Why Starting Your Ebusiness With Too Much Money Can Be A Bad
Thing
I have been involved in ecommerce since 1999 and I have come to
believe that having too much money to start your new ebusiness
can be a bad thing.
1. You become wasteful of your time and money.
My father always says the more money you have then the more
money you waste and this is even more true in business finance
than personal finance. If you have a limited budget then you
watch every dollar carefully and expect it to pull its weight.
The more carefully you weigh your expenditures the more likely
they are really worth the money.
2. You are more likely to get sucked in by "turn key" scams
The old saying goes that a fool and his money are soon parted
and this is especially true on the internet. If you have money
to invest in your business you are more susceptible to turn key
and multi-level marketing scams. If the business is so
profitable then why are these folks selling shares in it?
3. You will waste money on advertising packages
Yes, advertising is an important part of your business startup
and growth, but just because you have the ability to afford
large, costly advertising programs does not mean those are going
to bring in enough sales to justify the expense. Start small,
hone your message, and target your audience and you'll have a
lot more success than simply throwing money at advertising.
After testing to find what works you can justify the big ticket
ad programs and reap the rewards.
Also a great deal of the most effective internet marketing
techniques are free or low cost. Having a limited budget means
you will be more creative and individual.
4. You will prepay for services
There is nothing more tempting when you have the money than to
prepay for services. After all you'll save money in the long run
because the monthly cost often goes down when you prepay. But
change is the only constant on the internet and just because
this service (web host for example) suits your needs perfectly
and delivers as promised this month does not guarantee it will
do so the next. If you have prepaid for a year's worth of web
hosting and need to change you'll likely lose that money.
Prepaying your mortgage is a good idea but prepaying your
internet services is not.
5. You will throw money away on goods and services you don't need
I pay all my ebusiness bills with my PayPal account and I don't
buy anything related to my ebusiness with any other payment
method. I rarely keep much more money in this account than
necessary to cover the regular expenses I expect (such as web
hosting). I cannot tell you how much money I have saved over the
years because I didn't have the ability to make an impulse
purchase. Many times by the time I had more money in the account
and I took a second look at the product that had so excited me
the day or week before I realized I didn't really need it or
want it.