Thursday, October 12, 2006

Business Startup Plan - 2 For 1

I was visiting one of my favorite sites for entrepreneur information and news this morning and they had a good article on business startups. In particular I enjoyed reading the note about buying an existing company with an existing cash flow. I would like to add a little to this idea.

When I first started out trying to make money with my online and off-line business model, I never would have opted for buying someone's existing web site or blog. I would never have put up money to start my business because I was like most Internet entrepreneurs in that I was a coward. Sounds like a sick comment to say that Internet entrepreneurs are cowards, but let's face it; when your expenses and overhead for startup are only 7 dollars a month (if that) for your web hosting and domain, you aren't taking any risk.

If I had to do it again, I would have considered buying an existing business, but this is how I would do it.
  • I would only buy the business if it came with training
  • I would only buy it if it had a proven and consistent cash flow that I could monitor

On the first bullet I'm getting at the learning curve. The old saying applies to my own experience; "if I knew then what I know now I would be further ahead". If you can arrange to tutored or taught how to run the business as part of the deal for buying the business, you are WAY ahead. As a matter of fact, even if you learned the art of that business and then flipped it back on the market, the education would have been MORE than worth it.

  • in the end, it comes down to your knowledge on how to build a site or blog (or bricks and mortar business)
  • how to maintain traffic flow
  • how to convert that traffic
  • how to choose products and services that convert well
  • how to utilize resources for the lowest possible price
  • how to best utilize resources for the biggest possible gain for all of the above
  • how to choose a business category
  • how to understand the market's vectors
  • how to understand a markets potential
  • how to diversify any business that is up and running
  • how and when to outsource

If I've learned anything since I've been online, it's that the education and knowledge we gain is far more important that than present cash flow of your business. Once you understand how to repeat a successful startup, you can basically print money.

So when you are shopping around for a business model to buy into, get a 2 for 1 deal. You buy only if it comes with expertise they are willing to bring your way.

2 comments:

Dave Origano said...

Hey Kenny,

that's something great you just stated there.

Myself, I'm already past the hurdle of not investing in my business and the tools it needs. However I never thought before about being a business/site that has a good product - to improve it with my skills and marketing.

You gave me a great idea...

Thanks!

-Dave Origano

Kenny said...

Thanks Dave, we aim to please...