How to Become a Bank Manager

Deciding to Become a Bank Manager

Know what a bank manager does. The main tasks of a manager are: 1) to promote the bank in the community in order to attract business; 2) to hire and train personnel; 3) to set sales and lending goals; 4) to pass on information from higher ups (regional managers or vice presidents) such as lending standards or particular products to be marketed; and 5) to report the branch’s performance to higher ups. CVTips offers this as a typical daily schedule for a bank manager.

·         8AM: Daily staff and management meeting.

·         8:30AM: Office correspondence and administration.

·         9AM Meeting with local business regarding loan.

·         9:12AM: IT systems problems.

·         10AM: Customer complaint meeting with clients.

·         10:30AM: Office correspondence and administration.

·         10:45AM: Mortgage rescheduling meeting.

·         11:30AM: Auditors committee meeting regarding major delinquent accounts.

·         1PM: Lunch.

·         1:10PM Client demands to see the manager.

·         2PM Meeting with debt collection agency manager.

·         3-5PM: Loans approvals with six clients.

·         5-6PM: Office correspondence and administration.

Consider if you have the personality to be an effective bank manager. To be a good bank manager, you will need to be adept with numbers and finance, but even more importantly a “people person”, since the main job of a manager is to promote and sustain positive relationships with customers and staff.

Be aware of the career path for bank managers. The average bank manager make about $50,000 a year, with beginning managers making closer to $40,000, though these number do vary by region. The next career step is to become a vice president and branch manager, then a regional manager.

·         A vice president and bank manager makes an average of $67,000 annually.

·         Regional managers make $106,000 per year on average.

·         Regional presidents, in charge of all branches in a given area, make an average of $176,000 annually.

Obtaining the Necessary Qualifications and Skills

Get a college degree. A degree in finance, accounting, business administration or a related field is required at almost all banks. While in college, you will want to complete courses in business, finance, economics, accounting, marketing, and communications in order to best position yourself for the job. Attractive candidates will also have an MBA in finance or accounting; indeed, some banks require them.

Complete extra course work. Doing specialized course work covering various regulations or aspects of banking can improve your chances of being hired as a manager and lead to faster promotion. You can complete coursework through professional banking associations:

·         The Banking Administration Institute offers online courses covering particular regulations, as well as certificates in auditing, risk assessment (reviewing and approving loans), and anti-money laundering.

·         The Mortgage Bankers Association offers classroom and online courses covering all aspects of residential and commercial mortgage lending, as well as certificates in residential underwriting, loan origination and servicing, and commercial servicing, and the prestigious Certified Mortgage Banker designation.

·         The American Bankers Association, which caters in particular to small hometown banks, offers online courses leading to a branch manager certificate.

Work in a bank. To become a manager, you will typically need at least 2 years of experience, and preferably 5. You can start in college with internships or part-time jobs to gain experience. Many future managers begin working as loan officers or in accounting before moving up to assistant manager, then manager.

Acquire the necessary skills. Because bank managers are in charge of all aspects of a bank, they will need a broad set of skill and knowledge, including.

·         Detailed knowledge of the financial and banking sector, particularly in the areas of personal loans, commercial loans, and mortgages.

·         Knowledge of the latest rules and laws governing the banking sector.

·         An understanding of marketing and sales techniques.

·         The interpersonal skills needed to hire, train, and manage employees.

·         The ability to deal with customers with tact and confidentiality.

Getting the Job

Work your way up through the ranks. Bank manager is not an entry-level job. One of the most common paths is to work your way up through multiple jobs at a branch, giving you a feel for how the bank operates. Any position within a bank can eventually lead to your becoming a manager, though being a leader in loan generation will put you in a particularly good place to apply for the job.

Enter a manager training program. Many banks have training programs for students just out of college or for people transitioning from another career. These programs typically provide training and place you in a given track within the bank, such as finance and accounting, corporate banking, retail banking, or mortgage banking. Continuing education is provided and after a few years, you can apply for a management position.

Network with other bankers. If you don’t want to wait until the manager of your bank retires, you’ll want to network with other bankers in your area, particularly those in our same company if you work for a large bank. That way, when a position comes up, the people doing the hiring will think of you.

·         Join a professional network like the Career Banker Association or the Bank Administration Institute.

·         Use career development courses to learn, but also to make contacts.

·         Attend civic events like the opera, speeches, or balls.

