With the growth in online business and solopreneurship, an average of 4.4 million businesses are now registered each year. Since the cost of starting one is so low, it’s easier than ever to become a business owner, and the low costs and barriers to entry are made possible by tools.
Whether you’re starting a new side business or creating a full-time venture, there are some tools you must have in order to make sure your business is successful. Here are some essential online tools that all business owners should consider when they start their businesses.
Essential Online Tools for Starting a Business
1. Business Formation Service
Once you have an idea of what business you want to start, your first step will be to legally form a business entity. There are a few main types of business entities new business owners choose from:
- Limited Liability Company (LLC): The most common business entity, LLC, offers protection from personal liability. It can also be used to protect assets that the company owns.
- C-Corporation: A C-corp is a corporation that can issue multiple classes of stock, allowing the company to raise money more efficiently. It also offers certain tax benefits, which best benefit companies planning to fund or go public.
- S-Corporation: An S-corporation is similar to a C-corp in that it can issue multiple classes of stock, but it differs in that it offers pass-through taxation.
Services like ZenBusiness take all the hassle out of business formation by handling all the paperwork for you. Rather than registering the company yourself, filing the documents, and waiting for approval, you can use a service and complete the process in under one week.
Many of these online services also provide operating agreement templates, compliance checklists, and other resources to help you get off the ground.
2. Online Business Banking
Any business owner needs to open a business bank account, even if you don’t plan on monetizing your company immediately. Not only does it prove your business’s legitimacy, but it also helps keep your personal and business finances separate.
You’ll probably be spending money on materials, software, web hosting, and other small expenses before you even begin to make any sales.
When choosing a checking account, make sure you compare the fees and services offered by each one. Look for features like cash-back rewards, zero minimum balance requirements, ATM access, and no monthly maintenance fees.
Mercury is a newer company that offers free business banking and checking accounts with no minimum deposits. Since it’s a technology company at its core, its interface, and integration-ready software make it easy to manage your finances from all angles.
3. Accounting Software
Once you have a business, keeping track of your finances is a must. Accounting software automates the process of tracking income and expenses, creating financial statements, and preparing tax returns.
Software like QuickBooks tracks your business’s finances in real time, helping you stay on top of all the data quickly and easily. The user-friendly interface makes it simple to create invoices, accept payments online, manage payroll, and do your taxes, all activities you may have to do if you scale your business beyond a single-person operation.
Even if you decide to keep your company to yourself, accounting software makes taxes and filing much easier by allowing you to keep track of all your financial data in one place.
4. Invoicing Software
Effective financial management is crucial for new businesses in the rapidly evolving digital landscape. Among the essential online tools for startups, invoicing software stands out as an indispensable component. Not only does it streamline your billing process, but it also ensures accuracy, improves cash flow, and saves precious time that can be reinvested into growing your venture.
In the realm of invoicing solutions, Billdu stands out as the top choice. Renowned for its user-friendly interface and versatile features, including automated invoicing, expense tracking, and real-time reporting, it simplifies and optimizes your financial operations.
By facilitating faster payment cycles and offering mobile accessibility, Billdu is more than just an invoicing tool—it’s your partner in propelling business success.
5. Domain Name Registrar
A domain name registrar is a service that allows users to choose a unique and memorable web address for their online business. It acts as an intermediary between the person registering the domain and the registry that actually stores all the information about that domain.
When selecting a domain name, you will first have to check whether the domain is available or not. Then, you will have to purchase the domain and renew it annually. Each of these steps can be completed with a domain name registrar.
The most popular domain registrars are NameCheap, GoDaddy, and Google Domains. For ease of setup and cohesion with Google Analytics and other software you’ll need, Google Domains is usually the best service to go with.
6. Website Hosting Provider
Once you purchase your domain, you’ll need to find a way to host it on the web. Web hosting is a service that allows businesses to host their website on the internet. This ensures accessibility for anyone with an internet connection, an essential factor for any new business owner.
Web hosting providers provide websites with the necessary infrastructure and software to run efficiently and securely, including high-speed servers, storage space, and data protection measures.
Depending on the type of website you plan to build, the hosting provider you select will vary. For WordPress, DreamHost is a popular service, but there are several alternatives as well.
7. SSL Certificate
An SSL certificate is a digital form of identification that helps keep your website secure. It ensures visitors to your website are communicating with the right server, and it also prevents hackers from intercepting personal data like emails and credit card numbers.
SSL certificates are required by law if you plan on setting up an eCommerce store or any other type of website where users input sensitive information (credit card numbers). Most hosting providers will offer complimentary SSL certificates, but you may need to purchase them separately.
Getting a good SSL certificate is essential for any business, as it helps build trust with customers and increases the security of their data. It’s also worth considering purchasing extended validation (EV) certificates, which are more secure and may help boost your search engine rankings.
8. Payment Platform
Creating an online store is a great way to expand the reach of your business, but if you don’t have a reliable payment processor in place, it can be difficult to accept payments from customers all over the world. Payment processors like Stripe make it easy to accept payments online securely.
Most payment processors integrate with a range of eCommerce platforms, shopping carts, and service-based sites, allowing you to set them up quickly and easily. Stripe also offers lower processing fees than other payment providers, making it a great option for businesses looking to save money while providing a secure payment experience.
Endnote
Starting a business can seem like a complicated and time-consuming effort, but the reality is that you can launch your business in about one day using these essential tools.
While it’s important to do your research and select the right solutions for your business, these tools will provide you with all the fundamental elements you need to start selling online.
