Starting a business is risky but starting online is not. Let’s demystify the risks involved in starting business online with blogging as an example.
You may have heard this – Starting a business is risky quite often but the important question is do you believe in it?
I don’t give a damn to statements like
Starting an online business is risky. Trading in Market is risky.
But can you find a situation in life without risk? Even crossing the street is super risky.
Let me tell you a story I read a couple of years back in some magazine and so I will not be able to quote any reference. The story is related to the economic crisis in 2008 where many people have committed suicide.
It was about a couple who both were working in a leading software company in the US (or probably the UK) and they committed suicide. Both husband and wife were drawing more than 100k monthly salary jointly six months before they committed suicide. In few months’ 100k monthly income put them in so much financial crisis that they opted to commit suicide.
Getting on the lighter note I also remember a joke from India.
An Indian visits a girl’s place for a marriage proposal. Typical Indian arrange marriage scenario. Girl’s father inquired about the profession of the guy. He was an owner of a software company. The marriage proposal was rejected by parents because the guy was not doing a job.
A few days later the girl is married to some other guy. This second guy is actually doing a job in the same company as the first person who was rejected because he was not doing a job.
Misconception about Jobs
The misconception is if you are doing a business you are taking a risk but if you are doing a job you are more secured but the reality in the misconception is if you are not making the decision you assume it to be always right. As an employee
- You are betting on somebody else’s decision each time, every time and assume he will make the right decision.
- You have all your eggs in one basket. What if your boss fires you on any given day? It is quite unlikely that you can lose all of the clients at once.
What if my greatest money maker is gone? I will still be making 66% of what I am making today. See here if you want to know why I will still make 66%.
Yes, Jobs are less risky if you can get a Government job in India where you waste your time doing nothing for others and still get paid for.
All of it isn’t to influence you to quit the job but the idea is to make a move by preparing for the worst and hoping for the best.
You don’t need to quit your job today because you want to be a business person but what you should be doing is probably what I did and the way I did.
Challenges Change Over Time
I started online in 2004 but I took a lot more time to learn things because the information was not that readily available at that time. I had to learn the hard way of experimenting things and understand what works and what not. I have tried things like ad typing jobs and data entry jobs to see if they worked. As of today, we have lot more information readily available to understand what works and what not. Yes, there are different challenges these days i.e. overload of information and that is the biggest challenge these days.
The time when I started there was very little trustworthy information available related to creating blogs/forums. Even Darren Rowse aka Problogger.net was very new to blogging but today you can find few great eBooks on Blogging only from Darren Rowse and he is one among the many few geniuses who can teach you about how to make a living online blogging.
Understanding Blogging Risks as of Today
Let us understand with an example how risky an online blogging business actually is?
Let us say you are passionate about a niche and you can write high-quality articles in this niche (How to Find the Right Niche for Blogging). So let us calculate the risk for your passion assuming you are doing a job and so you can only dedicate 10 hours per week only to your blog.
So you will need a domain and a host. I recommend these hosts but you can get started with any hosting of your choice and it will cost you roughly $60 per year or $180 for 3 years.
So, for next three years, your outflow would be maximum of $180 and so financially you can lose a maximum of $180 only or rather if you break down in Indian rupees, it will be roughly 10,000 Rs in 3 years which is less than 10 Rs per day.
Yes if you are dedicated to your work for 5 to 10 hours per week you may even lose the hard work you put in for 3 years. I am saying you lose hours of hard work but actually, you are not losing hours of hard work but gaining hours of experience per week that you put on your blog. I know many college students in India are more than happy to pay 35,000 INR for industry exposure and experience but no one would prefer setting up a business with the same money.
Strange isn’t it?
You ask anybody here in India – join XYZ course which will teach you blah blah blah and pay $180 and they will think about it but you tell them to set up an online business for the same amount and the answer would be NO I don’t have time for it. I know many people personally who have preferred coaching classes over a blog.
Now coming back to the blog we set up with an investment of $180.
You are working 10 hours per week. It means you can easily write 3-4 articles per week but let us only assume 2 articles per week because when starting out you may not be as good as getting the articles out as when you become experience.
If you start with 2 articles per week you can easily add 10-25 readers on an average per day to your blog and this means 10,000 blog readers in 2 years of your blogging experimentation. Now, this blog can actually generate a lot of money because you have added value to your readers for 2 long years and in the process learned the art of blogging the practical way. The amount of money you will make depends on the niche but for our example of Gadgets, it will be a lot higher than many other niches.
So now coming back to the original question from where we started – Is starting a business is risky? But now you know how to answer this weird question and maybe you don’t believe in the question anymore.
So let me ask you a new question. Can you now afford this risk to experiment a business online?
My answer would be – If you cannot afford to take this risk you don’t deserve to be doing business online.
Share your thoughts in comments below.
Further Reading …