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Business Owner Looking To Change Business? Enter The Information Age
Changing businesses is much like a career change for a business owner. While an entrepreneur can continue to be an entrepreneur, changing businesses or industries is often difficult. With the introduction of the information age many new entrepreneurs found an emerging field using the power of the internet.
But what about the business owners who started and built a traditional business sometimes over a decade or even several decades. Changing businesses can be a difficult task and even overwhelming for any entrepreneur. Some businesses become obsolete, these are the ones that more easily accept change as the only alternative.
But what about when a business is still bringing in strong earnings and appears healthy? Many entrepreneurs find themselves hiding or even stuck behind a robust income stream that barely turns out a six-figure profit. Success or perceived success can create an attractive place in the local community and many business people find it unfathomable to give up the prestigious relationship they have developed through years of hard work and strategic planning.
The information age has ushered in and supercharged business models that can deliver a whole new breed of results. With much lower fixed expenses and variable expenses automated to a large degree, information age business models with revenues of as little as two or three hundred thousand can out-perform their counterparts with revenues of two to three million.
Business owners looking to change businesses in 2008 and beyond will likely do so to take advantage of better cash flow and a much higher profit. The traditional brick and mortar business world thought it was acceptable to sacrifice profit for improved cash flow and the Information Age business sector seems to want to take both back. If cash is king, then profitability is queen and the information age is the most sought after kingdom for the businessperson looking to change careers in the business arena today.
Using real estate as an example we can see how the power of the Internet, the information age and popularity of the home based business industry in the last two years is completely changing the face of business and investing. Say you bought five houses for $100,000 each and rented them out and they each cash flowed about $600 a month. You’d make thirty-six thousand dollars a year right? ( For illustrative purposes) So to summarize, you invested half a million dollars and are earning about three thousand dollars a month in passive income right? Well, if you’ve ever rented real estate, you know it’s not passive and never has been, but still, you get the picture.
Now say you have information that is worth three or four hundred dollars. This information will either need to save someone a significant amount of time or over four hundred dollars. Think about information you have now that would add value. Now say you sold that four hundred dollar piece of information for fifty dollars. You create an e-book or create one, then get a ten dollar domain and free hosting and start telling people about your information. If you sell two of those books a day, anywhere in the world you’ve done your real estate for less than two hundred dollars a month.
This is just to prove a point and is hypothetical money can be made in real estate in a passive way, but the information age offers more wealth access and smart business owners see this and it gives them that entrepreneurial itch for a change.
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