Let’s face it folks… most people don’t fail because they have a poor internet business idea… most people fail because they do not have “staying power”.In other words most people new to the internet business world fail in their business attempts because they run out of money to sustain their business, especially at the critical beginning stages of just starting out.Believe me, I know, I have been there, done that and I have the T-shirt to prove it.Most people when they are starting out get so excited about their business product or idea that they have created that they just want to run right out and spend a bunch of money on Pay-Per-Click or other up front expensive advertising methods without a clue how to actually get a sustainable Return On Investment (ROI)… Again, been there, done that also…Here is what I see time and time again:- Create an info product or application (digital or shippable)- Selling price is $67.00- Do some rudimentary Keyword Research- Throw up some Pay Per Click (PPC)- Spend $600 in PPC the first month- Make a paltry 10 sales for a total of $670 gross- have a net profit of $70.00- Uh oh how do I pay for another $600 in PPC and remain profitable?- Spend $35 in PPC (50%) of net profit- Make 0 sales- Net profit now $35- Buy a nice steak dinner with that $35.00 and call it quitsOUCH!So what is missing to help mitigate these situations for the new person just starting out?There are numerous things that can help overcome the above failure scenario, such as:- Knowing what is the best type of product to market and what actual market to be in that will have the best chance for success based on your knowledge, passions, interests and personality- Knowing how to generate laser targeted traffic for pennies on the dollar- Knowing how to write great ad copy so as to increase your conversion ratio so you get a higher ROI for every visitor you get to your site.- Knowing how to set up the best automated systems so as to eliminate bottle necks that cause the drain on your top 2 most precious commodities… TIME and MONEY.Now all these things are great at increasing “staying power” and your chances for success…In fact I know how to do most of those things in my own business consistently and even teach it sometimes to others…But the problem is most of those things have a learning curve…Some, like writing great ad copy, has a STEEP learning curve…So what is the answer?The answer is… there is NO “perfect” answer and if anyone says there is they are a liar that needs to be publicly humiliated by pointing and laughing… just kidding.Seriously with this being said though I think most people starting out need to have a perceptual, mental shift in how they are going to go about marketing their product or services…What do I mean?I mean…Don’t lead with your main product and always have “back-end” products based on similar markets as your main product that you can up-sell, down-sell or offer your prospects and customers in the future…This is concept is what I like to call an “Automatic Up-Front Cash Generating Self-Funding Internet Business”. It’s sometimes referred to as a “Self-Liquidating offer”, “front-end / back-end marketing” and a “Self-Funding promotion”…It sometimes even called an “Attraction Marketing system”…Whatever you call it is all the same basic conceptLet’s say you created an awesome shippable dog training method manual that you researched and can confidently charge at least $200 for. Now if you don’t have staying power (aka lots of money) and you use the above PPC failure scenario you will be out of business just as quickly, maybe even quicker because it may be harder to sell a product on the first shot for $200 without establishing any kind of relationship or credibilitySo what should you do?Sell a $20 eBook, CD or DVD that gives “some” of the secrets that are contained in your $200 dog training manual. At this point after they purchased your $20 product you now have “primed the pump” and the opportunity to “back-end” your customer into buying your full $200.00 manual…In fact you can build the offer for your “back-end” product right into your “front-end” product in the form of a subtle sales pitch while still offering value and qualityWhat just happened? What happened is you sold a $20 product based on your main product which has established a relationship with a “buying customer” and has given you the credibility as an authority on the dog training market to that customer. That customer will now and always be more opt to purchase from you again and again on the “back-end” including your more expensive $200 Dog training manual, as long as you continue to provide value and quality.What’s more… is that using this concept 100% of the gross profits from the $20 “front-end” product will go directly back into the “front-end” advertising to create a truly self-funding business system with pure profit generated on the “back-end”In this scenario this is where you need to have the “perceptual mental shift” I spoke of…You need to drill it in your head these 2 things:-Your profit is made on the “back-end”…-All your advertising is paid for from the “front-end”Getting clear on these 2 fundamental foundations will have you on your way to creating a truly “Automatic Self-Funding Internet Business”Now, let your creative juices flow…
Starting your own business is never easy in the strictest sense of the word “easy” because there is plenty to think about, and lots to do. Just ask anyone who has already gone down that path. They will have soon discovered that getting the right product or service, to the right market, and in just the right way is no easy task in itself, and then there are legalities, training, costs, staffing, premises, health & safety issues and many, many other aspects to consider.WHEN to start a business is another matter. And one that I shall deal with separately because it may matter a great deal more than any of the above, depending on the economics of the region/country you are in, and on the real or perceived financial security of markets across the world (especially if yours is a global rather than local marketplace). So, is starting a business a good idea in a recession? Well no-one has said that we are in a recession, although there is lots of talk about the “credit crunch” and the “economic downturn”. Naturally people fear the prospect of a “recession”. People fear losing their jobs and their financial security in tough economic times. Companies do actually downsize, people can find it more difficult to find a job, and in any case, job security (or a “job for life”) is no longer truly viable (with or without other economic pressures being exercised).Starting your own business means that you are the boss; there is no-one to hire and fire you, because you run the show. Starting your own business means that you make the decisions; so provided you are making well-informed and prudent decisions, they will always be the best for your own financial security. So I would say, YES, now is a GOOD time to start your own business – but NOT just any old business. Many small businesses fail due to lack of training, lack of support, lack of relevant skills or knowledge of the market and by pure bad timing, bad management or bad luck. In order to avoid the pitfalls, (at any time but particularly during the tough times), you would have to carefully consider the following points:FINANCES