·         Tap into your alumni network and attend alumni events.

·         Choose an important local non-profit to get involved with and use it as a means to connect with both the community and possible contacts.

Get the most out of your network. Simply handing out and gathering up business cards at these functions isn’t enough. To get the most out of your contacts, you’ll have to cultivate them:

·         Keep a list. Make a spreadsheet with the contact info of people you respect and would want to work with professionally in the future. Depth is more important than breadth. Save these spots for people who want to help you as much as you want to help them.

·         Schedule follow-up. Put entries in your calendar reminding you to follow up with contacts every two or three months. Ask them how they are doing, and if you can help out in any way. Being helpful is the best way to cultivate contacts.

·         Stay in touch in other ways. Pass along blogs or news stories you think your contacts would like. Connect to them on LinkedIn and keep track of their status. If they are promoted, congratulate them. If they are laid off, offer support. If you have a recreational activity in common, send them articles about it. Thank them if you take their advice and it helps.

Keep an eye on the job banks. Ideally, your network will alert you of any jobs opening up, but to make sure you have all your bases covered, you should also check the job banks regularly or set up an alert to notify you when jobs of interest come up. The best job banks can be found on sites that cater specifically to the banking industry, like American Bankers Association or the Bank Administration Institute.

You Can Start Business for Free

1. Blogging

While not a new concept, monetized blogging is always a popular option for an essentially no-cost business.

There are tons of options when it comes to making money from your blog, such as affiliate partnerships, producing ebooks, offering online courses and webinars. Some of these work better than others, as and certain blog niches will be more popular and easy to monetize than others. For instance, beauty, food, and parenting blogs are some of the most popular niches, and will, therefore, be easier to monetize (though you’ll also face stiffer competition).

It’s worth mentioning, however, that monetizing your blog will work best when you choose a subject that you are actually passionate about and personally invested in to blog about. So, this route works best if you’re thinking, “Yeah! I’ve always really wanted to start a blog about my love of handcrafted artisan chocolates!” (or whatever else gets you going). Merely wanting to make money isn’t enough.

2. In-home child care

If you love children and have a good setup for it, turning your home into an in-home childcare facility might be a great option for you. There will be associated fees and licensing requirements (which vary state by state), but these aside, the costs associated with starting a childcare business are minimal to none.

To start, check out our article on starting a daycare business, which will walk you through all the steps you’ll need to go through to get your business up and running.

3. In-home dog care

In a similar vein, if you love caring for animals, consider setting up a doggy daycare business. You can operate during business hours, for folks who need someone to watch their dog while at work, or you can look after dogs for people while they are out of town.

In addition to being low-to-no-cost, the skill set you need is pretty self-explanatory: experience with caring for dogs, and ability to patiently and carefully look after them. If you’d love to start a dog care business but haven’t spent a ton of time around dogs, consider volunteering at an animal shelter first.

Check out DogVacay to get a sense of what this looks like, and what other sitters are charging in your area. You can even list yourself on the site!

4. Pet services

On that note, why not start a business that encompasses all of the smaller details of pet ownership, such as taking pets to grooming or vet appointments, dog walking, pet sitting, and so on?

Mix and match services depending on what works for you; you could easily start a business involving full-service pet help, including walks, trips to the groomer, sitting during the day, and so on.

5. Dog training

If you’re great with dogs, you might also want to look into starting a business as a dog trainer. Be aware that as with the other pet-related business suggestions your business will fare best in an area where demand is high—one where there are lots of dog owners.

Beyond this consideration, starting a dog training business can be a great, cost-free business to start, especially if you have experience working with dogs or are able to learn. Consider shadowing at an established training facility to find out more about the process, and check out this article from the Animal Humane Society on becoming a dog trainer.

Tip: Establish relationships with vets—getting a vet to refer clients to you can be an invaluable way to bring in business.

6. Freelance writing

Are you a strong writer? This one is a no-brainer. If you have solid writing skills, consider starting a business as a freelance writer.

To build up your portfolio and client base, you may want to start with a site like Upwork (and check out my article on using Upwork to find great freelancers—it’ll give you insight into what to do, and what not to do!).

7. Freelance editing

Similarly, if you have a great eye for necessary structural changes and enjoy editing for grammar and punctuation, you may want to consider starting a freelance editing business.

