Do large businesses have a significant advantage over small businesses purely by the fact that they have a larger marketing budget? Is it possible for a small business to compete with a larger company within the same market?
I once met a guy who called himself a real estate investor. He attended three different real estate networking meetings each week. He bought every course from every speaker who came to town. He spent hours looking at buildings and pouring over the local listings. He knew SO MUCH about real estate investing. But he never bought a building. He never even bought an option to buy a building. He had a bad case of The Odyssey Online paralysis.
Company A financed their growth with extremely high debt compared to company B (11.3 times financial leverage on an average yearly basis compared to 2.2 times). A deeper analysis of Company A revealed that the initial 19.1 times financial leverage was not sustainable and the company then sold equity to finance growth and bring the debt ratio down. This proved not to be enough and finally the high debt levels came back to haunt them. In contrast Company B used less debt and they almost halved their financial leverage over the period. They are today extremely liquid and solvent.
I will focus on two types of trading, swing trading and position trading. Swing trading is being in a position anywhere from 2-20 days. It is a quick way to make consistent money.
As if you are starting as a reseller host you don’t require much investment. In financial plan you have to keep record if incoming and outgoing cash so you can keep an eye on what you are earning? And how you have to spend it? Keeping in mind all these factors you can develop an efficient financial plan.
Entrepreneurship generally means you are going to have to take some risks and you can’t always calculate the outcome. This is when it becomes really important to be clear on your vision for your business and ask yourself, “Is this initiative aligned with my vision?” If the answer is no, then it won’t make sense to spend the time conducting the CBA.
As in the beginning you are starting as a reseller host so you don’t have to worry about many operations. You hosting company will take care of your hardware maintenance and other complicated issues. Also they will provide you 24/7 customer support. In future when you move on to the bigger level, you will require more space and manpower to perform these operations. Depending on the growth of your business you have to define your needs in term of hardware, software and resources to maintain all this setup. List down all the operations you have to perform and how many people are required to perform these operations. In web hosting business you have to maintain your many different client accounts including there web hosting plan and services they are getting.