If you’re like me (and millions of other North Americans), the idea of being your own boss is a pretty attractive thought.
I mean, who doesn’t dream of waking up whenever they’re rested, working on their own schedule, taking time off without asking permission and no longer having a boss breathing down their neck.
The problem is, 95% of new businesses fail, and a big reason for that is because most people who start their own business just end up creating a job for themselves, instead of the kind of business that gives them true freedom.
These Are The 9 Characteristics Of An Ideal Business.
#1. Do What You Love Your ideal business needs to be based around something you’re passionate about. If you don’t love it, and you’re just doing it to make a buck, it won’t last. It’s gotta be something that makes you jump out of bed in the morning or soon enough, the novelty will wear off, and your business will fail.
#2 In Demand Pick a business with high demand. Don’t try to reinvent the wheel. Sure, some renegade entrepreneurs have come out with radical new business ideas that created entire new industries, but they’re the diamonds in the rough. You’ll have way higher chances of success from choosing a business idea that’s in high demand, with competition – because that means there’s lots of people willing to spend money right now.
#3 Be Portable Let’s face it, who wants t be chained to a desk if you can work from a couch, a coffee shop or even a hammock on the beach? Technology today makes it possible to work from virtually anywhere, so why not utilize it?
#4 High Margins You’re in business to make money right? (say yes). So would you rather make a little profit or a lot? A LOT right! Therefore, it makes sense to build your business around products with high profit margins. Not 5%, 10% or 20%, but 80%, 90% or 100%.
#5 Scalability Your new business must be set up from the start with the ability to grow, and ideally grow fast. Ensure you can sell more products to existing customers, add new revenue streams and increase profits right from the start.
#6 Low Start-up Costs Don’t break the bank! Sure, opening a McDonald’s franchise might be a virtual home run, but you’ll need a million dollars just to open the doors. I don’t know about you, but that’s a big investment to make that will take years to recoup. Why not start something for a few thousand, or even a few hundred dollars that gives you the ability to get into profit almost immediately.
#7 Little Or No Staff Dealing with employees sucks. (ask me how I know) Having to let someone go was one of the most stressful things I’ve ever done. Your ideal business should run with little or no staff. Possibly an outsourced assistant or two to help you stay on top of things or handle the tasks you’re not good at, but definitely stay away from having employees, and payroll unless you love losing sleep and dealing with drama.
#8 Low Overhead This is an extension on the previous point, but more about stuff, instead of people. Don’t spend money you don’t need to. Keep your business lean and mean. Even when the money starts rolling in, fight the urge to start spending it on fancy offices, staff and other extravagances. The more money you can keep in your pocket and put away, the better you’ll be able to weather the storms and down cycles (all business have up and down cycles).
#9 Automated Income This one is my favorite. If your business isn’t set up to make you money while you sleep, then it isn’t an ideal business – it’s a JOB (sometimes referred to as Just Over Broke) If your income is determined by how many hours you work, then you’ll never have FREEDOM. It needs to produce income even without your direct involvement.
Your goal in business is a lot like this Spanish Proverb “Health, wealth and the time to enjoy it.”
There you have it. The 9 characteristics of an ideal business. Thankfully, I’ve found a business that checks off all 9 of those characteristics.
If you’re looking for a way to spend more time with the people you love, doing what you want, when you want, where you want, and do it all without having a boss, then check this out.
P.S. Thanks to my mentor Dan Lok for introducing these 9 Characteristics Of An Ideal Business to me in his book FU Money. You can get a free digital copy of his book here.