Does your proposed business have Low Start Up Costs? Does it have low running costs? Does it have low overheads? Will it need additional staff – or can you run it yourself? Will you need to pay for training, or to acquire certain skills? THE MARKET
Is there a market for this particular product or service? How big is your market, and is it local, national or international? Who is likely to be your customer? Is this a repeat product or service, or a once-only potential customer? What is the competition like for your business products or service? YOUR SKILLS
Will you be able to realistically cope with what the business requires? Can you work hours to suit yourself, or will you need to work more hours than you can possibly provide? Have you the necessary skills for this business – or will you require training? Apart from the cost of any necessary training, how easy is this to access? And will it take you away from running your Business, at all? Ideally, you need to find a business for which answers to these questions appear to be thus:FINANCES
Yes – Low or Very Low Initial Start Up Costs Yes – Very Low Running costs (looking at a monthly outgoing which can be easily covered from your own “other” funds to start with, or at least being realistically recouped within the first 6 months at least. You have to decide how long you can run a business without making a profit…. Check your finances! Minimal overheads – and these can be avoided altogether on some months wherever possible. NO – additional staff are NOT required. You should be a sole trader or partnership only without need to employ any other people to make your business a success Look for a business which requires little or no training (something you already know, or is quite easy to pick up); training should be available FREE if required or at least you can access relevant training materials online etc without having to spend loads on acquiring necessary new skills for the business THE MARKET
You need a huge, global marketplace to reach the maximum potential clients. A global market place which can be reached easily via the internet What if your product appealed to as many as 9 out of 10 people! You need a daily consumable, repeat product for maximum sales with most potential profit Something with little or no competition, (eg. how about a unique world-patented product with exclusive marketing rights?) YOUR SKILLS
Well, what if the Business was all about something you know already? For instance, CHOCOLATE? A business which offers totally flexible hours with no targets, ever. Work an hour a week, or 40 hours a week. Full or part-time. The choice MUST be yours. Find something easy (you already know about, or it’s easy to pick up quickly) and yes – where there is FREE training, if required All training should be easily accessed from wherever you are; internet access is really all that you should need plus a little “mentoring” or support would help
If you are thinking of starting your own business, NOW or in the future (with or without an economic downturn) then considering these points will help you to succeed.
Insurances are important to protect us from any damages or losses. There are many types of insurances which we can purchase from many insurance companies. One is an auto insurance which aids you from financial loss due to accidents. Another would be home insurances which can help us especially when disasters occur and might bring damages in the structure of our own homes. We can also avail health insurances which can help us with regards to hospital or medical treatment costs. Life insurances on the other hand can be of assistance to the bereaved family in funeral and burial expenses. These are just few of the common insurances that most of us avail for they help us in our lifetime. But for small and large scale businesses, product liability insurance is a must.The commercial owners, no matter how small or large the business might be, must have full responsibility on the effects or risks of the product they supply to the consumers. Not only are the manufacturers and retailers of the products have this legal responsibility but also anyone who imports or transports a certain product which has a malfunction or fail when in the hands of the consumers.Liability insurance is a protection from any legal claims against the one insured. It provides a legal defense in situations where court proceedings happen and or payments for any arrangements concluded by the court. Such insurance can cover the costs for medical treatments or property damages on the part of the consumers. Product liability insurance helps business owners or manufacturers from any complaints and claims by the consumers.Consumers can be harmed or may experience damages and losses from the product purchased. Defects and mistakes may come unnoticed by the manufacturers. Such flaws can place the consumers at risk. Negligence can be claimed by consumers to anybody involved in the production of goods which has caused personal injury or damage to his property.Claims from any of the risks which has affected the health and safety of the consumer can place the business owners at a financial loss when not protected by product liability insurance. Consumer complaints can totally close the business establishment or can disable the market of goods ending up in a financial disaster for the producers concerned. It can ruin a developing business. Such a wreck can affect the operation of the whole business.To prevent any business misfortunes, it is a good idea to seek the assistance from legal advisers as to what insurances to purchase. Lawyers will surely know the type of liability insurance needed to protect the business from consumer grievances. Through this, one will be able to know and choose the right insurance company that will be a good partner in the defense of any legal claims.Insurances may cost much but it will give great assistance in unpredictable situations in the future. It is a good defensive strategy from any customer complaints and thus maintains a good reputation in the business world.