Make sure you have a niche business. A niche has to be something specific. For example, if you intend on selling clothing, what kind of clothing would it be? Is it handmade clothing, vintage clothing, re-constructed clothing etc. This is important because this would be your business foundation and it's something that people would easily recognize as yours.

Once you start getting loyal clients, word would eventually spread out about your business. So when they need something like a vintage dress, they would immediately know where to go. So think of what kind of business you want to have and make it niche specific.

Definitely know your market.

So, you've finally settled on what you want your business to be. Now, it's time to do some market research. What would your clients like? What are the current trends? You need to be updated in order to bring your clients the best. You can enjoy online forums or communities that are dedicated to your chosen market.

For example, you chose to sell vintage clothing. Find out the kind of vintage clothing they are looking for. Is it from the 50's? The 60's? Knowing this would give you an advantage over competitors simply because the knowledge would enable you to cater to exactly what the market wants. Market research is also one of the most important aspects you have to cover if you want to make money online.

Now that you've got the second part covered, its time to move on to the marketing aspect of your business. How do you intend to spread the word out about your business and getting people interested in your items?

You can advertise through Google, which would cost you a bit of money, but at the same time it is proven to be effective. You can also take up ad space in popular websites that are related to the kind of business you have, which would, again, cost you money, but is an effective method as well. However, if you don't want to spend the cash on advertising, then you might want to DIY.

You can use social networking sites like Facebook or Myspace to get people to know and visit your business. Add people and message them about your business. It's free, but will take up a bit of your time. Nevertheless, it's just as effective as the first 2 options I mentioned.

After setting up the business, dealing with the advertising and getting the word out about your business, it's time to talk about maintaining your current clients and helping your business to grow. The point is that you need to have a good reputation to make sure that people come back for more business with you.

Keep in touch with them through a newsletter where you can update them with new products in your business. Having this newsletter would also make it easier for them to recommend you to friends who might be interested in purchasing items from you.

Keep communication lines open and be very cordial. Remember, negative news is no good, so make sure that you keep your businesses' reputation in order, if you want to continuously make money online.