What Is A Cash Cow?
If you hang around the business world long enough, you will eventually hear the term cash cow come up. This is a phrase that worked its way into Internet marketing as well. In this article we want to look at the question, what is a cash cow ?, and why that could be important to you as a home business owner.
One definition of a cash cow is that it is a moneymaker and or a project that generates a continuous flow of money. Another one would be a it is aa product or a business unit that generates unusually high profit margins.
Many people that first start out with a home business have a goal of someday quitting their job. They're not sure exactly how they're going to get to that, but they do know that they need to start generating profit originally from their home business.
Sadly, many home business owners turn into nothing more than people who work at home. They trade time for wages and that they very rarely earn a decent hourly rate.
One reason for this is that they are not operating a home business as a real business. The other thing is they are not really offering products that give them the best chance to make a profitable business.
A couple of other things are important when it comes to succeeding with your own home business. Those two things would be having a mentor that can personally work with you, and having a system in place that anyone can follow to be successful.
This is harder than it sounds because there are many so-called mentors on the Internet who are really not helpful. The reason they are not helpful is because they are teaching theory as opposed to actual practical experience.
The other thing is there are so many different ways to market a product and make Money on the Internet that it's tough to boil it down to one system. However for a home business to be a real cash cow it must have a system that can become self-sustaining eventually.
It will be important that whatever home business you choose, you are able to profitably advertise it on the Internet. It will also be important that you learn as many free, or almost free, ways to do this until you have money coming and can reinvest it back in your business.
In conclusion, this should give you some ideas about what is a cash cow, and how that can apply to you. When running your own home business finding the right business, mentor, and system, all come into play.