It is cheaper to start a web firm today
If you are thinking of launching an Internet start up, you don`t even need initial
capital to get going. What you need is a unique and clear idea of how to improve
an essential service. Today cost technology is so low that it`s cheaper to launch
an Internet venture than any other business. Think of creating an internet utility
that people will use every day to save money, save time, make a living, or reduce
effort. If you get it right, your customers will find you via word-of-mouth. For
such a utility service, the cost of acquiring and serviceing every new customer
tends to be zero, while the marginal revenue per unit remains constant. As your
customer base grows, so do your profits. As long as your profits are greater than
your fixed costs, you can keep building you team and keep growing.
If your are sustainable and hit upon a growth formula that can help you dominate
the market, then you don`t under-fund your venture for the sake of bootstrapping.
This is the precise moment when outside capital works becomes your best friend,
other than lady luck, of course. Regards. 20161023.
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