As long as there is written content, there will be a need for editors (this blogger discusses an instance in which her roommate and fellow editor took on an entire thesis over the weekend) so if you have writing experience and a good eye, freelance editing may be a business idea to consider.

8. Resume building

Maybe you’ve worked as a hiring manager for years, and you know exactly what employers are looking for. Maybe you are a graphic design whiz and love creating a polished, professional-looking resume. Maybe you also have a great eye for detail (and I mean great—no mistakes allowed here!).

If so, consider starting a business as a resume builder. There are multiple ways you could approach this; some services specialize in editing existing documents, while others will build an entire resume—graphics, content, and all—for a considerably larger fee and time expenditure. What you choose will depend on your skill set, but both are viable options for free businesses to start.

9. Logo and image design

If you’re artistic and good with Photoshop, consider starting a logo or graphic design business. You can list your services on sites like Upwork, 99Designs, or any of the number of other freelance sites available to help build a portfolio and a client base to start.

If this sounds right up your alley, check out these resources from How Design, geared toward those interested in freelance graphic design or starting a design business.

10. Etsy business

While some Etsy businesses have a cost component associated with starting (think jewelry making and other crafts where materials are involved), there are some products that can be sold on Etsy that involve very minimal startup costs.

For example, if you’re a designer but not much interested in logo creation, digital art and other printables such as to-do lists and calendars are hugely popular on sites like Etsy.

A basic search of the term “printable” should bring up hundreds of ideas, with everything from wedding invitations to word art. The beauty of this business idea is that you simply create the image and list it; once it’s purchased, your customers do all the work.

11. Consulting

Starting a consulting business is always a popular free business to start. The type of consulting you choose to offer will depend on your skill set; do you have a social media marketing background, or maybe you’ve got legal experience?

Look at your skills and your previous job experience and see what you could bring to the table that others might not have your expertise in. Check out Neil Patel’s article on lessons learned starting a consulting business for an in-depth look at the process.

12. Errand runner or jack of all trades

Have you heard of TaskRabbit, the site where you can essentially ask anyone to do any task for you—no matter how menial? (Though I assume you’d get a few funny looks if you asked someone to help you open that tricky jam jar.)

Consider employing a similar idea, and start a business as a jack-of-all-trades or general errand-runner. Someone needs dry cleaning dropped off, groceries purchased, or old clothes donated to Goodwill? You’re on it. For even more specificity, you could consider choosing a niche, such as running errands for seniors.

13. Building websites

If you know how to set up a killer website, you’re in luck—most people don’t, and the demand for high-quality business websites is only continuing to grow.

Before you jump in, check out this article, 10 Things I Wish I’d Known Before Starting a Web Design Business—you’ll learn that the biggest competitor to your web design services isn’t other designers, but business owners who choose not to hire anyone at all. So, how will you make yourself seem invaluable?

14. Programming

While it is possible to teach yourself programming and build your own app, programming services will always be in high demand. If you are a skilled programmer, you can start a business with no money offering your programming skills.

Here are some useful tips for landing your first clients as a freelance developer, and if you’re interested specifically in building apps, 

15. Driving for Uber

Do you have a car (more specifically, a 4-door sedan, year 2001 or newer)? That’s about all it takes to become an Uber driver, along with at least three years of driving experience and a clean record.

If you have the above, starting a business as an Uber driver can be wildly lucrative. While you may not reach the heights of the so-called “Uberpreneurs” who make upwards of $200,000 a year, it can be a great free business to start.

16. Music lessons or tutoring

If you are great at a specific school subject or play a musical instrument, consider starting a tutoring business. The possibilities are nearly endless, enabling you to specialize in your niche skill set or interest (though you may have more luck as a general English tutor and not, say, as a specialist in 19th-century Gothic Literature).

This article gives you an inside look at what it takes to start your tutoring business, and check out this Udemy course on starting a tutoring business too.

17. Language teaching and practice

If you speak more than one language, you have a golden opportunity to start a business teaching a language, or holding language conversation practice sessions.

In addition to the resources above, check out this article by Tammy Bjelland, who started a language teaching and consulting business. If you’re wondering where to list your tutoring services, there are plenty of options beyond basic Craigslist.

18. Virtual assistant

If you are organized and can easily accomplish tasks in a timely manner, consider becoming a virtual assistant. Virtual assistants handle scheduling, bookkeeping, and various other administrative tasks remotely from their home office; similar to freelancing as a writer, editor, designer, and so on, virtual assistants can build up their client base and experience on sites like Upwork.

