Barriers of Entry

I first saw this article on USNews.com on Friday March 20th. “How to Start a Small Business Now”

This article sums up what my business mentor and his mentors have been saying for a long time. One of the largest barriers to entry when starting your own business is cost. The cost to start a traditional business could be several hundred thousand up to several million dollars especially if you are thinking about starting a popluar franchise. My father-in-law is the vice president of a charter motorcoach company and for them to create another stream of income it requires the purchase a new motorcoach which is approximately $500,000 plus insurance. One of the upsides to Network/Affiliate Marketing is the fact that they have a small barrier of entry, and the risk is typically $100 or less.

It’s a fact that 4 in every 5 traditional businesses will fail within the first 5 years. When you put up several hundred thousand dollars for 5 separate business, 4 of them are guaranteed to fail. You can say good-bye to your million plus dollars in startup capital.

One last thought to leave you with, with Network/Affliate Marketing companies you can typically recoupe your initial investment within the first 30-90 days, if you follow the direction of your mentors. It is important to make sure that the business you choose to start has a great training program, and a mentor that will help guide you though the first 30-90 days and beyond. Be sure you are setting yourself up for success and not failure.