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Sunday, March 29, 2009

Earning money online spend money but don't risk your time

The golden rule of any online business is that you can not spend more than a few dollars to start.

"But you can risk your time not your money."

The reason is very simple, even it appears to be a good business, and there is always a risk that the business will not work out. In this case you lost your time, but will likely have learned a valuable experience that can serve you when you try your next online business.

If you only spend a little money, in case of failure, you will have no problem in trying a new online business. Furthermore, by not having your money invested, you'll have much more flexibility for your next online business.

On the other hand, if you put all your savings into your business and things do not work as you thought, you can quickly be in a very uncomfortable situation. After having invested significant capital into your business, you lose any flexibility, and often have to continue putting more money in the business in the hope of not losing what you have already put in and you can end up losing all your money and debts. Whether in life or in business, you should never take unnecessary risks.

You can do business online without spending much money, so it's not worth risking your life savings.

You might wonder why I speak of failure when I intend to show you how to start a successful business online.

The answer is very simple, I want to be honest, even though it appears to be a good business, there are always risks of failure and it can often happen in events outside your control (economic, legislative or political changes, natural disasters ...). Therefore, in general it's much better to be cautious and always invest the little capital upfront, so if it does not work out as expected, you can close the deal and start a new one.

A business that has high fixed costs is very difficult to return. In addition, you run the risk of losses if revenues fail to cover fixed costs. Not counting that there is a high probability when you're done working you will have to pay the expenses or the salaries of others, and at the end of the day you will have little to nothing for yourself.

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