This article is about how businesses have evolved. Formerly and still today, owning a traditional business is a luxury for most people. Now, in the new economy, virtually anyone can start a business, but anyone who understands what the new economy is.
A traditional business consists of making a large investment in buying a premises (or fixed expenses for rent), another large investment in the products or services to be offered, payroll of employees, fixed expenses in electricity, telephone and other services, and large investments in advertising.
A new economy business is about taking advantage of what a traditional business is already doing, and with vastly less risk and investment. Now why should this be real? What is the point of a company that takes risks giving someone the opportunity to start a business at their expense?
Simple. Advertising and Intermediaries. These two factors make up about 80% of the cost of a product. If a company wants to increase its profits by raising prices, it takes the risk that it will be too expensive for the end customer. But there is something even worse, which is that advertising does not guarantee anything, since traditional advertising is by interruption, that is, it appears suddenly. It is comical when a person is watching television and changes the commercials, wasting the large investments that traditional companies have made.
What type of business do you have in mind?