For more on becoming a virtual assistant, check out The VA Handbook, a site dedicated to helping others start and manage their own virtual assistant businesses.

19. House sitting

Okay, sure, you’ve done house sitting for friends before—but can you turn this into an actual, profitable business?

Turns out you can—by building up a reputation of respectful, trustworthy behavior, keeping client needs first, and thinking about what they would want in a house sitter.

Good references are of paramount importance when starting a house sitting business (though experience managing a home, caring for pets, and conducting minor lawn care are also important). That being said, building these up, in the beginning, may be as simple as finding families in your social circle who are going out of town this summer!

20. Home organization

Do you love to keep a clean, tidy home? Does the idea of visiting The Container Store fill you with excitement (don’t worry—you’re not alone)? If so, you may want to consider offering home organization services.

To get a taste of what the process of becoming a professional organizer looks like, check out this article on Organize 365, where blogger and professional organizer Lisa Woodruff discusses the process and offers tips.

21. Professional finder

While this may be one of the more unusual suggestions on this list, if you have a knack for finding things, you may be able to monetize this service, at no cost to you.

You may be asking, “Okay, great; but what am I finding, exactly?” According to this article, the possibilities are nearly endless. From family genealogical information, to classic cars, to old records, to perfect roommates, if you are good at tracking down the perfect thing or piece of information, you may want to look into it.

22. Drop shipping

I won’t even begin to get into drop shipping here—especially when Shopify has such an excellent drop shipping guide already.

The appeal of drop shipping is obvious: it involves little when it comes to specific skill set, can be done from anywhere, doesn’t involve startup capital, and can be hugely lucrative.

23. Gardening and landscaping

If you have a green thumb, you might want to consider starting a gardening or landscaping business. If you have basic mowing, pruning, and lawn maintenance skills, you’ll likely find that the bar to entry for starting a landscaping business is fairly low.

The more complex the process (i.e., more complex irrigation techniques and similar) may require additional learning, through a course, degree, or mentorship.

Though the latter does take away from the “free” aspect of starting this business, it’s still worth looking into (and perhaps you can mentor under an expert in the field to learn new skills at no cost). For more on starting a landscape gardening business.

24. House or office cleaning

Cleaning businesses are incredibly appealing due to their low cost of entry—it essentially comes down to the cost of cleaning materials alone. Not only that, but you can guarantee that cleaning services will always be in demand.

We’ve covered the entire process of starting a cleaning business in our How to Start a Cleaning Business guide, right here on Bplans.

25. Event planning

We’ve covered the process of becoming an event planner extensively here on Bplans, including my articles How to Make More Money As an Event Planner, 11 Resources You Can Use to Grow Your Event Planning Business, and our free wedding and event planning sample business plans.

An event planning business can be a great free (or at the very least inexpensive) business to start; you primarily need a computer and capital to create a website and any branding materials. In addition to the links included above, the Event Manager Blog has plenty of great resources (such as this article on How to Start an Event Planning Business).

26. Sewing and alterations

If you’re a skilled seamstress or someone with a desire to learn, you may want to consider starting a sewing or alterations business. Startup costs are virtually nonexistent, provided that you already have a sewing machine and the necessary skills (and even if you don’t, these one-time expenses are still fairly low in the grand scheme of new business ventures).

For more, check out this extensive guide: Profit from a Home Sewing Business.

Ready to start your business?

If you’ve found the perfect business idea, great—it’s time to get started. When you’re ready to start planning your new business, check out our business planning guide for more information, or check out LivePlan, our business planning software!

How to Start an Ebay Business

1. Decide what to sell

Pick a product that works for you

One of the first things to consider when you want to start a business on eBay is what you’re selling.

Figuring out what to sell isn’t something only aspiring eBay entrepreneurs need to do; it’s key for anyone starting a business. What service or product is a good fit for you, for your location, over the long-term, or just for the moment because it’s selling like hot cakes?

Factor in shipping and storage

As you work through the process of deciding what to sell, remember to keep things like shipping and storage costs in mind. Mailing a USB drive is a whole lot easier than a billiards table. If you’re thinking of selling fragile items, consider the extra packaging costs and the potential for breakage.

