With an estimated $204 billion spent online in the United States in 2008, there is no doubt the Internet has become a potent ally to any entrepreneur. With a little hard work, a business plan and a hosting service, anybody can start their own web-based company.

The first step to any business, be it online or brick and mortar, is to come up with a business plan. Whether you want to start a company on the Web, or expand your current business online, that plan will be essential to creating, improving and eventually expanding your website. Once you have all the details, you can focus on how to technically accomplish your goals.

Establishing an online presence will require a domain name and a hosting service. A domain name (the web address of your business) is generally the name of your business, although it doesn't have to be. You can purchase one from a number of websites for a small fee (usually around $10).

Hosting services allow you to make your website available on the Internet. They usually sell domain names at a lower price, so you may want to purchase both at the same time. How much you are charged for hosting services can vary widely from host to host, but a lower monthly fee can result in fewer services. Consider these questions before signing up:

Is the host well-suited for your needs? Some hosts specialize in specific kinds of companies. For instance, if you want to stream a great deal of media, you will want to find a host with servers specifically tailored for such a task.

Will they be able to manage the growth proposed in your business plan? Many hosting services cut costs by placing several sites on one physical machine. This is not necessarily a bad thing, just make sure your website can be moved to a dedicated server, or spread across multiple servers. This may come at a greater cost, but that's all part of your plan, remember?

Do they limit what kinds of web-based technology you can use? Simple websites usually need only static (unchanging) content. But in the future, you may want to add more dynamic content. Find out if the hosting company will limit what programming languages or software you use.

Do they have good reviews? Check for valuable reviews of potential hosting companies at cnet.com.

There are free hosting services available, but many of these require ads to be placed on your pages (often over your content), and do not guarantee how much up-time (when your website is accessible on the Internet) you will have.

You have a plan, a host and a nifty domain name. It's exciting... until you realize your domain name takes you to a generic splash page. This is provided by your host as a friendly reminder that you actually have to build your website. To get you started, here are two major technical aspects of creating a website:

Design: Presentation is everything. You must know your audience, know what they expect and provide it to them. Your website should be not only visually appealing, but also user-friendly.

Backend: Your website will most likely need to dynamically generate pages for customers. Maybe you would like to personalize the website to the particular customer that just logged onto your website, or maybe you would like your customers to interact with each other about their experiences with your products. All these things need to be a part of the background, or backend, of the website construction.

For many, designing and programming an entire website can be a daunting task. Hiring others to do this work, however, can increase your initial expenses. Don't be afraid--you have options.

Shortcut: You can create simple websites with WordPress or Google Sites. WordPress is primarily a blog program, but it can be used to develop a regular website with a little tweaking. Google Sites is an easy online tool for creating a website. Both of them have templates to easily change the look and feel of your website, and they're a good place to start playing around. If you need a storefront to sell products, check out prostores.com or goemerchant.com for out-of-the-box options to get you going.

Learn: Nothing is stopping you from picking up a book or taking some classes. It may take you a long time to get the experience needed to really make a splash in the market, but once you have the skills, the sky's the limit.

Hire: You could hire a full-time programmer and/or designer, or look at the freelance market. A freelancer can be a great investment, but just like choosing the host, you will want to do your research and check references. With a freelancer, you may never have the opportunity to meet face-to-face, so you will want to have your expectations and requirements well-documented.

Securing your website should be a priority. It can be a complex task, but there are some key steps you can take to avoid pitfalls.

Reduce what you expose. Any data you store is your responsibility. Your "terms of use" policy should document what rights you have with user data. You should also think about enlisting services for handling sensitive data like personal information and credit card numbers. Check out services such as PayPal or Google Checkout to help you out.

Scan your website. Many companies offer software that scans your website for potential weaknesses. For instance, McAfee's Hacker Safe service is well-known and recognized by many users across the Web. Also, having their logo on your website will help build your website's credibility.

Use encryption. You should not only encrypt user passwords, but also invest in a SSL (Secure Sockets Layer) certificate. SSL should be used anytime sensitive data is transferred from the client to the server. Check with your host for info on how to get one.

It's hard to believe that the Internet as we know it started less than 15 years ago and has already become an integral part of our everyday lives. It will only continue to grow and provide more opportunities to anyone willing to take a chance and start something.

Sources: nrf.com; credit-suisse.com; google.com; cnet.com; store.yahoo.com; networksolutions.com; hostreview.com; is4profit.com; about.com