Are you making money OR building a business?
There is a difference, in fact, most people don't recognize the difference between these two. You will suffer for this lack of knowledge and understanding.
Let me give you an example to fully understand what i'm trying to get at:
Suppose you have done extensive research, purchased all the necessary utilitys (dedicated server, web design, billing system, customer support, etc.) You finally get your website and everything running properly -- all excited -- ready to get your new business going. It gives you a great feeling to finally take the first step into making your dream become into a visual reality. This excitement continues and mounts bigger day after day.
You get so totally absorbed into your new business that you start forgetting about your normal, daily life. Your wife/husband calls you to dinner and you say, "In a minute." or you have your friends calling you and find yourself making excuses not to go out. After several weeks of this behavior your friends and family start to feel very neglected, angry, sad none the less. In an effort to reach you they might ask, "How's your business doing?" You'll probably respond "It's doing wonderful, i've really made some improvements!" But the next question out of their mouths will be, "How much money are you making?"
That is a question that immediately STOMPS your entrepreneurial excitement and shuts down your ego. Since you haven't made any huge profits, you'll have to swallow you pride and tell them you haven't made much yet, but your working on it.
Anyways....enough with the dialog I think you all get the point.
In time it will come
Now whether you have set a business plan for your self or not, you have placed an invisible goal for yourself. You now believe that in order for you to prove to the world that your business is NOT a failure -- you have to show them cash flow, or CASH IN HAND..
Making money and building a business are two DIFFERENT things -- especially when you are just starting to build your company. Most web hosts fail because of this, they see no real cash flow coming in, and they immediately think to themselves that they are a failure and they need to get out before they fall into debt any further...WRONG.
For instance, when Sears bought out K-Mart they lost quite a bit of money. In years to come they will have huge profit gains, more then either company would have made alone -- it was worth the 1 year loss. Look at the webhosting industry more as an investment, similar to the stock market, rather then a business. Sure you take huge risks, but if you give it time, you can gain huge rewards.
Plan Ahead
I know these are not words you want to hear, not many people want to hear this. But..don't give up! Keep a part time job until you get off your feet, lay out a strong business plan, and keep yourself secured financially for at least 6 months before you start out...your business will succeed if you put in the effort. You can make your goals a reality, and when that question comes again...jaws will drop, heads will turn.
Good Luck!
There is a difference, in fact, most people don't recognize the difference between these two. You will suffer for this lack of knowledge and understanding.
Let me give you an example to fully understand what i'm trying to get at:
Suppose you have done extensive research, purchased all the necessary utilitys (dedicated server, web design, billing system, customer support, etc.) You finally get your website and everything running properly -- all excited -- ready to get your new business going. It gives you a great feeling to finally take the first step into making your dream become into a visual reality. This excitement continues and mounts bigger day after day.
You get so totally absorbed into your new business that you start forgetting about your normal, daily life. Your wife/husband calls you to dinner and you say, "In a minute." or you have your friends calling you and find yourself making excuses not to go out. After several weeks of this behavior your friends and family start to feel very neglected, angry, sad none the less. In an effort to reach you they might ask, "How's your business doing?" You'll probably respond "It's doing wonderful, i've really made some improvements!" But the next question out of their mouths will be, "How much money are you making?"
That is a question that immediately STOMPS your entrepreneurial excitement and shuts down your ego. Since you haven't made any huge profits, you'll have to swallow you pride and tell them you haven't made much yet, but your working on it.
Anyways....enough with the dialog I think you all get the point.
In time it will come
Now whether you have set a business plan for your self or not, you have placed an invisible goal for yourself. You now believe that in order for you to prove to the world that your business is NOT a failure -- you have to show them cash flow, or CASH IN HAND..
Making money and building a business are two DIFFERENT things -- especially when you are just starting to build your company. Most web hosts fail because of this, they see no real cash flow coming in, and they immediately think to themselves that they are a failure and they need to get out before they fall into debt any further...WRONG.
For instance, when Sears bought out K-Mart they lost quite a bit of money. In years to come they will have huge profit gains, more then either company would have made alone -- it was worth the 1 year loss. Look at the webhosting industry more as an investment, similar to the stock market, rather then a business. Sure you take huge risks, but if you give it time, you can gain huge rewards.
Plan Ahead
I know these are not words you want to hear, not many people want to hear this. But..don't give up! Keep a part time job until you get off your feet, lay out a strong business plan, and keep yourself secured financially for at least 6 months before you start out...your business will succeed if you put in the effort. You can make your goals a reality, and when that question comes again...jaws will drop, heads will turn.
Good Luck!
