The emotions that surge through your body when you decide to launch a business are intense. Apart from excitement, you’re also scared and apprehensive about making financial progress for your online startup business.
After all 90% of all startups will fail within the first five years according to Santa Cruz Works. The average cost for startups today is $30,000 in 2024.
Still, you think, and you should do that your business can be part of the 10%. You can be an entrepreneur that beats the odds, making the idea even sweeter. In theory, the concept is straightforward – make money. In practice, it’s incredibly difficult.
Here are the reasons why financial progress is a challenge. If you want to succeed, you’ll have to overcome the following for your online startup business.
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Saving Money Isn’t Sexy
Small and medium size enterprises and startups require more money than most businesses. Unfortunately, you have fewer resources to go around as you’re in the beginning stages of your lifecycle and aren’t yet breaking even.
As a result, you’ve got to save as much as possible for a rainy day. They say it can take up to 5 years in a new business to make money.
Then, if the worst-case scenario happens, you should be able to cover your company’s expenses. No matter how logical the argument is, businesses just don’t save because the feeling isn’t as good.
When you spend, you’ll experience a sensation that you want to repeat, which is why it’s easy to rack up debt.
The Game Is Rigged For Online Startups?
Rigged might be a loaded word, yet there’s no doubt that the odds aren’t in your favor. Banks can print money out of thin air, but you have to invest your soul into turning over pennies.
Then, everything you earn is taxable, and if you don’t pay, the IRS will hit you with a huge fine. From the outset, you need to know that money doesn’t grow on trees.
You must work hard, you must pay your dues, and you just hope that you get lucky. I always tell people that you have to invest time or money, there is no getting around it especially for online startup businesses.
You Ask For Too Much Too Soon
Of course, you can’t blame everything on the system. How you act will play a significant role in your ability to succeed, and it starts with setting the right goals.
Anybody can decide that they want the company to go international within five years, but getting there is the issue.
If you can’t, you’ll soon begin to lose faith in the process. When this happens, your passion and motivation will recede and your chances will take another hit.
Reach for the stars, by all means, but remember that you need to stack up wins, regardless of how small.
The End Point Is Far Away for Your Online Startup
Even when your targets are reasonable and reachable, it can take five years for them to manifest. During this time, it’s tempting to stray from the path and put your business in jeopardy.
Whether it’s boredom or ambition, spending money needlessly is very simple as technology is new and shiny and software programs always appear as if they have a miracle cure. (Especially if you are doing digital ads.)
Conclusion: Making Money For Your Online Startup Business
It takes patience and determination to see your business goals become your reality finally from your online startup.
Check out a few ways to generate a side income while you are growing your new online business.
Do you agree? What do you find the hardest part of making money as a business owner starting out? I’d love to know more in the comments below.