Going Into Business

With the recession biting deep into everyone's bank accounts many people are turning to internet marketing to try to earn a few extra dollars to help out. Sadly, many of those people will not only not earn money, they will actually lose money.

MLM, Email Marketing, Internet Marketing and online businesses have a bad reputation because of their failure rate. In some cases that reputation is deserved but in many cases these online businesses are genuine and anyone thinking of going into an online business needs to do plenty of research before they commit their time and money to it.

The biggest problem with many of these businesses is the unrealistic promises made by the gurus promoting them. If someone knocked on your front door and told you that if you give them $20 they will double your money and keep doubling your money forever what would you do? You would laugh in their face and probably slam the door. Why is it then when someone makes that same outrageous off online people actually believe it. These are the people who lose their money.

Before starting any business, online or a bricks and mortar store, you need to consider the statistics regarding small business failure rates. It is estimated that one third of all new bricks and mortar small businesses will fail. The estimated failure rate for online businesses is much higher. It is believed to be as a ninety percent failure rate.

So how do you protect yourself against this? If you are buying a bricks and mortar small business you must talk to you accountant and get him do a business plan which should tell you whether this business will be viable or not.

With an online business it is a bit harder. Look at how much competition you have. Do not put more money in that you are prepared to lose. Be aware that any business requires work and commitment. If someone is telling you to give them your money and then sit back and relax and wait for the money to roll in there is a very good chance that you will never make more than a few cents at best.

Going into any business has its risks and the best you can ever hope to do is minimize your risks. There are never any guarantees in anything so my best advice to you is to remember the old saying "buyer beware" and know exactly what you are getting into before you commit yourself.