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How to Become a Dot Com Millionaire (Part 2)
The news is full of bright young things earning instant fortunes from the Internet. Virtual businesses are not just the domain of the young. In the second of this 2-part article, James Barrington of Netsghtuk.com shows you how to join the growing ranks of successful e-entrepreneurs and get wired for success.
Technology
This stage is the most expensive part of the process. You will need programs to ensure your specific functions will work seamlessly and return the results you require in the way you expect. Because something has not been done before, does not mean it is not technically possible. As long as it is cost effective to write a program to fulfil the need, then this can go toward providing some of your unique market positioning. The golden rule is to keep things as simple as possible for the user to move around. The crucial point to note is, to achieve success, there must be a demand for your service in the physical world and you need to demonstrate how you will make sustainable profits. Without this solid foundation, no amount of fancy technology will make your site successful or raise the investment you require to make it happen.
Think Big
Remembering your worldwide audience, it is wise to think as large as possible when designing a high growth Internet venture. Whilst you can cater for localised areas, it is vital that your programs are capable of serving a worldwide client base should the need arise. In order to grow and expand, you will naturally require the potential to enter new markets and attract new clients. Designing for a worldwide client base is infinitely cheaper than designing a small program and then redesigning the entire website as the business expands. Standardise your functions and administrative systems wherever possible. Think very big indeed and you will find yourself in the running for success! The Internet is only limited by your own ambition,
Raising the Money
Technology businesses are about risk and risk does not come cheap. A single program can cost upwards of £100k and hardware can cost an equal amount. The message here is that you should not risk what you cannot afford to lose. It is often better to own 25% of a venture generating huge profits than 100% of a venture that will fail due to lack of adequate working capital and finance.
The answer here is to attract the attention of investors and expertise with a mixture of cash and share stock in your
venture. Finance can be raised from Business Angels or specialist venture capital firms; however most will be looking for an equity stake and the existence of a strong management team. If the idea of being answerable to someone else scares you, then sell the working model, programs and strategies to the highest bidder and exit with the cash.
If the idea excites you, then make sure you have adequate legal and financial advisors to represent your interests. Many will work on an "At Risk" basis providing the venture is soundly based and viable. If you managed to attract the attention of a good Internet Consultant, you may well be ahead of the game by having existing contacts and networks within which to work. If not, release a controlled prospectus containing just the exciting points about the project and circulate it to the top Venture Capital and Accountancy organisations. Make sure they all sign a Confidentiality Agreement prior to releasing your full business plan and showing them your working models.
In summary, the majority of successful dot-com companies do not happen by accident. Rather they are the result of painstaking research and planning by its owners. There are two ways to make a fortune from the Internet. One is to sell the plans and project models to someone who can implement them, and the other is to raise the capital and float the company on the Stock Market.
Whilst the latter is obviously the route to vast wealth and fame, in reality, most people will probably be happy with making the odd million or two by selling their concepts and models to the highest bidder. This really all depends on your own financial circumstances and business goals. If the goal is to make a lot of money, then it does not really matter which route you take as long as they take you closer to your destination and you eventually arrive.
The Internet offers the potential to make you serious money quickly in an open marketplace, however the road is paved with hard work, meticulous planning and attention to detail. Do this and you will eventually arrive and be listed in the ranks of successful dot-com millionaires, preferably with the cash in the bank to prove it.
About the Author
Jim Barrington is the founder and Managing Director of The Barrington Group, The ASB and Netsightuk.com an Internet strategy and design company.
E-Mail:- James.Barrington@btinternet.com
URL:- http://www.netsightuk.com
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| Reg Hardware: Product News and Gadget Reviews from The Register |
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