez, you can threaten me, but a young Chinese girl? amazing. Doing some research, I quickly found out who the person was, even though they seemed to try to hide it.

Imagine all the threats I’ve received my whole life. One boyfriend who got upset with me because his girlfriend liked me (he jumped me with 3 of his friends in a park), others about buyouts of products and business. Others about gossip in high school. The list does go on. Maybe I’m a bad guy? Sometimes I just have my breaking point. Nice up to a point, and if someone keeps pushing me, I switch from nice to cold.

I guess its part of running a small business. And being a solo foreigner far away from friends and family doesnt help either….

Man, this is the ultimate t-shirt I found on busted tees.com UKRAINE IS WEAK.  (hint for a late christmas gift to get me!) No, no, I am not picking on the actual country Ukraine, what I am referring to is a Seinfeld TV show where they are playing a game of Risk the entire episode.  Later they are fighting on a subway in NYC and one of the players loses in Ukraine being told “Ukraine is weak” - unfortunately for them, tehre is a real Ukranian on the subway metro line with them…that is big, strong, and angry yelling Ukraine is STRONG!  Below is a picture of the game… RISK - the game of global domination.

I miss those holiday nights playing board games with family and friends.  Normally I was the one pushing my dad, mom, and sister to play monopoly or risk….I loved the competitiveness of it, trying to win and dominate the board as quick as possible.

The best times playing Risk was my Hartford, Connecticut buddiges Briam (magoo), Scott, Steven, Katie, and Andrew…..usually over some whiskey, snacks, and a long evening.  We would be pretty competitive…..all trying to annihilate one another…..

I think these games got me started on my pursuit of international business….and I still almost look at life like a board game of Risk…..countries, armies, attacking ,defending….

Yea..sick….nerdy…crazy…I know - but hey, this is my blog and I’m gonna tell it how it is.

wondering if my uncle is giving me a hint a bout my being a dreamer …. and artist…. in some way…he just sent me this email

DEAR MIKE,
I THOUGHT YOU MIGHT BE INTERESTED IN THIS ARTICLE. PARTS OF IT, I BELIEVE COULD PERTAIN TO SOME WHO ARE NOT ARTISTS.
……. ((((rest deleted from this blog entry)))……….
LOVE,
UNCLE BILL

here is an excerpt from the article - full article is by Lori Woodward on clintwatson.net 20% Dream and Scheme, 80% Do

The World Needs Dreamers Who Perform

Now don’t get me wrong… Dreaming is a great thing because the world needs dreamers. Most artists are dreamers by nature, but the hard cold fact remains that if we spend the bulk of our time dreaming and scheming, and not creating great work, our dreams are not likely to ever come true.

Ask any successful artist how much time he/she spends actually creating artwork, and you’ll find that time in the studio far exceeds time either planning or dreaming. You see, they settled on some plans and dreams early on and then took immediate action in pursing those dreams. I am honored to call a handful of highly successful artists my personal friends. I see how they conduct their careers and their marketing efforts. They all have one thing in common… they are productive. They paint/work whether they feel like it or not. They put the horse before the cart, first creating a dynamite work and afterwords, they apply the best marketing tools to get their work before collectors’ eyes. In fact, these artists didn’t have a hard time getting into galleries because the quality of their work is evident.

I’m going out on a limb here, and this might make some of you angry, but I have to say it because this is what I believe…

While I am not an artist in the true form, I believe in a way I am a dreamer therefore a creative artist in business / internet.

This photo below taken by my good friend Scott Katin, shows my gazing into Duck Pond in Yellowstone NAtional Park, USA back in summer 2003.  I still look at this photo and think of how much I dream and set goals in the sky.

So many times, family, friends, and even work colleagues tell me I need to make a more defined path.  A more defined goal with a milestone chart to get there…..

But I don’t think any plan could have gotten me where I am.  And if I had set this plan back 5 years ago, would it restrict me from getting where I am today?  Would I look at that plan and path and not stray from it, for fear of losing control or losing track of where I was going?

I am a trailblazer…I like to open markets, create opportunity, create jobs and new business.  I am not a manager…..I always feel I will create the opportunities, get the basics of sales, marketing, and operations established and I will have a manager come in later and straighten out the details.

Is this unrealistic?  Idiotic?  Cocky?  I don’t know….sadly as I move along in life, I feel more and more let down by those I feel who are to manage what I have trailblazed. But is that really my own fault for creating a mess and not able to be transitioned over properly?

I am a dreamer.  I believe I perform…..I execute…..maybe I perform TOO QUICKLY?  Or without enough planning.

I think life is all about growing as a person, learning who you are, and how you interact with others.  I’m just afraid that I don’t pay enough attention to detail, am a forceful / dominant personality, and cannot contain people who try to “manage me”.  I don’t mind someone managing a company or a project that I am involved with….but…

I am an artist….and I don’t want to be managed!

If you’ve been following my blog, you will see posts about my difficult experiences dealing with Bank of America as I’ve been overseas in China and Asia.  Two of specific note include:

More Bank of America Fights - International  Travel Issues

Thank You For Calling Bank of America

*Image, credit,  found from PPC for Hire blog

Now, originally when I posted about my issues, I didn’t expect to get such a strong effect in google.  but I am ranking for many terms, such as Bank of America international travel, bank america international travel, bank of america online banking issues, and international phone number, the list goes on and on as I check my server log and traffic stats.

Here’s a specific example, out of 37 million pages, this blog is #4 for Bank of America international travel.

And the blog post that is there in Google is talking about ………..PROBLEMS I AM HAVING WITH BANK OF AMERICA………

Now, why doesn’t an internet marketing person at Bank of America contact me???  Its been there for a year at least now…Reputation management must be address by these large companies.

What is reputation management?  Basically its MONITORING YOUR BRAND.  With the internet being so open, and so many people going to Google, Facebook, Twitter, and other web destinations - bloggers and people are there. Talking, discussing their customer experiences with businesses.

A good company MONITORS this.  They RESPOND to what people are complaining about,  or at the very least , address it and say its something that has to be this way for a certain reason - legal, policy, blah blah.

But, imagine for a minute - that on my blog, I receive a comment from a Bank of America marketing representatitive.   They would address the issue I have been having, explain why it is the way it is, maybe even FIX IT.  Or note it for their management meetings.

That is what is support to happen.  And the companies that are most active on SOCIAL MEDIA and responding to the blog posts, twitter messages, and facebook chats - as well as  ton of other websites - they will gain valuable connection to their customers and differentiate themselves from their competition.

I know….. BANKS, INSURANCE COMPANIES, they don’t care about their customer, the customer has to put their money somewhere, has to get insurance.  But I hope one day there is a disruptive new bank or insurance company that is more “online aware” and I see many internet people, bloggers, and younger generations will sign up

Lets see - maybe this latest post will get some attention at Bank of America.  I want to test them, I have no problem putting a note at the end of those earlier blog entries saying I am impressed Bank of America contacted me about my issue and at least explained why its the way it is (government, security, legal, policy, etc)  That would make my day.