Starting a small business on your own? Wondering if traditional brick and mortar business is the way to go? If you are on the verge of starting your own business, you should be aware of these 3 deadly facts about traditional business! 1.
High Start up Capital You will need to raise substantial amount of capital before you can start a traditional small business.
And raising capital is not an easy task! Getting a loan from bank takes a tedious procedure especially when you are a newbie in the business scene.
Inviting investors to your business needs a very strong convincing business proposal! 2.
Big Amount Invested = High Risk You will need to pay expensive rental, hire at least a couple of staff and pay your supplier in advance.
Sometimes, you might even need to pay costly remodel fees or buy pricey equipments or furniture.
As a result, your overhead cost also increase.
Consequently, you will face a higher risk because of the bigger amount invested in your business.
3.
Low Return If you compare with online business, you rate of return is definitely much lower.
You will need to invest more money and effort in order to make the same amount of return.
In other words, you are less effective and efficient using traditional business model.
So, if you are ready to starting a small business with some partners or on your own, think twice before you make the decision.
Online business model is highly leveraged than traditional ones.
As a result, you work less and make more money that way!