Last night I attended a meeting in Christchurch New Zealand. I had been invited by an old friend. I enjoyed it and met some interesting people, however, I also met a woman who was part way through completing a bachelor degree in computer programming. We got talking about making money online and she told me that people don't make money online and those that say they do will exaggerate their earnings to impress others.
I wondered why she held this belief until she told he how her You Tube channel had received three quarters of a million views over the last few years, but made very little money from all those visitors.
I went on to talk about the many other ways of earning an income online but she closed herself off to this line of conversation.
I realize that making money online is never a certainty, however, I know many people who are making a nice income from their online pursuits. I have heard it said that if it was easy, everyone would be doing it, but I disagree with that as I believe there will always be those people who hold negative beliefs, or the one's who struggle with staying motivated, or they give-up too early.
In the news recently there has been a lot written about brick and mortar retail businesses closing up, businesses such as Pumpkin Patch and Dick Smith in Australia and New Zealand and Macy's in America. Brick and mortar retail businesses are struggling for one major reason, competition from internet based businesses such as Amazon, E-Bay and Alibaba. What many people forget though is that behind each of these e-commerce platforms are millions of smaller businesses which are either producing or selling product for sale through these platforms some of which handle all of the logistics of warehousing and distribution for the seller, making it easy for small businesses to succeed in a global market which not that long ago was only accessible to larger multinational corporations.
In order to establish a successful internet based business we still need to form a plan. This plan could include a marketing and branding strategy, product research and competitor analysis, a budget that includes setup costs, ongoing costs and profit projections. It's important that we are aware of what it will take to reach a break even point and how long this may take. The plan does not need to be formalized, many businesses have been started with very little forward planning, however, unless you have plenty of previous business experience, your chances of success increase significantly if you spend some time in the research and planning stages.
Over the last couple of weeks, I have enjoyed the luxury of watching a couple of episodes of the English television program, The Dragon's Den. I was suprised to see business owners asking for large sums of investment from the experienced dragons without knowing the basics such as their companies net profit figures. Some of the applicant's stated inflated sales projections which were quickly shot down as they were not based on quantifiable figures.
It's basics such as these that we all need to be aware of when starting a business, especially if we wish to turn that business into a reliable income stream.
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