Many aspiring entrepreneurs are getting hooked on so-called no-cost Internet businesses. But did you know that a free online business is not necessarily free? While there are some business models that can be started with no upfront capital, every 'net-entrepreneur' needs to consider all hidden costs involved in running a genuine online investment.
As many leading industry experts say -- any business is always a serious undertaking. Whether virtual or brick-and-mortar, the owner needs to invest something of value in his or her venture to attain a certain level of success.
How come there are so many marketing campaigns today that advertise free Internet businesses? The long and short of this phenomenon is the fact that almost everyone loves a free ride. Who doesn't want a free business with a promise of great profit potential? The problem, however, is that it is an impossibility because a free online business is not necessarily free. Here are the reasons why:
1. Time Has a Quantifiable Value
An online start-up built using free blogs, free tools, and free marketing sites will never earn a cent if its owner will not spend time in cultivating its growth. And it must be pointed out that time has a distinct value. It is an intangible resource that needs to be quantified in monetary terms. If you spend time in your online venture, you are actually spending your skills, talent, effort, and productivity. Just imagine working eight hours per day in a traditional company. Your time spent for that business will be compensated. It will be measured based on current standards so that you can get a just salary.
The same rule must be applied also for self-started online businesses. The time-value that you have spent for the business should be quantified. This is important so that you can determine if your Internet company is truly profitable or not.
2. Unavoidable Costs of Building a Serious Business Online
Starting an Internet company is just like building a traditional business. There are certain investment costs that must be taken into account which include the following:
a. Domain Name Registration and Web Hosting
Studies have shown that consumers generally trust online businesses that have their own top level domains and hosted in a secured website. These buyers are normally apprehensive when dealing with an Internet company that is hosted in a free site. So you need to buy a domain name and pay for secure hosting if you really want your company to succeed online.
b. Internet Connection Costs
When you build a business online, you need to get connected to the Internet. This means you have to buy a subscription from a local Internet Service Provider or a cable company. If you already have an existing connection, you will still probably need to upgrade your subscription to get more bandwidth and speed so that you can transact online without any glitch.
c. Electricity Costs
Your energy bills will become more expensive if you have an online business. That is because you will have to spend more hours working in front of your computer especially if you are just starting your online venture. The more time you spend on your business means more energy consumption. It is important to factor this cost to cover the increased expense on your monthly energy bills.
These are just some of the most basic costs that must be considered by every 'net-entrepreneur.' Always remember that a free online business is not necessarily free. To achieve success, you have to invest some form of value for your Internet ventures.
No comments:
Post a Comment