Be aware of restrictions

That said, you’re free to sell pretty much anything—well, almost anything. Ebay does have a list of things you cannot sell, or that have restrictions. It’s worth reviewing the list as it does include things like art, event tickets, and gift cards.

Start with what you know

If you’re not sure what to sell, it’s a good idea to think of what you love and what you know. Do you have a hobby? Perhaps you’re an avid collector of Polaroid cameras and you know everything there is to know about how the products have developed over time.

We suggest picking something you know because an important part of selling on eBay is knowing what the market for these items looks like.

Ask yourself:

• Is it in demand?
• What do people looking for it consider before buying?
• What does it typically sell for?
• How should you describe it?
• Where should you list it (category)?
• Do you know where to get ahold of it at an affordable price so that you can resell for a profit?

Of course, this doesn’t mean you can’t pick something you’re less familiar with. If you’re a great researcher and are looking for a new hobby, perhaps now is the time to branch out.

Tip: If you love doing market research, Terapeak is worth a try. You can use Terapeak to get access to inside information on how shoppers are behaving, and how products are performing on eBay, Amazon, and Alibaba. You can try it free for 30 days.

Research popular products

Ebay has a great section on “what to sell” on their site. Electronics, fashion, and collectibles are consistently listed among the most popular categories.

Popular selling items in electronics in 2018 include:

• Game consoles
• Mobile phone accessories
• Laptops
• Bluetooth speakers

A word of warning regarding electronics: If you’re just getting started, it might be good to stay away from them for a while, especially if you’re selling second-hand electronics. Figure out how the site works before you have to deal with complaints and returns, regarding faulty monitors, keyboards, or hard drives.

Popular selling items in fashion in 2018 include:

• Athletic shoes
• Accessories like belts and sunglasses
• Replacement bands for smartwatches
• Makeup
• Hair accessories

Popular selling items in collectibles in 2018 include:

• Stamps
• Coins
• Trading cards
• Gaming sets like Magic the Gathering and YuGiOh

2. Set up your eBay store account

If you’re going to be listing a lot of items each month, an eBay store is a good idea, if for no other reason than because it will save you money.

Normally, when you list items on eBay, you are doing so as a member of the general public and you do not need to commit to any monthly fees. With an eBay store, however, you are required to pay a monthly fee. You can decide on a package that best suits your needs and keeps costs relatively low.

At present, eBay offers five store packages with varying discount structures:

• Starter: 100 free fixed-price listings/month and costs $4.95 per month (billed annually)
• Basic:  250 free fixed-price listings/month and costs $21.95 per month (billed annually)
• Premium: 1,000 fixed-price listings/month and cost about $59.95 per month (billed annually).
• Anchor:10,000 fixed-price listings/month and costs $299.95 per month (billed annually).
• Enterprise: 100,000 fix-priced listings/ month and $2,999.95 per month (billed annually)

A store is a good idea if you don’t have an ecommerce website and you want a more personalized place to direct people to. It’s also a good idea if you sell a lot of similar products. People may want to browse and see what else you have.

Africa Direct’s eBay store is a great example of a store that operates as a website in micro. Given that it’s so easy to purchase on eBay—many people already have their card details saved and linked with PayPal—it’s more likely that someone will buy from your eBay store than from an eCommerce website they may not trust, or that requires them to get up and find their credit card.

3. Make your Ebay business official and legal

What you need to know about starting a business

Use this free downloadable business startup checklist to help you stay organized as you get closer to launching your eBay store. Operating an online store, especially one that’s so easy to set up, does not mean you are exempt from all of the legal requirements a “normal” business has to meet.

In fact, as soon as you start selling a lot on eBay, or turning a regular profit, the IRS will classify you as a business, and you will need to meet all the requirements a normal business has to meet. If you do intend to run a business, even if you’re not yet making regular sales, it may be worth formally registering your business. It costs very little and will keep you in the clear.

This will include:

• Registering your business name
• Obtaining a Federal Tax ID number
• Obtaining any federal and state licenses or permits
• Deciding on a legal business structure

Business structures

Broadly speaking, there are four legal structures or business formats. For some people, picking a form of business is straightforward; for others, a consultation with a lawyer is necessary.

If you’re relatively comfortable handling these processes yourself, you can go through a company like LegalZoom, which helps hundreds of small business owners prepare legal documents for business incorporation and the likes. However, if you’re at all unsure about which one will best suit your needs, we strongly advise consulting with a legal professional.

