Online Data Entry Business – How to Start?

Introduction to how to starting an online data entry business

Having your own data entry business online is truly adaptable and you’ll get the chance to set your hours. Let me first explain, what is data entry? The company hires someone – perhaps you – to do the work by hand. Mostly, this means typing or copy/pasting data into the right place.

Many organizations need data entry work, giving you a wide variety of clients. To do the job, you need to already be somewhat fast and very accurate at typing, if not, you’ll find that you’re doing too much work for very little money. Generally, data entry can be considered as a low-paying job, so you’ll have to be set up to do a lot of work within short periods to make decent pay.  Be careful when you’re looking for data entry work, as there are many scams for “work at home data entry” positions.

A guide to starting an online data entry business

These businesses are vital because most organizations require data entry, information tracking, organization, and analysis. Well-known sites offer jobs that can be bid on by online data entry businesses, which at that point enter information for any organization that needs it. Most of the organization’s contract with independent data entry companies for either part-time or full-time data entry needs.

A guide to starting an online data entry business.
A guide to starting an online data entry business.

You can start your data entry business rather effectively; simply begin searching for data entry work! You have found the ideal business thought, and now you are prepared to make the next move. In this article, we will let you know how to start data entry business online, equipment and software requirements for data entry business and steps to start data entry business and pros and cons of starting data entry business, etc.

Equipment and software requirements

If you start a data entry business on your own, you need database software, such as Microsoft Excel or SAP, Microsoft Access, all of which run on a personal computer. If you are an expert in certain types of data entry, such as accounting or bookkeeping projects, you likely need QuickBooks. You also need an internet service with high-speed to send and receive project files to your clients. To work on crowdsourcing projects, you need an internet browser and a fast internet connection, so you can remotely log into a company’s computerized system to complete projects.

As a data entry entrepreneur, you need to keep some things before investing in the business plan.

  • A multi-user computer operating system
  • A database
  • A workplace
  • A team
  • Customers
  • Up to date high-quality scanners

Skills required to start data entry business

At the point when you are setting up a business on your own or with partners or as a private concern, you need to have excellent business managing skills besides the skills required for Data entry and management. The general skills required to start data entry business are as follow:

  • Typing skills with perfection
  • Digitalize paper documents with accuracy
  • IT skills and knowledge of software related to the specific service
  • Reading skills par excellence
  • Effective Scheduling
  • Managing freelancers and employees
  • Excellent communication skills both in writing and verbal
  • Coordinating abilities that are managerial skills
  • Management of deadlines and timeframes
  • Other computer skills is a plus

Steps to start data entry business

Following are the steps to start an online data entry business:

Step 1: Determine your business plan

The first thing you need to keep in mind while starting a data entry business is identifying your business plan for success as an entrepreneur. You need to ask these questions yourself so that you can plan your business efficiently:

  • Am I going to start from home or straight upstart a company?
  • What are the startup and ongoing costs?
  • Do I have a backup plan if this doesn’t go as expected?
  • Do I have team management capabilities?
  • How do I approach clients?
  • Who is your target market?
  • What will you name your business?

These questions will answer you, whether you will fit for this data entry business or not.

Step 2: Identify the costs incurred

The second and important step should be to identify the costs to be involved in computer systems or staffing. Minimal or low level of initial investments required for a data entry business. One of the main reasons behind it can be that it can be started at home. You need to identify the costs of the equipment for this purpose.

If you are starting your business from home, do not involve a huge amount of staff members so that you can save money to be invested in purchasing a workshop on later stages.

Step 3: Get yourself registered

A business will not be taken into consideration if you do not get registered as a legal entity. To start your business, you need to form yourself as an LLP (Limited Liability Partnership) or a Sole trader.

To begin your data entry business, these are the certain important certifications needed:

GST registration: You need to get a GSTIN (Goods and Services Tax Identification Number) for your entity to be considered as a legal one and start trading services.

LLP or Sole Trader: To start your business you need to form yourself as an LLP (Limited Liability Partnership) or a Sole trader.

Register for taxes

Before starting a business, you will need to register for state and federal taxes. To register for taxes you will need to apply for an EIN. It’s really easy and free!

