Why I Never Invest In Small Internet Businesses

Why I Never Invest In Small Internet Businesses

When I first started out buying websites I decided to dip my toe in the water and simply invest in small internet business. After all, why start making website investing even riskier for myself by forking over large chunks of cash from the get go?

Little did I know that I would eventually learn that to invest in small internet business isn’t something I wanted to be apart of my website investing strategy.

Of course everybody has a different investment strategy and approach to investing which is a good thing. Although by sharing with you why I don’t like to invest in small internet businesses may just help you to understand the difference in buying smaller websites as apposed to larger websites.

The main reasons I don’t like to invest in smaller websites is because smaller websites are so much more work. The reasons they are a lot more work is simply because the business is less established as apposed to a larger website.

On the other hand, sure it may be good to start off smaller by dipping your toes in the water as I did. However, by doing this you not only take on more work than if you were to invest in a larger more established website. But on top of the workload you acquire, you too earn a smaller return when purchasing a smaller website.

The good thing about investing in small internet businesses to begin with though, is that you do learn a lot by jumping in the ‘deep end’ should I say. Making it a great learning curve where you can build your confidence to save more capital or sell your first website business and buy something a little bigger.

By doing this it can allow you to work less and earn more which is essentially why we are investing in the first place right?

The other major reason I don’t like to invest in small internet businesses is because the less established the business is, the harder it is to predict what the future of the business may look like. There are two reasons for this. One being that because the business (generally) isn’t as old, where it doesn’t have a track record of it’s previous years in business to follow and use for future predictions.

The second reason is that the business being so young and still quite small has not yet established a place in the market. Meaning that the business has not gained much of an authority or trust from many customers or clients as it has only just started working with them. This makes things harder for the business because depending on how fierce the competition is can depend on what the future of the business is up against.

I must admit it did take me a little longer to understand that to invest in smaller internet businesses would mean taking all of these aspects on board. Which as a positive, I did start to see the positives of investing in larger internet businesses as apposed to the smaller ones.

As I said before though, each strategy has its pros and cons and depending on what you want to do is up to you. For example, you may find a great small internet businesses with huge potential which you could turn around and build into something extraordinary.

Or if you are like me you may want to skip a whole lot of hard work and buy a larger business that has already got a great history behind it and only needs a few slight modifications to have it performing far better. By doing so you can acquire yourself something that allows for less work and more passive income.

Either way you choose to invest in websites you can make it work for you. But the two choices you have will be to take one more work and less passive income initially. Or it could be handing over a larger chunk of cash whilst earning a more comfortable pay check each month.

The cool thing about either approach is you can learn the pros and cons from it and adapt your approach for the next investment you choose to make. After all this whole investing in websites thing is a learning experience because the market and knowledge in it is ever changing.

My suggestion for you is to start by writing down your goals and what you want to achieve from website investing. Then you can start adapting your goals into a website investment strategy or plan before you go hunting for an investment that may not be best for you.
 

 

 

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