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I have been involved in ecommerce since 1999 and I have come to believe that having too much money to start your new ebusiness can be a bad thing.

1. You become wasteful of your time and money.

My father always says the more money you have then the more money you waste and this is even more true in business finance than personal finance. If you have a limited budget then you watch every dollar carefully and expect it to pull its weight. The more carefully you weigh your expenditures the more likely they are really worth the money.

2. You are more likely to get sucked in by "turn key" scams

The old saying goes that a fool and his money are soon parted and this is especially true on the internet. If you have money to invest in your business you are more susceptible to turn key and multi-level marketing scams. If the business is so profitable then why are these folks selling shares in it?

3. You will waste money on advertising packages

Yes, advertising is an important part of your business startup and growth, but just because you have the ability to afford large, costly advertising programs does not mean those are going to bring in enough sales to justify the expense. Start small, hone your message, and target your audience and you'll have a lot more success than simply throwing money at advertising. After testing to find what works you can justify the big ticket ad programs and reap the rewards.

Also a great deal of the most effective internet marketing techniques are free or low cost. Having a limited budget means you will be more creative and individual.

4. You will prepay for services

There is nothing more tempting when you have the money than to prepay for services. After all you'll save money in the long run because the monthly cost often goes down when you prepay. But change is the only constant on the internet and just because this service (web host for example) suits your needs perfectly and delivers as promised this month does not guarantee it will do so the next. If you have prepaid for a year's worth of web hosting and need to change you'll likely lose that money. Prepaying your mortgage is a good idea but prepaying your internet services is not.

5. You will throw money away on goods and services you don't need

I pay all my ebusiness bills with my PayPal account and I don't buy anything related to my ebusiness with any other payment method. I rarely keep much more money in this account than necessary to cover the regular expenses I expect (such as web hosting). I cannot tell you how much money I have saved over the years because I didn't have the ability to make an impulse purchase. Many times by the time I had more money in the account and I took a second look at the product that had so excited me the day or week before I realized I didn't really need it or want it.