Chatboxes are virtual assistants that allow website visitors to receive assistance the moment they visit a website. Whether it is a simple question or a situation that requires a human employee to be notified, chatboxes improve the overall user experience. Chatboxes can provide a range of prompts and adjust suggestions based on the answers that the web visitor providers.
This new method of communication is growing in popularity among business owners and consumers alike. However, chatboxes do not just magically appear and work perfectly. Someone needs to design, develop, and test these chatboxes to ensure the user experience is seamless.
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Learn how to start your own Chatbox Developer Business and whether it is the right fit for you.
Start a chatbox developer business by following these 10 steps:
- Plan your Chatbox Developer Business
- Form your Chatbox Developer Business into a Legal Entity
- Register your Chatbox Developer Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Chatbox Developer Business
- Get the Necessary Permits & Licenses for your Chatbox Developer Business
- Get Chatbox Developer Business Insurance
- Define your Chatbox Developer Business Brand
- Create your Chatbox Developer Business Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your chatbox developer business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a chatbox developer business?
Costs to start this business are small in comparison to other businesses. Marketing channels can be used to build a clientele for free. However, a website with a function chatbox is expected for this business. Hosting, domain name, and website development are all initial startup costs. Depending on how much time you have available, you may be able to cut costs by developing your website on your own.
What are the ongoing expenses for a chatbox developer business?
There are few ongoing expenses for chatbox developers. Aside from hosting costs, domain names, and website management, little is required. If a team is built, then employee expenses will continue to be an ongoing cost.
Who is the target market?
The target market is businesses with high traffic websites. Since this market already has a high number of individuals visiting daily, it will be easy to prove the ROI of an automated chatbot that can assist customers instantly.
How does a chatbox developer business make money?
A chatbox developer makes money by completing requested projects. Failure to complete the project to the client’s specifications will result in not receiving the full payment.
How much can you charge customers?
Chatbox developers can charge hourly or per completed project. The price needs to be high enough to make a profit and also to compete with others on the market. Prices in the industry range from $50 to $500 before ongoing retainer fees are considered.
How much profit can a chatbox developer business make?
When the project price is right, chatbox developers can make up to 75% profit on each project.
How can you make your business more profitable?
This business becomes more profitable by creating templates. These templates can be used as a base for each chatbox project. By having a template, the amount of invested time decreases while the price for the project remains the same.
What will you name your business?
Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your chatbox developer business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a chatbox developer business
The easiest way to promote this business is through organic posts and paid ads on social media. Some ideas for content include case studies and testimonials. The more a business can prove ROI before even speaking to the prospective customer, the easier it is to convert the prospect into a paying customer.
How to keep customers coming back
Aside from proving ROI through case studies and testimonials, live demos can attract and retain customers. By having a chatbox on your own website, you can prove just how intuitive the end product is for consumers. This live demo allows you to build a prospective clients list and book clients right from the chatbox.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Chatbox Developer Business in your State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
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Is this Business Right For You?
Anyone who already has coding language knowledge will be a perfect fit as a chatbox developer. Most (if not all) chatboxes rely on conditional responses in order to provide the next prompt or suggestion. This type of coding can be complicated, which is why this business is best for someone who already has developer experience.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a chatbox developer business?
During a typical day, a chatbox developer will acquire leads, create contracts with customers, develop projects, deliver completed chatboxes, and send out invoices. A chatbox developer is responsible for all aspects of the business. They typically have an independent role that is guided by their clients’ needs.
What are some skills and experiences that will help you build a successful chatbox developer business?
Knowledge of various coding languages is required in order to build functional chatboxes. Furthermore, communication and negotiation skills are beneficial. After all, you will be the one speaking with clients to win them over and request payment.
What is the growth potential for a chatbox developer business?
The current growth potential is huge. Many websites still do not have this essential function available to users. Even websites that do have chatboxes are always looking for these virtual assistants to automate more services and provide better assistance to consumers.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a chatbox developer business?
Networking will be crucial for getting this business off the ground and running. Groups on social media are free, high return on investment (ROI) avenues that can be used to generate leads and get paying projects.
How and when to build a team
This business can be a one-person show for as long as it needs to be. When it becomes too difficult to keep up with project demands and you begin to feel overwhelmed with work, then it is time to build a team. Posting positions on online job boards and requiring test assessment can help generate the best candidates to interview.