For a lot of people, the inertia to start something is definitely humongous (including me). That is why it is very important that we must select the problem carefully, if we do not do that, we would tend to face challenges that may give the new venture an early death. For those (especially those who have not started any business before) who are keen on online business, there are many key factors to consider.

However, there are three key criteria that are so important that ignoring them would definitely mean we are going to loose money on the venture. The first criteria is Burn Rate.By Burn Rate, it means we have to first established how much we need to start the business AND maintain the business.It is very easy to be swayed by the nice words of the sales letter.

After being wooed, we must be calm and think through the whole process.

a. How much it would cost you to start the business. There are many No Money Down products, take serious look at them.

b. How much it would cost you to continue to operate the business per month. This is critical because you have to grow the business for a period of time before you can really see some return on investment or break even situation.

For people that are new for business, this is critical because chances are you are going to fumble, stand up again, try new avenues, hit some rocks, explore new angle, do it a few rounds before you can see some traction (result). During this period, you have to pay for everything. If you do not know how much you need to sustain the business, you may end up not able to continue after putting in so much effort and resources.

What a pity! So, in a nutshell, always think through in how much money can you afford to try out new ventures and how long are you willing to sustain the business even if the return is not yet break even.Chances are it will take a few months before you can find the niche and formula, therefore, the lower the Burn Rate, the longer you can last!Note: This is the first part of the three part series, for part two and part three, you will receive email from us if you are our subscriber.