Changing businesses is a lot 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 ushering in of the information age many new entrepreneurs found an exiting 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 multiple decades. Changing businesses can be a challenging task and even overwhelming to any entrepreneur. Some businesses become obsolete, these are the ones that easier to accept change as the only alternative.
But what about when a business is still bringing in strong revenues and seems healthy? Many entrepreneurs find themselves hiding or even stuck behind a robust revenue stream that is barely eking out a six figure profit. Success or perceived success can create an attractive spot in the local community and many business owner find it unfathomable to relinquish the prestige rapport they have developed through years of hard work and strategic planning.
The information age has introduced 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 even two or three hundred thousand can out preform their counter parts with revenues of two to three million.
Business owners looking to change businesses in 2008 and beyond will likely be doing so to take advantage of better cash flow and much higher profitability. The traditional brick and mortar business world has deemed acceptable sacrificing profitability for improved cash flow and the Information age business sector is seemingly out to reclaim both back. If cash is king then profitability is queen and the information age is the kingdom most sought after for the business owner 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 couple years completely changes the face of business and investing. Say you bought five houses for 100 thousand dollars each and rented them out and they each cash flowed about 600 dollars per month. You would earn thirty six thousand dollars per year right? ( For illustrative purposes) So to recap, you have invested a half a million dollars and are earning around three thousand dollars a month in passive income right? Well, if you have 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 more than four hundred dollars. Think of information that you have right now that would add value. Now say you sold that four hundred dollar information for fifty bucks. You create an e-book or have one created, 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, any where in the world you have out performed your real estate for under two hundred dollars per month.
This is only to prove a point and it is hypothetical money can be made in real estate in a passive way, but the information age offers a more wealth centered approach and smart business owners are seeing this and it gives them that entrepreneurial itch for change.