I’ve recently decided to invest in a new online venture with a friend. We’re building a site with a new service that isn’t out there yet and we think the business model is sustainable. It’s going to be a lot of fun once it’s built and there’s a very high ceiling, who knows where this will take us. We’re not ready to release our idea yet, but stay tuned because it’s a good one!
That being said, there are a LOT of scary things when starting a business, no matter how great of an idea it is. Whenever you are putting money in without knowing the outcome, it makes me nervous! It’s not gambling because I have control over it and it’s not an all-or-nothing type of deal, but I still risk losing everything I put in!
Building a website is the least of our worries. In all, we are spending $640 just to have the site built. This isn’t a blog and since there are features that I haven’t seen elsewhere on the Internet, we are having a site built specifically for us and our new service.
Once the site is built, we will have to drive traffic to the site. While there’s a slight chance this turns into a viral campaign, but since 99.9% of sites aren’t like that, we will have to build from the ground up. We’ll start with friends and family, Facebook, Twitter, etc. But there are only so many free options out there, so we will likely have to pay for traffic at the beginning until word spreads or someone notices us.
Next we have expenses for running our service, which likely have to be paid before we see even a penny. These costs aren’t small and will be coming out of our pockets.
Finally, we will be looking for sponsors for our hip new company. We don’t anticipate it being easy to get people to sign up for an unknown service, we are counting on win-win situations for everyone and possibly to get some of our costs covered at the beginning until we are fully up and running.
In all, we are probably looking at $4,000 – $6,000 in an initial investment. That’s not something I’m entirely comfortable with, and with most of my investments, they are either very small or have little risk of losing it all.
I’m scared as heck to do this, but the pull of starting something original and having a working business is too good of an opportunity to pass up. The upside is high, so while there are some major risks we are taking.
I can’t wait to share the new service with you guys, I think you’ll love it when it comes out!
Readers, do starting businesses scare you? Are the risks too high to justify the investment of time and money?
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