If you've decided to start your own home-based Internet business, but don't quite know where to begin, don't worry! Starting an Internet business doesn't have to be complicated, overwhelming, or intimidating. With proper planning and a willingness to take action, your new business can be up and running in no time at all.

While it may be tempting to try and come up with the "next big idea" for a product or service, many people have found that the surest way to build a successful online business (i.e. one that makes money!) is to find out what people are already buying online. It's all very well to come up with some newfangled idea… but if no one wants to buy it… you ain't got a business! If, on the other hand, you can see what people are already buying – and how you can deliver a unique and better product or service that would appeal to such people – you are much more likely to have a money-making business.

So do some research and find out what people are buying. This will bring to light the various Internet-based markets for goods and services. Do any of these interest you? Can you see where there are gaps in what companies are (or are not) providing?

In particular, it's often advisable to focus on an area where you already have some knowledge and expertise. For instance, you may have some ideas for improving on the products or services already being sold. However, that doesn't rule out going into a totally unfamiliar market. If you wish to sell products or services that are new to you, you just need to find out everything you need to know about the relevant customers, products and services in order to come up with a superior, compelling offer.

Once you've worked out what you're going to sell and to whom you're going to sell it, the next step is to decide on what legal structure your business will take. Depending on the type of business you are planning to launch, you may or may not need to retain the services of a lawyer. However, it is important to investigate the business license requirements and zoning laws in your area. You don't want to start your online business only to end up with fines or even worse, being closed down because you have violated the laws of your community! Your local government should be able to supply you with the needed information, but you may also want to ask a lawyer for assistance.

An essential part of building your online business is selecting an appropriate domain name. It's often ideal to incorporate the name(s) of the products or services you sell into your domain name, as many prospective customers may search on such terms when looking for your type of product or service. Having these "search terms" in your domain name can also help your website achieve a higher ranking in the search engines.

After you have your domain name, you'll then need to establish your online presence. Before designing – or hiring someone to design – your site, think carefully about what your site is designed to do (e.g. encourage people to buy?) and how your site should be designed to maximize your desired results. Then pick a web host to host your site and either design the website yourself or hire someone to design it for you.

It can be fairly straightforward to build a website using templates and tools such as Microsoft Front Page. You can also find some helpful tutorials to teach you how to use HTML, the primary website language. However, if you lack the time or skills to design your website, it's wise to hire an experienced web designer.

Finally, with your website up and running, you need to promote your business and build your customer base. Your main goals are to generate traffic and convert into customers. It's also a good idea to offer your visitors something to entice them to sign up to a mailing list. With a mailing list you can regularly send promotional emails to prospective customers. In many cases, a percentage of those subscribers – those who didn't buy straight away – will buy from you because you emailed them. Just be sure that your emails give subscribers something of value – e.g. helpful information – and are not just annoying sales pitches.

Like anything, starting a home-based Internet business takes careful planning and, most of all, action! After you've planned how you intend to run your business, it's crucial to get it started. Although this can be daunting, by taking it one step at a time, you'll have your business up and running in much less time that it would take if you let yourself become overwhelmed.