Understanding The Philosophy And Economics Of Online Business Opportunities
Many different business opportunities can be found on the Internet. An online business will allow you to work from home and can be a useful supplement to your income. However, take care if you think that making a fortune from the Internet will be easy.
The truth is that a large number of people will have a go at developing a business based on the Internet but very few of them will ever become rich from it. This is because any business requires an input of resources that is proportional to the profit that it can generate. Take the example of a retail clothes shop where you might expect to earn perhaps 10 percent on any money you invest into the business. When bank investment interest rates are only 5 percent you would consider it worth investing your capital in a retail outlet in order to make an extra margin on your money.
When property prices are on the rise, any investments made can allow your money to work for you giving a 10 to 20 percent return every year if you are fortunate.
Why then do business seekers expect to start up an Internet business with little capital from home and expect to make huge profits within weeks? No business can do that. It is certainly the case that some can make bigger than expected returns - sometimes called 'super profits' - but only for a limited period. These are generally new ideas and an early entrant can make larger returns before newcomers increase the completion and profits fall to those expected for a mature market.
Although e-commerce and Internet Marketing continue to be a growth industry, the market place is relatively mature and there are a large number of participants. There are no super profits to be made on the Internet using current methods. Newcomers to Internet business are often disillusioned for this reason.
However, it is possible to make money from the Internet. Forget the chance of easy riches and treat the business properly. Your major investment will likely be your time, so the amount of time you can put in will be reflected in your results. Growing with you business you will learn how to invest to multiply your profits, in the same way as investing in any business wisely will create returns.
Finally, once you appreciated that time, effort and resources must be applied to any business in order to make money, do not forget also that the business must be run well, costs monitored carefully and wastage avoided. Putting all these together will give you a sporting chance for success.
About the Author
Mark Jenner is a Fellow of the Institute of Chartered Accountants in England and Wales, a Certified Fraud Examiner and has a Masters Degree in Fraud Management. He advises on small business opportunities and working from home. His web site gives free advice and articles on starting a new business =>
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