Monday, September 1, 2008

Potential of a Business

I asked the following question at a forum some hours ago:

"Would you work at a job that pays $100 a day for the rest of your life, or start an Internet business that pays $0.01 a day but increases by 1% every day?"

Most people will choose the job. Imagine, one penny as opposed to ten thousand pennies! That's ten thousand times. Who in their right minds will choose the Internet business that pays 1 cent a day?

I opened a spreadsheet and did a calculation as to the expected income for the Internet business in the coming years. The results were rather surprising:

Year 0 $ 0.01 per day $ 0.30 per month
Year 1 $ 0.37 per day $ 11.10 per month
Year 2 $ 14.13 per day $ 423.90 per month
Year 3 $534.05 per day $16021.50 per month

After 3 years, you have an income of about $16000 per month. And that's from a starting point of 30 cents per month.

Of course, there is a lot more to a business than that. You still have to choose the right business for you, do the right things for your business, etc.

But I just want to illustrate the potential of a business, online or otherwise.