{"id":567,"date":"2015-05-14T19:09:32","date_gmt":"2015-05-14T14:09:32","guid":{"rendered":"https:\/\/ahmadawais.com\/?p=567"},"modified":"2015-08-25T17:52:27","modified_gmt":"2015-08-25T12:52:27","slug":"how-much-do-you-invest-being-a-tech-entrepreneur","status":"publish","type":"post","link":"https:\/\/ahmadawais.com\/how-much-do-you-invest-being-a-tech-entrepreneur\/","title":{"rendered":"How Much Do You Invest Being a Tech-Entrepreneur?"},"content":{"rendered":"

I was recently interviewed by a local Tech Magazine<\/a>, they asked me a question\u00a0Can a small online business could also be setup with small investment?<\/strong><\/em>\u00a0I wanted to blog about this topic.<\/p>\n

Answer#<\/a><\/h2>\n

I think the interpretation of investment is generally wrong. There is so much you invest in a business except for money. I like to think of investment in the following way<\/p>\n

Investment#1: Time Investment#<\/a><\/h3>\n

You invest your time in a business. Time is the most precious thing for an entrepreneur; you must always weigh your options by an hourly rate. E.g. In my case one productive hour is worth $85 – $120. Now it is up to me that I am going to have 5 productive hours in a week or 20. I know people who are capable of working\u00a030+ productive hours a\u00a0week.<\/p>\n

The giveaway here is to rate your productive hour and then find out how many productive hours you are going to spend over this business idea.<\/p><\/blockquote>\n

Investment#2: Monetary Investment#<\/a><\/h3>\n

This type of investment is purely about money and I can enlist more than 50 types of online business you can start without major monetary investment. Heck, when I started, total monetary investment\u00a0was about 5,000PKR an year. Which was the cost of domain names and hosting account.<\/p>\n

Investment#3: Psychological Investment#<\/a><\/h3>\n

This is a kind of investment, which no one ever talks about. No one tells you about how much invested you must be to come over psychological issues. Startups, entrepreneurship, ROI, MRR, running your own small business, are the new cool nowadays.<\/p>\n

People like to brag about how they were\u00a0kicked out of a university and how they started calling themselves college drop-outs while the real drop-outs, they should be inspired from were\u00a0those who went to top universities like Harvard, Stanford and left them because their business outgrew before\u00a0completion of their degrees.<\/p>\n

But again, not to mention, I don’t really support the idea of dropping out pre-graduation. Other factors here involve how your friends and family react to this investment, where you choose not to work for an established business or government job and try to build something on your own.<\/p>\n

There is more, but that’s a story for another day!<\/p>\n

Another\u00a0One!#<\/a><\/h2>\n

Another question was What factors do young entrepreneurs must take care of before setting up an online business?<\/p>\n

My response:<\/strong> I think the only way I can answer this question right is by addressing the Risk Factor calculation. If you can calculate the risk factor then you make yourself able enough to validate your step towards entrepreneurship.<\/p>\n

Risk Factor#<\/a><\/h3>\n

If I were to sum up how I calculate the risk factor then here is a simple formula.\u00a0Let\u2019s assume that;<\/p>\n