Like many other businesses, the legal formalities for starting data entry business are the same and it would include:

  • You have to obtain the DIN (Director Identification Number). It can be done on the online
  • Need to obtain a digital signature from the above-mentioned for DIN
  • Authorize all your business documents by officers or authorized banks
  • You can start your business officially only when you register your company with Registrar office and get the Certificate of Incorporation
  • Pay the fee for registering your company
  • After the registration is done get the seal or trade for your company
  • PAN is a must for any business in India
  • Tax Account Number (TAN) has to be obtained for the business
  • Certain state and local permits and licenses may be needed to operate a data entry business. Without failure you have to acquire necessary permits and licenses otherwise it will even cause your business to be shut down.
  • Naming your business is one of the most important and challenging steps for entrepreneurs as they are going through the process of learning how to start a business.

For all these procedures to be completed within the stipulated time and with efficiency, a notary or a Chartered accountant has to be hired.

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Step 5: Open a bank account & credit card

You need to open a separate bank account for your data entry business. You should not mix-up your account and business account as both will be at risk if the business is sued. This will separate your assets from company assets. This will make your accounts and tax filing easier.

The credit card will help you to separate your personal and company’s expenses by putting your business expenses all in one place

Step 6: Get business insurance

To operate your business safely and lawfully it needs insurance just as licenses and permits for data entry business. Insurance protects your business and company’s financial wellbeing in the event of a loss happened.

For different types of businesses, there are different types of insurance policies with different risks. Begin with General Liability Insurance if you’re not sure of the types of risks that your business may face.

Step 6: Define your brand

Your brand is what your company stands for, as well as how your business is recognized by the public. A strong brand will help you to stand out from other competitors.

Step 7: How to approach clients

The most important part of any business is customers. Without customers, no business can survive. The thing is the same as the data entry business too. You need to think in a different way to approach clients. If you have enough knowledge of the internet, this can be done very easily.

You can either start the business as a freelancer or register yourself on different sites like,,, or or you can directly approach clients or companies with your resume and impress them with your talent.

Promoting and marketing your online data entry business

Promoting a data entry business involves a chain of strategies. To separate your business plan from your competition, you need to offer discounts to your clients. And you can attract the customers by offering more services at a lower price.

Most data entry companies can start out using direct mail or online pay-per-click advertising. As word of mouth grows, companies don’t need to rely as much on paid traffic to websites and can instead leverage the organic reach and referral marketing, including email marketing.

If you have set up licenses and done all your registrations, you need to formulate strategies to promote your business and focus on how to make sure that your clients come back to you. Another way to highlight your services from the competitors is by offering unique services. Create a customized list of data entry services for your customers so that they can have a wider view of your services.

How much it cost to start an online data entry business?

You can start a data entry business with low investment. That’s because they can be run from home, or operated out of an office on a larger scale. Today’s data entry businesses are mostly or entirely online.

All that’s needed is a computer and an internet connection. These costs can range from Rs 25,000 to Rs 75,000, depending on the computer purchased.

Some important tips for your online data entry business

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Tips for online data entry business.
Tips for online data entry business.

Here are some tips to get success in the data entry business:

  • Establish your web presence: Make yourself available online 24*7 for clients as your clients can be from different parts of the world. Try to be available for them even at night, this will make the customers more satisfied.
  • Do not invest in land in starting days so that you can save the money for costly software which will improve your work quality.
  • Always ask your customers for feedback when you submit the work file so that you cannot repeat the mistake in the future.
  • Often encourage your team members so that they can give their best in the job.
  • Always upgrade your software and computer so that they can work efficiently.  

Advantages and disadvantages of an online data entry business

There are some advantages and disadvantages in starting a data entry business: 

Advantages of starting an online data entry business
  • Great beginner job: Without training, you can get started. All that required is basic computer knowledge and normal reading abilities.
  • Work from home: Whenever you want, much of this sort of work is offered online – and so is the data you will be working on. This sort of job is great for stay at home moms since they can work whenever they want.
  • With little or no investment you can get started. No need to wear fancy suits to look good at this job. No commuting costs. Just a computer with an internet connection – which – if you are reading this – you probably already have.
Disadvantages of starting an online data entry business
  • Getting paid for the amount of work you complete means you won’t make much money if you are a slow typist. The good news is that you will improve your speed a lot, as you do the work. You may not see much money for your time in the beginning, but most people who stick with it will see a change for the better.
  • It can be tedious bordering on downright boring. Much of the work is very monotonous, so you have to able to deal with that. But not having to commute for hours to do it – tends to help a lot in that respect.
  • It will never become a high-paying job. In this line of business, you are considered as being on the low rungs of the ladder, due to the simplicity of the work. The fact is, it may also be very boring, does not help with the wage.

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