If you can, look for someone that’s a member of your local Chamber of Commerce. Here’s a brief overview of each business formation, with a little bit of information regarding their suitability to your eBay business, as well as things you may want to consider.

Sole proprietorship

A sole proprietorship is the preferred type of business for many individuals running either a part-time or full-time business on their own. It’s the simplest form of business and is incredibly easy and affordable to set up. You can run a sole proprietorship from your personal checking account and can deduct many of the expenses related to the running from your state and federal taxes.

The risk associated with a sole proprietorship is that all business liabilities are linked to you personally. If you default on loans or have outstanding debts, you could lose your personal assets.

Partnership

Forming an eBay partnership with one or more people can be a very productive way of making money on this platform. It may start out with an oral agreement, but a formal written agreement should always be created; consider all duties, possible disputes, restrictions, and provision for worst-case scenarios—i.e., “What happens if…”

The partnership itself must file Form 1065 to the IRS, and the profits are taxed based on individual returns (established by terms stated in the written agreement, or by percentage of ownership). Legally, each partner is responsible for themselves and each other. Any lawsuits that occur can potentially involve all or both of you, so be sure that partners are aware of their duties and any legalities that may surround them.

A word to the wise: Ebay states in its User Agreement that you may not “transfer your eBay account (including Feedback) and user ID to another party without our consent.”

So, if your partner decides to back out, or you go separate ways and want to start separate businesses, if you haven’t made it clear from the start who gets the account, you may be looking at starting from scratch or undergoing a heavy legal dispute. This is one agreement you should probably read.  

Limited Liability Company (LLC)

As the name suggests, the liabilities of Limited Liability Companies are generally not passed on to the owners. This means that the owner or owners’ liability does not extend beyond the amount they invested in the company.

In terms of taxation, however, the owners or members are all liable. When taxes are due, profits and losses are calculated for individuals based on their percentage ownership or investment. The Form 1065 must still be filed to confirm proper income reporting by members. The LLC itself can reduce the tax paid by members by paying as a corporation and keeping some profits in-house.

Corporation

A corporation is a legal entity operating entirely in its own right. As an employee-owner you cannot take money from the company bank account for your own pleasure. It must be for an officially accountable purpose.

There are two types of corporation you can set up: S or C. The former allows profits to be passed to your own tax return, and the latter files its own tax returns, and you are officially an employee. The state in which you set up your corporation will determine how much tax you pay and the rules you must follow.

You should make yourself aware of tax rates in your state, and never set up a corporation before you’re totally aware of exactly what it means, and the implications for you as an individual owner and employee.

4. Start listing your items

Understand the fees

If you haven’t already, take a moment to familiarize yourself with eBay’s selling fees.

Be proactive about your policies

Think through how you’ll answer buyers’ questions. Don’t skip laying out clear customer service and return policies.

Determine the payment methods you’ll accept from buyers

Ebay offers a few different payment options for sellers: Paypal, credit and debit cards, as well as checks and money orders, payment on pickup, or bank transfers.

Create your seller account

Before you can list any of your items, you’ll need to set up a seller account. First thing, you’ll have to decide whether to set up a “personal account” or a “business” account.

If you’re starting an eBay business and plan to sell a good volume of items each month, you’re going to want to pick the business account—the personal option is for casual sellers. The process is simple and straightforward and eBay will guide you through it all. Once you’re set up, take some time to familiarize yourself with your seller dashboard.

Create your listings

To create your first listing, log into your eBay account. Click the “sell” link in the top right-hand corner. This will take you to your Summary page.

Once you’re on this page, you will see a vertical navigation on the left side of your account. Click the blue “Sell an Item” button. eBay will guide you through the rest of the process.

One of the first choices you’ll have to make is whether to create a template for your listing. If you know that you’re going to sell a lot of the same type of category, setting this up from the beginning can save you a lot of time. Don’t underestimate how important your product description wording is in helping your item be seen and sold.

In order to sell your items and maximize your chances of getting seen, you will need to include:

• A strong title and description (pick something people will be searching for)
• Additional information about specific aspects of the item (some categories allow for this)
• The condition of the item
• Pictures of your item (the higher the quality, the better)
• A selling format (auction-style or fixed price)
• A listing duration
• A starting price (see our tips above on pricing your items)
• The payment methods you’ll accept (see our explanation above)
• Your shipping costs and locations
• Your return policy

5. Price your items

Fortunately, there’s a lot of information available on how to price your items. Performing a simple eBay search for the specific item you’re looking to list should give you a good idea of the right ballpark figure.

