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  Post #1 (permalink)   06-17-2005, 09:27 PM
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Are you making money OR building a business?

There is a difference, in fact, most people don't recognize the difference between these two. You will suffer for this lack of knowledge and understanding.

Let me give you an example to fully understand what i'm trying to get at:

Suppose you have done extensive research, purchased all the necessary utilitys (dedicated server, web design, billing system, customer support, etc.) You finally get your website and everything running properly -- all excited -- ready to get your new business going. It gives you a great feeling to finally take the first step into making your dream become into a visual reality. This excitement continues and mounts bigger day after day.

You get so totally absorbed into your new business that you start forgetting about your normal, daily life. Your wife/husband calls you to dinner and you say, "In a minute." or you have your friends calling you and find yourself making excuses not to go out. After several weeks of this behavior your friends and family start to feel very neglected, angry, sad none the less. In an effort to reach you they might ask, "How's your business doing?" You'll probably respond "It's doing wonderful, i've really made some improvements!" But the next question out of their mouths will be, "How much money are you making?"

That is a question that immediately STOMPS your entrepreneurial excitement and shuts down your ego. Since you haven't made any huge profits, you'll have to swallow you pride and tell them you haven't made much yet, but your working on it.

Anyways....enough with the dialog I think you all get the point.

In time it will come

Now whether you have set a business plan for your self or not, you have placed an invisible goal for yourself. You now believe that in order for you to prove to the world that your business is NOT a failure -- you have to show them cash flow, or CASH IN HAND..

Making money and building a business are two DIFFERENT things -- especially when you are just starting to build your company. Most web hosts fail because of this, they see no real cash flow coming in, and they immediately think to themselves that they are a failure and they need to get out before they fall into debt any further...WRONG.

For instance, when Sears bought out K-Mart they lost quite a bit of money. In years to come they will have huge profit gains, more then either company would have made alone -- it was worth the 1 year loss. Look at the webhosting industry more as an investment, similar to the stock market, rather then a business. Sure you take huge risks, but if you give it time, you can gain huge rewards.

Plan Ahead

I know these are not words you want to hear, not many people want to hear this. But..don't give up! Keep a part time job until you get off your feet, lay out a strong business plan, and keep yourself secured financially for at least 6 months before you start out...your business will succeed if you put in the effort. You can make your goals a reality, and when that question comes again...jaws will drop, heads will turn.


Good Luck!
 
 
 


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  Post #2 (permalink)   06-18-2005, 12:25 AM
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Quote:
Originally Posted by TB Rich
[b]You can make your goals a reality, and when that question comes again...jaws will drop, heads will turn.
It is a great motivational post, Rich. I also strongly believe that building business is a bit different than grabbing whatever cash you make and run for cover. When you build a business, you build your platform for long-term profitability and many hosts with lack of business sense and education usually do not see it, that is why so many don't make good money, and eventually go out of business.

Best,
 
 
 


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  Post #3 (permalink)   06-18-2005, 03:09 AM
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Great inspirational speach Rich!

It makes me remember.. There is also a saying that goes like "Are you working on your business or are you working in your business?". These are different things as well, and even some experienced business owners fail to see that they're not focusing on the right aspect of things.
 
 
 


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  Post #4 (permalink)   06-18-2005, 01:42 PM
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I'd like to think that I'm building my business - making money is obviously a by-product of the experience. However, money comes and goes and without a stable foundation, infrastructure, and organization, the churn and spark is sure to go.

Five years ago I was running a small hosting company from an apartment in Austin and Dallas - but I was more profitable then than I am right now (with more than two dozen working under me). Talk about building a foundation... :-D

Roj
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  Post #5 (permalink)   08-11-2005, 08:20 PM
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Good Advice!

I find that many days I lose the site of the dream that I have started to build. Eighty hour weeks. Revenues being reinvested and nothing to show for it in cash. The family always asks How much has Biz Hosting Network brought in so far? Well nothing. They look down at you as if you’re worthless. It is all right though because I have a dream and it will come true by the hard work.
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  Post #6 (permalink)   08-11-2005, 11:01 PM
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I truly believe that you cannot make money without building your business. Any money you make along the way is superficial. The real money comes after you have built your foundation and reputation.
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  Post #7 (permalink)   08-17-2005, 08:02 PM
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Mark,

I could not agree with you more. And, I am assuming that you have done this already? If you have please tell your story about it.
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  Post #8 (permalink)   08-17-2005, 10:00 PM
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Well I like to think our company is always growing. I feel that we have strong foundation however, that we have built over the years. That foundation makes our growth, creativity, and stability a lot easier, efficient, and effective.

While I could tell a story of our long ride, I doubt anyone really wants to hear it. One day though maybe.
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  Post #9 (permalink)   08-18-2005, 09:47 PM
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Mark,

If your willing to share please e-mail me. I am interested to hear how others started out.
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  Post #10 (permalink)   12-31-2005, 08:39 AM
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I agree with Mark too, good point
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  Post #11 (permalink)   06-27-2006, 12:12 AM
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I'm buidling a business. You got to have a business before you can make money
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