Welcome to my blog. For my first post I’ve chosen to write about starting a business. When starting a business (either online or offline), it’s important to take some things into consideration:
How much money do you want to make a month?
Many people start businesses part-time or because they were forced into it after being fired, etc. When you chose a business to start, you need to realistically think about how much money you’ll want to earn from it. For instance, if you need to make $20,000 a month to maintain a certain lifestyle and pay your mortgage, then opening an ice cream cart business or something similar will not offer this type of income. Think carefully about your financial goals before you embark on your entrepreneurial journey.
Is your business idea a strategy or a real business?
You might be asking yourself what the difference is. For this example, I’ll focus on online business. Let’s say you want to create a website that sell freeze dried ice cream (keeping with the example from above). You open a Google PPC campaign and start receiving traffic. Over the course of a year, you make on average $2000 a month profit only working an hour a day. Sounds great, right? However, what if Google bans freeze dried ice cream from using Google AdWords as a promotion method? All of a sudden your traffic is nil. When you base your business on one particular client source, it’s simply a strategy, not a business. A business utilizes multiple marketing methodologies to generate customers. There’s nothing wrong with a strategy, but remember….strategies eventually come to an end =)
Will you need to raise money for your company?
If so, you’ll most likely need to write a business plan. Unless you’ve started a similar business in the past, most business plans are simply an estimation. You’ll then to decide whether to ask your family/friends for the seed money, go to the bank for a loan, or go the venture capital route. All of these have pluses and minuses which I’ll cover in later blog posts.
Do you need partners or can you do everything yourself?
The advantage of doing everything yourself is that you’ll become proficient in many different areas. The downside is that you’ll become burnt out. If you start a company and it grows, you’ll probably be thankful that you have partners to help you out if you select that carefully and have good contracts between the partners.
What type of business to start:
I often hear from friends that they simply don’t know enough about any one particular niche to start a business. I feel that with the Internet, you can quickly learn about anything if you know where to look on the Internet. This includes finding suppliers, dropshippers, etc.
The points I touched on in this blog post are quite vague. As such, I will certain write posts in the future about my personal experiences and elaborate these points to give you clearer insights to starting a business. Be sure to leave your comments below and I will do my best to answer your questions.