How to make extra money
avoiding get rich quick (GRQ) schemes and working hard...
In this section we're going to talk about how to make extra money. Until now we have talked about the financial planning process as a whole. Therefore is time to cover some areas with more detail.
As you know one of the first considerations you should make is how you can increase your income. This is because frequently decreasing your expenses isn't enough.
To make it short: you can't make extra money or getting rich quick without a huge risk. That's a basic principle of finances: greater returns imply greater risks thus you can lose everything. What if the risks seems to be low or under control? Well, the people who is showing you "the opportunity" wasn't investing time trying to convince you, thus they need you or your money, so probably is a scam.
Having said that let's focus on how to make extra money the real way, by working hard. There's no other way by the way.
In our last section (opens a new window) we shared with you a guide to develop business plans. In my work as part of a venture capital firm I've seen lots of projects being rejected for different reasons like:
- The entrepreneur doesn't have enough experience.
- The product or service is not focused in the costumer's needs and wants.
- The entrepreneur lacks of leadership or has nothing to convince that his/her idea works and can't build a solid team work.
- There's no market research and the entrepreneur doesn't have money or simply don't know how to make one.
- The entrepreneur has no segmented the market to find the niche that is going to be worked.
- The entrepreneur believes his project is unique and there's no competition.
- The project has a weak marketing strategy.
- The project needs a lot of money and the entrepreneur has almost nothing to contribute or put at risk (except ideas).
- The project has limited growth potential.
- The project's return on investment is below the expectative of venture capitalists. A high expectative by the way which is fair if you consider the involved risks.
Tough selection, right? These aspects are very important for venture capitalists and should be for entrepreneurs too. That without mention you should also have a mentor.
If you forget to consider any variable like market, competition, expertise, etc. you won't make extra money but lose your money. The market is a hard teacher. Of course, investors won't be interested. I made some of those mistakes as I mention in our About Us and You page.
But what if you have the expertise, think your idea can work and have enough potential to make extra money but you don't have the resources to develop all the necessary steps a business plan requires?
Well, let's review a preliminary article about what best small businesses have in common with successful big businesses.
Fortunately we live in the internet era and many of the steps required to plan a business can be executed thanks to the information availability on the net. Ok, but how could you get that information, organize it, plan it and make extra money?
There are a lot of services and firms that can help you to perform the different tasks you have to do but I found one practical and cost-efficient solution for entrepreneurs that want to start their business, take advantage of the internet potential and without having to be techies.
The solution I found is Site Build It! (SBI!) and was created by Ken Evoy an entrepreneur who developed a simple yet effective methodology to build a successful business using the internet: the C-T-P-M methodology, more on this latter.
If you want to see how entrepreneurs with very, very different businesses, skills and passions are using successfully this methodology, watch these entrepreneur success stories. I'll be waiting...
Ready? Ok, let's move on...
How it works and how can you make extra money?
I've researched and tried some online and offline business opportunities, I made many mistakes but only after learn what it takes to create a business I understood the reasons why I failed.
In a few words, SBI! works because takes into account the different angles a business have, for instance: market research, competition, marketing, etc. I've reached to that conclusion because I made an analysis of SBI! from the business planning perspective according to the McKinsey methodology to plan businesses. This analysis is what we're going to share with you in this section. Let's start:
Product or service
Probably you've faced the disjunctive of how can I earn money? But if you haven't yet, believe me: you will. Read this article and find the right answer for you. I'll be waiting for you...
Ready? Let's move on...
Now let's learn a little about the basic entrepreneur business ideas you can focus on and brief 101 small business opportunity explanations. Dont' miss these articles they are important!
Ok, now that you understand the basics, let's talk about some new opportunities to make extra money that are available thanks to the internet potential. Have you considered...
SBI! opens these kinds of opportunities and many others too.
After read all the above articles you'll learn the basic criteria that will help you choose the best way to earn money.
In the online world you'll need an internet serious business team. Let's talk about how SBI! helps in this area too.
The basic economic law of supply and demand is of course present in the online world and must be considered in any marketing plan of starting small businesses that want to make extra money.
Additionally, you have to consider: market segmentation, find your niche, know your client's needs and wants, and a special strategy to reach your customers. In the article: small business ecommerce tools we're going to talk about it.
To finish this part, we're going to talk about how to create a marketing strategy to start small businesses.
Business system and organization
Building an online business is different from an offline environment. You'll need to understand these differences to act accordingly.
Therefore, to earn money on internet you'll need a business system that recognizes these differences. Let's talk about it in this article.
You have to understand that a business and make extra money takes time and the benefits aren't immediately. Therefore, if you're starting a small internet business, SBI! has developed a do-able realization schedule.
If you're going to make extra money (a return) there's a risk(s) associated right? Any business has risks and they depend on the characteristics, activities of the business itself. Nor SBI! nor other solution can guarantee you to eliminate all the involved risks. You have to be alert to identify risks and take action to minimize them.
Any business requires funds to work and many entrepreneurs have difficulties when they try to seek funding. The internet opens the door to many low cost business opportunities with a good profit potential.
Real case studies and comparisons
Of course, I wouldn't be convinced of SBI! if I weren't saw legitimate online businesses created with this tool. You shouldn't either so, please check by yourself in this article.
Ok, I know what you're thinking: why SBI!? why not simply apply the lessons learned until now (i.e. C-T-P-M) for free (i.e. with a free hosting account)? or just start blogging?
I made myself the same questions and I found useful to compare small business hosting solutions like Yahoo! and 1&1 with SBI! There's a huge difference.
In the case of blogs, I found this article: "Blog or Build" very clarifying about why you should start a business with a website and not just simply a blog.
Improve your personal finances! Take Action!
If you have more doubts about how to become an internet entrepreneur, this article offers some additional resources to clarify ideas and help you take action toward your goals and dreams.
Phew! We've learned a lot in this section. We saw that passion, good planning and the right tools can really improve your personal finances your lifestyle and your family's welfare.
We really hope you're an active learner and you're applying what we are sharing with you because you need to take action to make extra money and of course reach your goals and dreams.
Ok, let's move forward. Just use the links below to get back to the home page and go to the next section.
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