Starting a business - things to consider...
I've been talking to various friends, and I'm constantly reading blogs about people out of work, and thinking of starting up their own business... As someone who's started a couple of businesses, I don't claim to know everything, but I've learned a thing over two either directly, or through observations of clients I have worked with...
First of all, for most people, money doesn't just fall into peoples laps - if it did, humans would have all just evolved giant laps to catch all of the money, and we'd all be happy... Most people that get money have to be smart, hardworking, and/or lucky (and combinations of these are a bonus)...
It's one thing to gather stats on how many people use / benefit from a free service, but how many people will actually PAY for that service... I wanted to look around for a good example, and came across an excellent example, SorceForge... It's been around for 5 years, has gobs of users, provides a truly valuable service... How much money did they actually collect? Well, looking at the supporter log, we can see that of the bazillion source forge users (who, many have been using the service for years...), 55 made contributions in July (and publicized it...) ... No idea how much the contributions are for, or how many weren't publicized, but if 100 people total made donations, someone needing $3500 / month would have needed the average donation to be $35... And if they were incurring expenses (I suspect SourceForge doesn't just run itself, it's got hardware / software / additional labor expenses / etc...), and the SF people were counting just on these donations, they'd be in a world of trouble...
Think that the guy running the corner store is raking in dough? We'd all be running corner stores if that was the case ... He has competition, he has margins, he has expenses, he probably works over 16 hours a day, he's probably just getting by... If he's driving a Mercedes, it would be thanks to years and years of hard work, struggling to make ends meet.
Think about everyone you interact with in a day... How many stores do you walk by, without going in? Going in and not buying anything?
All business plans should be realistic and include not just what you think you can get, but also a worst case scenario, and a plan for what happens if that were to occur...
I remember talking with a friend last year, who had a nice little severance package, and was starting a business (with a great idea, clear idea of who his customers were, and why they needed the product)... One of the phrases that came out of the mouth of either himself or his wife was something to the effect that he'll just work 20 hours a week, and make as much money as he did as a salaried employee, if not more... My wife was with me, and immediately looked at me, giving me a "just wait..." look in her eyes... His business is now starting to do well... but he's lucky to be home by midnight most days...
I'm not saying that starting a business is impossible - millions of people do it, and many of them succeed... I'm just saying to be prepared to put in some effort, and be prepared to handle many of the crap jobs that need to be handled at a new / growing business...