Why Multi Million Dollar Online Business Failed?
How does a web company grow to the point that it can become worth millions of dollars? Furthermore, how is it that the same web company can not turn a profit in spite of the millions of dollars in stock that are in ownership? For years, investors have struggled to make sense of the same concept in the non Internet world. With web businesses and their overhead being even smaller than traditional brick and mortar businesses, it becomes even more of a mystery as to how this can occur. If you are thinking about taking your web business public, and you are under the misconception that millions of dollars in stock will equal millions of dollars in profit, think again. Here are some common ways that a business can still lose money in spite of having this key advantage: Unable to cut expenses Even in the web world you are going to have overhead. As the need for storage and transfer rates increase, you may find yourself unprepared for the financial obligations. With a down economy, such as the ...