We all know we’re in less-than-stellar economic times. Employment statistics are forecasting a very bleak outlook as well. So, is it really a good time to start an online business? Most definitely.

Internet start-ups have low overhead and start up costs—thanks in part to inexpensive e-commerce software and services on the market. What’s more, the business can be set up in a home office and attended to at nights and on weekends, allowing new entrepreneurs to keep their day jobs. Those considering becoming entrepreneurs can set up their online business in a matter of a few days.

Internet start-ups can be lucrative even in a down economy because online shopping is growing. According to the U.S. Census Bureau, revenues generated by online-based businesses (and the online aspects of traditional retail businesses) are up 13.4 percent. E-commerce is the remaining bright spot in the retail world today.

Keep these best practices in mind when starting an online business.

1. Find a niche or focus on a specialty
• Or focus on a specific category, like movies, but that’s all you do. But offer great custom service, such as making it easy to return movies.
2. Offer an innovative marketing technology.
• A good example of this is Netflix.com, a movie rental web retailer. The company is innovative in its focus on convenience.
3. Keep pricing in mind.
• Even if you are selling a niche product, always keep pricing a priority.

As an online business owner you are never going to compete with big box retailers, such as; Target or Wal-mart on pricing, but develop a promotion or value-added program you can offer that helps people take their minds off of pricing.

A unique product that solves a real problem, an innovative marketing technology and a promotion to help customers deflect prices are important business strategies during a recession because people have less discretionary money to spend.

“Entrepreneurs must focus on strategies to keep their customers coming back”