Woman. Radio DJ, web designer, music lover. Love a good read, a movie that makes me think, a song that's been really worked on. Can't stand mediocrity and I try to run from it as fast as I can.
Keep an eye on that budget!
Web business August 7th, 2008Whenever people talk about business they talk about a business plan. Where you put down on paper all your expectations, the budget and how you think your business will grow. And most of the time you stick by it. Time passes and from being almost broke you start earning. A little at first, and then more each month.
Sure, you have that budget, but there are so many nice things you’d like to purchase (internet related, we’re not talking that Mercedes you have your eyes on .. or even that car, it’s still money spent), so many scripts/designs/hosting/advertising campaigns you think you need.
As I have mentioned before we do need to spend money to be able to also earn something, this is how business works, but sometimes we might get into another problem, spending too much.
I started very low too. 6 years ago spending 10 USD for a domain or 3 for a monthly hosting was impossible. I just didn’t have the money for my hobby, so I had to work on free everything. Some years passed and I started spending money. I wasn’t earning too much, but there were already few Adsense checks and I could dream of my future online empire.
As the revenue started to increse, so my ideas. I would search for a very cheap or even free script to run forums/directories/auction sites etc., now I have no problems with spending 180 USD on a vBulletin or 100 USD for a Wordpress skin I really liked.
And it’s NOT OK.
I do overspend. It’s true that all these scripts do help a lot and after some months those sites will get a nice PR and traffic and would earn me money. I invest in them and will collect revenue in just few months. But still sometimes I realize I could go slower. Focus on what I already have (an over 30 site network) and improve content/advertising options etc. and also find ways to monetize better) and keep my spending to a minimum.
As we speak I have ideas for 3 more sites. This would mean at least 400 USD on scripts, but right now I said NO. I will try to set a budget (was never good with planning) and try to have few months with minimum expenses (domain renewals and hosting only) and try to increase the profit. Otherwise I might hinder my growth just because I am a shopping maniac.
How do you handle this? Do you have such a problem?
August 14th, 2008 at 3:44 pm
I think people forget that they have to run an online business like an offline business for it to have any chance at success. Spot on.
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August 28th, 2008 at 3:50 pm
I think the problem with the online business new generation owners is that there spending too much money on there sites, and should focus more on building there own websites themselves instead of buying scripts and hiring people to do there work.
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