To put it simply, an online business is any type of business that is run on the internet. It has its challenges just like any other business, but its biggest advantage is that it allows you to work from the comfort of your own home. To create a better online business, you must understand the concept behind it. So how do you take the first step in starting an online internet business? Here are some simple tips to follow.1. Make a full research about your businesses competitorsAll the information you need to know is readily available on the internet, so make the most of it. By knowing and understanding your competitors, you will be able to price your services or products competitively and set up an efficient marketing campaign.Additionally, use this knowledge to take advantage of your main rivals’ weaknesses and develop your own business performance. This will help you to accurately and realistically measure your likelihood of success in the future.2. Study web terminologies and familiarize yourself with different web toolsAlthough you might want to outsource the website work in the future, it is important that you fully understand what needs to be done prior to outsourcing it. In effect you should be in control of every single aspect of your online business. If a minor amendment needs to be done, you should be able to do it and not wait a couple of days for your web developer to do it. Doing things this way, will not only be cost effective but it will also help to keep you abreast of new technologies.3. Site TrafficThe key element in every internet businesses is traffic. This determines whether an online business becomes successful or fails. Traffic is the bloodline of any internet business. There are many ways to drive traffic to your website: from article marketing, submitting your site name to online directories, social networking to posting videos, promoting your online business will require a lot of consideration. Choose a method that works for you and stick to it until you see results, then move onto the next method.4. Build an e-mail listJust like with a brick and mortar business, customer service is important. By creating an email list, you will be able to keep in touch with your clients and create a better small internet business. An email list will allow you to track your customers, send them updates about your products or services, and ask for their feedbacks. By doing you will be able to address any issues and ensure that a better online business customer service is provided.5. If all fails, use site buildersFor people who want to put together a small internet business but are not internet savvy, there are ways in which you can build a better online business by using site-builders. This online solution basically sets up everything needed. From the design, web host, registering your domain name, to webtools for promoting your business. The only thing that you do here is to provide the content. The only downside is that you pay for their services annually.