To start a new business is very risky as less than 1% of businesses last more than 10 years. To get started you take a lot of risk with your money, because you need money to get started and at the same time you need money to pay your regular bills.
I have an off-line business. It is a bed and breakfast I started with my wife 10 years ago. The business is in profit, but we still get months that make a loss. I have not recovered the funds I initially invested to start this business even though the building is mortgage free today. I had to spend R2.6 million (in Dollars that is about $185000 at exchange rate of $1 = R14.00) in cash plus a mortgage to get the business started!
Now let’s look at the online model. The online model allows you to get started with much less money. You can even get started with no money, but it is very very slow in the beginning with no money. It is best to get started with some money.
So if you get started with a small amount of money your risk is less and your break-even point is earlier. The risk is losing your initial investment. With the B&B I took a huge risk because of all the money I could lose if the business failed. Fortunately the business model is based on property which is a safe bet. If it was a restaurant the risk would be 10 times more.
I had a couple of online businesses so far. Adsense, Amazon, refshares and now Steemit. All of these online business models I had to invest little money. I had expenses like domain names and hosting, plugins and subscriptions, but these expenses are a fraction of the money I used to get my offline business going.
All of the businesses above broke even in less than 6 months. The bed and breakfast tool 10 years.
The negative side of the online businesses is that all of them lasted less than 2 years. So it failed after 2 years, but I got all my initial investment back plus some profit. Every time a door closed online I could move on to the next business with my money I made in previous online business. There are so many options online with little or no barrier to entry.
What has your experience been with online or offline businesses? Was it the same as me?
Give us an Upvote if you think this info was helpful. It will help my online business a lot.
Thank you. :)
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Regards
Colin Brazendale
Email: cwb197@gmail.com
Facebook: https://www.facebook.com/colinbrazendalesinternet/
Youtube: https://www.youtube.com/user/czb1972/
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