Home Based Business/Brick and Mortar Business Start up Cost Comparison
By
The Astounding Difference in ARI (Average Return on Investment)
A great concern for many entrepreneurs looking to begin their business ventures is the initial start up cost and the fear of not having a return on their investment. What many entrepreneurs do not have an understanding of is the ability to know what the ARI (Average Return on Investment) will be on a home based business compared to a traditional brick and mortar business.
To the average entrepreneur, looking for the right business can be like looking for a needle in a haystack. How can someone differentiate between what avenue to take when choosing a business, whether home based or brick and mortar business, when there are so many options available?
Commonsense would be to choose the one that will provide the greatest amount of profit, or ARI. Unfortunately, many in the initial start up process commonly overlook the comparison between the time of return on investment and the initial cost of investment. This is the main reason why many brick and mortar businesses file for bankruptcy within their first 5-10 years of operation.
Let us look at a comparison between the home based business cost of initial start up and a traditional brick and mortar business.
Average Start up Costs:
- Online Business – $30.00 to $2,000.00
- Brick and Mortar – $50-100k to $1M and up
Average Business Costs:
- Online Business – Computer, Cell Phone, Software, Internet
- Brick and Mortar – Building Rent, Insurance, Employee Expenses, Equipment, Costs of Operation
The Average Time for Return on Investment:
- Online Business – average 6-12 months
- Brick and Mortar – average 3-5 years
View and actual start up cost calculator at http://www.homebiztools.com/startup.htm.
Taking charge of your finances is crucial for the future of the business you so choose. Nevertheless, not having an understanding of what the actual costs will be in either a home based business or a brick or mortar business without a doubt will determine the commitment you will need to have, the amount of investment you will need and the success you will have in your business.
As an entrepreneur, I had to make this very same decision when the choice of becoming an entrepreneur came clear to me in the venture of reaching my financial goal. For many that have this very same goal of becoming financially independent, the fear of failure in business keeps them from taking the next step.
Fortunately, the decision to choose a home based online marketing business in a top tier opportunity has been the best decision I have personally made. The results of my efforts have been enjoyed by not only myself but by my family as well in which life has become enjoyable compared to the previous outlook of stress, debt, and overworked in a traditional employment opportunity.
To learn more about me and how you can also be part of my team, click here.
To Your Business Ventures,
Nice article…really makes you think.
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