It doesn't matter how great your product is or how ... ... if you don't have ... all you have is a skill, ora product. People don't go into business normally as a ... It doesn't matter how great your product is or how wonderful yourservice, if you don't have customers, all you have is a skill, ora product. People don't go into business normally as a hobby,although a lot of hobbies do turn into a business. The trickhowever, is to turn it into a positive cash flow.If you're serious about doing business, you must plan for thelong run. Successful businesses don't normally just happen.They are the result of long hours of planning, and a great dealof work.There must also be a "war chest" of funds available until apositive cash flow is achieved. One of the major problems thatmany encounter when starting up, is that they overextend theirfinancial resources. No matter what your business, or how it isrun, you must be able to meet current bills when they come due.The "dot.coms" which were started on such a wave of exuberance,had plenty of cash behind them. They dealt in promises of hugeearnings, which however never materialized. Now, the majority ofthem have joined the history books as "also rans". While they didhave the backing, sales at the level they needed just didn'thappen at a rate to sustain them.The pundits will argue that the economy is what brought themdown. They violated however, one of the basic rules of business.They overextended themselves, to the point that their cash inflowwasn't enough to cover their expenses. When their "war chest"was depleted, they were gone. How does this affect the smallentrepreneur? Can we learn a lesson from this?Let's examine a program that the average person can get into.Network Marketing is the current "buzzword" for Multi-LevelMarketing, or MLM for short. MLM got a bad rap over the past sixor seven years, due to the scamsters that abounded. A number ofcompanies were founded that were simply "Ponzies" in disguise.The majority of their cash inflow was the result of signing upnew members. When the cash flow from new recruits dried up, sodid the investment of those who had joined.Are there legitimate companies out there - sure and many have agreat track record. They don't rely on attracting high pricedrecruits, but have a legitimate product or service that theyoffer. If you are going to get involved in one of thesecompanies, that should be a major concern.So - assuming you found such a company, it is time to investigatethe feasibility of you going into business with them. Theyprovide the product or service, and you must set yourself up inbusiness. Here is where the cash flow comes into play.Can you afford the monthly amount you pay them? Can you affordto promote your relationship with this business without immediateincome? If the answer to either question is "no", you'd be welladvised to reconsider.If the answer is "yes", how are you going to promote it? Mostcompanies recommend you exhaust your "warm market" first. Your"warm market" is your circle of family and friends that you mightconvince to join in with you. Eventually however, you are goingto exhaust this market and must start seeking people outside thatcircle.One way to attract new people is in the online arena. While thiswill not replace the "face to face" contact that is necessary, ifit is done correctly, it can add a valuable source of additionalincome.Many people make the mistake of using a web site supplied bytheir company. While this can be a valuable tool, it really tiesyou into their product. If you get your own site, you can use itto highlight your offerings. It is of course necessary toadvertise your web site, and ezines and newsletters usually giveyou the best return on your investment. With a modest investmenton your part, you can realize a decent return.Usually, for less than a few hundred dollars, you can get a website and advertise in ezines targeted to your potential market.Most people can afford this without counting on their cash intaketo cover the expenses. Determine what you can spend out ofpocket to make something like this work. Then, as your cash flowimproves, expand your advertising to include a broader market.While this is a modest start, it doesn't put you in the positionwhere you must realize income to make expenses. Above all bepatient and realize it will take time and effort to realize yourgoals. Article Tags: Cash Flow Source: Free Articles from ArticlesFactory.com