In the digital age, stories of young entrepreneurs amassing wealth through online ventures are commonplace. However, the realm of virtual businesses is not exclusive to the youth. In this second installment of our two-part series, we delve into the strategies that can help you join the ranks of successful e-entrepreneurs. James Barrington of Netsightuk.com shares insights on how to harness technology, think big, and secure funding to set you on the path to success.
The technological aspect of your venture is likely to be the most costly. It's crucial to invest in programs that ensure your specific functions operate smoothly and yield the desired results. Just because something hasn't been done before doesn't mean it's technically impossible. If it's cost-effective to develop a program to meet a need, it can contribute to your unique market positioning.
The key is to keep the user experience as simple as possible. To achieve success, there must be a demand for your service in the physical world, and you need to demonstrate how you will generate sustainable profits. Without this solid foundation, no amount of advanced technology will make your site successful or attract the investment you need.
Given the global reach of the internet, it's wise to think big when designing a high-growth online venture. While you can cater to localized areas, your programs should be capable of serving a worldwide client base if the need arises. Designing for a global audience from the outset is more cost-effective than redesigning your entire website as your business expands. Standardize your functions and administrative systems wherever possible. The internet's potential is only limited by your ambition.
Technology businesses are inherently risky, and risk doesn't come cheap. A single program can cost upwards of £100k, and hardware can cost just as much. The key takeaway is not to risk more than you can afford to lose. It's often more beneficial to own a smaller percentage of a highly profitable venture than to own all of a venture that fails due to insufficient capital.
Attracting investors and expertise requires a blend of cash and share stock in your venture. Funding can be sourced from Business Angels or specialist venture capital firms, but most will want an equity stake and a strong management team. If the thought of being accountable to others is daunting, consider selling the working model, programs, and strategies to the highest bidder.
Ensure you have competent legal and financial advisors to represent your interests. Many will work on an "At Risk" basis if the venture is sound and viable. If you've managed to attract a good Internet Consultant, you may already have valuable contacts and networks. If not, release a controlled prospectus highlighting the exciting aspects of the project to top Venture Capital and Accountancy organizations. Ensure they sign a Confidentiality Agreement before you share your full business plan and working models.
In conclusion, successful dot-com companies are typically the result of thorough research and planning. There are two main ways to amass wealth from the internet: selling plans and project models to someone who can implement them, or raising capital and taking the company public.
While the latter can lead to immense wealth and fame, most people would likely be content with earning a few million by selling their concepts and models to the highest bidder. Your financial circumstances and business goals will dictate your path. The internet provides the potential to earn substantial money quickly in an open marketplace, but it requires hard work, meticulous planning, and attention to detail. Follow these steps, and you could find yourself among the ranks of successful dot-com millionaires, with the bank balance to prove it.
