The dollar amount really does not matter...
Over the last decade, I have spoken to people on the phone, who have come to me at the end of their rope...
I have heard of people spending 5k, 10k, 20k, 50k and 100k to build their online business, then by the time they are knocking on my door, they have no money remaining, and revenue from their investment is still non-existent.
Regardless of the dollar amount, I would advise people not to spend all or most of their money building a website.
It is a myth when people say, "Build it and they will come..." It was a movie catch-phrase, before it became an Internet myth...
I would advise that once a website is built, the majority of available revenues should be reserved for marketing the site... Marketing itself should never be an afterthought, but rather it should be planned from the beginning....
Regardless of the dollar amount available, I would advise spending no more than 25% of available money to create and build the website!! In fact, with most dollar amounts available, I would advise spending far less than 25% of your available investment money to build the website.
From the get-go, one needs to build the website, then market the website. But one should always keep the majority of their investment capital in liquid cash assets.
I admit. I am a tightwad. So, regardless of the money I had available to start a new business, I would be very careful about the money I did spend to develop a new project.
For the experienced folks in the audience, what would you advise a newbie to do if they have dreams of making it big online?
What percentage of any available investment would you set aside for each part of your new business?
What percentage of your money would you set aside for:
- Website design and development?
- List Building?
- Rainy Day savings?
I suspect that this discussion could provide a lot of "food for thought" for those with money to invest, who are looking for some good advice from those of us who have been there before...
My best advice is to not use all of your budget to build your website, in fact, only use a small portion of what you have set aside to build your website.
Also, keep your spending low enough so that you will always have cash-in-reserve.
But just as important, count your marketing expenditures in reference to ROI (Return On Investment) to gain a better understanding of what expenditures provide the greatest return for your business and what investments are a money-pit.