Every business has competition
Every business has competition of one sort or another. It might be other blogs or it might be traditional media. If your business grows beyond blogging, then it might simply be other service providers. Competition vies for audience, for revenue, and ultimately for dominance. Even if you scope out a niche very thoroughly and deduce that there is little competition, you can never account for the competition that is sitting in a garage somewhere plotting and planning their strategy for domination. Aside from thorough research, the best defense is to be on guard all the time, to always be looking for ways to be the best, and to think about ways to differentiate your product from your competitors.
Running Out of Capital
The simple reality of business is that in the beginning you will burn through your cash with little or no return. Later in this book, you can read about three case studies from my own experience where you will see that each blog took many months of losses before hitting break even, and that one set is in fact still burning through cash! To combat this you’ll need to make sure you have a reasonable amount of capital to begin with. You’ll also need to look for ways to get some revenue as fast as possible to help slow the losses. You’ll need to constantly evaluate whether you are on the right track, whether you can save money somehow, and how much longer you can last.
No one can control the broader market conditions. At this point in time, blogging looks to be a good bet with lots of growth potential and more and more advertising moving online. Whether this is true, whether it lasts, who knows? The most important thing is to keep your finger on the pulse. Stay up to date with tech blogs, advertising blogs, blogs for bloggers and publishers, and stay informed. If you feel a change in market conditions coming, adjust your business plan to compensate. If you think there are lean times ahead and you are low on capital, pull back on your plans. Conversely, if you think there’s a boom coming in a particular niche, then you might ramp up to take advantage of it.