Here's how small businesses are built in the brick and mortar world.
1. You would invest your own money, or borrow for start up costs and enough to keep your business afloat until it begins to pay it's own way
2. You would buy or lease a building to house your business.
3. You would buy or lease display fixtures or other necessary equipment.
4. You would buy merchandise to offer at your small business.
5. You would hire employees, buy insurance, pay utilities.
6. You would need to advertise. This could be flyers, TV or radio ads, or newspaper ads. All these methods of advertising are expensive.
7. You would worry about losing your shirt until you were in profit. And you would work very hard to get back your investment.
Yes, building a homebased business website is a risk of sorts too. If you lack skills, you will have to develop and learn them. If you fail, you may suffer some embarrasment. You will have to work if you expect to succeed.
But here's what building a homebased business website on the Internet offers as compared to the ?real world?.
1. A small investment if you are willing to work diligently.
2. Web hosting at a modest price, as compared to buying or leasing a building.
3. You will need to build a website to display your wares. Free builders are available if money is tight.
4. Merchandise can be either dropshipped, or it could be affiliate products, or information you create yourself. Either of these ways incurs no upfront costs to you.
5. You don't need employees. Since you work from home, you already have utilities and if you are reading this, you already have an Internet connection.
6. You do need a domain name in place of the sign you would have at the front of your building. This costs roughly ten dollars a year. Other methods of advertising can be found that are free or that are inexpensive. How about articles, for instance?
7. If you are willing to work hard and do many things yourself,it may take some time, but you will have little to lose and potentially a lot to gain!
Starting an offline business is very costly and there is no guarantee of success.
A number of years ago, when I invertoried small convenience stores, they typically held 35K in merchandise. That's just the merchandise. Start-up costs for a business offline vary depending on the type of business. But it isn't inexpensive.
How hard would you work if you had 90K invested?
A franchise for a carpet cleaning business or a sandwich shop costs around 90K. Investing in a franchise comes with it's own limitations and problems. Anyone who has bought into a franchise will tell you it isn't all sunshine. A lot of work is required in the beginning years.
Small homebased business websites are a bargain. Many are making from a modest income to really big money with small homebased business websites. They have done their homework and worked hard to make them successful.
Let's all work as if we had 90K invested and see just what a great opportunity small homebased business websites really can be!
Legal Forms For Starting & Running A Small Business
When you have only just started your own business, you will need a lot to learn, not only about what you are going to do, but about all the small details of running your own business. There is no one who you can count on making the right decisions but you. The tips below may be more than useful for all small business owners and make it more probable to bloom instead of going bankrupt (a sad end of 80% of small companies).
Profit margin
First of all, remember about the profit margin. All too often we forget about making money, fascinated by all the possibilities of running one's own business. It is very easy to thwart otherwise successful business by taking too many loans, hiring too expensive lawyer or account office and generally spending too much money on less important matters. Remember: every business is about making money. Try to reduce your costs as much as possible and you will succeed. Buy an expensive car only to feel like a "real" businessman and you will never become one.
Hiring friends and relatives
The most delicate and potentially harmful matter in running your own business is the help you receive from your friends and relatives. At first, it is often what counts most - both for practical and psychological reasons. However many small businesses become reliant from the unpaid work of friends and/or relatives and it will sooner or later end. That's why it is highly recommended to pay them from the very beginning (even if your loved ones protest) - this will let you keep an eye on the real cost of business and won't turn you into blood-sucking monster that requires more and more but gives nothing back.
Internet
Internet is one of the most powerful tools in business. It is not only about eBay, but also about fast, reliable and cheap communication between you and your contractors and customers. Also, as the Internet becomes more and more useful for advertising purposes, having your own website is a must - otherwise you loose from 50% to 90% of potential customers.
Both Illa Maden & Benny Jones are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Illa Maden has sinced written about articles on various topics from Bathroom Remodeling Ideas, Bathroom Home Improvement and Interior Design. Illa has been marketing on the Internet since 1999. You'll find at her new website A guide for setting up homebased businessesgeared toward new marketers. Advice is pres. Illa Maden's top article generates over 14800 views. Bookmark Illa Maden to your Favourites.
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