However, sometimes prices may vary wildly—some sellers prefer to list items with fixed prices while others prefer to start with a much lower price and run their sale as an auction.

Tip: Use eBay’s Advanced Search feature to find out how much an item you want to list has sold for in the past.

Don’t forget that eBay’s default search method is “Best Match,” which takes into account both the item’s shipping price and its list price.

The combined price is what really matters

As with a real-life store, you’ve got to make sure your products are easy to find. The best way to do this is to balance your shipping and list price to ensure it’s fair, and to keep your seller rating high through good customer service. A fair price will make it more likely that your results come up higher when people look for items like yours.

Tip: If you want to increase your search visibility, you can experiment with eBay’s “reserve price” settings.

Basically, you’ll be able to set a low price but at the same time, set a lower price limit, so that if your reserve price is not met when people bid on your item, it will not sell. To set a reserve price you will need to pay a small fee per item. Be sure to look closely at your item listing preview so you can catch any errors or things you missed before it goes live

6. Ebay legalese and stuff you ought to know

Running a business isn’t supposed to just be hard work; you’re supposed to enjoy it too. One of the things that can get in the way of this is not knowing the rules you should be playing by.  

To keep problems to a minimum, you’ll want to familiarize yourself with eBay’s values, understand what you can and cannot sell on the site, know what to do when your competition doesn’t play fair, and of course, what to do about a “difficult bidder” or a buyer who doesn’t pay.

Each of these problems has been covered in depth by eBay, so we’ll include the most important links to each one here:

• Know eBay’s values and honor them
• A list of prohibited and restricted items
• Ebay’s profanity policy
• What to do when a buyer doesn’t pay you
• What to do when you can’t follow through on a sale

7. Set up your offline eBay headquarters

While you’re still in the beginning stages of building your eBay business, spend a little time thinking about how it will function offline. Meaning—where do you store your inventory? Do you have a dedicated workstation for packaging up your shipments?

Especially when you’re first starting out, just make it work for you. You can get started in your spare room or garage.

Don’t over complicate it. But do think ahead, especially if you’re looking at growing your business and inventory quickly. Start with putting together a good record-keeping system so you know what you’ve got on hand in terms of inventory, and you can find it easily.

Decide how to store your eBay stock

Depending on what you sell, some good items to stock up on that will make storing goods easier include:

• Plastic or steel shelves
• Clear plastic boxes (if you’ve got a lot of stock) with clear labels
• Plastic Ziploc/snack bags (good for smaller items)

We recommend clear storage boxes so that it’s easy to see what you’ve got on hand.

Keep track of your inventory

Whether you prefer to use a paper notebook or a software program, there’s no doubt about it—keeping a record of all your inventory is important, especially as your business grows and as it becomes more important to keep good records in case the IRS ever looks into things. The best way to keep track of a lot of inventory is to invest in a good bookkeeping system.

QuickBooks Online is a favorite for many eBay sellers as it easily integrates with your eBay account, meaning that you don’t have to spend any time copying things over manually.

Set up your packing supplies and workstation

An essential part of your HQ is “the shipping department.” In order to ensure a smooth-running operation, you’ll want to make sure you’ve got everything you need readily available, especially if you’ve promised to ship items fast.

Items you should always have on hand:

• Something to clean up packaging with—a sticker removal product like Goo Gone or un-du, or simply WD-40
• Bubble wrap
• Shipping tape
• Styrofoam packing peanuts
• Plastic bags and trash bags (good for wrapping larger items and for waterproofing)
• A variety of envelopes (including the handy bubble mailer envelopes that keep items safe)

Now go and master selling!

You’ll learn a lot as you go—test your prices, listing language and processes often so you can be sure you’re being as efficient as possible.

Also, put together an ecommerce or online business plan. You can use this free downloadable business plan template to get started, and you can take a look at some example ecommerce business plans in our library to help you think through the process.

Why build your own business plan? Think of it as a framework to help you think through what you need to do to be successful. Do you have financial goals for your business? Your business plan should be a tool to help you meet those milestones and become the most successful eBay business you can be.