I started my first try at owning an internet business selling information products 3 years ago. Sadly, i had to call it quits 1.5 years into the making since i (a) ran out of money to spend, (b) earned negative despite investing at least $8,000 into the business.
I have learnt lots of lessons regarding my failure and at the same time brushed up on my knowledge of internet business models. Over the last 1.5 years, i have devoted myself to learning the ins and outs not only of internet business, but also marketing, sales in general.
I do not regret the money that i have spent since i have gained lots of knowledge that i plan to use in the future. I know that many people out there will say that it is useless to gain knowledge but again i have to reiterate that i WILL USE this knowledge in the future.
Top 5 Lessons I Learnt:
1) Do not start a business JUST to earn money. Your business needs a mission to survive. One of the reasons i failed was that my primary focus was to make money, lots of it.I had been sold the newbie's get rich quick dream of sipping pina coladas at the beach.
2) I needed a mentor to succeed, someone to guide me and encourage me along the way. I tried to go all the way all by myself and that was the fatal mistake.
3) I spent too much time learning the wrong, misleading things sold by the wrong people, and too little time spent listening to learning the things that would benefit me.
4) You only need to make it once, and you would already have beaten the 95% failure rate of internet entrepreneurs. In other words, i realised i should have taken my time and not taken too much action at a time when i had very little CORRECT knowledge on how to run an internet business
5) I needed to build ASSETS online, assets that give me traffic or earn money for me. I went down the road of paying for traffic, not google adwords or anything like that but media buying (cheap and expensive). I lacked the skills to convert, my product was not good and before i knew it i was out of cashflow=out of business
I am planning to start another internet business, this time focused on building an authority blog and an asset that i can capitalise on for social proof and credibility.
I am planning to use free traffic methods to promote the blog and possibly monetize it through my own product.
However, i do not know the potential pitfalls of the intended business venture i have.
1) Capital Needed before i start earning money ( even though i am relying on free traffic, i believe that to be on the safe side i need at least $100,000 to be safe, $200,000 to be comfortable even though i might only be investing 10-30% of it.
2) Amount of time i need to invest (should i do it part time with a job or full time and quit the job?)
3) Blind-spots that i might have missed out on
Thanks for any constructive inputs:-)